Tag Archive: Altera


“Bulls make money, bears make money, pigs get slaughtered.” – CNBC Mad Money host Jim Cramercramerpigs

Which decision requires more mental gymnastics?

When to buy?

When to sell?

The author of Almost DailyBrett humbly opines that when to sell is the tougher call.

Why?

There are two kinds of remorse: ‘Darn it the stock kept going up after I sold’; and the worse one, ‘I could have sold when the stock was up, but I was a pig … and oh fiddlesticks, now I am selling when the stock is down.’

Yep, there are a lot of potential could-of, would-of, should-of when it comes to selling.

So what should you do in the view of this humble retail investor (read: Charles Schwab account)?

Don’t Fall in Love

“…Sometimes the most obvious question really is the question. In Enron’s case: How do you make money? – Bethany McLean, Fortune Magazine

Preparing to teach Corporate Public Relations/Investor Relations to Central Washington University seniors and a few juniors starting this coming Wednesday, yours truly will pose the same simple question that Fortune’s McLean posed to Enron’s Jeffrey Skilling: “How do you (Enron) make money?”

Communicators need to have elevator pitches at their ready when asked this very same straightforward question about their own employer. The same is true for investors: How does a company make money? If the answer is clear; you like the company; you understand the business strategy; you have done your homework including consulting with your financial advisor, then it may be time to purchase shares of the company stock.bullandbear

This particular company’s stock is now part of your diversified portfolio, which in turn represents a portion of your retirement savings, a child’s college education, that dream vacation etc.

All is good, but when does it make sense to sell?

Buy and hold is a sure loser. Why? At some point, stocks will stop growing. Your invested company certainly will change, and not necessarily for the better. Circumstances may shift and a wave of caca may hit a company or an industry.

Remember the Internet bubble two decades ago? It burst.

Remember the housing bubble a decade ago. It burst.

Don’t fall in love with your securities. Follow your instinct and your plan. When it is time to pull the trigger and unload the stock, then sell the shares.

Have a Plan

“I love the company. I hate the stock.” – Jim Cramer on Tesla (NASDAQ: TSLA)

Okay, it’s time to confess: I fell in love with the Elon Musk Ion-Lithium Battery/Electric Car story at Tesla. Yes, I bought the stock and road it up and down (pardon the pun) and eventually got tired of the downward roller coaster.muskcar

Before I weighed selling, I considered at what average price point did I buy the stock and how low would it have to go before I would sell the stock? It hit that point, and it was time to sell.

Maybe at some future time, it will be low enough to once again purchase the stock, but only when one is convinced the company has a realistic plan for long-term profitability.

The same is true when selling a stock that is going up. Social media stock LinkedIn (NYSE: LNKD) recorded a blow-out quarter and the stock exceeded my prearranged sell price point. As Joseph Kennedy reportedly said: “Never apologize when taking a profit.”

And we should never worry about paying taxes on our profits; profits are taxable.

The point here is to follow your game plan and sell when it’s time. That’s a good thing, really.

What are some other signs that it is time to sell a stock?

  • The Music Stopped: Once upon a time, Intel (e.g., microprocessors), Microsoft (e.g., software operating systems) and Cisco (e.g., Internet routers and switches) were literally rocking and rolling. We couldn’t get enough of these stocks until … the music stopped. The PC is yesterday’s news. The 1990s came and went. It became time to sell and move on.
  • Commoditization: Just like Intel’s microprocessors became a commodity to serve as the brains of social, mobile and cloud, the same is true for all other semiconductors and those that build semiconductor manufacturing equipment and electronic design automation (EDA) software. Intel’s rumored takeover of Altera, similar to Avago’s absorption of LSI Corporation, are more signs of industry consolidation. If you have not sold already, it’s past time.
  • High Volatility: Sometimes an investor can benefit from a highly volatile stock. A perfect example is Salesforce.com (NYSE: CRM). Lost track of how many times, yours truly has bought, sold, bought, sold, bought … this stock. As long as the trend line is consistently up, it’s okay to let go of the shares now and then, only to become reacquainted at a later date.
  • New Management: Tim Cook is proving that there is life at Apple following the ultimate demise of Steve Jobs, but that is the exception not the rule. Companies change. Business plans shift. Circumstances change. Markets explode or implode. Almost DailyBrett has always followed the mantra that if the old boss or new boss is a bosshole, it’s time to pass on the stock or sell the stock. Translated: Stay away from Larry Ellison and Oracle (NASDAQ: ORCL)
  • No Balance Between Fiduciary and Corporate Social Responsibility: The best run publicly traded companies do NOT see “doing well” and “doing good” as being mutually exclusive. Publicly traded companies with their brands under a digital 21st. Century microscope must appreciate their respective brands are trading in the cloud 24/7/365. Worshipping exclusively at the altar of fiduciary responsibility will no longer cut it. If so, it’s time to sell.
  • Caca Happens: Planes land at the wrong airports (e.g., Southwest). Companies name shoes (e.g., Umbro) after the cyanide gas used in Nazi concentration camps. The CEO falls dead in the backseat of a car (e.g., Texas Instruments). Oil wells explode and gush on global video for three months (e.g., BP). Guano hits the fan. This is precisely the reason not to fall in love with any stock.

Sometimes, it is time to say goodbye.

Breaking up is hard to do.

http://www.thestreet.com/story/10292084/1/bulls-bears-make-money-pigs-get-slaughtered.html

http://en.wikipedia.org/wiki/Joseph_P._Kennedy,_Sr.

https://almostdailybrett.wordpress.com/2011/07/21/what-happens-when-the-music-stops/

https://almostdailybrett.wordpress.com/2013/10/06/how-does-a-company-make-money-2/

https://almostdailybrett.wordpress.com/2014/07/18/donate-to-united-way-or-invest-in-tesla/

http://finance.yahoo.com/video/cramers-stop-trading-tesla-motors-135400997.html

https://almostdailybrett.wordpress.com/2014/01/02/farewell-lsi-logic/

https://almostdailybrett.wordpress.com/2011/12/13/fiduciary-responsibility-vs-corporate-social-responsibility/

 

 

 

 

 

 

If all goes well with the regulators and the lawyers, LSI Logic will slowly disappear over the horizon, going into the history books later this year, reduced to a Silicon Valley afterthought. abhi

Keep in mind, we are talking about two iterations of the company: First, the LSI Logic (NYSE: LSI) created by Wilf Corrigan 33 years ago; and second the present day LSI Corporation (NASDAQ: LSI), on the precipice of being ushered into oblivion after eight-short years under the management of Wilf’s successor, Abhi Talwalkar.

There was a misguided celebration by some in the financial community in 2005 when Wilf at 67-years young turned over the reins to Abhi. This was the same Wilf Corrigan, who grew LSI Logic from zero revenues in 1981 to $1.8 billion when he finally hung up the cleats. No one was complaining when LSI Logic’s stock reached a post-split price of $90. Then there was the bursting of the Internet Bubble and the stock fell back to $3.

This is the same Wilf Corrigan that founded the custom semiconductor business, known as ASICs or Application Specific Integrated Circuits. Sony reached out to LSI Logic when it needed a critical processor for the first two generations of the PlayStation. This is the same LSI Logic that pioneered the concept of System on a Chip. The company eventually reached $2.7 billion in revenues before the Bubble Burst. Wilf Corrigan, CEO of LSI Logic

When I was joined the company in 1995, I was awed by the sophistication of the company’s innovation, its library of complex intellectual property cores, and its all-star lineup of future technology C-level executives: John Daane (Altera); Brian Halla (National Semiconductor); Moshe Gavrielov (Xilinx); Jen-Hsun Huang (NVIDIA); Ronnie Vashishta (eASIC) and Bruce Entin (Silicon Valley Communication Partners). Bruce was not only the best boss in my career, but is an even better friend.

Enter Abhi in 2005. He took it from there until last December 16 when Avago Technologies announced its $6.6 billion cash acquisition of LSI. If Winston Churchill was still around to assess Abhi’s eight-year stewardship, he would be tempted to state: “Never in recorded history has so many waited so long for so little.”

Looking back at my 10 years as the director of Corporate Public Relations for at LSI Logic (proper spelling), I was honored and humbled to have the opportunity to work closely with Wilf Corrigan until shortly after he stepped down. I am proud of my tenure, but saddened by what could have been and the upcoming silent burial of LSI Logic.

Let’s face it: Many were downright scared of Wilf. He had the reputation for being a tough, no-nonsense businessman, a calling card he earned from his 1970s chairmanship of Fairchild. For some reason, I was not intimidated, but always respectful. I found Wilf to be extremely well read and not just in the business of technology, but politics, history and geography. Particularly on road trips, we talked for literally hours on these subjects.

An irony of Wilf’s career was Gould’s hostile takeover attempt of Fairchild circa 1979. It didn’t take long for Wilf to realize that Fairchild was in play. In the end, Wilf and the Fairchild Board of Directors found a White Knight in Schlumberger. In turn, Schlumberger drove Fairchild into the ground. The Schlumberger acquisition of Fairchild provided Wilf with the opportunity to create his own company, LSI Logic or Large Scale Integration Logic. And now his creation is being put out of its agony by Avago. Did the company have to end this way?

When it was time for Wilf to step down, LSI Logic HR head Jon Gibson unearthed Abhi from Intel. This was the same Intel that created legends by the names of Andy Grove, Gordon Moore, Robert Noyce and Craig Barrett. Would Abhi do the same for LSI Logic? lsi

Abhi guided the rebranding of LSI (dropping “Logic” from the name) and adopting the “flower” logo. Later LSI acquired Agere Systems for $4 billion, the technology equivalent of Mexico absorbing Guatemala. LSI’s present revenues are $2.5 billion. Why Agere? And for what purpose?

Until the announcement of the Avago acquisition, LSI’s stock remained mired for years at $8 or less. Being charitable, one can easily conclude the company underperformed. And now it will be absorbed into Avago, a company that once was HP’s semiconductor business.

An oft-heard complaint about Wall Street revolves around executive compensation, especially those who walk away with millions even when they underachieve. Abhi ($2.09 million annual salary, not including options) will inevitably get a huge package in recognition of his starring role in driving the company into the abyss. Undoubtedly, he will live a very comfortable life. LSIlogo

And LSI Logic…it will always be LSI Logic to me…deserved a better fate, a much better fate.

http://dealbook.nytimes.com/2013/12/16/avago-to-buy-lsi-for-6-6-billion/?_r=0

http://allthingsd.com/20131216/in-chip-deal-singapores-avago-to-acquire-lsi-for-6-6-billion/

http://www.zacks.com/stock/news/118176/is-the-lsi-acquisition-in-jeopardy

http://www.usatoday.com/story/tech/2013/12/16/avago-lsi-acquisition/4038113/

http://finance.yahoo.com/q/pr?s=LSI+Profile

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