Gordon Stein, CFO of CleanTech Lithium, explains why CTL acquired the 23 Laguna Verde licenses. Watch the video here.
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Arm is expanding rapidly. It obtained planning permission for a very large new building on greenbelt. I raised this with someone I know at Arm and to put it in perspective he said there were a lot of smaller offices dotted around Cambridge so it was not all for expansion. I attended a talk about two months ago with Mike Muller, Arm’s CTO. He said at one stage there was an issue with regard to culture in Arm as more than half the staff had been with the company for less than a year. Because of their recent expansion they were beginning to have the same problem again. I asked him about 5G. Verizon is starting to roll this out next year and AT&T is following shortly after. He explained it was essential for the IOT and explained why. I believe 5G will mean a new generation of smart phones. In my view the troubles Apple is having is not as significant for Arm as some of the hooray henrys make out. Their products are overhyped and overpriced and naturally they are suffering at the hands of competition who generally use arm designed processors but also Arm Mali graphics. Apple uses Imagination Technologies for their graphics. A lot of sales of smart phones are in China and the developing world. Simon Segars presented a very positive outlook but to show balance he made an insignificant remark which the analysts seized upon. It is in the analysts’ interests for there to be uncertainty and volatility
There a quite a few org that make contrarian calls serving no other purpose than to accumulate. It stinks but it's true. GS do it a lot as well. As for this I see strong possibility of a run up to 940/950 as shorts close out but with quite a bit of resistance in that area. A leg down after that but by then 830/850 will have been tested many times
Haha! I guess if they knew anything they would be too busy trading to write this stuff eh?!
Hi CM45, Scoop Great idea. I only see them in Building and here. All their predictions have been wrong. I wonder what the performance of shares they recommend is? Mebbe it is a deliberate idea to mislead? A British General stated a long time ago, "The Infantry don't understand their orders, the Cavalry disobey them and the Artillery have their own agenda." For me it is clear their Analysts are not fit for purpose and should have been sacked years ago. Unless they have their own agenda!? Bol
I am thinking of constructing a share portfolio to buy what liberum are panning! They do seem to have lost the plot. They write this garbage with impunity to gain publicity, but the author doesn't get fired when proved wrong down the track. Crazy stuff.
I would like to know what planet this lot are on? Target price £6.50 - Goldman Sachs £15 - the difference just doesn't add up. It didn't take them long to come out with a load of negativity when referring to end of year figures and even picked holes in some of the words used by CEO when being interviewed on Bloomberg. They seem to have a real downer on Arm full stop!!
400p off its high. But let's not get stuck on the semantics of distress. The point is for a buyer that shareholders will accept a lower exit price from 850 than from 1250p. Which is why megadeals often follow a rout.. That's all.
How can a share price be distressed on a P/E ratio of 30 please?
Their sp is distressed just now! And the advantage of vertical integration is to control supply to your core business. Common business strategy.
It's not really their core business is it......and at what point was it agreed ARM were distressed. They have nearly a billion in the bank.
I seem to recall that past market routs have ended when cash rich companies started buying others at distressed prices. What chance Apple using their oseas cashpile to buy ARM? Bit of vertical integration plus diversification now their products are running out of steam seems sweet to me....
I agree with you about the moat. Two good articles in Arm News above, Updt1 and Updt2, worth reading. Q4 results showed 50% phones sold had the latest Arm procs which they expect will become 100% - some moat! Don't think peg of 1.5 is at all unreasonable - if it was over 4.0 I would have some concerns. The new markets they are moving into are additional revenue sources, let alone IoT. Even Liberum were -ve about arm which is a great sign. They keep on predicting the demise of Construction. Bol and thanks for pointing out my error - I thought the Mips issue was all History now - decreased prev Eps so increasing cur EpsG.
A peg of 1.17 with a moat as wide as Arms is cheap. The only thing about 1.5 is that by "justifying " it at 1.5 one is saying that the share price should outperform earnings growth by 1.5 which over a sustained period of time takes some doing. Something has to give eventually. Personally I think IOT will be the next tidal wave and I'm pretty sure ARM will as per the first tech revolution be at the heart of it.
I apologise. Keep forgetting Mips! My numbers are based Coy Refs figures which show Eps Dec-14 as 18.1 which produces EpsG of 66.9%. Arm bought Ip rights of Mips and are writing off that cost over several years, while Coy Refs regard it as a 1 off Cost. Result arm's Eps Dec-14 24.1. Using 24.1 instead of 18.1 Price 899, Eps 30.2, EpsG 25.3, Per 29.7, Peg 1.17 I still think a Just Peg of 1.5 is reasonable so Just Price 899 * 1.5 / 1.17 = 1147 Much less impressive
Nige, where you you get earnings per share growth of 66.9% from please? None of the financials I have looked through today confirm a figure such as yours. If you are going to get into a mips discussion that is fine but there are not two exchanges here there is one ( forget US listing just for now) and the market is taking a different approach to miss to you. It's playing a parallel universe game. As I see it eps went from 24 to 30.2p so the growth is 20% which is still good but it doesn't align to your figures. I understand your calculation method but not the 66% annual eps growth figure. All the best, steak
Buy that man Simon a Cigar...well done ARM on your diversification into servers, the Internet of things and licence deals locked in for the future, fill your boots, it's what I'm aiming to do by borrowing from my wife, my granny, the piggy bank, anywhere! At this lowly price it looks very attractive, thank you day traders and strange sellers.
Price 897, Eps 30.2, EpsG 66.9, Per 29.7, Peg 0.44 Say Just Peg 1.5 then Just Price = 897 * 1.5 / 0.44 = 3058 Off to the forest to whittle spoons!
30.2p eps which was pretty much in line up just under 20% in gbp terms. The Evening Standard was at it again yesterday trashing the company but perhaps they might look to spend time on the numbers today
Totally agree. arm Mrkt Cap arm £13,800 M, img £270 M. arm could buy img with petty cash if it wanted. But arm results out later today so we will see. Bol
ie Just enter Eps and make a spread sheet as follows. Dec-14, Price 995, Eps 18.1, EpsG ??.?, Per 54.9, Peg ??.? - ? no meaning just there for spacing Dec-15, Price 1038, Eps 27.1, EpsG 49.7, Per 38.3, Peg 0.77 - Enter Eps, Calc Per and Peg Feb-16, Price 940, Eps 27.1, EpsG 49.7, Per 34.7, Peg 0.70 - Enter Eps, Calc Per and Peg where Per =Price / Eps, EpsG = (Cur Eps - Prev Eps) / Prev Eps * 100 and Peg = Per / EpsG EpsG is Earnings per share Growth % over the last Year. If any of the above nos/calcs wrong please correct me! Arm is a growth Coy, Eps has increased by an average of about 40% per year over last 5 Years. The average Peg over last 5 Years is about 2.00. Peg is a measure of market sentiment - the more it is over 1.00 the +ve sentiment, under 1.00 -ve. According to Jim Slater any growth Coy with Peg < 1.00 is good value. Justifiable share Price - JSp - Enter Your own Peg - YPeg then JSp = YPeg / 0.70 * 940 where 0.70 is Cur Peg based on Eps you entered and 940 Cur Price. Anyway The number I guessed for Eps 27.1 creating EpsG of 50% while forecast Eps 30.5 so 63.6% EpsG. My point is even if Eps only 27.1 arm is good value. If this makes no sense just ask your 10 Year old Grand daughter to set up the Spread Sheet. Disclaimer All these things work fine in my system but easy to get numbers / calcs wrong in stating them. Can't copy Spread Sheets and Programs here. Big Day - these results could affect Ftse and change the seriously -ve market sentiment! All Imho, Dyor and Bol
SP tends to drop when dividend is paid...don't panic though.
I Tech come out with a **** report and Arm gets hammered down 6% - yet I Tech are only down less than 2% - that's justice for you. Proof will be in the pudding tomorrow - I hope!!
Thanks for the Divi advice, does that generally mean when the divi is paid the share can drop a little or does divi payment not really effect the share price?
Hey your asking a chef for financial advice lol Not much to go on there, but I guess you ask for a quote to buy x number of share will cost 2.8 million, 20 seconds later it could cost 2.9 million as the share price has gone up, just as easily it could cost 2.7 million or less if the share price has gone down. Best advice I can give is speak to a finance adviser at a bank, talk to them about the basics of dealing shares, don't put millions into somthing you don't understand, I invest money I could afford to loose without ruining my life, sure that's hopefully not going to happen. Not sure I answered your question but good luck
Ps Arm Final Results 10/2/15, so you are entitled to the divi on all the shares you own on that day. Ex Div Date and Div Payment Date will be published here (on the RNS above) and their Web site www.arm.co.uk Don't sell before Ex Div Date. Div probably won't be much but I think the share price will fly! Bol