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The Company is a developer and licensor of miniaturization technologies for the electronics industry.
Starboard Value. Tessera seems to fall within their sweet spot; a tech company with a declining core business that they look to augment with additional, new service lines that are unprofitable and generally going up against tech behemoths in areas in which the behemoths are strong. Starboard's play is to figure what additional service lines actually make sense and exploiting them more fully, ceasing the ones that don't and finding a buyer if that makes the most sense for Starboard.
I'm a little late to the party here, but I still think that the activist investor Starboard Value will be able to unlock significant value here.Deej
So why do I like this business?There is the short answer and there is the long answer.The short answer is – This is a nicely growing business with no debt and about 550 Millions in Cash, making more than 50 Millions a year, and selling for 800 Millions.The long answer is, it is more appropriate to look at this business as two different businesses, the Micro-Electronics segment, and the Imaging & Optics segment. We will consider each with assets of about 300 millions. The Micro-Electronics segments is a thriving business. It’s revenues of about 250 M’s, are almost entirely from royalties on its hundreds of patents, regarding the building of micro-electronic chips, present virtually in every computer, smart phone, or tablet in the (growing) market, both in and out of the US.It makes about 150 M a year (operating income) or 100 M Net Income. It continues to develop new technologies for miniature chip packaging, and is likely to continue growing.It has some litigation issues, which, frankly, I understand nothing in. But I do understand that litigation are an inherent part of the intellectual property business, and I have no reason to assume it is going to lose half it’s income.So, I would say this business is worth about 1.5 Billion.The Imaging & Optics business is a start-up company developing technologies mainly for camera-phones. It already has a moderate income of about 30M a year, but it spends a lot (perhaps too much ?) on R&D, resulting in a net loss of about 50 M a year.Now, you may like this start-up company, or you may not like it. It is hard to put a price-tag on it, but I can tell you it ain’t minus one billion… So combine the two businesses together for a price of 800 M, and you have got yourself an excellent deal.
Healthy company. Buying after drop
Lowest price per share since last Sept. Solid customer base, licensing payment issues main reason for devaluation. High outperform rating among all stars, I already have their 2 main competitors in my portfolio.
Tech could pop off the drop.
MFI, 4 stars - good enough for me
Gamble on Mr.Markets reaction to EPS report...http://stockcharts.com/charts/gallery.html?tsra
There were 50 items in your list. Here they are in random order:ELNK - 1USMOTSRA - 2 HRB - 3NSRGMEOSKDLXFWLTPPDCBISOHUIDCCKIRKSOLRCBPOVALUPDLIAPOLENDPIMMULOCSKIAMEDCNUGXDXPRSCDRWIAFAMJCOMCYTKUISIPXLFRXMHPCHKEVPHMRTNCOCOTNDMRGRCHOPAROLHCGUEPSMRXGRMNUNTDTTTEMETimestamp: 2010-07-07 15:55:54 UTC
Good balance sheet, strong metrics and it's waaaay below the 12 month high.
Great earnings once again. I hope this continues to go, it is not at a low, but I believe it will continue up some more. I hope so, as I have June options (22.50) on this.
Who maneuver Wall Street? TSRA's value is not credible if we compare it with the TSRA's news ... and not only
TSRA Semba good outside but inside we'll see how it will be soon: its performance is high volume and low appreciation: what it means ... for God
Top 30 MFI, EV/EBITDA ratio of 3.41 (Yahoo! Finance). Cash and equivalents on balance sheet is $7.83 as of 12/31/09 (41% of the stock price!). I would like to see them either start issuing a small dividend from the royalty income, or put that cash to use by buying some competitors or the startup, LensVector, mentioned in the WSJ article (2/3/10) on autofocus lens inside cell phones.
9 bucks per share in cash, good quarter. Guided down but the street is overreacting here... probably because this is mostly owned by institutions (hedge funds.)
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