Over the weekend Microsoft announced to the media it would be hosting a ‘major’ announcement after the bell on Monday. The announcement was shrouded in secrecy and across the internet rumors were rampent. As the presentation began Steve Ballmer came on to the stage and started touting Microsoft’s Windows software as the “most flexible software ever created” and that “Windows has exceded our expectations” and now “powers over a billion PCs”. Ballmer goes on to say “with Windows 8, we did not want to leave any seam uncovered. We wanted to give it its own companion innovation.” Then he introduced the new Microsoft Surface tablet PC.
The Microsoft Surface is 9.3mm thick and has a scratch resistant liquid metal case, with a stand built into the device. The presenter touts it as having the best WiFi and briefly connects to Netflix and the movie loads almost immediately. It also has HDMI and the cover has a 3mm touch keyboard attached. The Surface has a 10.6″ HD display and stylus pen that allows the user to write on it using ‘digital ink’. The presenters all call the Surface a PC and were very careful not to call it a ‘tablet’. Click here to read all of Microsoft’s Major Announcements.
GameStop (GME) is a leading retailer of used video games and used video game consoles in the U.S., Canada, Australia and the UK. The company’s stock has taking a significant beating recently along with many other companies in the video game space. There are many reasons why the sector has been so weak and several other names have been hurt as well.
Electronic Arts (EA) has nearly been cut in half over the past six months. Another top player Activision (ATVI) is at the low end of an $11 to $13 six month trading range. However several of the ongoing industry wide factors driving down video game manufacturers and retailers are coming to an end. The end of this cycle and changes in the video game business have created buying opportunity in some of these companies, GameStop specifically has a huge potential upside.
The change in the video game business affecting GameStop the most was the rumor of the Sony (SNE) Playstation 4 being released as a fully online console. While game makers could still make physical disks, once the game was put into the console the player would then have to input a code to activate the game. After the code was successfully entered the game disk would only work on that specific console. This would mean gamers could no longer trade games, borrow games from friends and most importantly for GameStop, sell their used games. Read the full article here
Corsair Components (CRSR) manufactures high-performance components for PC gamers, specifically those who build their own computers or customize pre-built systems to achieve faster processing speeds and improve graphic capabilities. It hopes to raise $78 million and trade with a market cap of $223 million. The company has around 800 employees and is based out of Fremont, California. Corsair is pricing 6 million shares at a price of $1…..Read the full article here
A California based company is bringing professional aesthetic treatments into customers homes at a fraction of the cost. Tria Beauty (TRIA) offers two lines of aesthetic light-based treatments, a Hair Removal Laser and Skin Perfecting Blue Light. The managers underwriting the deal are Morgan Stanley (MS), Piper Jaffray (PJC), and Well Fargo Securities (WFM). The healthcare company is looking to raise $64 million in an initial public offering set to begin trading on May 24th. Tria Beauty is pricing 4.6 million shares at $1….Read the full article here
Last week the markets were undeniably focused on the Facebook IPO. Many investors considered its lackluster debut a huge disappointment. I admit even I thought all that hype could turn the new issue into a lottery ticket for early investors, but I’ve never thought highly of the company and I explained why you shouldn’t invest in Facebook in my article “When To Unfriend Facebook“.
Two weeks ago I published an article title “5 Stocks To Play on The Avengers Box Office Success“. In that article I told readers to buy Viacom (VIA) based off of Paramount’s 8% take from the total box office. In addition to Paramount being the weakest unit and the one holding Viacom’s earnings down. The company has yet to release earnings, however, last Tuesday Warren Buffet announced he was increasing his stake in the company. I’m not saying Mr. Buffet is taking investment advice from Asset Investing, but…..
I also put out two articles “3 Stocks Headed For A Correction” and “It’s Time To Sell These 3 IPOs“. Which I discussed the expiration of lockup agreements and how just the perception that additional shares will be dumped on the market will cause a stock to go down. In those articles I recommended short selling six stocks and next to the name is how the stock has performed since the release of the articles -
- Mattress Firm Holding Corp. (MFRM) (-$2.43) (-7.11%)
- Intermolecular, Inc (IMI) (-$0.36) (-5.34%)
- Digital Domain Media Group (DDMG) (-$1.56) (-25.44%)
- Angie’s List (ANGI) (-$0.94) (-7.20%)
- Delphi Automotive PLC (DLPH) (-$0.99) (-3.63%)
- Manning & Napier, Inc. (MN) (-$1.06) (-8.17%)
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The IPO market looks to be warming back up as the level of companies filing to go public is at its highest since pre-2008. Now with Facebook, one of the most followed IPOs of all time, the focus is squarely on new offerings. There are a lot of ways to make money from initial public offerings other than buying shares before it starts trading. Nearly every company seeks to protect the value of its IPO by having its existing shareholders bound by a “lockup” agreement. This prevents insiders and pre-IPO investors from selling their shares on the open market usually for a period of 90, 180 or 360 days. If an investor times it correctly they can make good money from shorting the IPO or hedge their losses by selling stock or buying put options before the lockup period expires. Here are three stocks that are going down based on shares entering the market….Read The Full Article Here