d******1
发帖数: 349 | 1 From Finance Yahoo: http://www.fool.com/investing/general/2015/08/07/intel-may-benefit-from-buying-qualcomms-chip-busin.aspx?source=eogyholnk0000001
Intel May Benefit From Buying Qualcomm’s Chip Business
Buying Qualcomm's chip business could be a major win for Intel.
There has been some speculation among analysts that with Qualcomm (NASDAQ:
QCOM) evaluating the potential to split itself into two entities --
technology licensing as one business, chips as another -- Intel (NASDAQ:INTC
) would essentially be the perfect buyer for the chip business.
From the perspective of an Intel stockholder, such a deal seems quite
compelling. Were it to happen, Intel would, practically overnight, become
the world's top merchant vendor of mobile applications processors and
inherit a set of mobile technologies and teams that are arguably the best in
the business.
It would also get Qualcomm's sizable chip-related revenue stream and
customer base, becoming the world leader in mobile computing and
communications technology. Over time, Intel could then transition Qualcomm's
chips away from third-party manufacturing to in-house technologies,
potentially giving Qualcomm's chip business an unbeatable cost structure.
How much would it cost Intel to buy Qualcomm QCT?
Stacy Rasgon, a well-respected analyst with Sanford Bernstein, in a sum-of-
the-parts valuation of Qualcomm, pegs QCT as being worth anywhere from $10
per share to $25 per share.
Let's be conservative and assume that Qualcomm won't let QCT go cheap to a
potential acquirer and asks $25 per share for it. At Qualcomm's current
share count of 1.57 billion, this would be a $40 billion buy. Although this
seems really large, I believe that this would create more value over the
long term than buying back $20 billion worth of its own stock.
Justifying that claim
The way I view this is by looking at the kinds of earnings-before-tax that
Qualcomm's chip business can generate and the kind of interest expense that
Intel would need to pay on debt borrowings of $40 billion.
If we assume Intel borrows this $40 billion at 5% interest (this is probably
on the high side), then this would imply annual interest expense of $2
billion. As long as Qualcomm's chip business can generate in excess of this
in net income per year, then this shouldn't be a problem.
The question then is, "Can it?"
Qualcomm CEO Steve Mollenkopf believes that the company's chip business --
assuming current tough market conditions -- will see operating margins of 16
% or greater by the fourth quarter of the company's fiscal year 2016.
If we assume that Qualcomm QCT can achieve annual revenue of approximately $
17 billion in fiscal 2016 (a slight increase from the implied number for the
current fiscal year), then 16% operating margin would imply operating
income of $2.72 billion. This seems to be enough to cover the interest
expense associated with borrowing $40 billion at 5%.
How would this create value, though?
It isn't enough to show that Intel could make just enough from such a
potential acquisition to just cover interest expense. Such a deal would need
to fundamentally create value for the company. I believe it would.
The value creation would happen in a few parts. First of all, Intel already
has an organic modem/RF/mobile applications processor effort that it could
shutter if it were to acquire Qualcomm's chip business. Intel CFO Stacy
Smith indicated at the company's 2014 investor meeting that mobile-specific
spending (beyond shared IP development) is on the order of a "couple hundred
million dollars per quarter."
This relatively fruitless (thus far) spend, as well as well as some other
spending (internal cellular and connectivity spending, for example), would
go away.
The next way that such a deal might create value is in the same way that
Intel expects its acquisition of Altera to: It would eventually be able to
transition Qualcomm's chip manufacturing to Intel factories.
Since in this case, Intel/Qualcomm would eventually be able to cut out the
semiconductor foundries, there's a good chance that Qualcomm's chip business
would have the best chip manufacturing cost structure in the mobile
industry.
This, if my hypothesis is correct, could allow Qualcomm to either improve
its per-unit margins or grab even more market segment share by lowering
prices while keeping its current margin profile.
Furthermore, Intel's management and board of directors may believe that the
company can deliver more value (or begin to deliver value sooner) by
continuing to push its organic mobile chip development efforts.
Additionally, if Qualcomm management and board of directors come to the same
conclusion as Street analyst James Faucet has that splitting the company
into two would be "value destructive" (and I think there is a strong chance
of this) then this speculation is ultimately moot.
Warren Buffett: This new technology is a "real threat"
At the recent Berkshire Hathaway annual meeting, Warren Buffett admitted
this emerging technology is threatening his biggest cash-cow. Buffett's fear
can be your gain. Only a few investors are embracing this new market, which
experts say will be worth over $2 trillion. Find out how you can cash in on
this technology before the crowd catches on, by jumping onto one company
that could get you the biggest piece of the action. Click here to access a
free investor alert on the company we're calling the brains behind the
technology. | l***n
发帖数: 376 | | f*******2
发帖数: 341 | 3 那最好了，拿了球康的package，然后不用面试大家都加入A家。
[在 lywcn (John) 的大作中提到：]
：不用担心，A家要出offer了 |
|
