- Revenue $353M vs. $353.7M est. Adjusted EPS 50c vs. 75c est.
- Guides FY2015 same-store +5 to 10% and EPS to $2.80 to $3.00 vs. $3.54 est.
- Same-store sales +11.7%
- ”Credit segment provision for bad debts on an annualized basis was 13.9% of the average outstanding portfolio balance in the current quarter and 11.1% on an annualized basis for the first six months of fiscal 2015”
”..delinquency unexpectedly deteriorated across all credit quality levels, customer groups, product categories, geographic regions and years of origination”
”sixty-day delinquency rates unexpectedly deteriorated a combined 90 basis points in July and August. We now expect future 60-plus day delinquency to increase to levels above our historical highs in the third and fourth quarter of fiscal 2015”
”In response to higher delinquency, we are reducing the level of no-interest programs and raising the interest rates in some markets to increase portfolio yield.”
Presented without comment
A more mysterious set of filings was made by Twitter’s largest shareholder, Rizvi Traverse Management, the secretive money manager that controlled 85 million shares, or 14.4 percent of the stock.
Rizvi disclosed that it had distributed all of its shares to the underlying investors. Those investors included other Rizvi-controlled entities as well as units of JPMorgan Chase, the giant American bank, and Kingdom Holding, an investment company controlled by Prince Alwaleed bin Talal of Saudi Arabia.
Although JPMorgan and Rizvi had previously signaled their intention to hold onto their shares, it’s unclear whether some of the recipients will choose to cash out, potentially adding to the selling pressure that drove Twitter stock to an all-time low of $29.51 this week. – New York Times May 8th, 2014
Twitter plunged 18 percent yesterday even as early investors Chris Sacca and Rizvi Traverse Management LLC pledged not to sell in a sign of confidence in the San Francisco-based company.
Rizvi Traverse Management, whose 14 percent ownership makes it the single biggest investor, won’t sell either, people with knowledge of the matter have said. Some of Sacca’s holdings are included in Rizvi. – Bloomberg May 7th, 2014
"Try to be fearful when others are greedy and greedy only when others are fearful." – Some guy from Omaha
— Chris Sacca (@sacca) May 6, 2014
“We’re going to hold,” said Chris Sacca, an early Twitter investor, who manages about 15 per cent of the company’s shares through various arrangements. Analysts and other investors are focusing too much on user growth and instead should “just recognize how much money Twitter is going to continue to put up on the board” – Bloomberg May 5th, 2014
Twitter’s largest shareholder – the money management firm Rizvi Traverse Management, which oversees funds that own 17.9 percent of the company – also plans to hold on to the stock, according to a person familiar with the firm’s thinking, who spoke on condition of anonymity because Rizvi does not publicly discuss its investments. – New York Times April 14th, 2014
Average hedge-fund +1.1% through March YTD
Median equity-focused hedge-fund lost more than 2% first two weeks of April
Viking, $28B hedge-fund PM: Andreas Halvorsen, –4.2% in March, –4% first two weeks of April
JAT, $2.2B hedge-fund PM: John Thaler, –9.3% in March, –4% in April so far, –10% YTD
Horseman, $1.7B, +10% March YTD
Discovery Global Macro, $15B, –6% April so far, –14%+ YTD
Caxton, $7B, –3.5% through April 15th, –6% YTD
-Digitimes is reporting Apple is looking to build their own baseband chips for the iPhone and is hiring an R&D team for that purpose.
Apple reportedly plans to form a R&D team to develop baseband processors for use in iPhones to be released in 2015 and will place the baseband chip orders with Samsung Electronics and Globalfoundries, according to industry sources.
Apple currently purchases baseband chips from Qualcomm, which then produces the chips at Taiwan Semiconductor Manufacturing Company (TSMC), indicated the sources, adding that Qualcomm and TSMC will be affected if Apple decides to develop baseband chips in house.
Why is it bad news for Qualcomm?
-Qualcomm dominates the baseband chip business with over 50% market-share and has Apple as one of its biggest customers. If Apple brings this in-house, it would be severely detrimental to Qualcomm’s financial performance. Remember Apple has done this before with the P.A. Semi acquisition to make ARM CPUs in-house.
-Digitimes says Qualcomm has over 50% market-share of the $16-19 billion annual baseband chip business ($8.75B of annual Qualcomm sales at mid-point using the 50%). Strategy Analytics says Qualcomm has 66% market-share of the baseband business. The consensus street estimate for Qualcomm revenue in FY2014 is $26.8B.