​Buyback Bets in Tech

MoneyShow  |

Image via Aisart/Wikimedia

David Fried, editor of The Buyback Letter, focuses exclusively on stocks undergoing buybacks and share repurchases; since 2000, his Buyback Portfolio has gained 199% vs. the 68% gain in the S&P over the same time.

San Jose, Calif.-based Brocade Communications Systems (BRCD), a computer networking company, makes networking switches, software and storage products.

It has been in the news lately as semiconductor manufacturer Broadcom (BRCM) just got permission from the FTC to buy Brocade for $5.9 billion ($12.75 per share in cash), after months of antitrust concerns.

Broadcom is known for its connectivity chips used in products ranging from mobiles to servers. The latest development in the chip industry is growing demand for chips in connected devices and cars.

Q2 results showed a fiscal second-quarter loss of $11 million, after reporting a profit in the same period a year earlier. Revenue was $553 million in Q2. Revenue for fiscal year 2016 was $2,346 million, up 4% year-over-year. Management has reduced shares outstanding by 12.25% in the last 12 months.

The leading real estate Internet portal in China, Fang Holdings Limited (SFUN) was founded in 1999 and is based in Beijing, China.

The tech company provides e-commerce, marketing, listing, financial, and value-added services, and supports online communities and networks of users for the real estate and home furnishing and improvement sectors. Fang Holdings Limited was founded in 1999 and is based in Beijing, China.

SFUN had a disappointing quarter, weaker-than-expected fourth-quarter 2016 results. Quarterly revenue fell 42% year over year, to $174.7 million, and translated to a net loss of $10.4 million, or $0.02 per American depositary share.

Analysts, on average, were expecting a narrower net loss of $0.01 per share on revenue of $187.6 million. SFUN has repurchased about 7.08% of its shares in the past 12 months.

David Fried is editor and publisher of The Buyback Letter, devoted to finding opportunities among companies that repurchase their own stock.

Subscribe to David Fried’s The Buyback Letter here…

About MoneyShow.com: Founded in 1981, MoneyShow is a privately held financial media company headquartered in Sarasota, Florida. As a global network of investing and trading education, MoneyShow presents an extensive agenda of live and online events that attract over 75,000 investors, traders and financial advisors around the world.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not necessarily represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer.

Market Movers

Sponsored Financial Content