Comments on: PortalPlayer Inc., Analysis of Stock http://aleembawany.com/2006/10/08/portalplayer-inc-analysis-of-stock/ tech, web and the rest Thu, 22 Jul 2010 10:20:00 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Aleem http://aleembawany.com/2006/10/08/portalplayer-inc-analysis-of-stock/comment-page-1/#comment-22718 Aleem Sun, 12 Oct 2008 09:59:34 +0000 http://aleembawany.com/2006/10/08/portalplayer-inc-analysis-of-stock/#comment-22718 Gene: Thanks for the insight... it had always seemed to me that NVidia snagged up Portal Player for a real bargain--some would say even unfair prices. I also feel Portal Player board members could have done a lot more with the company given the looming next gen mobile platforms (iPhone, Android, LG etc) at the time. Gene:

Thanks for the insight… it had always seemed to me that NVidia snagged up Portal Player for a real bargain–some would say even unfair prices. I also feel Portal Player board members could have done a lot more with the company given the looming next gen mobile platforms (iPhone, Android, LG etc) at the time.

]]> By: Gene Madison http://aleembawany.com/2006/10/08/portalplayer-inc-analysis-of-stock/comment-page-1/#comment-22712 Gene Madison Sun, 12 Oct 2008 05:33:23 +0000 http://aleembawany.com/2006/10/08/portalplayer-inc-analysis-of-stock/#comment-22712 Funny enough, you had it right on. PortalPlayer and Microsoft were about sign a contract in October, when the Board called it off. It would have increased the price of stock too much, and Apple needed to ensure that Nvidia bought up PortalPlayer so that Samsung could continue providing the IPod Design at a cheaper rate. There had been a breach of contract against Samsung, possibly apple. Samsung had a non-compete/non-disclosure for PortalPlayers customers. Nvidia was able to benefit, PortalPlayer assets made the financials of Nvidia look much better.. good enough to begin filing SEC reports. Funny enough, you had it right on. PortalPlayer and Microsoft were about sign a contract in October, when the Board called it off. It would have increased the price of stock too much, and Apple needed to ensure that Nvidia bought up PortalPlayer so that Samsung could continue providing the IPod Design at a cheaper rate. There had been a breach of contract against Samsung, possibly apple. Samsung had a non-compete/non-disclosure for PortalPlayers customers. Nvidia was able to benefit, PortalPlayer assets made the financials of Nvidia look much better.. good enough to begin filing SEC reports.

]]> By: Bruce Lee http://aleembawany.com/2006/10/08/portalplayer-inc-analysis-of-stock/comment-page-1/#comment-25 Bruce Lee Fri, 13 Oct 2006 13:19:54 +0000 http://aleembawany.com/2006/10/08/portalplayer-inc-analysis-of-stock/#comment-25 Great analysis and great response. I've been looking at PLAY for the past month and the cash number is a major question mark for me. If it can be reinvested at existing returns, then we've got some mispriced gold here. But this assumption, in the near-term, depends on MS Vista and Zune. But, if PLAY's MS avenues don't pan out, the cash might last them another 2-3 years only. Great analysis and great response. I’ve been looking at PLAY for the past month and the cash number is a major question mark for me. If it can be reinvested at existing returns, then we’ve got some mispriced gold here. But this assumption, in the near-term, depends on MS Vista and Zune. But, if PLAY’s MS avenues don’t pan out, the cash might last them another 2-3 years only.

]]> By: Aleem http://aleembawany.com/2006/10/08/portalplayer-inc-analysis-of-stock/comment-page-1/#comment-24 Aleem Fri, 13 Oct 2006 01:28:58 +0000 http://aleembawany.com/2006/10/08/portalplayer-inc-analysis-of-stock/#comment-24 They will be burning cash but that's not necessarily a bad thing. You want to put your cash to work--that's the whole point of having cash so long as it has good yeilds. With their kind of earnings yield and RoC they're in a good position here. This is a growth company whose resources are underutilized. If PLAY can secure some more contracts they will become attractive again and I am bullish here. The demand for their chipsets will go up with time driven primarily by Vista Sideshow and potentially other companies wanting a platform to build their own portable media devices. Gary Johnson's sales are not so significant as they're automatic sells. The rest in the company are holding off. They will be burning cash but that’s not necessarily a bad thing. You want to put your cash to work–that’s the whole point of having cash so long as it has good yeilds. With their kind of earnings yield and RoC they’re in a good position here. This is a growth company whose resources are underutilized. If PLAY can secure some more contracts they will become attractive again and I am bullish here. The demand for their chipsets will go up with time driven primarily by Vista Sideshow and potentially other companies wanting a platform to build their own portable media devices.

Gary Johnson’s sales are not so significant as they’re automatic sells. The rest in the company are holding off.

]]> By: Bruce Lee http://aleembawany.com/2006/10/08/portalplayer-inc-analysis-of-stock/comment-page-1/#comment-23 Bruce Lee Thu, 12 Oct 2006 23:33:26 +0000 http://aleembawany.com/2006/10/08/portalplayer-inc-analysis-of-stock/#comment-23 What about cash burn? PLAY will be using its cash reserves to further fund R&D since operating cash flow has dried up with the loss of the Apple contract. How long do you think the company can sustain itself on $200M cash? Also, Gary Johnson (outgoing CEO) liquidated 30,000 share from mid-August to mid-September. If actions speak louder than words, that doesn't say much about his confidence in PLAY's prospects! What about cash burn? PLAY will be using its cash reserves to further fund R&D since operating cash flow has dried up with the loss of the Apple contract. How long do you think the company can sustain itself on $200M cash?

Also, Gary Johnson (outgoing CEO) liquidated 30,000 share from mid-August to mid-September. If actions speak louder than words, that doesn’t say much about his confidence in PLAY’s prospects!

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