NASDAQ:TSRA
$17.19
(2/9 3:05PM)
+1.2%
| Open | $17.2 |
Mkt Cap | $845.8 Million |
| High | $17.55 |
52Wk High | $32.17 |
| Low | $17.09 |
52Wk Low | $10.13 |
| Volume | 526,695 |
Avg Vol 10D | 1.2 Million |
A Word Of Caution
Tessera Technologies, Inc. (TSRA) has experienced a very significant loss in market value recently. Clearly this drop in price will have an impact on the valuation but the recent events that caused the drop may have not been fully factored into our analysis yet. When a stock loses value very quickly it could be a sign that there is a fear of bankruptcy.
Please take a look at the RazorWire feed on the right hand side of the page. If Tessera Technologies Inc. has been mentioned on business television or influential blogs recently a portion of that story should be displayed. This should help bring you up to speed on any major issues they are facing right now.
Of course, you may proceed to review our research report for this security, but please be aware that our model may not reflect significant factors surrounding this company.
Therefore, (and as always), check additional sources and available information regarding TSRA before making an investment decision.
Ockham's Rating/Recommendation Summary
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TSRA Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 8 years. For, TSRA the high and low end of the Price to Sales per share ratios are 11.79x and 5.34x respectively.
Notice that TSRA's current Price to Sales per share ratio is 2.83x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $17.02, TSRA is 67% below where we would expect to see it. This will beneficially factor into our final analysis of TSRA as it is not often that this stock sinks to these levels.
TSRA Cash Earnings
Cash Earnings is always one of the most important factors to review for a company and, more importantly, an investment in a stock. TSRA is significantly below their historical average multiples of Cash Earnings, as calculated by our proprietary analysis. It is incredibly important to understand that for TSRA, the current level of Cash Earnings compared to its historical levels helps identify where TSRA is in relation to what the investing community was willing to pay for this level of Cash Earnings in the past. With a historical high Cash Earnings per share ratio of 48.85 and a historical low Cash Earnings per share ratio of 18.71, an investor can relate where value becomes optimal.
So what does "significantly below" mean when we talk about Price to Cash Earnings numbers for TSRA? From the Ockham perspective, we are looking specifically at TSRA to see if the market is recognizing the huge disparity between TSRA's past stock price to Cash Earnings ratio to today's levels. At a difference of 73% below the average historical Price to Cash Earnings ratio, our view would be quite positive at this point. However, as with all metrics, we need to also take other factors into account when looking at TSRA. While we view better Cash Earnings metrics as very important, if the market is slow to identify this value, or if Cash Earnings were to fall from these levels, we would become more neutral in our stance.
TSRA Dividends
A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations. As of the time of this report, our data provider does not have historical data for TSRA. Therefore, we are not utilizing the dividends portion in our study. So, we do not know whether TSRA currently pays a dividend at present or not, we have an "expected dividend" payment listed in key fundamentals but cannot varify it.
Tessera Technologies, Inc. EPS: A Hot Topic on Seeking Alpha Wall St Breakfast
TSRA's earnings per share was discussed on Seeking Alpha Wall St Breakfast which means there is something significant going on. Profits are the metric we pay the most attention to in our methodology.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Tessera Technologies, Inc. will perform just about the same as the index. At Ockham, our stance is currently Greatly Undervalued, which means we believe that value investors will really be interested in this stock at the price levels as of the report of $17.02. However, you can see that the current price has appreciated some, so we may consider a downgrade to simply Undervalued as of next week's report. Check the news on this stock because there is a catalyst that has allowed this stock to advance 11.22% today. When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Tessera Technologies, Inc. has been talked about more than normal recently.
“… (PR) TESSERA TECHNOLOGIES (TSRA): Q4 EPS of $0. 31 beats by $0. 18. Revenue of $56. 5M (-18%) vs. $56M. Shares -2. 7% AH. …”
Seeking Alpha Wall St Breakfast Looked for Alpha in Tessera Technologies, Inc.
Long or short, no matter what investors are looking to create alpha. Today on Seeking Alpha Wall St Breakfast the conversation turned to TSRA and generating alpha.
In comparison to the other stocks that we follow, Tessera Technologies, Inc. has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards TSRA and think that it will generally perform in-line with the S&P 500. As for Ockham's rating, we currently have our most bullish stance of Greatly Undervalued on this stock as it is currently trading well below the price we would expect given the fundamentals. However, the price has risen significantly since our report was issued, so we will take another look at this stock after the close of this week's trading. Take notice of the news on this stock because it is up $1.69 since the close of trading yesterday.
“… close: AMCC, AMZN, ASIA, BCR, CA, CB, CPWR, GHL, GNW, ICO, INFA, JNPR, KLAC, LEG, MSFT, MXIM, OCLR, PMCS, QTM, RHI, RMBS, SNDK, SNV, THOR, TSRA Seeking Alpha editors Eli Hoffmann ... …”
Stay Current on TSRA's News on Mad Money
>> it may have sent some of your portfolios to the hospital, if not hospice. Last thursday, TSRA, a semiconductor miniature that's part of the mobile index deliver add disappointing fourth quarter outlook after reporting a better than expected third quarter. The stock got bent, spindles and mutilated.
“… er. The stock got bent, spindles and mutilated. …”
Tessera Technologies, Inc. (TSRA) Discussed on CNBC's Mad Money
Tessera Technologies, Inc. is in the news. Find out how this impacts TSRA trading on Ockham Research.
That's just a total bromance boo-yah, partner. >> caller: yeah. Hey, jimmy, I have a question. A few weeks ago you had a wonderful ceo interview with the ceo of tessera, TSRA. >> oh, boy. Yeah, didn't we? Wonderful. You know, the first thing that got my attention about it, I did a ton of homework, and I did buy into a bunch, and I did scale in like I was supposed to do. But the thing you mentioned early on was that they were almost 95% or 90% plus owned by institutions.
“… ttention about it, I did a ton of homework, and I did buy into a bunch, and I did scale in like I was supposed to do. But the thing you mentioned early on was that they were almost 95% or 90% plus owned by institutions. …”
Tessera Technologies, Inc. (TSRA) Discussed on CNBC's Mad Money
Tessera Technologies, Inc. is in the news. Find out how this impacts TSRA trading on Ockham Research.
>> how do you like that? Did you like the drum I had? TSRA arst. >> caller: ever since you came out with the mobile internet index, I have been puzzled why you didn't include armed holdings in it. After all, I think 86% cell phones have armed technology in the company like TSRA. >> the answer to that -- you're right -- it's a foreign stock. You're absolutely right. It has a big leenlg on of fans. You are the third person that's complained to me on that one. I never tip my hand. Why don't we go to -- we're
“… n the company like TSRA. >> the answer to that -- you're right -- it's a foreign stock. You're absolutely right. It has a big leenlg on of fans. You are the third person that's complained to me on that one. I never tip my hand. Why don't we go to -- we're …”
Tessera Technologies, Inc. (TSRA) Discussed on CNBC's Mad Money
Tessera Technologies, Inc. is in the news. Find out how this impacts TSRA trading on Ockham Research.
Some initial design wins in this business come the second half of 2010. Tessera's up big from where I initially recommended it. That said I think it's still a strong story. But don't take it from pre me. Let's find out from this let's hear from the ceo of TESSERA TECHNOLOGIES, a seasoned hand with many companies under his belt that have made fortunes >> i'm a little conflicted as to whether to say hi or boo-yah, >> I think the latter's better. You obviously are a fan of the show, and I like that. Let's get right down to it. Your company is very well known among my hedge fund friends, my mutual fund friends. I don't know a lot of vingz who own the stock. >> that's a great lead-in. Institutions. The top ten holders own 50% of the company. 15% of which are index funds. >> it's an early growth company and they don't know that. >> very small retail base. And the reason is the technology is complex but the business model is very simple. We invent to monetize. >> you -- >> we invent to monetize. We're the edison lab of the 21st we take an invention, put sometimes manufacture it in limited quantities do learn how
“… TESSERA TECHNOLOGIES, a seasoned hand with many companies under his belt that have made fortunes >> i'm a little conflicted as to whether to say hi or boo-yah, >> I think the latter's better. You obviously are a fan of the show, and I like that. Let's get right down to it. Your company is very well known among my hedge fund friends, my mutual fund friends. I don't know a lot of vingz who own the stock. >> that's a great lead-in. Institutions. The top ten holders own 50% of the company. 15% of which are index funds. >> it's an early growth company and they don't know that. >> very small retail base. And the reason is the technology is complex but the business model is very simple. We invent to monetize. >> you -- >> we invent to monetize. We're the edison lab of the 21st we take an invention, put sometimes manufacture it in limited quantities do learn how …”
Tessera Technologies, Inc. (TSRA) Discussed on CNBC's Mad Money
Tessera Technologies, Inc. is in the news. Find out how this impacts TSRA trading on Ockham Research.
But you know what? I don't care if it takes everyone else forever to notice this huge multiyear trend, meaning you can buy them now and own them for years. As long of course, as the stock keeps making its money, I which think they will. Take testera technology, TSRA. This is a speculative component of the mobile internet index, which we originally got behind after it won a big patent trade commission. We have to follow everything on that was may 26th. We recommended the stock's at $20.17. Now it's at $28.08. It's up 39% since may. And I do believe it can go even although if you bought this one when I originally recommended it, remember, bulls make money, bears make money, pigs get maybe you take a lult off because you're up so much. Tessera can be one of those understand. And you know I believe it's vital to have a good understanding of every stock you especially when it comes to something you would be regarding as speculative. It can be complicated. As soon as you think that you think of maybe nilla wavers or maybe even oreo wafers. But most of you when you hear these terms I hope will think about eventually this kind of I have to make you most you moan.
“… ology, TSRA. This is a speculative component of the mobile internet index, which we originally got behind after it won a big patent trade commission. We have to follow everything on that was may 26th. We recommended the stock's at $20.17. Now it's at $28.08. It's up 39% since may. And I do believe it can go even although if you bought this one when I originally recommended it, remember, bulls make money, bears make money, pigs get maybe you take a lult off because you're up so much. Tessera can be one of those understand. And you know I believe it's vital to have a good understanding of every stock you especially when it comes to something you would be regarding as speculative. It can be complicated. As soon as you think that you think of maybe nilla wavers or maybe even oreo wafers. But most of you when you hear these terms I hope will think about eventually this kind of I have to make you most you moan. …”
Tessera Technologies, Inc. (TSRA) Discussed on CNBC's Mad Money
Tessera Technologies, Inc. is in the news. Find out how this impacts TSRA trading on Ockham Research.
>> announcer: coming up, the mobile internet tsunami cannot be stopped. Tonight, find out who's putting the smart in your phone. Cramer goes one on one with TESSERA TECHNOLOGIES ceo frank it op on the executive decision. Plus one big name's been left in the dust. Cramer gives you one on sale where the price could be right for mad money. And later, jim goes high voltage in an electrifying fast-fire all coming up on "mad money."
“… he dust. Cramer gives you one on sale where the price could be right for mad money. And later, jim goes high voltage in an electrifying fast-fire all coming up on "mad money." …”
Tessera Technologies, Inc. (TSRA) Discussed on CNBC's Squawk On The Street
Tessera Technologies, Inc. is in the news. Find out how this impacts TSRA trading on Ockham Research.
>> anyway, here at the big board, what is that? >> crexus. >> crexus investment corporation, ticker cxs, celebrateing ipo today. At the nasdaq, TESSERA TECHNOLOGIES, ticker TSRA, making of electronics. >> market reporters are standing down about four. Let's go down to mr. Pisani. Bob? >> we've been up eight of the last nine trading sessions. It's been a tremendous rally. Laszlo just had a note saying that the s&p is 20% above the 200-day moving average. It's very rarery in that that means we've been going straight up for a while now. We're a little over-stretched. Is that negative? No, not necessarily. It can be a sign of real
“… 's go down to mr. Pisani. Bob? >> we've been up eight of the last nine trading sessions. It's been a tremendous rally. Laszlo just had a note saying that the s&p is 20% above the 200-day moving average. It's very rarery in that that means we've been going straight up for a while now. We're a little over-stretched. Is that negative? No, not necessarily. It can be a sign of real …”
Tessera Technologies, Inc. (TSRA) Discussed on CNBC's Mad Money
Tessera Technologies, Inc. is in the news. Find out how this impacts TSRA trading on Ockham Research.
And not all of them are down and that's why I want to draw your attention, first of all, to TESSERA TECHNOLOGIES, TSRA, $20.17 and is already up nearly seven points, or 34%, to $27.03. Now, this is the perfect example of what I mean when I talk about the risk-reward of speculating. I just recommended TSRA last tuesday, and even I didn't expect this huge of a move in such a short time. Tessera belongs to the cohort of speculative tech stocks that we've been focusing on lately. But I still think it's a group
“… risk-reward of speculating. I just recommended TSRA last tuesday, and even I didn't expect this huge of a move in such a short time. Tessera belongs to the cohort of speculative tech stocks that we've been focusing on lately. But I still think it's a group …”