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Smartphones: Mobile Maturity

The global mobile phone installed base has decelerated sharply this decade to roughly 3% annual growth, a pace that may be sustainable for a few more years. In this context, demand for new phones is already overwhelmingly driven by replacement

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APD Materials Spin – The Right Strategic Move, But Not Much Value Add

APD’s long expected announcement to spin off its Materials and Electronics came after the close last night. The company expects to complete the spin by the end of its 2016 fiscal year (September), which seems like a long lead time,

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TMT: Paradigm Change Trumps Economic Risk

The late August correction hit TMT leaders hard, partially overshadowing 2Q15 numbers that evidenced the technology driven paradigm shifts that are transforming sectors across the economy and concentrating value toward TMT early movers with the necessary skills, assets, and scale

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Video Media – The Cord Cutting Myth Gets Real

The death of the multichannel cable bundle will take years to play out, but investors were reminded of its inevitability by the signs of erosion from even the best regarded media players. TV viewing is in decline. Pay TV subscriptions

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DuPont – Investor Exodus

DuPont management may still have the faith that the science based strategy is right, but everyone else seems to disagree. Trian criticized the company for bloated costs and lack of returns on its R&D spend and we have echoed that

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Eastman – The Silver Lining of the Propane Cloud

Placing the wrong bet on propane prices may have been the best thing that could have happened to Eastman! Eastman is a roll up story and the thesis is that as the company adds complimentary and sometimes overlapping product/technology platforms

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LyondellBasell – Hard To Fault

First half oil prices were almost half the levels seen in 1H 2014, yet LYB has managed to produce 17% more net income than in the prior year. EPS growth is greater because of the significant share buyback, which looks

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Dow Chemical – Neither Fish nor Fowl

  Dow Chemical’s second quarter demonstrated a problem that has concerned investors – both passive and active – for some time. In the face of apparently very strong US and European basic plastics margins, the company did not do that

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EBAY & PYPL: The Divorce is Final

After a strong 2Q15, PYPL heads to its Monday spin with significant business momentum. Given the near term trajectory of e-commerce, and competitive moat of its small business focus, 2015 estimates look easily achievable and 2016’s are plausible, likely a

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TMT: 2Q 2015 Earnings Preview

1Q15 shook things up with unexpectedly weak digital ad spending and an unexpectedly strong shift to the enterprise cloud. This quarter, we expect digital ads to get back on track in the US against somewhat muted expectations, with the cloud

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