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AXLL – Expect a Sale Eventually – Stock Could Drop if WLK Suspends Interest

Since the publication of the most recent AXLL defense document 10 days ago, there has been (public) radio silence from WLK regarding the rejected WLK bids. Axiall seem confident that they can win a proxy fight, or at least keep

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TMT: 1Q16 Earnings – It Ain’t 2014 Anymore

1Q16 earning season confirmed several business trends. Ad driven businesses showed strong. Smartphone and PC sales were weak. The enterprise migration to the cloud continued apace, while traditional IT suppliers struggled. AMZN sharply accelerated its e-commerce sales in a tough

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Axiall Strikes Back, but Painting a Very Bleak Picture for Polyethylene vs PVC

On May 9th Axiall issued a presentation defending its position with regard to the hostile takeover move from Westlake and in anticipation of a potential proxy battle. It is a well-constructed presentation and obviously self-serving, but on the whole an

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TMT: Hot Politics, Slumping Devices, Online Shopping, and a Weaker Dollar

YTD TMT performance has been driven by the old guard – names like IBM, ORCL, HPQ, INTC, CMCSA, CBS, T and VZ are all up double digits. Meanwhile, FANGs and their ilk (FB excepted) have largely underperformed. What lies ahead

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Quick Thoughts: Facebook F8 – Bots Offer Path to M-Commerce

CEO Mark Zuckerberg hit the stage for the keynote at FB’s annual F8 developers conference. The biggest reveal was a program to enable businesses to use AI-based “bots” to execute customer service communications across FB’s messaging platforms, a first step

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FB: All You Need is Like

Our bull case for FB is straightforward. 1. Ad spending will shift toward digital more quickly and more completely than consensus expects, with TV, print and radio all likely to cede share. 2. The ongoing swing toward mobile platforms inherently

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Axiall – Something Else Up Its Sleeve?

Axiall’s apparent reluctance to engage with Westlake in a formal discussion with respect to Westlake’s offer (resulting in a higher bid from Westlake this morning) suggests one of two possible positions: Axiall believes that it can win a proxy battle

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OTAs: Wanna Get Away?

The Internet has been brutal to middlemen and niche players, with platform players GOOGL, AMZN, and AAPL absorbing value with each new integrated app and market entry. Online travel has been a big exception – OTAs and GDSs have thrived,

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Quick Thoughts: Apple – The Song Remains the Same

AAPL shares are up about 12% over the past month on little concrete news, as analysts looked to brighten the narrative. We remain skeptical. Today’s big AAPL event was underwhelming, with no product likely to spark significant new demand. Meanwhile,

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SHW/VAL – An Expensive Deal Not Without Its Hurdles

The announced acquisition of Valspar by Sherwin Williams, while consistent with our broad view on consolidation does not really tick any of the boxes we identified. This is not a segment facing massive offshore competition, nor is it oversupplied. Both

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