ATI Hostile stock takeover?

[Pete]

Could anyone explain briefly how the market cap figures are arrived at?

I'm guessing it's simply share price multiplied by number of shares.

 

[wireframe]

Could anyone explain briefly how the market cap figures are arrived at?

I'm guessing it's simply share price multiplied by number of shares.

Good guess.

 

[Ailuros]

ATI is too big as a company IMHO, to even think that a possible hostile takeover would be an easy and risk-free task.

I have to think of 3dfx here... if for whatever reason R5x0 should be crap, they'll be a takeover candidate very soon, no problem at all (but I hope not).

I haven't a single clue as to "which" 3dfx you are recalling exactly, but I don't recall a company of the size of ATI. In fact ATI has been times bigger even when 3dfx existed, but concentrated on different markets.

 

[digitalwanderer]

In fact ATI has been times bigger even when 3dfx existed, but concentrated on different markets.

Yup, the "wonderful hardware but crappy as hell drivers and support" period.

(I'm allowed to say that, I'm a Rage Fury *non-Pro* owner)

 

[Moloch]

Ati also doesn't keep remaking the same card, only faster, unless it kicks ass

 

[Sxotty]

Ati also doesn't keep remaking the same card, only faster, unless it kicks ass

yeah...unless

 

[Demigod]

I think the bump in their stock prices is part of a buy back plan, I don't think there is any hostile take over.

I hope not. If it is its a great way to tell us stock holders that they are worried about their stock nose diving.

Its common pratice. NVDA has done too. And if your a Stock holder YOU love it becuse it gets your stock up. Or gives you a out let to sell at the higher price. It makes your employe stock go up too better moral.

This is true when the company is doing well. It means they have the funds to reduce the available shares and this makes the available shares worth more. But if they do this after a period of weak share performance they are artificially driving the price up.

This can cause the share price to increase initially due to increased interest but as I said it shows the management are worried about the share price falling further, it also cost shareholders in the long run due to lower end of year profits, though these are sometimes omitted in the conference speak as one off costs but they come out in the full report. While the shares aren’t terrible they are the lowest they have been in years a buy back now would indicate they foresee a continued decline and are trying to halt it artificially. This can seriously damage investor confidence when coupled with the insider share dealing scandel at Ati over the last few years.

If it works all well and good, if the stock starts to slide again the next agm should be fun

As for me the current raise does nothing as my shares were bought at $18 back in 03. It may in a few days if the price goes up

 

[Moloch]

Ati also doesn't keep remaking the same card, only faster, unless it kicks ass

yeah...unless

3dfx kept making the same card untill the voodoo 5, and by then it was too little too late.
Since the voodoo 3, they never made a kickass card, just cards that 3dfx fans would say is "on par" with nvidia offerings, and it's tech was inferior to competitors (32bit anyone?)
When in reality they were much better, and when t&l games starting shipping, 3dfx was totally owned
Today nvidias SM3 advantage isn't nearly as bad as voodoo's 16 bit vs 32 bit, and the lack of hardware t&l engine on the voodoo 5.

 

[thegrommit]

In the case of ATI, does anyone have a rough idea of the shareholder composition, i.e. are most of the shares owned by a small number of shareholders (e.g. company directors, investors, etc) with the remaining being held by a small number of low-volume private investors or is it mostly a large number of private investors or somewhere inbetween?

Some of this information is also available on Yahoo finance. It appears 45% of the shares are held by institutions. Compare to Nvidia.

surely any investor, with more than a short-term (1-2 quarters) view, being courted to sell their shares would recognise that the current dip is most likely just temporary

Some people are only interested in the stock price appreciation. Check out the increase in volume (+5 million) over the 3-month average today.

 

[Megadrive1988]

ATI was around 8 years before the word Nvidia existed
(ATI: 1985 - Nvidia: 1993)

I don't see ATI being taken over anytime soon. rumors & speculation are just that, rumors & speculation.

 

[3dcgi]

This is true when the company is doing well. It means they have the funds to reduce the available shares and this makes the available shares worth more. But if they do this after a period of weak share performance they are artificially driving the price up.

This can cause the share price to increase initially due to increased interest but as I said it shows the management are worried about the share price falling further, it also cost shareholders in the long run due to lower end of year profits, though these are sometimes omitted in the conference speak as one off costs but they come out in the full report. While the shares aren’t terrible they are the lowest they have been in years a buy back now would indicate they foresee a continued decline and are trying to halt it artificially. This can seriously damage investor confidence when coupled with the insider share dealing scandel at Ati over the last few years.

If it works all well and good, if the stock starts to slide again the next agm should be fun

As for me the current raise does nothing as my shares were bought at $18 back in 03. It may in a few days if the price goes up

There are many possible reasons for buy backs. I tend to think you should buy stock when it bottoms. Companies might do the same. Can a company predict its own bottom? Who knows.

Another possible reason for buying back stock is to restock incentive plans. Periodically companies issue new stock to cover issuances of stock options and shares. If a company can buy back stock when it's cheap it might make sense to do so.

 

[BrynS]

In the case of ATI, does anyone have a rough idea of the shareholder composition, i.e. are most of the shares owned by a small number of shareholders (e.g. company directors, investors, etc) with the remaining being held by a small number of low-volume private investors or is it mostly a large number of private investors or somewhere inbetween?

Some of this information is also available on Yahoo finance. It appears 45% of the shares are held by institutions. Compare to Nvidia.

surely any investor, with more than a short-term (1-2 quarters) view, being courted to sell their shares would recognise that the current dip is most likely just temporary

Some people are only interested in the stock price appreciation. Check out the increase in volume (+5 million) over the 3-month average today.

Thanks for pointing that out.

How significant is the difference between the percentage of shares held by insiders between the two companies, i.e. 8.27% with nVIDIA versus 1.57% with ATI? Does this suggest better employee stock remuneration at nVIDIA and/or that the directors are in a stronger position to exert control over the direction of the company?

 

[Razor1]

that really doesn't concern much but where is the other 52% of the stocks for ATi? If its privite investors thats alot of stock out in the open.

 

[Jima13]

that really doesn't concern much but where is the other 52% of the stocks for ATi? If its privite investors thats alot of stock out in the open.

the bigger the float the better afaic

 

[Razor1]

well IMO its very risky to do a short sell on ATi right now and you're right that 0% kinda tells ya but thats for June, lets see what happens in a month.

 

[Demigod]

There are many possible reasons for buy backs. I tend to think you should buy stock when it bottoms. Companies might do the same. Can a company predict its own bottom? Who knows.

Another possible reason for buying back stock is to restock incentive plans. Periodically companies issue new stock to cover issuances of stock options and shares. If a company can buy back stock when it's cheap it might make sense to do so.

All very true but companies tend to anounce they have done this, somtimes even before they do it. Also Ati dont have the cash to do this at the moment, to finance it the will have to borrow several million to make a differance to the stock, unless they are cutting into the comeing quarters operating capital to do it.

 

[PatrickL]

They have the cash to do it, you are wrong about that
Anyway if it was one hostile take-over we should know by now as hostiles have to announce when they reach some caps.

 

[Geo]

All very true but companies tend to anounce they have done this, somtimes even before they do it. Also Ati dont have the cash to do this at the moment, to finance it the will have to borrow several million to make a differance to the stock, unless they are cutting into the comeing quarters operating capital to do it.

Ahem. http://www.beyond3d.com/forum/viewtopic.php?t=24766&postdays=0&postorder=asc&start=15

 

[Dave Baumann]

I wouldn't be a surprise to me at all if ATI were to be interested in take-over / merger talks with others, but not at these levels - it was said to me a couple of years back by an analyst that ATI's management would entertain talks when they were at or beyond $16 a share.

 

[Geo]

What would they be looking for in a partner, Wavey, other than boatloads of $$? "Synergy", of course, but in what direction? I found TI being on the list in the original article kind of interesting. . .

We really do seem to finally be on the cusp of the great DTV breakout that has been predicted for some years. . .I would think that would make ATI attractive for some folks.