The times. (Gainesville, Ga.) 1972-current, October 30, 2018, Image 11

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The times., October 30, 2018, Image 11

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Newspaper Page Text0D BUSINESS Jeff Gill | Business reporter 770-718-3408 | jgill@gainesvilletimes.com The Times, Gainesville, Georgia Tuesday, October 30, 2018 IBM’s $34B Red Hat deal a risky bid to boost cloud business BY MICHELLE CHAPMAN AND MATT O’BRIEN Associated Press IBM’s plan to buy Red Hat is both the biggest acquisition in IBM’s century-long history and a risky effort to position itself as a major player in cloud computing. The $34 billion stock deal trans lates to $ 190 per Red Hat share — a 63 percent premium to the closing price Friday for the Raleigh, North Carolina, company. Red Hat Inc.’s stock soared about 45 percent in trading Monday. The path for revitalization for IBM may be found in cloud tech nology, a driving force behind the blockbuster deal for Red Hat over the weekend. “It’s a big bet but ultimately they’re in a situation where they needed to make a significant acquisition to move them poten tially forward,” Wedbush analyst Daniel Ives said. Cloud computing, in which services are delivered over the internet from remote computers, accounted for nearly a quarter of IBM’s total revenue over the past year. But the company has been overshadowed by top cloud rivals Amazon, Microsoft and Google in competing to sell its internet-based computing services to businesses. “This is about resetting the cloud landscape,” IBM Chairman and CEO Virginia Rometty said Mon day in a conference call. The hybrid cloud — when com panies use a mix of on-site, private and third-party public services — is an emerging $1 trillion opportu nity that the companies want to be prepared for, Rometty said. Ives said there’s still plenty of room for growth as financial ser vices, retailers and industrial firms increasingly migrate their work loads into the cloud. IBM’s Red Hat acquisition fol lows Microsoft’s recently com pleted $7.5 billion purchase of computer coding hangout GitHub. Both deals will allow the larger companies to tap into a broader community of open-source soft ware developers. Red Hat, founded in 1993, has built a software platform using the open-source Linux operating system that’s become “one of the key paths for enterprises in their moves to the cloud,” Ives said. The deal requires the approval of Red Hat shareholders as well as U.S. regulators. It is targeted to close in the second half of 2019, but Stifel’s Brad Reback said oth ers may wish to make a counterbid given Red Hat’s strengths in data centers. That prospect sent shares up $52.88 to $169.56, close to an all- time high. The stock of IBM, which is headquartered in Armonk, New York, slipped nearly 5 percent. On a whole new plane Photos by RICHARD DREW I Associated Press The Red Hydrogen One smartphone, Friday, Oct. 26, in New York. The new Hydrogen One has a holographic screen that produces 3-D visuals without needing special glasses. Can a holographic screen help a new phone break out from the pack? BY ANICK JESDANUN Associated Press NEW YORK - Most lead ing phones offer the same basics: Big screens, decent battery life and good cam eras. So when a newcomer brings something innovative to the party, why is it difficult to break through a phone mar ket dominated by Apple and Samsung? One such smartphone comes out this week from Red, a company with roots in digital cameras for movie produc tions. The new Hydrogen One has a holographic screen that produces 3-D visuals without needing special glasses. It is launching with two major movies converted to this for mat and allows users to create and share their own videos shot with the phone. Red’s goals are modest — about 16 million units a year, based on Red’s stated target of 0.5 percent of Samsung’s sales. But Red will need custom ers beyond the tech elite and camera buffs; it’ll need their friends and friends of their friends. It doesn’t help that the Hydrogen One carries a hefty $1,295 price tag. “The Red Hydrogen One stands little chance of upset ting the smartphone status quo,” said Geoff Blaber, a research analyst at CCS Insight. Chipping away at Apple’s and Samsung’s dominance is much harder than it used to be because phone innovation isn’t so much about hardware any more, Creative Strategies analyst Carolina Milanesi said. What matters more, she said, is the software and artificial intelligence behind it. Consider Apple’s new iPhones. Sure, the new XR and XS models all have decent screens, battery life and cam eras. But Apple has also been emphasizing such software- based features as augmented reality, artificial intelligence and automation using the Siri digital assistant. Or take Sam sung’s Galaxy Note 9. Signa ture features include the use of AI to automatically fine-tune images. While the Hydrogen One’s screen is different, Milanesi said, it’s not necessarily some thing the mass market will gravitate to. Red founder Jim Jannard said his phone is about making waves in a sea of smartphone sameness. “We don’t buy the same make, model or color of car that our next-door neighbor has,” he said. “It’s important to keep this industry pushing along... and give people some new choice. What we’ve done is pretty nuts.” The phone starts selling Fri day through AT&T and Veri zon in the U.S. Red calls the screen technol ogy 4V, for four view, which is another way of saying it’s dou bling what twin-lens 3-D cam eras produce by adding depth data to each image. There’s a special material under the screen that lets 4V photos and video appear to the viewer in 3-D. Images that aren’t shot or converted to this format will look the same as they do on any other screen. Attempts to photograph a 4V screen will also produce images that don’t look any different. Yet the 3-D wizardry indeed works, though it’s more pro nounced in some scenes than others. Images of a soccer goalie blocking a shot feels realistic, but a waterfall at Yosemite National Park looks like video taken with a regu lar camera (though leaves in the foreground looked 3-D). The Red phone might remind you of holographic stickers in which the view shifts slightly as you tilt them. The Warner Bros, studio is giving customers of parent company AT&T two free 4V movies: the first “Harry Pot ter” prequel, “Fantastic Beasts and Where to Find Them,” and Steven Spielberg’s “Ready Player One,” which is set in a virtual world. The studio plans to convert about a half-dozen other movies initially. Red will have tools for producers to convert existing 3-D video into the 4V format. The Hydrogen One also has twin lenses in the back to capture 4V photos and video. Trouble is, people you share them with will get a normal image unless they also have a Hydrogen One. The phone also has a hand ful of 4 V games. Red’s 4V could run into the same problems virtual reality has faced. People haven’t been rushing out for headsets, while video creators haven’t been rushing out to make VR expe riences. There’s a chicken- and-egg problem at play. Beyond the fancy screen, the phone is thick at a time Apple and Samsung make thinner phones. That’s done to fit a bigger battery, with 12 percent more capacity than the super-charged Note 9. The sides have ridges to improve the grip. The phone has pins for expansion modules, such as an adapter for any stan dard SLR lens. (Incidentally, a major manufacturer that tried this modularization approach, LG, backed away from it after a year.) Associated Press A clerk counts Chinese currency notes at a bank outlet, Nov. 25,2016, in Huaibei in central China. China’s yuan at decade low against dollar BY JOE MCDONALD Associated Press BEIJING — China’s yuan sank to a 10-year low against the dollar on Monday, coming close to breaking the politically sensitive level of seven to the U.S. currency. The yuan declined to 6.9644 per dollar at mid day, passing its most recent low in 2016 before recovering slightly. It was the lowest level since May 2008. The currency’s weakness is one of a series of elements fueling U.S trade complaints against Beijing. The U.S. Treasury Department declined this month to label China a currency manipulator but said it was closely watching Beijing. Chinese authorities have promised to avoid “competitive devaluation” to boost exports amid a tariff war with U.S. President Donald Trump over Beijing’s technology policy. But they are try ing to make the state-controlled exchange rate more responsive to market forces, which are pushing the yuan lower. The level of seven yuan to the dollar has no economic significance, but could revive U.S. attention to the exchange rate. Chinese authorities are likely to “stand their ground” and prevent a “capitulation beyond the 7 level,” Mizuho Bank said in a report Monday. The yuan, also known as the renminbi, or “peo ple’s money,” has declined by almost 10 percent against the dollar since April as China’s economy cooled and U.S. and Chinese interest rates went in opposite directions. That helps exporters cope with tariffs of up to 25 percent imposed by Trump on billions of dollars of Chinese goods. But it raises the risk of inflaming American complaints about Beijing’s trade tactics. “The last thing they will do is to escalate the tension by starting a currency war amid a trade war,” Macquarie Group said last week. A Treasury report on Oct. 17 said China failed to meet criteria to be labeled a currency manip ulator, a status that can trigger sanctions. But it said Beijing was, along with Japan and Germany, on a list of governments whose currency polices would be closely monitored. A weaker yuan could encourage an outflow of capital from the world’s second-largest economy. That would raise borrowing costs at a time when its leaders are trying to shore up cooling growth. Stock Exchange Highlights ■ NYSE 11,942.51 -34.43 V Nasdaq W 7,050.29 -116.92 Gainers ($2 or more) Gainers ($2 or more) Name Last Chg %Chg Name Last Chg %Chg RedHat 169.63 CooperTire 30.89 Genworth 4.22 MercGn 58.50 GlbShip pfB21.65 Towerlntl 28.08 Stonerdg 24.99 NordicAm 2.68 NavMH pfH 8.66 Kemet 17.75 +52.95 +45.4 +5.44 +21.4 +.61 +16.9 +7.87 +15.5 +2.67 +14.1 +3.36 +13.6 +2.43 +10.8 +.24 +9.8 +.76 +9.6 +1.47 +9.0 Losers (S2 or more) Name Last Chg %Chg DBGIbHY23154.54- DenburyR 3.32 DirxMexn 11.33 Standex 78.58 - Revlon 22.78 FstDatan 18.01 AuroraC n 5.91 CanopyGr n33.07 Danalnc 14.43 DxLatBII s 21.80 49.46 -24.2 -1.03 -23.7 -2.81 -19.9 16.83 -17.6 -4.82 -17.5 -3.59 -16.6 -1.13 -16.1 -5.63 -14.5 -2.20 -13.2 -3.26 -13.0 Most Active ($1 on more) Name Vol (00) Last Chg GenElec FordM BkofAm Petrobras Weathflntl FstData n AT&T Inc Twitter Vale SA DenburyR 1195037 921128 888322 599917 513801 494889 484330 406410 393034 391004 11.16 9.28 26.61 15.56 1.54 18.01 29.64 32.39 14.27 3.32 -.14 +.30 +.22 -.68 -.44 -3.59 +.55 +.03 -.80 -1.03 Diary Advanced Declined Unchanged Total issues New Highs New Lows Volume 1,187 1,634 61 2,882 16 388 4,618,735,876 ElecVeh n 4.55 LogicBio n 10.73 PyxisTnkr 2.07 NF EngSv 6.26 DianaCnt rs 2.05 KandiTech 4.66 CASIPhrh 3.18 Euroseas rs 2.13 GoldBull n 7.22 LifewayFds 2.84 +2.37+108.7 +2.15 +25.1 +.40 +24.0 +1.10 +21.4 +.29 +16.5 +.66 +16.5 +.41 +14.8 +.26 +13.9 +.82 +12.8 +.32 +12.7 Losers ($2 or more) Name Last Chg %Chg RmblOn B n 5.05 TowerSemi 13.98 ChampO hrs 9.84 MarinSft rs 2.21 Tilray n 90.68 Melinta rs 2.37 C00IHI rs 3.54 YulongE rs 6.16 Zynerba n 5.24 PriorTc un 10.82 -1.80 -26.3 -3.77 -21.2 -2.15 -17.9 -.46 -17.2 17.40 -16.1 -.43 -15.4 -.61 -14.7 -1.02 -14.2 -.86 -14.1 -1.74 -13.9 Most Active ($1 or more) Name Vol (00) Last Chg AMD Microsoft Apple Inc Intel MicronT Comcast s Facebook Flex Ltd Zynga Cisco 941859 550041 456424 353866 335971 323101 312406 311700 283168 278017 16.85 -.78 103.85 -3.11 212.24 -4.06 45.40 34.66 35.99 +.75 142.09 -3.28 6.94 -.15 3.62 -.21 43.84 -.41 -.29 -.74 Diary Advanced Declined Unchanged Total issues New Highs New Lows Volume 1,203 1,738 123 3,064 21 326 2,524,071,722 Stocks of Local Interest Name Ex YTD Div Yld PE Last Chg %Chg AFLAC S 1.04 2.5 13 42.28 +.58 0.0 Hershey 2.89 2.7 23 106.00 +3.48 -6.6 AT&T Inc 2.00 6.7 6 29.64 +.55 -23.8 HomeDp 4.12 2.4 23 173.20 +.97 -8.6 AbbottLab 1.12 1.7 29 67.31 +.32 +17.9 Intel 1.20 2.6 17 45.40 -.29 -1.6 AMD 16.85 -.78 +63.9 IBM 6.28 5.2 9 119.64 -5.15 -22.0 Altria 3.20 5.0 20 64.59 +1.50 -9.6 JohnJn 3.60 2.6 19 137.55 +.58 -1.6 Apple Inc 2.92 1.4 25 212.24 -4.06 +25.4 Lowes 1.92 2.1 19 92.86 -.92 -.1 ATMOS 1.94 2.1 18 94.49 +.87 +10.0 McDnlds 4.64 2.7 26 173.23 -.11 +.6 AuroraC n 5.91 -1.13 -21.1 Merck 2.20 3.1 27 71.45 +1.05 +27.0 AutoZone 16 747.05 +3.48 +5.0 MicronT 3 34.66 -.74 -15.7 AveryD 2.26 2.5 26 89.39 +1.27 -22.2 Microsoft 1.84 1.8 49 103.85 -3.11 +21.4 BB&T Cp 1.62 3.4 14 47.77 +1.29 -3.9 NorflkSo 3.20 2.0 24 161.09 -.85 +11.2 BP PLC 2.38 5.8 22 41.03 -.07 -2.4 OfficeDpt .10 4.0 7 2.53 -.01 -28.5 BkofAm .60 2.3 13 26.61 +.22 -9.9 Penney 23 1.36 -.02 -57.0 BarnesNob .60 9.6 6.23 -.01 -7.0 PepsiCo 3.71 3.3 33 112.89 +2.44 -5.9 Boeing 6.84 2.0 31 335.59-23.68 +13.8 Pfizer 1.36 3.1 17 43.23 +.63 +19.4 BrMySq 1.60 3.2 49 49.73 -.70 -18.8 PhilipMor 4.56 5.0 22 90.46 +1.46 -14.4 CSX .88 1.3 9 65.69 -.23 +19.4 Primerica 1.00 .9 13 108.76 +1.52 +7.1 CampSp 1.40 3.7 13 37.59 +.86 -21.9 ProctGam 2.87 3.3 22 88.24 +.38 -4.0 Caterpillar 3.44 3.0 11 113.98 -1.07 -27.7 RedHat 169.63+52.95 +41.2 ChesEng 6 3.72 -.10 -6.1 RegionsFn .56 3.4 14 16.43 +.37 -4.9 Chevron 4.48 4.1 48 108.93 -2.60 -13.0 ResidioTc n 25.82 0.0 Cisco 1.32 3.0 22 43.84 -.41 +14.5 SiriusXM .05 .9 31 5.62 -.05 +4.9 Citigroup 1.80 2.8 11 64.35 +.14 -13.5 SnapIncAn ... 5.99 -.29 -59.0 CocaCola 1.56 3.4 88 46.46 +.54 +1.3 SouthnCo 2.40 5.2 22 45.89 +1.03 -4.6 Comcast s .76 2.1 17 35.99 +.75 -9.8 SwstnEngy 6 5.03 +.09 -9.9 ConAgra .85 2.4 17 35.96 +.54 -4.5 SunTrst 2.00 3.3 10 60.18 +.62 -6.8 Cummins 4.56 3.5 37 131.38 +2.61 -25.6 SynovusFn 1.00 2.7 13 36.90 +.28 -23.0 DenburyR 3.32 -1.03 +50.2 3M Co 5.44 2.9 26 185.79 +.84 -21.1 Disney 1.68 1.5 15 113.04 -.15 +5.1 Torchmark .64 .8 7 83.04 +.35 -8.5 DowDuPnt 1.52 2.9 17 52.07 +.07 -26.9 Twitter 32.39 +.03 +34.9 Equifax 1.56 1.6 17 96.62 -.57 -18.1 Tyson 1.20 1.9 11 61.56 +1.09 -24.1 ExxonMbl 3.28 4.3 16 77.05 -.48 -7.9 UtdCmBks .60 2.4 14 24.77 +.99 -12.0 Facebook 27 142.09 -3.28 -19.5 UPS B 3.64 3.5 18 105.13 -.18 -11.8 FstData n 9 18.01 -3.59 +7.8 VerizonCm 2.41 4.3 7 56.48 +.97 +6.7 Flex Ltd 7 6.94 -.15 -61.4 Vodafone 1.82 9.7 18.79 +.17 -41.1 FordM .60 6.5 5 9.28 +.30 -25.7 WalMart 2.08 2.1 24 99.80 +.86 +1.1 GenElec .48 4.3 11.16 -.14 -36.1 Weathflntl 1.54 -.44 -63.1 GenuPrt 2.88 2.9 22 99.75 +1.19 +5.0 WeisMk 1.20 2.6 22 46.19 +2.71 +11.6 HP Inc .56 2.4 8 23.02 -.11 +9.6 WellsFargo 1.72 3.3 13 52.23 +.98 -13.9 Haverty .72 3.5 21 20.32 +.38 -10.3 YumBrnds 1.44 1.7 31 85.47 -.31 +4.7 HeliosM rs .02 -.00-100.0 Zynga 60 3.62 -.21 -9.5 Name Ex YTD Div Yld PE Last Chg %Chg Stock Footnotes: g = Dividends and earnings in Canadian dollars, h = Does not meet continued-listing standards. If = Late filing with SEC. n = New in past 52 weeks, pf = Preferred, rs = Stock has undergone a reverse stock split of at least 50 percent within the past year, rt = Right to buy security at a specified price, s = Stock has split by at least 20 percent within the last year, un = Units, vj = In bankruptcy or receivership, wd = When distributed, wi = When issued, wt = Warrants. Fund Footnotes: m - Multiple fees are charged, usually a marketing fee and either a sales or redemption fee. Source: The Associated Press. Sales figures are unofficial. Stock Market Indexes Dow Jones industrials Close: 24,442.92 Change:-245.39 (-1.0%) 27,200 26,400 25,600 24,800 24,000 25,840 24,980 24,120 10 DAYS M J J A S O 52-Week Net YTD 12-mo High Low Name Last Chg %Chg %Chg %Chg 26,951.81 23,242.75 Dow Industrials 24,442.92 -245.39 -.99 -1.12 +4.69 11,623.58 9,420.16 Dow Transportation 9,896.11 -69.56 -.70 -6.75 +.95 778.80 647.81 Dow Utilities 740.24 +10.52 +1.44 +2.33 -1.62 13,637.02 11,847.79 NYSE Composite 11,942.51 -34.43 -.29 -6.76 -3.06 8,133.30 6,517.93 Nasdaq Composite 7,050.29 -116.92 -1.63 +2.13 +5.24 1,309.73 1,118.69 S&P 100 1,177.69 -11.37 -.96 -.46 +3.60 2,940.91 2,532.69 S&P 500 2,641.25 -17.44 -.66 -1.21 +2.66 2,053.00 1,769.73 S&P MidCap 1,788.59 -6.51 -.36 -5.89 -2.02 30,560.54 26,293.62 Wilshire 5000 27,228.07 -199.07 -.73 -2.04 +1.97 1,742.09 1,436.43 Russell 2000 1,477.31 -6.51 -.44 -3.79 -.91 Mutual Funds Name Total Assets Obj ($Mlns) NAV Total Return/Rank 4-wk 12-mo 5-year Pet Load Min Init Invt Vanguard 500ldxAdmrl LB 265,379 244.13 -9.3 +4.3/A +10.5/A NL 10,000 Vanguard TtlSMIdxAdmrl LB 214,061 65.68 -9.8 +3.6/B +10.0/A NL 10,000 Vanguard TtlSMIdxinv LB 135,625 65.65 -9.8 +3.5/B +9.9/B NL 3,000 Vanguard TtlnSIdxInv FB 134,124 15.54 -10.5 -10.3/C +1.3/B NL 0 Vanguard TtlSMIdxins LB 128,089 65.69 -9.8 +3.6/B +10.0/A NL 5 000,000 Vanguard Insldxlns LB 126,438 240.86 -9.3 +4.3/A +10.5/A NL 5 000,000 Vanguard InsIdxinsPlus LB 108,769 240.87 -9.3 +4.3/A +10.6/A NL100,000,000 Fidelity Contrafund LG 101,686 12.28 -12.8 +4.0/D +11.1/B NL 0 Vanguard TtlnSIdxInsPlus FB 100,878 104.00 -10.4 -10.2/C +1.4/B NL100,000,000 American Funds GrfAmrcA m LG 94,075 49.59 -12.5 +3.6/D +10.5/C 5.75 250 Vanguard WlngtnAdmrl MA 88,474 69.88 -5.2 +1.2/A +7.2/A NL 50,000 Vanguard TtBMIdxAdmrl Cl 85,309 10.30 -0.4 -1.4/C +1.8/C NL 10,000 Cl -Intermediate-Term Bond, FB -Foreign Large Blend, IH -World Allocation, LB -Large Blend, LG -Large Growth, LV -Large Value, MA -Moderate Allocation, WS -World Stock, Total Return: Chng in NAV with dividends reinvested. Rank: How fund performed vs. others with same objective: A is in top 20%, E in bottom 20%. Min Init Invt: Minimum $ needed to invest in fund. Source: Morningstar.