>>> PWC said to have completed first draft of Quindell revie

RARE alert: PWC said to have completed first draft of Quindell review If you are following the Quindell saga, I picked up another interesting titbit on the insurance claims group yesterday that I thought I might share with loyal readers.

Some of my top sources claim that auditors at PricewaterhouseCoopers have done the first draft of the "independent review" and so far no major issues have been found.

For readers that don't recall, in early December, 2014 Quindell hauled in PWC to carry out the review of its legal services division, which had underperformed since September. Here is a link to the Financial Times story on the topic: http://www.ft.com/cms/s/0/61ad7a76-7eaf-11e4-a828-00144feabdc0.html#axzz3OmV9TqK0

Anyway, I am told by well-placed sources that Quindell has retained PWC for another month or so.

I guess some of what I have been told might have easily been inferred from the fact that Quindell has managed to hire a new chairman/deputy chairman. Also, the press release from earlier week said:

"The Independent Review is ongoing and shareholders will be updated as appropriate. The Board's current expectation is that the review will be completed by the end of February."    

A Quindell spokesperson declined to comment. But when I asked people close to the situation about PWC's completion of a first draft of the review one person said: "it was the first they had heard of it".  

Given the lack of response from the Quindell spokesperson, I have to put a medium [as the story has come from good sources] RARE disclaimer on the story. For readers that don't recall, RARE is:

Market gossip that hasn't been tested through formal journalistic channels (public relations executives, bankers etc). The rumour might be total codswallop but then again there may be something in it, so it's worth airing on Betaville.

NY Post : Nets for sale: Bidding for Prokhorov’s team could top

The Brooklyn Nets, struggling on the court and on the balance sheet, could be yours for the right price.
Like $1.3 billion, according to one estimate.
Majority owner Mikhail Prokhorov, whose free-spending ways have not brought him the championship ring he claimed would be won by the Nets by this season, is willing to entertain offers for his 80 percent stake in the team, according to reports.
Prokhorov last fall hired investment bank Evercore Partners to sell a piece of his stake — one that would amount to a minority stake in the team, sources said.
The tack of the Russian billionaire has apparently recently changed, however, as Bloomberg, first to report on the matter, said Prokhorov was looking to sell his entire stake.
The team denied there was any change in the thinking of the 49-year-old owner — the first foreign owner in the NBA.
“As we have said for many months, ownership is always open to listening to offers — that’s just good business,” a representative for Prokhorov said in a statement. “There is nothing imminent in terms of a sale of any stake in the team.”
To be sure, Prokhorov, his net worth tamped down by the crumbling Russian ruble, has long been rumored to be seeking to take some investment cash off the table.
He bought the team in May 2010 for roughly $220 million.
After the $2 billion sale of the Los Angeles Clippers last year, the value of every sports team has spiked.
The Atlanta Hawks are also for sale and are looking for a Clippers-like premium.
“I think the strategy is to pre-empt the Atlanta Hawks sale,” a sports banker who has heard the same rumors said.
The banker believes Prokhorov’s attempt to sell a minority stake didn’t attract his wished-for $1 billion valuation, so he is floating a full sale possibly to smoke out any bids. Values placed on minority shares usually don’t get a high premium, experts said.
Plus, the Nets lost about $144 million last year, Bloomberg reported.
“Let’s assume there is another Steve Ballmer out there,” referring to the former Microsoft CEO who paid $2 billion for the Clippers. “Why let him buy the Hawks?”
The Hawks plan to distribute sales books to prospective suitors this month seeking roughly $800 million, sources said.
Sports business insiders said possible Nets bidders would include Oracle executive Larry Ellison, private equity king David Bonderman and hedge fund mogul David Einhorn.
All bid recently for sports teams and are potential suitors, experts said.
The Nets told suitors a few weeks ago it would wait until after the Hawks sale ends, likely in March, before re-starting its sales effort, a source who has spoken with Evercore said.
If the Hawks attract a good price the belief is it will raise the value of the Nets.
There always has been a possibility Prokhorov could sell control of the team if the minority sale did not work.
Meanwhile, Forest City Enterprises has been in recent talks with AEG about selling its stake in the 2-year-old Barclays Center. Prokhorov also owns 45 percent of the arena

NY Post : GoPro takes a dive as Apple looks to take a bite out of the market

GoPro stock fell 12.2 percent Tuesday after Apple received patent approval for a remote-control camera system.
Investors fear Apple might set its sights on GoPro’s half of the $2.2 billion market for action cameras.
Apple’s patent “specifically mentions the weaknesses of the GoPro devices,” according to Patently Apple, a blog devoted to covering the iPhone maker’s intellectual property.
The blog also describes Apple’s new camera system as capable of being “secured to various objects, such as a bike helmet or scuba mask, or mounted to the handlebars of a motorcycle or the front of a surfboard.”
That description, coupled with Apple’s design prowess, makes it possible, if not likely, the patent could lead to a product line challenging GoPro’s self-styled mission of providing “the world’s most versatile cameras.”
GoPro had been a darling of Wall Street, soaring from its IPO price of $24 on June 25 to a high of $98.47 less than four months later — a gain of more than 300 percent.
On Tuesday, GoPro’s shares dipped to a low of $48.23 before rallying a bit in the afternoon to close at $49.87.
Apple, in contrast, saw its stock climb 1.0 percent Tuesday to close at $110.22.
Not everyone is convinced of GoPro’s vulnerability, however.
For starters, Apple’s enterprise value of $651 billion may make entering an industry not even 1 percent that size a hard-to-justify diversion for the world’s largest company.
Apple’s also known to tinker with patents for years before embedding them in a retail product.

>>> Gartner Says Worldwide Semiconductor Sales Expected to Reach $358 Billion in


Gartner Says Worldwide Semiconductor Sales Expected to Reach $358 Billion in 2015, a 5.4 Percent Increase From 2014
Compute, Wireless and Consumer Application Semiconductors Represent More Than 66 Percent of Total Semiconductor Revenue
Worldwide semiconductor revenue is forecast to reach $358 billion in 2015, a 5.4 percent increase from 2014, but down from the previous quarter's forecast of 5.8 percent growth, according to Gartner, Inc. The market is being driven by strong growth in application-specific standard products (ASSPs) in smartphones, along with DRAM and NAND flash in ultramobiles and solid-state drives (SSDs).
"Semiconductor revenue growth in 2015 is expected to slow from the 7.9 percent growth experienced in 2014 as DRAM returns to more traditional price reductions and the industry burns off excess holiday inventory," said Jon Erensen, research director of Gartner. "DRAM pricing was unusually firm in 2014 due to short supply, which propelled DRAM to be the fastest-growing device type in 2014 with 31.7 percent revenue growth. DRAM supply and demand will be in line in 2015, driving bit pricing down a more traditional 16.8 percent and reducing annual DRAM revenue growth to 7.7 percent."
From an application point of view, smartphones, SSDs and ultramobiles will see the largest dollar increases. In 2015, compute applications will continue to be the largest market for semiconductors, followed by wireless and consumer applications. Combined, these three device categories represent more than two-thirds of total semiconductor revenue and have the most influence on the overall strength of the semiconductor market.
However, in 2015, the industrial electronics segment is expected to outperform overall semiconductor market growth and other electronic application categories with revenue growth of 9.1 percent. The growth will be driven mainly by LED lighting applications for industrial and residential purposes and smart city projects. In addition, the Internet of Things (IoT) will continue to drive very strong unit growth in 2015 and beyond.
Following industrial applications, wireless applications — driven mainly by mobile phones — will be the next biggest growth market for semiconductors in 2015. However, the 2015 revenue growth forecast for wireless applications, and specifically mobile phones, remains the same as the previous quarter's forecast.
"While mobile phone semiconductor sales will remain robust, driven by the accelerating shift to smartphones and 4G Long Term Evolution, there is concern that weak sell-through for other electronic equipment categories will result in higher inventory levels and drag down semiconductor sales in the first quarter of 2015," said Mr. Erensen.

(BofA-ML) Greece : conditions for a positive outcome

* Beyond the pre-election rhetoric
We discuss the main conditions that we think any new Greek government will have to meet in order to avoid tail risks. We argue that there is room to improve Greece's adjustment program, but that this will depend to a large extent on the political will to implement key reforms. Our baseline is that the government that will follow the elections of Jan 25 and the Troika will have strong incentives to avoid extreme outcomes. However, we expect very difficult negotiations that could trigger more market volatility, while risks could remain high for most of the first half of the year.

* Key conditions for a positive outcome
• The elections of January 25 need to lead to a government, most likely a coalition. Failure to do so is expected to lead to a second election in early March, prolonging the uncertainty. Formation of a one-party government could also be a negative outcome, as its slim majority could be fragile.
• The new government will have to show very quickly a strong commitment to reach an agreement with the Troika. This is necessary for the rest of the Eurozone to extend the current program beyond February, to provide time for negotiations and allow the ECB to continue funding the Greek banks.
• Any agreement with the Troika will likely have to find common ground that will be politically acceptable both in Greece and in the rest of Europe. The new Greek parliament will have to approve a deal that will most likely differ from a
number of pre-election promises. The Eurozone parliaments will also need to approve a deal that will provide more help to Greece, but subject to credible conditions.

* An ideal deal
Greece has strong negotiating power within a program with the Troika, as more than 80% of its debt is with the official sector. However, Greece loses its negotiating power if the government is not willing to implement the key reforms in the program. In an ideal deal, Greece will likely continue with (hopefully less) fiscal consolidation and (hopefully more) reforms, in exchange for further support from the Troika (in the form of a conditional credit line if market conditions improve), ECB bank liquidity support and (hopefully) QE participation, and (hopefully soon) an OSI. We believe
that the primary surplus target will be the focus of the negotiations, which will then determine everything else—reforms and the size of the OSI.

* Could Tsipras be Greece’s Lula?
We discuss the case of President Lula in Brazil, a former union leader from the left, who proved market concerns unfounded and was credited with impressive economic performance. Lula’s case suggests that Mr. Tsipras could similarly surprise markets positively by accelerating market-friendly, structural reforms.