Tech Sector Updates: Sodastream (NASDAQ:SODA) Advances, Pixelworks (NASDAQ:PXLW), Apple (NASDAQ:AAPL)



SodaStream  (NASDAQ:SODA) advances after Tilson touts shares Shares of SodaStream (NASDAQ:SODA), which makes at-home soda makers, are climbing after well-known hedge fund manager Whitney Tilson revealed that he had established a position in the stock and wrote an upbeat article about the company.

Tilson wrote in the article dated yesterday that after conducting a survey he does not believe that SodaStream (NASDAQ:SODA)’s product is a fad, as short sellers contend. “People love their SodaStreams,” he reported. Tilson said that in the past when he has been upbeat about stocks with high short interests the shares have produced some of his biggest winners, noting that SodaStream has a high short interest. Netflix (NFLX) and General Growth Properties (GGP) are two examples of such prior winners, Tilson stated. Furthermore, although SodaStream’s operating income sank 67% last quarter, most of its difficulties appear to be “truly short-term, fixable problems,” the hedge fund manager contended. Meanwhile, SodaStream dominates its market and competitors will have a difficult time catching up, Tilson added.

Moreover, its valuation is “reasonable,” he believes. Finally, SodaStream  (NASDAQ:SODA) would be “a highly attractive” takeover target for Pepsi (PEP), Dr. Pepper Snapple (DPS), or even Nestle (NSRGY), Tilson contended.

In mid-morning trading, SodaStream rallied $1.82, or 4.6%, to $41.50.

Pixelworks price target raised to $10 from $6 at Roth Capital

Roth Capital raised its price target for Pixelworks (NASDAQ:PXLW) shares to $10 citing greater visibility on potential new customers after the company disclosed that Apple (NASDAQ:AAPL) was a 10%-plus customer during 2013, in addition to Hitachi and NEC. Roth believes Apple (NASDAQ:AAPL) revenue represents potential upside to its 2015 estimates and believes Pixelworks (NASDAQ:PXLW) continues to gain traction in its mobile video processor IP licensing and chip strategy. The firm has a Buy rating on the stock.

Apple moves untaxed profits to Ireland, Australian Financial Review reports

Over the last decade, Apple (NASDAQ:AAPL) shifted about $8.9B in untaxed profits from its Australian operations to a tax haven structure in Ireland, according to an investigation by the Australian Financial Review. The Review obtained 10 years of financial accounts for Apple Sales International, the secretive Irish company at the center of Apple (NASDAQ:AAPL)’s international tax arrangements. Last year, for example, Apple reported pretax earnings in Australia of just $88.5M after it sent an estimated $2B of income from its Australian sales to Ireland via Singapore, where Apple negotiated a secret tax deal in 2009, says the Review.

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