Filed under: Google (GOOG), Comcast Cl’A’ (CMCSA), Time Warner Cable (TWC), Technology

It’s been a while since we’ve seen sharp gains on shares of cable companies. UBS is holding its Global Media Week and Communications Conference today in New York. Earlier today, Time Warner Cable (NYSE: TWC) surprised the markets today during a CNBC video interview when CEO Glenn Britt said that Time Warner wouldn’t be in the bidding for more wireless spectrum in the FCC auction. The company had been a bidder before.

Comcast Inc. (NASDAQ: CMCSA) is also opting out of a wireless spectrum bidding. The truth is that both cable companies already have access to spectrum if needed, and there is still more spectrum available on existing infrastructure that can be used if needed.

One interesting development was when Glenn Britt described the demand for a cable company to need wireless as a quadruple play against the telecoms, who now offer video solutions that compete against cable. The old triple- play is still very under-penetrated on a nationwide basis.

Maybe it pays to be patient rather than spending a few hundred million here and a couple billion there. Sooner or later it adds up to real money. Google (NASDAQ: GOOG) has said it would be participating in the spectrum auction in January for the new, more powerful 700-MHz spectrum. If the Googlesaurs want to be rewarded similarly, maybe they’d determine it is cheaper and easier to partner for spectrum openly rather than the spend-spend-spend model.

Time Warner Cable shares are up nearly 4% to $27.05 today, and Comcast shares are up some 2.5% at $21.05. Google shares are down almost 1% at $687.15.

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Filed under: Products and services, Internet, Google (GOOG), News Corp’B’ (NWS), Technology

As of the end of November, internet rating form comScore concluded that Google, Inc.’s (NASDAQ: GOOG) YouTube online video sharing service led all the U.S. online video competition, holding a 27.6% market share in September. It’s no surprise — if I were to ask 10 people where they could go to watch video on the web, my hunch is that at least 9 would say YouTube.

Was YouTube worth the billion-plus that Google paid for it? First-mover advantage is everything, and if Google can find a workable strategy to monetize the site, then most likely the $1.65 billion price tag won’t look like very much. comScore also stated that Google-owned sites ranked as the top U.S. video property. In September, there were 2.6 billion videos viewed. 2.5 billion of those were via YouTube. I suspect the other 0.1 billion came courtesy of Google Video.

Coming in behind Google in September was News Corp’s (NYSE: NWS) Fox Interactive Media, which includes MySpace, and Yahoo, Inc. (NASDAQ: YHOO), which saw 387 million and 381 million videos viewed, respectively. Is online video beginning to compete more and more with broadcast television? It’s not too hard to let the cat out of the bag with that statement, since over 9 billion videos were viewed online in September. An estimated 75% of American internet users participated in all that viewing. Yes, I would say that is competition.

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Filed under: Options

MetLife (NYSE: MET) volatility elevated prior to guiding 2008 estimates lower.

MET expects 2008 earnings of $5.90-6.20 vs. consensus estimates of $6.26. MET says it has no exposure to asset backed commercial paper and “virtually” no exposure to sub-prime CDOs. MET overall option implied volatility of 35 is above its 26-week average of 29 according to Track Data, suggesting larger risks.

American Capital (NASDAQ: ACAS), alternative asset management company with $19 billion in capital resources under management, closed at $37.61 Friday.

ACAS overall option implied volatility of 41 is above its 26-week avearge of 35 according to Track Data, suggesting larger risk.

Daily Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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Filed under: Products and services, Internet, Google (GOOG), News Corp’B’ (NWS), Technology

As of the end of November, internet rating form comScore concluded that Google, Inc.’s (NASDAQ: GOOG) YouTube online video sharing service led all the U.S. online video competition, holding a 27.6% market share in September. It’s no surprise — if I were to ask 10 people where they could go to watch video on the web, my hunch is that at least 9 would say YouTube.

Was YouTube worth the billion-plus that Google paid for it? First-mover advantage is everything, and if Google can find a workable strategy to monetize the site, then most likely the $1.65 billion price tag won’t look like very much. comScore also stated that Google-owned sites ranked as the top U.S. video property. In September, there were 2.6 billion videos viewed. 2.5 billion of those were via YouTube. I suspect the other 0.1 billion came courtesy of Google Video.

Coming in behind Google in September was News Corp’s (NYSE: NWS) Fox Interactive Media, which includes MySpace, and Yahoo, Inc. (NASDAQ: YHOO), which saw 387 million and 381 million videos viewed, respectively. Is online video beginning to compete more and more with broadcast television? It’s not too hard to let the cat out of the bag with that statement, since over 9 billion videos were viewed online in September. An estimated 75% of American internet users participated in all that viewing. Yes, I would say that is competition.

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Filed under: Rumors, Google (GOOG), Technology

We already use Google (NASDAQ: GOOG) to search for information all over the web. Many of us use Google Earth to look at global satellite views, and Google Gmail for our email needs, and Google Docs & Spreadsheets for our online word processing and spreadsheets. Are we ready to use Google for our wireless voice and data telecommunication needs as well?

Google gets by on the backs of traditional telecom channels now, reaching hundreds of millions of customers over cable modems, DSL connections and T1 data lines from your local telecommunications cooperative. In a sense, the company bypasses everything it can to bring its services directly to each customer over a web browser. It’s not the same game in the wireless business, as larger wireless companies keep iron-fisted control over what customers can access and who can market to them directly.

Google’s intention to participate in the FCC’s 700-megaHertz radio spectrum auctions in January tells the world that it wants to bypass the wireless carriers and provide services directly to consumers yet again. No revenue sharing, no unrealistic demands meant to pad the bottom lines of wireless carriers while underserving customers — none of that.

Google has the cash and the fortitude to take on established telecom companies and give customers a much-needed alternative to tight controls over purchased wireless services. Wireless could be Google’s second act that makes it one of the most powerful companies in the U.S. (by some estimations, it’s already there).

Would you use Google as your wireless provider if given the choice? Will the company have too much control over information if it succeeds in becoming a player in wireless?

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Filed under: Rumors, Google (GOOG), Technology

We already use Google (NASDAQ: GOOG) to search for information all over the web. Many of us use Google Earth to look at global satellite views, and Google Gmail for our email needs, and Google Docs & Spreadsheets for our online word processing and spreadsheets. Are we ready to use Google for our wireless voice and data telecommunication needs as well?

Google gets by on the backs of traditional telecom channels now, reaching hundreds of millions of customers over cable modems, DSL connections and T1 data lines from your local telecommunications cooperative. In a sense, the company bypasses everything it can to bring its services directly to each customer over a web browser. It’s not the same game in the wireless business, as larger wireless companies keep iron-fisted control over what customers can access and who can market to them directly.

Google’s intention to participate in the FCC’s 700-megaHertz radio spectrum auctions in January tells the world that it wants to bypass the wireless carriers and provide services directly to consumers yet again. No revenue sharing, no unrealistic demands meant to pad the bottom lines of wireless carriers while underserving customers — none of that.

Google has the cash and the fortitude to take on established telecom companies and give customers a much-needed alternative to tight controls over purchased wireless services. Wireless could be Google’s second act that makes it one of the most powerful companies in the U.S. (by some estimations, it’s already there).

Would you use Google as your wireless provider if given the choice? Will the company have too much control over information if it succeeds in becoming a player in wireless?

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Filed under: Rumors, Google (GOOG), Technology

We already use Google (NASDAQ: GOOG) to search for information all over the web. Many of us use Google Earth to look at global satellite views, and Google Gmail for our email needs, and Google Docs & Spreadsheets for our online word processing and spreadsheets. Are we ready to use Google for our wireless voice and data telecommunication needs as well?

Google gets by on the backs of traditional telecom channels now, reaching hundreds of millions of customers over cable modems, DSL connections and T1 data lines from your local telecommunications cooperative. In a sense, the company bypasses everything it can to bring its services directly to each customer over a web browser. It’s not the same game in the wireless business, as larger wireless companies keep iron-fisted control over what customers can access and who can market to them directly.

Google’s intention to participate in the FCC’s 700-megaHertz radio spectrum auctions in January tells the world that it wants to bypass the wireless carriers and provide services directly to consumers yet again. No revenue sharing, no unrealistic demands meant to pad the bottom lines of wireless carriers while underserving customers — none of that.

Google has the cash and the fortitude to take on established telecom companies and give customers a much-needed alternative to tight controls over purchased wireless services. Wireless could be Google’s second act that makes it one of the most powerful companies in the U.S. (by some estimations, it’s already there).

Would you use Google as your wireless provider if given the choice? Will the company have too much control over information if it succeeds in becoming a player in wireless?

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Filed under: Google (GOOG), Apple Inc (AAPL), Berkshire Hathaway (BRK.A), AT and T (T), Money and Finance Today, Morgan Stanley (MS), Lennar Corp’A’ (LEN), Activision Inc (ATVI), Cypress Semiconductor (CY)

Hot Tech Growth Companies
Four of the top 10 companies in BusinessWeek’s annual Hot Tech Growth 75 are involved in the manufacture of semiconductors. What’s behind their banner year? Leading the list in 2007 is Google, AT&T and Apple followed by Cypress Semiconductor, Western Digital, Nvidia and MEMC Electronic Materials.
Hot Growth: The Chips Have It

America’s Greediest Cities
Forbes takes a look at which cities are home to the richest people in America over the past decade. There are 751 Forbes 400 members in their 10-year tally. Of that number, 608 live in the 50 major metropolitan areas they used to compile this list. They divided the number in each city by that city’s population to come up with Forbes 400 members per capita and then ranked that list. Some of the results are surprising. Reputed bastions of hedonism like New York and Los Angeles, for all the glamorous myths they generate, came in sixth and eighth, respectively. Topping the list is Silicon Valley capital San Jose followed by San Francisco, Seattle, Denver and Boston.
America’s Greediest Cities - Forbes.com In Pictures: America’s Greediest Cities

Proposed Rate Freeze to Reduce Foreclosures
Whether you call it rate relief or a bailout, a mortgage rate freeze would have big effects on borrowers and lenders. If big lenders and regulators adopt the policy, here is a possible list of winners and losers.
Subprime relief: Winners and losers - Bankrate.com

How to Crack Your Nest Egg
Here’s how to withdraw money and make the most of your retirement plan.
How to Crack Into Your Nest Egg - TheStreet.com

Your Insurance Problems Solved

What to do if your medication is no longer covered, you’re sick and need insurance, and more.
Your Insurance Problems Solved - Kiplinger.com

America’s Richest Universities
Higher education is increasingly a tale of two worlds: The wealth gap between the elite schools and even the most prestigious public universities has never been wider. Harvard University tops the list followed by Yale, Stanford, Princeton, MIT, Columbia and UPenn.
In Pictures: Richest Unveristies - BusinessWeek

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Filed under: International markets, Exxon Mobil (XOM), Middle East, Venezuela, Chevron Corp (CVX), ConocoPhillips (COP), Mexico, Canada, Commodities, Oil

While analysts debate the dilemma OPEC faces at its meeting this week in Abu Dhabi — whether to increase product to address high prices, or to hold the line due to oil’s recent dip — traders have their own take on what the cartel could do.

“If they’re uncomfortable with a 500,000 barrel cut all at once, they could do it in stages: 250K and 250K,” Jim Dietz, independent oil trader, told BloggingStocks Monday.

Complicated task

Nearly everyone in the market understands that OPEC’s task is complex and made more-arduous by uncertainties facing the oil production environment. Oil prices danced with $100 per barrel about two weeks ago, but fears of slowing economic growth have since pushed them down by more than 10%. Oil futures continued their downward move Monday, falling 77 cents to $87.94 per barrel, continuing their biggest weekly decline in two years. Heating oil dropped about 2 cents to $2.49. Unleaded gasoline declined about 1 cent to $2.22.

Continue reading OPEC’s dilemma may be resolved by taking a half-step

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Filed under: Economic data, Housing, Federal Reserve

During the recent housing boom, people with lousy credit were not the only ones financing their purchases with subprime mortgages. The Wall Street Journal [subscription required] reports that in 2005, 55% of borrowers with good credit ratings — who could have signed up for prime mortgages at lower interest rates — got subprime mortgages instead.

Specifically, the Journal analyzed $2.5 trillion in subprime loans made since 2000 and found that as the number of subprime loans mushroomed, an increasing proportion of them went to people with credit scores — above 620 — high enough to often qualify for conventional loans with far better terms. The study by First American LoanPerformance, a San Francisco research firm, found the proportion rose to 61% by the end of 2006, up from 41% in 2000.

Why did this happen? The mortgage brokers got higher commissions for selling subprime loans. On average, U.S. mortgage brokers got 1.88% of the loan amount for originating a subprime loan, compared with 1.48% for conforming loans. As a result, the brokers did not notify borrowers with good credit of the “yield spread premium” equal to 2% of the loan amount — or $8,000 on a $400,000 loan — if a borrower’s interest rate was an extra 1.25 percentage points higher than the listed rates of the subprime lender, in this case the now defunct New Century Financial.

How could we keep this from happening in the future? Bright red letters on the cover of a mortgage document disclosing the broker’s compensation scheme might be a good start.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter.

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