Filed under: Google (GOOG), Apple Inc (AAPL), Research in Motion (RIMM), Verizon Communications (VZ), Smartphones, Technology

Bloomberg ran an article this morning discussing mobile phone trends. This article should be read by anyone who invests in Apple (NASDAQ: AAPL) because of the iPhone and anyone that considers Google’s (NASDAQ: GOOG) moves in the mobile space to be a serious harbinger of what’s to come for the mobile market.

As Apple rolled out its vaunted iPhone (it rocks, by the way) and Research in Motion (NASDAQ: RIMM) upgraded its phones to support video, Bloomberg reports that U.S. customers shelled out 40 percent more for handsets last quarter than a year earlier.

The article addresses a few salient trends in the mobile space:

• Analysts expect that North America will be the only region where the average phone price will increase this year.
• Last year, mobile handsets sold in Japan cost 74 percent more than in North America. In Europe, they were 10 percent pricier.
• Sales of pricier handsets such as the iPhone almost tripled last quarter and made up 11 percent of phones sold in the U.S.
• Shoppers spent $3.2 billion on phones, or $83 each, up from $2.2 billion a year earlier and the most since 2005
• The iPhone, which doubles as a music player, cost as much as $599 when it went on sale in June and now sells for $399. Apple shipped 1.4 million of them in the first three months. BlackBerrys go for as much as $300.

The Bloomberg article also describes the effect carrier-sponsored subsidies have had on the industry. “Carriers have used subsidies to keep prices of most other phones down. Motorola Inc.’s Razr, which sold for as much $500 when introduced in 2004, can now be had free,” reported Bloomberg.

Carriers still act as “gatekeepers” in the industry. The carriers generally decide which devices to offer to their customers, and own the consumer relationship.

This all may change as carriers like Verizon (NYSE: VZ) have made announcements about opening up their networks to non-subscribers. Combine this with phone manufacturers continuing to produce better and more engaging devices and Google’s attempts to create incentives and a platform for application development for the mobile device, and it’s an opportunity for investors to pick some new horses.

Zack Miller is the managing editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund. Author holds a long-term position in GOOG as of 11/26/2007.

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Filed under: Google (GOOG), Microsoft (MSFT), Apple Inc (AAPL), Cisco Systems (CSCO), Hewlett-Packard (HPQ), Intel (INTC), Adobe Systems (ADBE), Best Buy (BBY), Research in Motion (RIMM), Oracle Corp (ORCL), Cramer on BloggingStocks, Technology

TheStreet.com’s Jim Cramer suspects that nimble traders can enjoy real gains on this sector’s run into year-end.

Can someone remind me what the bear case for tech was?

Oracle (NASDAQ: ORCL) (Cramer’s Take), which has a huge business in financial services, shoots the lights out with a remarkable quarter. And then right on top of it, Research In Motion (NASDAQ: RIMM) (Cramer’s Take), again laden with financial services, issues a huge quarter that kind of blows the mind after all that it has done already.

Before that we had Adobe (NASDAQ: ADBE) (Cramer’s Take), again a much-used product in finance, print a quarter that was so strong that I was surprised the stock didn’t leap.

Accenture (NASDAQ: ACN) (Cramer’s Take) indicated that business around the world in finance was on fire, again, implying that financial tech purchasing remains strong.

And of course the week started out with Best Buy (NYSE: BBY) (Cramer’s Take), the biggest seller of consumer hard goods, saying all the right things about the consumer and tech, including great things about tech-heavy big screen TVs and all sorts of other gadgets.

I believe that all of this negativity started with a very off-handed comment by John Chambers implying that a subset of financial services, the U.S. subset, was not so hot, causing a gigantic selloff in tech, including Cisco (NASDAQ: CSCO) (Cramer’s Take).

It didn’t matter that Western Digital (NYSE: WDC) (Cramer’s Take) immediately told a different story or that Hewlett-Packard (NYSE: HPQ) (Cramer’s Take), which I own for Action Alerts PLUS, did, too. Nor did it matter when National Semiconductor (NYSE: NSM) (Cramer’s Take) started its call by saying that things simply weren’t that bad.

Now we know it was much ado about nothing. That means you are going to see an extraordinary run into tech between now and year-end, including Apple (NASDAQ: AAPL) (Cramer’s Take) and Google (NASDAQ: GOOG) (Cramer’s Take), which no one I know thinks is in trouble, and of course Intel (NASDAQ: INTC) (Cramer’s Take) and Microsoft (NASDAQ: MSFT) (Cramer’s Take).

This tech “raid” was beyond belief right down to the end when rumors hit that Research in Motion was having a miserable quarter. I suspect that the shorts will be on the run here and that a fast trader can take advantage of the inevitable pinning down of a HPQ or an Intel, or at least the pressure down, and scoop up some bargains.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com’s sites and serves as an adviser to the company’s CEO. At the time of publication, Cramer was long HPQ.

RELATED LINKS:

• The Five Dumbest Things on Wall Street This Week
• Do a Background Check on Your Credit Card Company

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Filed under: Google (GOOG), Yahoo! (YHOO), Cisco Systems (CSCO), Blockbuster Inc ‘A’ (BBI), Money and Finance Today, Campbell Soup (CPB), Circuit City Stores (CC), Merrill Lynch (MER), Research in Motion (RIMM)

Dumbest Products of 2007
This was the year of lead paint, choking hazards, and toys that turned into the date rape drug. A look back at some of the worst — and wackiest — products found on store shelves. Some of the products on the list are the iPod dock that doubles as a toilet paper holder, potato chips infused with caffeine and B-vitamins, the quadruple bypass burger, bottled water for dogs and topping the list Aqua Dots, a children’s toy with the added bonus of subbing as a ‘date rape’ drug.
Inc.com | The Dumbest Products of 2007

Where to Invest in 2008
Choosing investments for 2008 is like trying to find a decent Christmas tree in a nearly empty lot. Stocks? Not with earnings expected to fall. Bonds? The safe ones are overpriced. Real estate? You gotta be kidding. Still, all hope is not lost. In this Special Report on Where to Invest, we’ll tell you what some of the most successful investors are forecasting for the year ahead.
Where Things Are Headed in 2008 - BusinessWeek

Your Real Cost of Living
Forget the national averages: Your personal inflation rate is likely to be higher.
Like real estate, most shopping is local and prices vary by region. For instance, the cost of living in Houston and Galveston is flat compared with a year ago. But across the Gulf of Mexico in the Miami-Fort Lauderdale area, prices are up almost 4%.
Your Real Cost of Living - Kiplinger.com Calculator: What’s Your Cost of Livng?

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Filed under: Industry

Chrysler Corp., owned by private equity firm Cerberus Capital, has said what many auto industry watchers have suspected for a while. It’s “operationally bankrupt,” according to Chrysler boss Robert Nardelli (who left Home Depot this year after compensation padding during HD’s poor performance). Nardelli walked into a nightmare, which was fitting since he left one company in his messy wake and joined another that was already in progress. How fitting.

Anyway, Chrysler, who is selling assets and trying to reorganize into something recognizable as an auto manufacturer, is apparently running out of cash. When Nardelli was asked point-blank if Chrysler was bankrupt, he answered slyly with “Technically, no. Operationally, yes. The only thing that keeps us from going into bankruptcy is the $10 billion investors entrusted us with.” Thank goodness for Cerberus, eh?

Chrysler is trying to raise capital by selling land, older factories and other tangible assets (probably at a loss to book value), but with Cerberus now being exposed to the effects of the subprime mortage industry’s implosion with its ownership of GMAC (bought from General Motors for $12 billion), it can’t just prop up Chrysler without seeing the company shed itself of useless assets as quickly as possible. Would you buy a Chrysler vehicle with all this uncertainty? If customers start using that in their decision-making process, the world of hurt could get even worse.

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Filed under: Options

King Pharma (NYSE: KG) is recently up 25c to $10.49.

KG, a vertically integrated pharmaceutical company with September total revenues of $544 million. It has been rumored as a takeover candidate in the past.

KG call option volume of 5,241 contracts compares to put volume of 366 contracts. KG January option implied volatility of 70 is above its 26-week average of 46 according to Track Data, suggesting larger upside price fluctuations.

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

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Filed under: Major movement, From the boards, Press releases, Management, Insiders, Competitive strategy

After a rocky 2007, Marsh & Mclennan Companies (NYSE: MMC), the world’s largest insurance broker, is looking to shake things up for 2008, and for starters the company has announced it will be replacing its CEO, Michael Cherkasky.

At the start of 2007, MMC was trading at $31.00 a share, and had dropped 19.7% through last night’s closing of $24.89. With the price pressure that the stock has been under this year, it really is not too surprising that the company is looking for new leadership. Cherkasky is the second big shake up on the company’s board this month. Earlier this month, Dan Glaser was appointed as chairman and chief executive of the company, replacing Brain Storm who left the position back in September.

2008 could prove to bring in even more changes for the struggling company. Analysts are already speculating that whoever is chosen to replace Cherkasky will be forced to deal with the possibility of breaking up the company.

Continue reading An unsure future for Marsh & McLennan (MMC)

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Filed under: International markets, China, Newsletters, Commodities, Oil, Stocks to Buy, Best Stocks for 2008

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

“My favorite speculative idea for 2008 is China Natural Gas (NASDAQ: CHNG),” says Ian Wyatt, editor of Rising Star Stocks. “The Delaware-registered public company owns and operates natural gas-related businesses in China.

“Its core business is the distribution of compressed natural gas as a vehicular fuel to retail end users and as a natural gas utility supplying over 71,000 residential customers in Lantian County, Lintong and Baqiao Districts in the City (jurisdiction) of Xian.

“Natural gas is one of the cleanest energy sources and one of China’s most abundant natural resources. For this reason, the Chinese government sees compressed natural gas (CNG)-powered vehicles as part of the solution to its national environmental woes.

“For 2007 analysts estimate earnings of 38 cents per share on revenues of $33.9 million, an increase of 80% from revenues of $18.8 million in 2006. In 2008 analysts see China Natural Gas growing its earnings to 58 cents on revenues of $55.4 million, a 63% increase from the 2007 estimate of $33.9 million.

Continue reading Best Stocks for 2008: Gas gains for China Natural (CHNG)

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Filed under: Competitive strategy, Scandals, Business of sports, Headline news

Could there be any worse fate for an Olympic level athlete than to be stripped of their statistics and medals? Yes, there could be worse things. Just ask former Olympic track star Marion Jones which is worse, losing your medals or being forced to tell your mother you have to sell her house.

Are these professional quality athletes really so stupid as to believe that if they get pinched for using banned performance enhancing drugs they’ll get away with just a slap on the wrist? I don’t think it’s that simple. I’m sure that Marion Jones knew what she was doing was seriously wrong and I feel certain that she knew if she got busted, the truth would come with a very high price. Now, amid all the investigations and scandal, she’s finding out just how high priced skirting the truth can really be.

For her misdeeds, Marion Jones has been required to forfeit all five of her medals from the 2000 summer Olympics and has been told to repay approximately $700,000 of her prize money. All of her standings and statistics beginning at September 1, 2000, shall be red-lined in the record books and her medals from other competitions have been taken away also.

Continue reading Money Losers of 2007: Marion Jones is last out of the blocks

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Filed under: Major movement, Analyst reports, Research in Motion (RIMM), Options

Research in Motion (NASDAQ: RIMM) is recently up $10.51 to $117.58.

Morgan Keegan says: “Near term trends still very strong; view fair value in $120/share.”

RIMM call option volume of 160,931 contracts compares to put volume of 79,681 contracts according to Track Data. RIMM January option implied volatility of 56 is below yesterday’s level of 74 and above its 26-week average of 55 according to Track Data, suggesting larger risk.

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

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Filed under: Earnings reports, Competitive strategy, Best Buy (BBY), Circuit City Stores (CC)

When Best Buy (NYSE: BBY) blew through analyst estimates earlier this week and made a larger-than-expected profit, many industry watchers probably wondered what Best Buy is doing right that fellow retailer Circuit City (NYSE: CC) is doing wrong. Now we know: Circuit City saw sales plummeted 3.1% as Peter reported this morning in another quarterly loss as it continued losing market share to its much larger rival.

Best Buy is probably not only taking market share away from Wal-Mart — the world’s largest retailer — but it’s stomping Circuit City into the ground as well. Circuit City CEO Phil Schoonover said his company’s poor performance in its most recent quarter was due to the fact management “underestimated the financial impact from the disruption of our transformation work.” What else is the company transforming? From a slightly-bad retailer to a completely inept one?

I’m not so sure how Schoonover has kept his job with three consecutive quarterly disappointments, but perhaps 2008 will see a brighter future for the retailer. Best Buy has its success formula pretty much down perfect, and the immense challenge Circuit City will face should be quite formidable next year.

But, there may be signs of things to come. Take this: Best Buy’s quarterly report this week said sales surged on flat-panel televisions (hopefully, profitable sales), which Circuit City continues to say — every quarter — that flat-panel television pricing depression is contributing to its financial woes. How can these types of sales be diametrically opposed at the two retailers? Something’s fishy there.

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