Filed under: Microsoft (MSFT), Marketing and advertising, Next big thing, Videos

Finally, a business parody worth featuring. Several videos have laid claim to the throne, there was … uhhhh … hmmmm and uhhhhh … okay; maybe this is the first laugh-out-loud business parody, and it comes from none other than William Henry Gates III of Microsoft (Nasdaq: MSFT) from Redmond, WA:

You want some market predictions, here you go: Bill Gates is the next YouTube superstar!

Timothy Sykes writes the blog timothysykes.com, is a former hedge fund manager, the star of the TV show Wall Street Warriors and author of the book, An American Hedge Fund: How I Made $2 Million as a Stock Operator & Created a Hedge Fund

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Filed under: Mexico, Stocks to Buy

On American exchanges, the banking and financial sectors are not preferred sectors right now, to say the least, but one bank worth a review is Banco Santander SA.

That’s because Banco Santander, S.A. (ADR) (NYSE: STD) is one of Europe’s leading banks, offering retail banking and consumer finance services in Spain, Portugal, the United Kingdom, Germany, Italy and other parts of Europe. The company also operates subsidiaries in Argentina and Mexico, and in 15 other Latin American countries.

Hence, it goes without saying that analysts like Banco’s geographic footprint, lending base, and customer breadth. Most important, Banco appears to have been unaffected by the August 2007 subprime-driven financial turmoil.

Continue reading Banco Santander SA is one bank that’s creating few jitters

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Filed under: Products and services, Launches, Management, Competitive strategy, Intel (INTC), Technology

In an effort to keep bottom-line growth alive, Intel is trying (again) to move into the mobile phone market. Speaking from the Consumer Electronics Show in Las Vegas, the Pentium parent’s CEO, Paul Otellini, told Bloomberg that Intel is focused on “where we think phones are going, not where they are today.”

Last year, Otellini put to rest his predecessor’s $5 billion, six-year effort to produce mobile-phone chips designed to run the communications features of cellular phones. Now, the Intel CEO is taking a different approach to the new marketplace, designing chips for phones that can surf the web and master mobile video and music. The goal for the new chip is to provide increased processing power while exerting less electricity.

In the first half of 2008, Intel will be unveiling its package of mobile chips. A successful shift toward this technology could be a boon for the company, as mobile handsets currently outsell personal computers by a 4-to-1 margin.

Continue reading Intel (INTC) introduces new cell-phone chips

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Filed under: Scandals

Brotherhood Mutual Insurance Co., a major insurer of churches all over the country, has denied coverage to Michigan’s West Adrian United Church of Christ, citing the national governing body of the church’s support of gay marriage and ordination for gay ministers.

“Based on national media reports, controversial stances such as those indicated in your application responses have resulted in property damage and the potential for increased litigation among churches that have chosen to publicly endorse these positions,” the insurer wrote to the church.

But consider this: The church’s pastor says he knows of no acts of, or even threats of, violence against the church. And the church is actually among those that declined to support a resolution by its governing body affirming gay rights!

Continue reading Church denied insurance over gay marriage stance

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Filed under: Management, Scandals

In the face of a flailing stock price, online jewelry auctioneer Bidz.com (NASDAQ: BIDZ) is trying to generate some good headlines with a share buyback. On January 2nd, the first trading day of the year, Bidz actually put out a press release announcing that it had repurchased 100,000 shares of its stock on the open market for $886,000:

“The share repurchase underscores our confidence in the strength of our business model and our commitment to enhancing stockholder value,” said chairman and CEO, David Zinberg. “We will continue to use our balance sheet and cash flow from operations to invest in our business and repurchase our shares from time to time in the open market.”

Well it’s good to hear that Mr. Zinberg has confidence in the strength of the business model. But that doesn’t seem to gel with his frequent sales — the most recent of which occurred on December 17th! Not surprisingly, Bidz doesn’t announce insider sales with press releases. You have to dig into SEC filings for those.

It’s pretty obvious that Bidz is trying to use buybacks to promote its stock — why else issue a PR announcing a relatively small repurchase? All of this reminds me of what Warren Buffett wrote about buybacks:

“Now, repurchases are all the rage, but are all too often made for an unstated and, in our view, ignoble reason, to pump up or support the stock price. The shareholder who chooses to sell today, of course, is benefited by any buyer, whatever his origin or motives. But the continuing shareholder is penalized by repurchases above intrinsic value. Buying dollar bills for $1.10 is not good business for those who stick around.”

Buying back shares on the open market can support a stock’s price, at least temporarily; putting out flashy PRs announcing the transactions serves to pump the shares. Investors should generally steer clear of promotional management, especially those who dump while they promote — Bidz.com would appear to be a case of just that.

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Filed under: Good news, Products and services, Ford Motor (F)

Ford Motor Co. (NYSE: F) continues to sit in the pit of lagging sales and mountains of losses, even as some of its vehicles continue racking up awards and industry praise. In the 2007 Strategic Vision report on “most delightful” vehicles, the Detroit automaker won or tied for first in six categories — the most of any automaker. So, why aren’t Ford’s sales reflecting all this jubilation? Hard to tell, but you may want to ask Toyota Motor Co. (NYSE: TM) about it.

Here are Ford’s results from the six categories it won or tied for first in: Ford’s Mazda3 (small car); Ford’s Volvo V50 Wagon (medium multifunction); Ford ’s Expedition EL (large SUV); Ford’s Lincoln MKX (tied for near-luxury SUV); Ford’s Land Rover Range Rover Sport (luxury SUV); and finally, the Ford F-250/350 (heavy-duty pickup).

So, it really was not all Ford’s nameplate, but a bevy of its brands that helped it achieve record success here. Although rival automaker General Motors Corp. (NYSE: GM) garnered a decent awards showing as well, Ford took top honors across the board. But then again, 2008 automobile sales in the U.S. are expected to slow down to lead to a flat year of sales growth, so Ford won’t be the only one seeing middling success this year in the U.S. new car market. At least it will have some awards to plaster on those showroom marketing plaques.

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Filed under: Products and services, Marketing and advertising, Taser Intl Inc (TASR), Stocks to Buy

News out of TASER International Inc. (NASDAQ: TASR) has been … how shall I put it … somewhat odd as of late.

First, a few days ago, we heard of Taser Parties. Indeed, like Tupperware Parties, Taser Parties have women gather in someone’s home. They get a demo of the recent TASER C2 and even try it out for themselves (on targets, not each other). While this isn’t exactly a TASER official marketing strategy, rather a saleswoman’s vision, it may not be a stretch to see the stun gun maker endorsing this as one sales tactic out of many.

In fact, TASER has already adopted the concept for its booth at this year’s Consumer Electronics Show, where Taser Parties were held. TASER didn’t just throw “parties” at CES, but brought Playboy Playmates to … ahem … sign autographs.

But wait, that’s not all in the odd tidbits realm. At CES, TASER also showcased designer colors for the TASER C2 in addition to the classic black model: fire-engine red, blue, silver or pink. Pink, by the way, in some sort of a “girl power” thing is actually the company’s biggest seller. The company also unveiled a new Taser holster in leopard print with a built-in 1 GB MP3 player (preloaded with songs from AC/DC, Shock G, Lightning Bolt and S.T.U.N. … not really). The reason for the MP3 player, you may ask? “You’re more likely to carry it, and it will be there when you need it,” VP of communications Steve Tuttle said. How’s that for marketing?

Continue reading What’s playing on your Taser MP3 holster? ‘Shock the Monkey’?

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Filed under: Deals, Products and services, Wal-Mart (WMT)

Retailer Wal-Mart Stores, Inc. (NYSE: WMT) will be adding the Olevia brand of consumer electronics to its shelves in the near future, as Taiwanese company Kolin announced today. Olevia, a brand commonly seen in the electronics departments of rival retailer Target Corp. (NYSE: TGT), will help parent company Kolin try to increase shipments 50% in 2008, according to the company.

Does Wal-Mart really need another generic brand of flat-panel televisions on its shelves? The argument could be either way, although the television display areas of all Wal-Mart Supercenters I’ve seen are packed full. It’s not like the Olevia brand carries weight like the Sony or Panasonic brand. Count the sales surge in flat-panel maker Vizio into the lineup and where will Olevia fit? In terms of pricing, at the very low end with bargain-basement brand names like Westinghouse, most likely.

Olevia’s 42-inch flat-panel televisions have reportedly been hot sellers in China as of the end of last year, which led to Wal-Mart asking for a supply of the brand’s flat-panel products. It’s unknown what size televisions will see daylight on the shelves of Wal-Mart and Sam’s Club stores in 2008, although Kolin president Frank Li has said his company has secured a contracted supply of 62-inch high-definition LCD panels from Sharp, one of its handful of vendors for flat-panel screens. Wal-Mart better make room for those huge flat-panels if indeed it intends to stock 62-inch sizes on those display walls. Maybe Sam’s can just suspend the displays from those high warehouse ceilings? Just a suggestion.

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Filed under: Newspapers, Scandals

On December 17th, StreetInsider.com wrote about a story in the New York Post that had shares of medical equipment company Arthrocare (NASDAQ: ARTC) trading down. According to StreetInsider:

According to the Post, about 75% of Arthrocare’s US spinal unit business came from DiscoCare, although Arthrocare hasn’t mentioned the unit’s reliance on DiscoCare. The report also said the Massachusetts Attorney General’s office is looking into the companies’ relationship.

On Friday, Arthrocare defended itself, calling the reports materially inaccurate. Arthrocare also said it contacted the Massachusetts Attorney General’s office and was informed that there was no such investigation.

Why am I quoting StreetInsider’s story on a New York Post story rather than the New York Post itself? The Post piece on Arthrocare is no longer anywhere to be found! At one time, the story was located at this URL: http://www.nypost.com/seven/12112007/business/surgical_device_makers_growth_fueled_by__707429.htm

But now that’s a dead link! Since then, Arthrocare has acquired DiscoCare, and the company has become a target of short-selling stock sleuth Andrew Left of Citron Research.

But it’s hard to know what to make of the New York Post’s vanishing act. Zack’s equity analyst Gregory Aurand wrote this about the stock in the wake of the New York Post article:

Continue reading What in the world happened to the New York Post’s story on Arthrocare?

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Filed under: Other issues, India, Oil

India announced Tuesday that it wants oil sector giants ExxonMobil (NYSE: XOM) and Chevron (NYSE: CVX), among others, to bid and explore for oil and gas in the country, on concerns that oil may hit $150 per barrel, Bloomberg News reported.

India, Asia’s third-largest oil consumer, does not have the technology to search for and extract oil/gas from deep waters and in remote regions, and the nation is concerned that rising energy demand and rising prices will complicate the access to energy it needs to sustain its growing economy.

Predicts $150 oil

“In the next two to three years we expect prices to reach $150 a barrel,” India’s Oil Secretary M.S. Srinivasan told Bloomberg News on Tuesday. “Given this scenario, we are putting in more efforts in our exploration and production.”

Oil rose $1.75 to $96.75 in mid-day trading Tuesday. Oil rose an alarming 57% in 2007 and reached $100.09 on January 3, 2008. Oil hit an all-time high, in inflation-adjusted terms, of $102.80 in April 1980.

Continue reading Fearing $150 oil, India wants Exxon, others to prospect in country

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