Filed under: Good news, Technical Analysis, Stocks to Buy

Websense (NASDAQ: WBSN) develops and markets web filtering and security software that helps organizations to manage usage of their computer networks. Programs monitor network access, protect confidential information from web-based attacks, monitor e-mail and instant messaging, prohibit employee access to certain content, and restrict access to employer-defined time periods. The company hosts a service that allows subscribers to upgrade their Websense software to protect against new web-based and application-based threats.

The firm pleased investors earlier in the week when it said that Q4 non-GAAP revenues were expected to exceed previous guidance of $76-$79 million. Wall Street had been looking for $77.3 million. Management also remarked that quarterly billings would top the previous estimate of $92-$95 million. In discussing the upside adjustments, the CEO particularly cited positive results from the recent acquisition of SurfControl. WBSN shares popped on the news and then moved into a bullish “flag” consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Continue reading Websense (WBSN): Shares form bullish ‘flag’

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Filed under: Rants and raves, Competitive strategy, General Motors (GM), Politics

General Motors Corp. (NYSE: GM) reached a milestone of corporate governance this month, as it released its first-ever contribution list to section 527 organizations. In essence, political influence dollars. GM apparently wants to further its efforts toward making corporate transparency for its stockholders commonplace. It’s a good move by the world’s largest automaker.

For 2007, GM’s contributions to section 527 organizations are like this:

• Democratic Attorneys General Association (DAGA) — $5,000.00
• Democratic Governors Association (DGA) — $10,000.00
• Democratic Governors Association (DGA) — $5,000.00
• Republican Governors Association (RGA) $ –15,000.00

In addition to the above amounts, GM made a few contributions in 2006 which it expects to be reported by the organizations below in 2007:

• Democratic Attorneys General Association (DAGA) — $5,000.00
• Republican Governors Association (RGA) — $15,000.00

Nothing was contributed to state or local candidates in any state as reported by GM, however. Based on the millions in lobbying amounts given away by GM every year, the above amounts seem like drops in the proverbial bucket. At least the report (PDF link) is being voluntary disclosed. With all the money the automaker gave to Democratic and Republican associations, one could buy a newer Escalade, eh?

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Filed under: Rumors, Products and services, Consumer experience, Competitive strategy, Apple Inc (AAPL), PepsiCo (PEP), Amazon.com (AMZN), Marketing and advertising, Technology

Billboard.com announced today that Amazon.com (NASDAQ: AMZN) and PepsiCo (NYSE: PEP) are set to reveal a new “promotion in which Pepsi customers can build up points by registering codes on bottle-caps and exchange them for merchandise and downloads from Amazon.com.” The announcement from the two companies is rumored to commence with a commercial airing during this year’s Super Bowl game, and the promotion will last through the end of this year.

The promotion is also due to coincide with the full launch of Amazon.com’s MP3 store, which was unveiled in a demo form in autumn. The two companies will utilize tracks and videos from three of the four major music labels, Warner Music Group (NYSE: WMG), privately held EMI Group, and Sony BMG, a joint venture of Sony Corp. (NYSE: SNE) and Germany-based Bertelsmann Media Group; Vivendi (OTC: VIVEF)’s Universal Music Group will sit out the promotion, though that label will still offer music in the MP3 store. Sony BMG joins the MP3 market with its involvement in the promotion after announcing the sale of MP3 cards earlier this week.

This promotion illustrates the continued demand for high-quality MP3 tracks free from anti-piracy technology, like Digital Rights Management (DRM), which many expect will disappear by mid-year. The full launch of the Amazon.com MP3 store gives consumers another destination for media that is playable across numerous players, acting in direct competition to Apple (NASDAQ: AAPL)’s iTunes Store. Apple spearheaded the move away from DRM last spring, after securing a deal with EMI to drop the technology. The benefit of the promotion is that it will broaden the number of consumers that are aware of high-quality tracks, while increasing the competition that will occur to spur continued development in this area.

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Filed under: After the bell, PepsiCo (PEP)

Illumina (NASDAQ: ILMN): Settles patent lawsuit with major rival Affymetrix (NASDAQ: AFFX). Shares trade up to $75.20 against 52-week low of $28.11.

Kinross Gold (NYSE: KGC): Price of gold and gold producers just keeps rising. Stock moves up to $22.86 from 52-week low of $9.87.

Yamana Gold (NYSE: AUY): Gold again. Rises to $16.30 from 52-week low of $8.40.

PepsiCo (NYSE: PEP): Soft-drinks sales aren’t hurt by recessions, as far as anyone knows. Trades up to $79.79 from 52-week low of $61.89.

Douglas A. McIntyre is an editor at 247wallst.com.

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Filed under: Consumer experience, Competitive strategy, Google (GOOG)

Another day, more worries about Google (NASDAQ: GOOG)’s growing global power. The internet advertising juggernaut has so much influence over the spread of information (and the advertising dollars that come along with that) that it’s hard to see just how powerful the company has become in just the last three years alone.

So here we are in 2008, and — again — government regulators are growing more concerned about the power Google has. In a capitalist society, where does the free market end and the power of government begin? That’s a formula nobody can answer. When the U.S. government made its case against Microsoft (NASDAQ: MSFT) a decade ago, it included pieces of how the company trampled on its competitors using illegal tactics. I’ve never agreed with the Internet Explorer part of that litigation and never will — since, after all, consumers are free to download any free web browser they please. Is the growing government concern over Google’s growth in the same venue? It shouldn’t be.

Is anyone forcing you to use Google every single day? Nope — it’s your choice. Google ascended to the top spot in internet search without distributing a single piece of software to its customers or using any kind of illegal tactics at all. It simply provided the best and most complete experience. Customers recognized that and have made Google the top choice in internet search (and advertising along with it).

Does that require regulation? How absurd. It’s true that Google could provide privacy details (and much more) to each customer at regular intervals — but if it screws up, users will leave Google. But, when a company that does so much right for its consumers grows large because of that fact, competitors turn to any tactic they can to try and stem the flood. Making a better product, in the free enterprise tradition, would seem a better tactic.

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Filed under: Consumer experience, Competitive strategy, Market matters, Top Picks 2007, Valero Energy (VLO), Chasing Value, Oil, Headline news, Best Stocks for 2008

What can I say except to report the facts as they are. Valero Energy (NYSE: VLO), one of my top picks of 2007, is my worst of 2008 — so far! The refiners have taken a big hit this year as the Department of Energy has reported that gasoline inventories are up at the same time that oil prices have only come down marginally.

This is putting the squeeze on oil refiners like Valero, which are not able to increase margins on slackening demand at the pump. Last year, Valero made me look great all year long, rising 36%, and this year I stuck with it: Chasing Value: Valero Energy (VLO) is just so refined.

If the economy continues to look gloomy and the inventory trend continues, with supplies remaining more than ample, then perhaps my best pick will turn into my worst.

In the meantime, we are only 10 days into the new year, and January has been dismal. The market was up and down yesterday, finally ending higher, as fickle as I have seen it in a while, and it is up notably again today. Valero closed yesterday at $61.67, about $8 off my start point. It is up today even after the inventory report has been broadcast, so I think fickle is the word of the day, or even the week.

To find potential opportunities and verify my track record read Chasing Value or Serious Money.

DISCLOSURE: I own shares of VLO.

Sheldon Liber is the CEO of a small private investment company and the design and research principal for an architecture & planning firm.

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Filed under: Economic data, Housing, Federal Reserve

Fed Chief Ben Bernanke made it clear today that the economy has hit the skids, and he and his Knights of the Round Table were ready to help out with lower rates. The market, which was swimming in negative territory at mid-day suddenly jumped up, and the major indices are a percent or so higher.

According to MarketWatch, “In an unusually blunt speech, Bernanke said the economic outlook has taken a turn for the worse in the early days of the new year and that the Fed stands ready to act aggressively to ward off further weakening.” Looking at things from the bottom of the hole dug by the subprime mortgage mess and high oil prices, it simply appears that the Fed was caught taking a nap.

There was enough evidence by the end of the summer that the economy had gotten itself into trouble. The Fed might have taken a more aggressive posture then. It is simplistic to say that there was a fear that more credit would cause inflation. The consumer was already behind on his mortgage, credit card, and car payments. The theory behind inflation is that there is money to spend. That overrides whether money is available at a reasonable rate.

It is not too soon to say that Bernanke will damned for what he did not do. He has partial ownership of this recession, and no one wants to take it off his hands.

Douglas A. McIntyre is an editor at 247wallst.com.

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Filed under: International markets, SEC filings, Insiders, Business of sports, Israel

In my day job as an analyst, I hear time and time again the conspiracy theorists, claiming that “the big guys” are out to get us, making it impossible to make money in the market. While insider buying is a good divining stick when analyzing companies, the idea that the institutions and insiders are just sitting, crouching in waiting, to sucker us into making investments decisions just to swipe our money is ludicrous.

While there are certainly cases of misdeed or asymmetrical information, this is not the case. Playing fields are generally level for all parties. That’s what the SEC, FINRA and many governing bodies are there for — to protect investors.

So, I find it interesting to read, on a couple of accounts, about Oscar Pistorius, the double amputee sprinter making a go at qualifying for the 2008 Olympics in China. The NY Times ran a story today that cites that the amazing sprinter may hold an unfair advantage with his prosthetics and may subsequently be disallowed to compete.

Continue reading What the Oscar Pistorius story teaches us about investing

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Filed under: Indices, Market matters, Technical Analysis, Economic data, S and P 500

Recently, Merrill Lynch’s chief North American economist David Rosenberg (and a few others) have taken the plunge saying that a recession is now underway in the United States. But that doesn’t mean they were necessarily first to make the call.

If you look at how various sectors have performed since the S&P 500 index hit a closing peak of 1565.15 on October 9, it seems like investors, collectively speaking at least, were ahead of the forecasters.

From the point the market reversed and began the descent that has continued into 2008, some of the best performing groups have been those that are generally seen as “defensive,” including utilities, consumer staples and health care.

Continue reading Investors: Running for recessionary cover since the peak

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Filed under: Presidential elections

So far, it’s been a topsy-turvy presidential race. Of course, now the pundits are pontificating on how the pollsters missed the Hillary Clinton victory in New Hampshire.

But, there was also a big miss on the international gambling markets.

That is, on the Intrade prediction site, there was a 100-to-1 odds bet for a Hillary win (the website is based in Dublin, which I presume is a bit friendlier than the U.S. about online gambling). Yes, a mere $100 wager could have turned into a cool $10,000.

For the most part, the thinking is that Intrade tends to be fairly accurate. After all, the “profit motive” can be very powerful.

But sometimes things go awry.

So what’s the sentiment on Intrade? Yes, people are wagering that Hillary will become the nominee (with a 59% probability).

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.

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