Archive for February 2nd, 2008
Filed under: Earnings reports, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Monster Worldwide (MNST)
 While much of the attention was on Yahoo!, Inc. (NASDAQ: YHOO), Google, Inc. (NASDAQ: GOOG) and Microsoft Corporation (NASDAQ: MSFT) today, there was actually some good news for other Net stocks. Take Monster Worldwide (NASDAQ: MNST).
For its Q4, Monster reported a 15% increase in net income to $45 million, or $0.36 cents per share. Oh, and revenues spiked 59% to $354 million.
True, the North American market was weak (especially in the financial services space because of the subprime meltdown). However, Monster is seeing lots of traction in foreign markets, such as in Europe, India and South Korea.
Continue reading Monster Worldwide growls
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Filed under: Forecasts, Competitive strategy, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Stocks to Buy
With Microsoft Corporation (NASDAQ: MSFT) bidding $44.5 billion for Yahoo, Inc. (NASDAQ: YHOO) one would instantly think that Microsoft is the winner — and they could be — in about a year or so… maybe. In the meantime, Google Inc. (NASDAQ: GOOG) will benefit immediately. The deck chairs are being re-arranged and there will be one less player. But before everyone thinks Microsoft is going to walk away the big winner, think again.
The game changer right now is Google. With 76% search engine market share, it will still be 4X the size of Microsoft after the Yahoo transaction is closed. Google has been successfully expanding its presence globally, and not in just the usual countries, but in the Brazils, the Portugals, the Argentina’s, the Australias, etc. Seeding these remote, but lucrative locations is done and Google is now reaping the rewards.
Google can now capitalize domestically with its customers and Yahoo’s/ Microsoft’s customers as well by playing the disruption card. Basically, when a technology company is about to be acquired a lot of potentially negative things can and do happen: employees and customer relationships are disrupted. Google can unequivocally claim to customers that they are indeed “the” priority right now and that smooth media/advertising projects are awaiting their approval. Yahoo/Microsoft aren’t sure which players are staying or leaving yet. Customers don’t like that!!
Continue reading Google benefits from Microsoft/Yahoo
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Filed under: Rumors
Struggling retailer J.C. Penney Company, Inc. (NYSE: JCP) has reportedly attracted the interest of renowned bottom-feeder (I mean that as a compliment!) Carl Icahn.
According (subscription required) to the Wall Street Journal, “While the exact size of the stake in the 105-year-old retailer is unclear, one person said it is among Mr. Icahn’s top five holdings, which could mean it runs into the hundreds of millions of dollars.”
It’s unknown whether Icahn will agitate for change at the company — While he’s made his name as a “raider” and activist investor, Icahn frequently buys and holds stocks simply because he thinks they’re undervalued.
Earlier this week, Mr. Icahn said that retail stocks were “very cheap” but also sounded a cautious note, saying that he was not bullish on the economy and that retail stocks may well go lower before they go up again. But Icahn has never claimed to be a market timer: he buys stuff when he thinks it’s a compelling value, and isn’t easily shaken by short-term fluctuations.
Shares of J.C. Penney are up more than 1.5% today.
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Filed under: Scandals
If you think you do thorough research before you make an investment, think again: hedge fund genius William Ackman spent $109,000 on photocopying conducting the research that led him to make a massive bearish — and prescient — bet against shares of MBIA (NYSE: MBI).
According to Bloomberg, Ackman has always been willing to make big bets when he’s been confident in his beliefs: “In high school Ackman bet his father $2,000 that he would get a perfect score on the verbal portion of the SAT college- entrance exam. He says his dad called off the wager the morning of the test for fear he would lose the bet, though Ackman ended up scoring wrong on one answer.”
In his latest book, market guru Ken Fisher talks about the question that investors need to ask before they make an investment: “What do I know that others don’t?”
In this world of reasonably efficient markets, an information edge is, I believe, crucial to strong performance as an investor. But getting an information edge can take tons of research. There’s an army of very smart people looking for their own information advantage.
If the idea of spending hours poring over documents doesn’t interest you — and there’s nothing wrong with that — index funds are probably your best bet.
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Filed under: Deals, Conventions and conferences, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO)
 Yahoo! Inc. (NASDAQ: YHOO) co-founders Jerry Yang, also the company’s chief executive, and David Filo, the less visible of the two, should take Microsoft Corp.’s (NASDAQ: MSFT) $44.6 billion offer before the world’s largest software company realizes how much it is overpaying for the company.
Better yet, Yang and Filo should “reject” Microsoft’s initial offer because — at least according to CNBC — Microsoft may be willing to up its bid. That seems to be the market’s expectation given that shares of Sunnyvale, Calif.-based Yahoo haven’t hit the $31 offer level.
The Yahoo twosome need to get while the getting is good. As The Wall Street Journal notes, “If the deal goes through as presently constituted, Mr. Filo’s stake would be worth more than $2.4 billion - not counting his options and other shares..Mr. Yang’s stake would be worth more than $1.64 billion - again, not counting options and so forth.”
During the height of the Internet bubble, both were worth more than $6 billion, the paper said.
The forays of Yahoo and Microsoft’s MSN into original content already spooks content companies, so I bet if the deal through it will lead to a rash of mergers between old and new media companies. A combined company would likely do more original fare to attract advertisers and users.
This raises the question of whether Google Inc. (NASDAQ: GOOG) will start developing its own content given the likely merger and its recent disappointing results. Thoughts?
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Filed under: Presidential elections
 Baring any last-minute scandal or divine intervention, it’s a safe bet to assume that John McCain will be the Republican candidate for president. The picture on the Democratic side is far less clear. One thing is for certain, though, Super Tuesday is going to be a dogfight on both sides.
The Arizona senator, a genuine War hero who has forged alliances with Democrats when needed, may be the GOP’s best hope of retaining the White House, though chances of that happening are probably remote. McCain is trying to court voters worried about the economy through his calls to abolish the AMT, fight wasteful spending and to keep taxes low. He is gaining some big endorsements including one-time rival Rudy Giuliani and California Gov. Arnold Schwazanegger. Mitt Romney is losing ground to McCain in part because Mike Huckabee is siphoning off support from social conservatives.
Continue reading McCain, Obama ride wave into Super Tuesday
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Filed under: Forecasts, Bad news, Recession
Market maven Jim Rogers is worried — bad news given how brilliant his bullish calls on commodities and China, and bearish calls on financials look now.
In an interview with Fortune, Rogers said that “Conceivably we could have just had recession, hard times, sliding dollar, inflation, etc., but I’m afraid it’s going to be much worse. Bernanke is printing huge amounts of money. He’s out of control and the Fed is out of control. We are probably going to have one of the worst recessions we’ve had since the Second World War. It’s not a good scene.”
He’s still bullish on China — and believes the recent correction is a good thing. He recently sold his New York property and moved his family full-time to Singapore.
I don’t pay attention to many market pundits, and I don’t suggest that you do so either. But Jim Rogers is an exception.
Aside from investing in China — which most people should already be doing anyway — there’s an ETF play if you like Rogers’ thinking.
The ProShares UltraShort Financials ETF is a way to short the performance of the financial stocks Rogers is so bearish on — with 2 times the volatility. While not for the faint of heart — a gain of 10% for the sector will send you down 20% — it’s definitely worth a look given Rogers’ track record.
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Filed under: Deals, Rants and raves, Competitive strategy, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Headline news
The BIG news this morning about Microsofts (NASDAQ: MSFT) offer to buy Yahoo Inc. (NASDAQ: YHOO) for $44.6 billion has been thoroughly covered all over the media including numerous posts on our site, so I will not pile on or repeat what you can find elsewhere.
Short and sweet: My view is the perfect timing of the offer, not the offer itself, is the news. Microsoft has been rumored to be chasing Yahoo for quite some time and apparently from the substantial offer it made today (60% over yesterdays closing price) money has not been the issue. Obviously Steve Balmer and friends are willing to pay up — way up!
The timing of the offer hits Google Inc. (NASDAQ: GOOG) when they are down - way down! Google has lost a third of its value over the last month and it has lost its momentum going forward. The stock is down substantially today even though the company reported solid growth. That is a significant change in the playing field. Balmer, a very aggressive businessman has decided to make his move now, potentially stealing the momentum on Wall Street.
Continue reading Microsoft attacks: going after Google not Yahoo
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Filed under: Earnings reports, Technical Analysis, Stocks to Buy
Crane Co. (NYSE: CR) is a diversified manufacturer of industrial products, operating through five business segments. Aerospace & Electronics offers diverse microelectronic and aircraft systems. Merchandising Systems manufactures vending machines and storage devices. Engineered Materials makes fiberglass reinforced plastic and substrate materials for antennas. Controls produces valves, transducers and regulating systems. Fluid Handling provides pipes, pipe fittings and actuators. Crane serves clients in the power generation, transportation, defense, commercial construction, food and chemical industries.
The company surprised investors earlier in the week, when it reported Q4 EPS of 77 cents and revenues of $666 million. Analysts had been expecting 69 cents and $659 million. Management continued to see strong demand in Fluid Handling and expected conditions to remain robust in its long-cycle Aerospace & Electronics unit. The firm also guided FY08 EPS to $3.45-$3.60, versus Wall Street consensus of $3.41.
Continue reading Crane (CR): Shares in bullish consolidation pattern
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