Filed under: Microsoft (MSFT), Yahoo! (YHOO)

Microsoft Corp. (NASDAQ: MSFT) continues to dominate the news nearly a week after announcing its $44 billion bid for internet rival Yahoo! Inc. (NASDAQ: YHOO). Analysts are still deciphering the reasons why the world’s largest software company wants to pay such a premium for an ailing — but still powerful — internet brand. The prevailing wisdom is that the growing power of Google Inc. (NASDAQ: GOOG) has finally forced Microsoft’s hand here. To a point, that’s very much true.

But the future of the web may not be fought on the laptop screen nearest you, but instead on the mobile screen that goes everywhere in your pocket. With that “internet everywhere” mentality that’s still not a huge reality for millions of consumers, mobile advertising beckons as a huge revenue stream.

Tapping into that may be a large reason why Microsoft wants to merge with Yahoo!, according to Gartner analyst Philip Redman. “Leadership in mobile advertising is still unclaimed, while Google is threatening to do there what it did on the internet, so Microsoft is being preemptive.”

Is mobile advertising the next coming of the internet? Many industry watchers and analysts believe so, although most phones absolutely stink as portable internet access terminals. The Apple Inc. (NASDAQ: AAPL) iPhone has been the game-changer; it was made for the internet. Well, if you can see past that poky-slow wireless cellular connection that you probably have. Analyst Jeff Kagan said that “Yahoo touches so many customers and there’s so much advertising potential in this deal . . . It’s the kind of world Microsoft loves.”

Disclosure: the author holds a long position in MSFT.

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Filed under: Good news, Industry, Barrick Gold (ABX), Options, Technical Analysis, Commodities

Barrick Gold Corp. (NYSE: ABX) shares are rising today as gold futures prices are soaring. Gold could be rising as investors continue to show concern about economic conditions around the world. Gold futures reclaimed most of yesterday’s losses in early trading. If you think that the company won’t fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on ABX.

After hitting a one-year low of $26.94 in March, the stock hit a one-year high of $54.00 last month. ABX opened this morning at $49.23. So far today the stock has hit a low of $48.89 and a high of $49.55. As of 11:15, ABX is trading at $48.93, up $1.20 (2.5%). The chart for ABX looks bullish and steady, while S&P gives the stock a negative 2 STARS (out of 5) sell rating.

Continue reading Barrick Gold (ABX) lifted by rebounding gold futures

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Filed under: Major movement, Earnings reports, Good news, Options, Technical Analysis, Polo Ralph Lauren’A’ (RL)

Polo Ralph Lauren Corp. (NYSE: RL) shares are rising today after the apparel maker posted a fourth-quarter profit of $112.7 million, or $1.08 per share, helped by higher wholesale sales and a lower tax rate. Analysts had been expecting a profit of 77 cents per share. Wholesale sales rose 17% to $627 million. RL also raised its 2008 guidance this morning, a move that investors generally love. If you think that the company won’t fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on RL.

After hitting a one-year high of $102.58 in July, the stock hit a one-year low of $50.55 last month. RL opened this morning at $60.94. So far today the stock has hit a low of $60.11 and a high of $62.89. As of 10:45, RL is trading at $62.72, up $5.26 (9.2%). The chart for RL looks neutral and improving slightly, while S&P gives the stock a neutral 3 STARS (out of 5) hold rating.

Continue reading Polo Ralpoh Lauren (RL) soars on lifted gidance

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Filed under: Good news, Commodities, Oil

Oil fell $1.55 to $86.86 at mid-day after crude oil inventories rose by seven million barrels for the week ended February 1 — well above the consensus estimate of a 2.6-million-barrel increase — the U.S. Energy Information Administration announced Wednesday.

Meanwhile, gasoline inventories increased 3.6 million barrels and distillates rose 100,000 barrels.

Other oil and natural gas products also fell on the news. Heating oil fell about 3 cents to $2.41, unleaded gasoline declined about 3 cents to $2.23 and natural gas fell 50 cents to $7.99 per million BTUs.

Oil to test $80?

Independent energy trader Jim Dietz told BloggingStocks Wednesday the oil market “is becoming very price-heavy and the bears are piling up.”

Continue reading Oil falls below $87 after weekly inventories surge

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Filed under: International markets, Berkshire Hathaway (BRK.A), China, Indices, Reliance Steel and Aluminum (RS), Valero Energy (VLO), Huaneng Power Intl ADS (HNP), Bargain stocks, Chasing Value, Anglo Amer ADR (AAUK), S and P 500, DJIA, Stocks to Buy, Newcastle Investment (NCT), Raytheon Company (RTN), Best Stocks for 2008, Bunge Ltd. (BG), Loews Corporation (LTR), NASDAQ

January was a wild ride and February holds the promise of more of the same after yesterday’s 370 point drop in the Dow. All the major indices were down in January and so were seven of my eight picks. Only Raytheon Co. (NYSE: RTN), the high tech defense contractor, was up. My two high flyers from last year, Huaneng Power International, Inc. (ADR) (NYSE: HNP) and Valero Energy Corp. (NYSE: VLO), were the biggest losers.

I have not changed my opinion of these stocks from that of the original story Chasing Value: Final list — 8 stocks for 2008 and I am following them closely for buying opportunities. We have already added more Newcastle Investment Corp. (NYSE: NCT) and Huaneng Power to our holdings.

Among the indices, the DJIA lost the least and the NASDAQ lost the most. The average return for my eight picks was -7.82%. This underperformed the average of the indices that was -7.58% — but my new stalking horse Berkshire Hathaway (NYSE: BRK.B) bested both, so Buffett is still the man.

The following are my eight picks with the starting share price as of December 28, 2007:

Continue reading Chasing Value: January review — 8 stocks for 2008

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Filed under: Good news, Industry, Barrick Gold (ABX), Options, Technical Analysis, Commodities

Barrick Gold Corp. (NYSE: ABX) shares are rising today as gold futures prices are soaring. Gold could be rising as investors continue to show concern about economic conditions around the world. Gold futures reclaimed most of yesterday’s losses in early trading. If you think that the company won’t fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on ABX.

After hitting a one-year low of $26.94 in March, the stock hit a one-year high of $54.00 last month. ABX opened this morning at $49.23. So far today the stock has hit a low of $48.89 and a high of $49.55. As of 11:15, ABX is trading at $48.93, up $1.20 (2.5%). The chart for ABX looks bullish and steady, while S&P gives the stock a negative 2 STARS (out of 5) sell rating.

Continue reading Barrick Gold (ABX) lifted by rebounding gold futures

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Filed under: Earnings reports, Microsoft (MSFT), Yahoo! (YHOO), Time Warner (TWX), Time Warner Cable (TWC)

After Time Warner Inc. (NYSE: TWX) posted earnings today, shares are up more than 4% in late morning trading. Jeff Bewkes conducted his first earnings conference call today, and he revealed the company’s key business initiatives. (You can do a quick jump to the AOL story on this or you can head straight over to review the full conference call.)

Bewkes is known for being decisive and making changes based on the numbers, so don’t be surprised if there are more changes than these down the road.

In fact, Bewkes noted that Time Warner will be cutting $50 million in corporate spending, with a target of 15% cost reductions on the corporate side of the business.

Continue reading Big changes coming at Time Warner

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Filed under: International markets, Berkshire Hathaway (BRK.A), China, Indices, Reliance Steel and Aluminum (RS), Valero Energy (VLO), Huaneng Power Intl ADS (HNP), Bargain stocks, Chasing Value, Anglo Amer ADR (AAUK), S and P 500, DJIA, Stocks to Buy, Newcastle Investment (NCT), Raytheon Company (RTN), Best Stocks for 2008, Bunge Ltd. (BG), Loews Corporation (LTR), NASDAQ

January was a wild ride and February holds the promise of more of the same after yesterday’s 370 point drop in the Dow. All the major indices were down in January and so were seven of my eight picks. Only Raytheon Co. (NYSE: RTN), the high tech defense contractor, was up. My two high flyers from last year, Huaneng Power International, Inc. (ADR) (NYSE: HNP) and Valero Energy Corp. (NYSE: VLO), were the biggest losers.

I have not changed my opinion of these stocks from that of the original story Chasing Value: Final list — 8 stocks for 2008 and I am following them closely for buying opportunities. We have already added more Newcastle Investment Corp. (NYSE: NCT) and Huaneng Power to our holdings.

Among the indices, the DJIA lost the least and the NASDAQ lost the most. The average return for my eight picks was -7.82%. This underperformed the average of the indices that was -7.58% — but my new stalking horse Berkshire Hathaway (NYSE: BRK.B) bested both, so Buffett is still the man.

The following are my eight picks with the starting share price as of December 28, 2007:

Continue reading Chasing Value: January review — 8 stocks for 2008

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Filed under: International markets, Newsletters, Mutual funds, Commodities, Stocks to Buy

“U.S. Global Investors (NASDAQ: GROW) — a mutual fund management company which focus on resources and emerging economies — will benefit as declining interest rates in the U.S. also boost emerging economies and demand for resources,” says Ken Kam.

The editor of Marketscope explains, “When the Federal Reserve wants to lower interest rates, it can print more money, but it cannot control where the new money will go. Fed policy makers intend for the new money to stimulate America’s economy.

“But there is no reason the money has to stay in America. The U.S. dollar is accepted around the world and this means that when the Fed cuts interest rates, the new money stimulates the economies of others countries as well as ours.

Continue reading US Global Investors (GROW): Fund manager set to grow

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Filed under: Earnings reports, Microsoft (MSFT), Yahoo! (YHOO), Time Warner (TWX), Time Warner Cable (TWC)

After Time Warner Inc. (NYSE: TWX) posted earnings today, shares are up more than 4% in late morning trading. Jeff Bewkes conducted his first earnings conference call today, and he revealed the company’s key business initiatives. (You can do a quick jump to the AOL story on this or you can head straight over to review the full conference call.)

Bewkes is known for being decisive and making changes based on the numbers, so don’t be surprised if there are more changes than these down the road.

In fact, Bewkes noted that Time Warner will be cutting $50 million in corporate spending, with a target of 15% cost reductions on the corporate side of the business.

Continue reading Big changes coming at Time Warner

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