Filed under: Products and services, Consumer experience, Next big thing, Entrepreneurs, Headline news

The National Institutes for Health has announced the partial suspension of a diabetes treatment study which was focusing on aggressive measures to reduce blood sugar levels. An article in The Wall Street Journal indicates that the aggressive strategy being used apparently resulted in a small increase in the number of patient deaths as compared to a moderate treatment approach being used on other patients who were involved in the study. The increase was merely three deaths per 1000 patients, yet researchers are unable to correlate the exact reasons for the increase in deaths and therefore the more aggressive portion of the testing has been terminated.

The study did not focus on specific treatments. Rather, researchers were attempting to determine the importance of differing treatment strategies. John Buse, president for medicine and science at the American Diabetes Association stated, “We were basically trying to see if we should have a full-court press on blood sugar or just try to do a reasonable job.” The study, which is named Accord, involves providing diabetic patients with various drugs in an effort to reduce blood sugar levels and is also seeking to isolate particularly beneficial bio-markers for monitoring diabetic patient health.

Continue reading Government diabetes study hits a speed bump

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Filed under: Rumors, Products and services, Starbucks (SBUX)

Rumors now frequently circulate about massive music acts leaving their long-term record labels. Last spring Paul McCartney defected from EMI after 45 years to join Starbucks‘ (NASDAQ: SBUX) Hear Music label. Madonna left Warner Music Group (NYSE: WMG) last fall. Other artists have followed suit, while some who are still signed have started speaking out against their labels. In this most recent case, Irish rock band U2 is rumored to be leaving Vivendi’s Universal Music Group to sign up with Live Nation (NYSE: LYV).

Although I wouldn’t blame the artists for leaving their labels, as long as it is in their best interests and increases fans accessibility to the music, it is certainly going to affect the record industry long-term if the defections continue. At the same time, many critics and bloggers would point out that the acts switching labels are already past their prime — their big hits and money-making lies with albums that came while they were at the labels. That may be true for acts like McCartney, U2, and Madonna, but the best example of this — Radiohead — is hardly through making the huge hits they enjoyed while with a major record label.

Radiohead, if you remember, is that “little” band that caused such a stir last October when it decided to release its new album, In Rainbows, to fans in a pay-what-you-want model. When the album was released on CD earlier this year it hit #1 in numerous charts around the world.

Obviously, none of these acts would have achieved such huge successes without major record labels, and it is impossible to say that the future of the record industry is without music labels. These rumors and the actual occurrences indicate that companies like Live Nation and Starbucks, while not necessarily oriented primarily for music distribution, are making better gains than the labels. This will not be ignored for long so the rumors may cease, and only indicates the movement music acts are making for the time being.

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Filed under: Marketing and advertising, Media World, ValueClick Inc (VCLK), Stocks to Buy

The U.S economy may be in for a period of sluggishness (we hope it’s just cyclical sluggishness), but the internet continues its growth ramp, and with this in mind, ValueClick is worth an evaluation

ValueClick (NASDAQ: VCLK) is one of the world’s largest and most diversified online marketing services companies.
Analysts see 2008 revenue increasing 15-20% following a likely 15-17% rise in 2007, as the internet continues to grab an increasing share of marketing budgets. Analysts also expect VCLK to add to its corporate customer base.

Meanwhile, the company’s revenue mix remains favorable, and operating margins appear to have bottomed in 2007. Further, there’s ample room for VCLK to broaden its international footprint. The Reuters F2007/F2008 EPS consensus estimates for VCLK are $0.71/$0.83.

Continue reading ValueClick believes profitability is a click-through process

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Filed under: Google (GOOG), Cisco Systems (CSCO), Alcatel-LucentADS (ALU), Stocks to Buy, Stocks to Sell

Armored vehicle maker Force Protection (NASDAQ: FRPT) has been slammed down to the single digits on fears that its sole product might be on the way out because of cuts in government spending. Who knows? The CEO says the company is doing fine, but the downtrending stock price is much more convincing. If the stock price is meant to make up lost ground, it should have no problem breaking out past $6, which it has not been able to do for the past few months. I’d avoid until the stock shows some strength.

Within the past few days, IDM Pharmacueticals (NASDAQ: IDMI) has had a huge run-up from under $1 to nearly $4 and a substantial drop to just under $2 — all due to some positive drug news that was already known since November 2007, and of course the CEO’s optimism about European approval. Do I believe the CEO? Yeah right! My distrust of CEOs is dwarfed only by my distrust of biotech CEOs! This company is not in the same league as other recently hot biotechs like Savient Pharmaceuticals (NASDAQ: SVNT) and Rigel Pharmaceuticals (NASDAQ: RIGL). Avoid, with a short bias on any spikes.

When I wrote this article about A-Power Generation Systems (NASDAQ: APWR), all the variables were aligned for a great run-up. I wanted to hold, but the volume and share price didn’t live up to my expectations, so I sold quickly. Now, this company, potentially the new First Solar (NASDAQ: FSLR) of wind energy, has nearly retraced to its original breakout area around $15, so the risk has gone down … but so has the reward. If you’re a long-term investor, this is a solid choice, but I need it to break its previous highs at $19 to make me a buyer again. Avoid, with a long bias if it breaks out.

Continue reading Five smallcaps I’m watching right now

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Filed under: Stocks to Buy

Readers of this space know that the investment bias is toward large-cap companies with demonstrated business models and a competitive advantage in established markets, preferably with a favorable global trend as a support. With the above in mind, Manitowoc is worth an evaluation.

Manitowoc (NYSE: MTW) is a diversified manufacturer of cranes, food service equipment, and marine vessels.

Analysts really like MTW’s crane business, which in 2006 accounted for 76% of earnings and 81% of revenue. Analysts continue to see robust demand for MTW’s cranes from Asia and Europe, particularly from emerging market countries in this regions.

Analysts also like MTW’s food service business and marine division; the former is likely to see continued strong demand for refrigeration machines and equipment; the latter, adequate demand for commercial seafaring vessels. The Reuters F2008/F2009 EPS consensus estimates for MTW are $3.41/$3.90.

Continue reading Manitowoc is riding the boom in crane booms

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Filed under: Products and services, Consumer experience, Next big thing, Entrepreneurs, Headline news

The National Institutes for Health has announced the partial suspension of a diabetes treatment study which was focusing on aggressive measures to reduce blood sugar levels. An article in The Wall Street Journal indicates that the aggressive strategy being used apparently resulted in a small increase in the number of patient deaths as compared to a moderate treatment approach being used on other patients who were involved in the study. The increase was merely three deaths per 1000 patients, yet researchers are unable to correlate the exact reasons for the increase in deaths and therefore the more aggressive portion of the testing has been terminated.

The study did not focus on specific treatments. Rather, researchers were attempting to determine the importance of differing treatment strategies. John Buse, president for medicine and science at the American Diabetes Association stated, “We were basically trying to see if we should have a full-court press on blood sugar or just try to do a reasonable job.” The study, which is named Accord, involves providing diabetic patients with various drugs in an effort to reduce blood sugar levels and is also seeking to isolate particularly beneficial bio-markers for monitoring diabetic patient health.

Continue reading Government diabetes study hits a speed bump

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Filed under: Market matters, Politics, S and P 500, DJIA, Federal Reserve, Technology, Recession, NASDAQ

For those of you living in a cave, virtual gaming is on fire. People are spending hours, days, months of their lives in virtual worlds like SecondLife. These are truly virtual worlds, complete with their own currencies that grease economies in which participants build virtual businesses and bring home real bacon.

So, it’s interesting to read about a lawsuit brought about by two founders of such virtual worlds. The accusations essentially revolve around a plan to make money running the virtual economy of one such world and make massive profit by essentially “printing” infinite currency to sell to participants. Obviously, not Harvard PhDs in economics (although they also often say silly things).

I read about this whole incident on TechDirt, a great website for lots of news and insightful analysis of technology. TechDirt ran an article, More evidence why virtual world economies are risky yesterday that discussed the ins-and-outs of virtual economies and then extended some lessons to something more tangible for many of us: the U.S. economy.

Says TechDirt’s Mike Masnick:

While this suggests the folks in question had little sense of how basic economics works, it also highlights a pretty serious risk in these virtual worlds. At the same time that we’re seeing Ben Bernanke struggling with managing the monetary policy of the US economy, for virtual worlds where there really is no scarcity at all, the temptation to simply flood the market without recognizing the consequences is just too great.

Well said, Mike.

Zack Miller is the Managing Editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund. Author is also a member of the TechDirt Insight Community.

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Filed under: Marketing and advertising, Media World, ValueClick Inc (VCLK), Stocks to Buy

The U.S economy may be in for a period of sluggishness (we hope it’s just cyclical sluggishness), but the internet continues its growth ramp, and with this in mind, ValueClick is worth an evaluation

ValueClick (NASDAQ: VCLK) is one of the world’s largest and most diversified online marketing services companies.
Analysts see 2008 revenue increasing 15-20% following a likely 15-17% rise in 2007, as the internet continues to grab an increasing share of marketing budgets. Analysts also expect VCLK to add to its corporate customer base.

Meanwhile, the company’s revenue mix remains favorable, and operating margins appear to have bottomed in 2007. Further, there’s ample room for VCLK to broaden its international footprint. The Reuters F2007/F2008 EPS consensus estimates for VCLK are $0.71/$0.83.

Continue reading ValueClick believes profitability is a click-through process

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Filed under: Earnings reports, Technical Analysis, Stocks to Buy

Western Union Company (NYSE: WU) provides a range of money transfer and bill payment services worldwide. Its consumer-to-consumer operations involve multi-currency and real-time processing systems for walk-in, online, and telephone money transfers. Its consumer-to-business operations enable payments to utilities, auto finance companies, mortgage servicers, financial service providers, and governmental agencies. The firm also offers money order products and advance payment services. Western Union does business through a network of more than 335,000 locations, in over 200 countries and territories.

Investors were pleased with the company’s steady results last week, when it reported Q4 EPS of 32 cents and revenues of $1.31 billion. Analysts had been looking for 31 cents and $1.3 billion. Management also guided FY08 EPS to $1.24-$1.28 ($1.26 consensus) and FY08 revenues to $5.34-$5.44 billion ($5.39B consensus). Goldman Sachs Asset Management noted that it held a 6.1 percent stake in the issue.

Continue reading Western Union Company (WU): Shares defining bullish ‘flag’ consolidation

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Filed under: Stocks to Buy

Readers of this space know that the investment bias is toward large-cap companies with demonstrated business models and a competitive advantage in established markets, preferably with a favorable global trend as a support. With the above in mind, Manitowoc is worth an evaluation.

Manitowoc (NYSE: MTW) is a diversified manufacturer of cranes, food service equipment, and marine vessels.

Analysts really like MTW’s crane business, which in 2006 accounted for 76% of earnings and 81% of revenue. Analysts continue to see robust demand for MTW’s cranes from Asia and Europe, particularly from emerging market countries in this regions.

Analysts also like MTW’s food service business and marine division; the former is likely to see continued strong demand for refrigeration machines and equipment; the latter, adequate demand for commercial seafaring vessels. The Reuters F2008/F2009 EPS consensus estimates for MTW are $3.41/$3.90.

Continue reading Manitowoc is riding the boom in crane booms

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