Filed under: Products and services, Television, Internet, Google (GOOG)

Those who think Google Inc. (NASDAQ: GOOG) is happy being the world’s most dominant search engine haven’t been reading their tea leaves on the wall (or some mixed metaphor like that).

Google recently exited the FCC’s 700 Mhz spectrum auction without winning anything but gaining much. The tech giant persuaded the FCC to open up the wireless networks and won big without having to spend almost $5 billion on licenses. I never thought Google wanted to build out a wireless network, and chooses instead to deliver ads and applications to other operators.

I was interested to read yesterday about Google’s further lean on the FCC to open up soon-to-be-unused broadcast spectrum as the U.S. converts to digital TV. Google wants access to these “white spaces” to begin using them to manage a nationwide WiFi network — free, unlicensed and able to reach much farther than WiFi can today.

I’ve written previously about WiMAX and its suitability for broadband wireless in foreign markets. Companies like Alvarion (NASDAQ: ALVR) are busy closing lots of deals abroad. I think Google’s efforts, if successful, make this new-fangled network idea more feasible. WiMAX has its proponents and detractors. Regardless of which technology ultimately becomes the platform, Google will have positioned itself as a neutral service provider into which it can deploy an advertising platform via its much vaunted Android system, rumored to launch this summer.

Zack Miller is the managing editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund. Author is long GOOG and ALVR stock.

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Filed under: Products and services, Television, Internet, Google (GOOG)

Those who think Google Inc. (NASDAQ: GOOG) is happy being the world’s most dominant search engine haven’t been reading their tea leaves on the wall (or some mixed metaphor like that).

Google recently exited the FCC’s 700 Mhz spectrum auction without winning anything but gaining much. The tech giant persuaded the FCC to open up the wireless networks and won big without having to spend almost $5 billion on licenses. I never thought Google wanted to build out a wireless network, and chooses instead to deliver ads and applications to other operators.

I was interested to read yesterday about Google’s further lean on the FCC to open up soon-to-be-unused broadcast spectrum as the U.S. converts to digital TV. Google wants access to these “white spaces” to begin using them to manage a nationwide WiFi network — free, unlicensed and able to reach much farther than WiFi can today.

I’ve written previously about WiMAX and its suitability for broadband wireless in foreign markets. Companies like Alvarion (NASDAQ: ALVR) are busy closing lots of deals abroad. I think Google’s efforts, if successful, make this new-fangled network idea more feasible. WiMAX has its proponents and detractors. Regardless of which technology ultimately becomes the platform, Google will have positioned itself as a neutral service provider into which it can deploy an advertising platform via its much vaunted Android system, rumored to launch this summer.

Zack Miller is the managing editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund. Author is long GOOG and ALVR stock.

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Filed under: Before the bell, Earnings reports, Analyst reports, Analyst upgrades and downgrades, Google (GOOG), Yahoo! (YHOO), Motorola (MOT), Tiffany and Co (TIF), Gap Inc (GPS), Valero Energy (VLO), Bear Stearns Cos (BSC)

Before the bell: Futures higher ahead of data; (F, TTM, SIRI, XMSR)

3Com (NYSE: COMS) shares were up 7% in after-hours trading Monday as the network-equipment maker, whose $2.2 billion acquisition by Bain Capital LLC was said last week to be pulled off due to the government’s security concerns, reported third- quarter sales of $336.4 million and 8 cents earnings per share (excluding one-time items), beating estimates.

Valero Energy (NYSE: VLO) shares are down over 3% in premarket trading after the refinery operator forecast significantly lower throughput margins on gasoline and other petroleum products and forecast first-quarter earnings of $0.10 to $0.35 per share below analyst estimates.

Activist investor Carl Icahn rejected an offer from Motorola Inc. (NYSE: MOT) that would have given him two board seats instead of the four Icahn had launched a proxy battle to get. Icahn, who holds 6.3% of the shares in the telecommunications-equipment maker, sued the company for access to crucial board documents. Icahn has been hpushing Motorola to divest the unprofitable handset division for months. While Icahn has been quite vocal with his criticism, Motorola’s board and management haven’t commented much.

Some notable analyst calls:

• Citigroup downgraded The Gap, Inc. (NYSE: GPS) from Buy to Hold, with a target of $23. The stock is down 1.6% in premarket trading.
• Oppenheimer downgraded Tiffany & Co. (NYSE: TIF) from Outperform to Perform. The stock is down nearly 2% in premarket trading after closing up 10.5% on Monday following better-than-expected earnings.
• Sandler O’Neil downgraded Bear Stearns (NYSE: BSC) from Hold to Sell.
• Citigroup upgraded Yahoo! Inc. (NASDAQ: YHOO) from Hold to Buy and upped the target price from $31 to $34. YHOO shares are up 2.9% in premarket trading.

Also, according to Notable Calls, Piper Jaffray is is calling for a revenue miss for Google (NASDAQ: GOOG) on the March quarter. Meanwhile, UBS dropped the price target on Google from $590 to $570.

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Filed under: Bad news, Consumer experience, Economic data

U.S. consumer confidence is at its lowest level since the Nixon Administration of the 1970s, according to one measure. U.S. consumer confidence fell in March 2008 to 64.5 — a 35-year low — the Conference Board announced Tuesday.

Economists surveyed by Bloomberg News had expected the index to drop to 73.0 in March 2008. The February 2008 index was revised to 76.4.

The board said that consumers’ evaluation of present-day conditions weakened significantly. Those claiming business conditions are “bad” increased to 25.4% from 21.3%, while those claiming business conditions are “good” declined to 15.4% from 19.1%. Consumers’ assessment of the job market was considerably more pessimistic than last month. Those saying jobs are “hard to get” rose to 25.1% from 23.4%, while those claiming jobs are “plentiful” decreased to 18.8% from 21.5%.

Continue reading March consumer confidence index plunges to a 35-year low

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Filed under: Analyst reports, Analyst upgrades and downgrades, Bank of America (BAC), Tiffany and Co (TIF), Gap Inc (GPS), Bear Stearns Cos (BSC)

MOST NOTEWORTHY: Credit Suisse, Bank of America and Bear Stearns were today’s noteworthy downgrades:

• UBS downgraded Credit Suisse (NYSE: CS) to Neutral from Buy to reflect the company’s higher-than-expected write-downs in Q1.
• Merrill cut Bank of America (NYSE: BAC) to Sell from Neutral and lowered their estimates to reflect a higher credit loss outlook as they now estimate Bank of America’s loan provision will rise to $15B in 2008 from $8.4B in 2007.
• Sandler O’Neil downgraded Bear Stearns (NYSE: BSC) to Sell from Hold citing share premium to deal value of $10.00.

OTHER DOWNGRADES:

• Citigroup lowered Gap (NYSE: GPS) to Hold from Buy.
• Tiffany & Co (NYSE: TIF) was downgraded to Perform from Outperform at Oppenheimer.
• JP Morgan downgraded Philips Electronics (NYSE: PHG) to Neutral from Overweight.

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Filed under: Analyst reports, Analyst upgrades and downgrades, Microsoft (MSFT), Yahoo! (YHOO), CIGNA Corp (CI), D.R.Horton (DHI), Electronic Arts (ERTS)

MOST NOTEWORTHY: Yahoo!, Cigna and Aegean Marine were today’s noteworthy upgrades:

• Citigroup upgraded shares of Yahoo! (NASDAQ: YHOO) to Buy from Hold as they believe Microsoft (NASDAQ: MSFT) is unlikely to walk away from Yahoo! and that there is potential Microsoft could bid $34/share.
• Credit Suisse upgraded Cigna (NYSE: CI) to Outperform from Neutral citing the company’s favorable business mix.
• Stephens upgraded shares of Aegean Marine (NYSE: ANW) to Overweight from Equal Weight on valuation as they see an attractive entry point at current levels.

OTHER UPGRADES:

• JMP Securities raised D.R. Horton (NYSE: DHI) to Strong Buy from Outperform and Pulte Homes (NYSE: PHM) to Outperform from Market Perform.
• Goldman added Hertz Global (NYSE: HTZ) and Electronic Arts (NASDAQ: ERTS) to its Conviction Buy List.

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Filed under: Bad news, Consumer experience, Economic data

U.S. consumer confidence is at its lowest level since the Nixon Administration of the 1970s, according to one measure. U.S. consumer confidence fell in March 2008 to 64.5 — a 35-year low — the Conference Board announced Tuesday.

Economists surveyed by Bloomberg News had expected the index to drop to 73.0 in March 2008. The February 2008 index was revised to 76.4.

The board said that consumers’ evaluation of present-day conditions weakened significantly. Those claiming business conditions are “bad” increased to 25.4% from 21.3%, while those claiming business conditions are “good” declined to 15.4% from 19.1%. Consumers’ assessment of the job market was considerably more pessimistic than last month. Those saying jobs are “hard to get” rose to 25.1% from 23.4%, while those claiming jobs are “plentiful” decreased to 18.8% from 21.5%.

Continue reading March consumer confidence index plunges to a 35-year low

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Filed under: Newsletters, Merrill Lynch (MER), Lehman Br Holdings (LEH), Stocks to Buy

Expert trader and options specialist Bernie Schaeffer has taken contrarian positions in two investment banks in his “master trading” portfolio. Here’s the latest form his Schaeffer’s Investment Research.

“I have initiated a long position in Merrill Lynch (NYSE: MER). The brokerage stock hit a pivot low on March 17, 2008 due to the Bear Stearns news. This 52-week low was established with above average
volume. Since making this pivot low, MER has rallied 32%.

“This stock’s 10-day put/call ratio on the International Securities Exchange has hit capitulation levels. This reading is at 100%, which means the puts purchased versus calls purchased on its exchange is at the highest reading over the past year.

“In addition, I initiated a long position in Lehman Brothers Holdings (NYSE: LEH). Like MER, LEH made a pivot low recently due to the Bear Stearns news. Since making 52-week lows at $35.67, the brokerage company has rallied 32%.

“A significant amount of skepticism encompasses LEH shares. The Schaeffer’s put/call open interest ratio is 2.5, higher than 91% of the daily readings during the past year.”

Each day, Steven Halpern’s TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation’s leading financial newsletter advisors.

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Filed under: Analyst reports, Analyst upgrades and downgrades, Bank of America (BAC), Tiffany and Co (TIF), Gap Inc (GPS), Bear Stearns Cos (BSC)

MOST NOTEWORTHY: Credit Suisse, Bank of America and Bear Stearns were today’s noteworthy downgrades:

• UBS downgraded Credit Suisse (NYSE: CS) to Neutral from Buy to reflect the company’s higher-than-expected write-downs in Q1.
• Merrill cut Bank of America (NYSE: BAC) to Sell from Neutral and lowered their estimates to reflect a higher credit loss outlook as they now estimate Bank of America’s loan provision will rise to $15B in 2008 from $8.4B in 2007.
• Sandler O’Neil downgraded Bear Stearns (NYSE: BSC) to Sell from Hold citing share premium to deal value of $10.00.

OTHER DOWNGRADES:

• Citigroup lowered Gap (NYSE: GPS) to Hold from Buy.
• Tiffany & Co (NYSE: TIF) was downgraded to Perform from Outperform at Oppenheimer.
• JP Morgan downgraded Philips Electronics (NYSE: PHG) to Neutral from Overweight.

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Filed under: eBay (EBAY), Starbucks (SBUX), AT and T (T), Sprint Nextel Corp (S), Comcast Cl’A’ (CMCSA), KB HOME (KBH), Toll Brothers (TOL), Broadcom Corp’A’ (BRCM), Technical Analysis, Stocks to Buy

No matter how hard I promote my core strategy of short selling surging microcaps, the sheer volume of emails asking me about when slumping blue chips like Starbucks Corporation (NASDAQ: SBUX), Sprint Nextel Corporation (NYSE: S) and Nvidia Corporation (NASDAQ: NVDA) will bottom is astounding.

So, this is my answer to you guys. I’m also going to throw in Broadcom Corporation (NASDAQ: BRCM), AT&T Inc. (NYSE: T) and Ebay Inc. (NASDAQ: EBAY) because they all share the same horrifically downtrending charts!

I’ve already written about how you should avoid these kinds of stocks, but I know many of you are already down too much to even contemplate getting out now. Luckily for you, there now looks to be a glimmer of hope.

Continue reading A lesson in how stocks bottom

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