BloggingStocks

RIMM's BlackBerry Bold -- lack of hype is the hype

Elizabeth Harrow — 2008-08-19T13:55:00+00:00

Filed under: Products and services, Apple Inc (AAPL), AT and T (T), Research in Motion (RIMM), iPhone, Stocks to Buy, Technology

In an exciting bit of news for early adopters north of the border, the new BlackBerry Bold smartphone from Research In Motion Limited (NASDAQ: RIMM) is slated to hit Canadian shelves this Thursday, August 21. Because RIMM has signed service pacts with various wireless carriers in different regions, the Bold is being rolled out gradually around the globe. The snappy new device has already launched in Germany, but U.S. carrier AT&T (NYSE: T) is so far keeping mum about its plans for the Bold's Stateside debut.

The latest addition to the CrackBerry family is aimed toward business users; as proof, even Rupert Murdoch is getting in on the act. The Wall Street Journal Digital Network announced today that it's launched a new mobile application to provide immediate access to headlines in the WSJ family of financial publications (including Barron's, MarketWatch, and All Things Digital). The application is available for free on most BlackBerry smartphones.

Naturally, the Bold has already garnered comparisons to Apple's (NASDAQ: AAPL) iPhone -- but there are a few notable differences. While Jobs & Co. are slowly trying to make headway into the corporate world, their core audience is still top-heavy with tech-gadget completists and trust-fund hipsters. Meanwhile, BlackBerry's already in business with business, and the new WSJ app is just an extra boost of its Street cred.

Another key difference? The relative lack of hype about the Bold. This could be a function of the new BlackBerry's nebulous launch date; by contrast, Apple prefers to pre-announce its release dates months in advance (how else would early adopters know when and where to set up their tents and lawn chairs?).

From a contrarian standpoint, the lack of pre-release Bold-mania is a positive for RIMM. As long as Wall Street's expectations remain in check, there's plenty of opportunity for the company to surpass those modest hopes. There's also room for pessimism to unwind, which means more buyers could rush to the table and perpetuate the stock's long-term uptrend.

For example, as we approach the (potential) U.S. release date of the Bold, RIMM shares are resting modestly atop long-term support from their 10-month moving average. Despite the solid price action, short sellers and option players prefer bearish bets on the handset maker. Short interest swelled by more than 7% during the most recent reporting period, and puts outnumber calls among options slated to expire within 3 months.

Plus, the latest data from NPD Group is bullish on the BlackBerry's fundamentals. While cell-phone unit sales fell 13% during the second quarter, sales of fully loaded smartphones nearly doubled during the period. RIMM even managed to ramp up its market share during the quarter -- and this data doesn't include corporate buyers, which indicates the numbers could be even more robust.

With sector-leading sales figures and a long-term uptrend on the charts, RIMM continues to impress. As smaller handset makers struggle, now might be the time to jump on the sophisticated smartphone bandwagon.

Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the weekly video series Option Basics on SchaeffersResearch.com.

Read | Permalink | Email this | Linking Blogs | Comments

Best Buy to sell the Apple iPhone

Douglas McIntyre — 2008-08-13T08:25:00+00:00

Filed under: Consumer experience, Competitive strategy, Apple Inc (AAPL), AT and T (T), Best Buy (BBY)

Apple (NASDAQ: AAPL) wants to get beyond AT&T (NYSE: T) outlets to sell its new iPhone. So, it will turn to consumer electronics giant Best Buy (NASDAQ: BBY).

The new distribution deal has significant risk. Part of the iPhone's appeal is that it is not as "easy" to get as other handsets. Apple and AT&T are the only sources for the device. To some extent, that makes it "special" in the consumer's mind.

Putting the iPhone into a large chain of stores that sell hundreds of devices including a large number of cellular handsets turns the iPhone into a bit of a commodity. While it may help sales some, it may take away part of the product's luster and its image as a superior handset product.

Broad distribution worked for the iPod. Whether it will be good for the iPhone's branding remains to be seen.

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

Read | Permalink | Email this | Linking Blogs | Comments

Rackspace's IPO meltdown

Tom Taulli — 2008-08-09T13:40:00+00:00

Filed under: Amazon.com (AMZN), International Business Machines (IBM), AT and T (T)

For the most part, the IPO market has been horrible this year. In fact, according to a report from Reuters, only three IT (information technology) companies have gone public this year.

Despite this, web-hosting company Rackspace (NYSE: RAX) still went ahead with its IPO this week. And, it was pretty bad for investors. On its opening day, the stock price plunged 20% to $10. Ironically enough, Wall Street was hoping that the Rackspace deal would help spark the IPO market.

After all, Rackspace is a great company. Keep in mind that its investor roster includes biggies like Norwest Venture Partners and Sequoia Capital.

Moreover, unlike other upstart tech IPOs, Rackspace has a strong history of profitability. In Q1, net income was $5.4 million. Rackspace is also growing at a torrid pace, with Q1 revenues at $119.6 million, up from $75.2 million in the same period a year ago. There are 33,000 customers.

However, Rackspace must deal with tough competitors, such as IBM (NYSE: IBM), AT&T (NYSE: T) and even Amazon.com (NASDAQ: AMZN), which offers a variety of cloud-computing services. Furthermore, the slowing economy may put pressure on IT budgets, which could be a problem for Rackspace going forward.

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 MergerBook.com.

Permalink | Email this | Linking Blogs | Comments

One 'letter' stocks offer opportunity, August trading strategies & 3 brand-new tax laws to know - Today in Money 8/4

Allan Halprin — 2008-08-04T09:09:00+00:00

Filed under: Time Warner (TWX), Ford Motor (F), McDonald's (MCD), AT and T (T), Citigroup Inc. (C), Sprint Nextel Corp (S), Money and Finance Today, Agilent Technologies (A), Kellogg Co (K), AMR Corp (AMR), Qwest Communications Intl (Q)

In the News:

· Real Spending in June Falls Despite Rebate Checks; Consumer Prices Jump; The Most in 27 Levels

· Fed Expected to Hold Rates Steady at Tomorrow's Meeting

· Companies Step Up the Pace of Layoffs

· Gas Prices Fall for 18th Straight Day

· Time Warner Moves to Split AOL Up

· British Airways Closes in on Deal With American Airlines

· McDonald's Test Changes to Dollar Menu as Burger Costs Rise

· Schlitz Beer Returns, Drums Up Nostalgic Drinkers

One 'Lettter' Stocks Offer Opportunity
Several companies with single-letter ticker symbols currently offer potential for value investors, says George Putnam. The editor of The Turnaround Letter stock publication highlights a number of single-letter stocks that have been "beaten down pretty badly and now look particularly appealing." They include Agilent ('A'), Citigroup ('C'), Ford Motor ('F'), Kellogg ('K'), Macy's ('M'), NetSuite ('N'), Qwest ('Q'), Spring Nextel ('S') and AT&T ('T').
'Singular' values: A, C, F, K, M, N, Q, S, T - BloggingStocks

August Trading Strategies
August is traditionally one of the worst months for the market. Against an already volatile backdrop, Experts show you 12 ways to navigate the dog days of summer.
http://www.marketwatch.com/newscommentary/tradingstrategies

Buying Something? Your Purchase Can Trigger an Overdraft Fee Even Before It Clears
For years, banks have charged customers hefty fees for overdrawing their checking accounts. Now a growing number of institutions are charging customers such fees even before the transaction overdraws their account. Here's how it works: If you pay with your debit card, some banks will now charge you a fee -- $35 or more -- if you don't have funds in your account at the time you sign for the purchase. Previously, you didn't get charged this fee unless you were short of cash when the signature debit transaction cleared a few days later. That meant that, while the signature debit transaction was pending, consumers could often deposit money to cover any potential overdraft. (By contrast, PIN transactions typically clear immediately.)
Purchases can trigger overdraft fees even before they clear - USATODAY.com

What a Difference a Year Makes
Last summer, Bear Stearns CEO Jimmy Cayne was worth $1.6 billion on paper. Then he nearly died and Bear Stearns collapsed. The 85-year-old firm's demise cost Cayne $1 billion - trimming his net worth to around $600 million. Cayne's career at Bear Stearns ended with his legacy in tatters.
Jimmy Cayne: The trials of Bear Stearns's ex-CEO - FORTUNE

3 Brand-New Tax Changes You Need to Know About
The American Housing Rescue and Foreclosure Prevention Act of 2008 (the Housing Act) was signed into law on July 30. The new legislation is supposed to stem the tide of home foreclosures and provide a lifeline to floundering mortgage lenders. It also includes three federal income tax changes that will affect many individuals. Two are intended to be helpful, but the third is meant to hurt. Here's what you need to know about all three.
3 Brand-New Tax Changes You Need to Know About - SmartMoney.com

Time to Lock in Your Mortgage Rate
During the housing boom, interest rates were extremely low - generally between 5.5% and 6.5% - and very stable. So borrowers often didn't bother to ask lenders to lock in their rates regardless of market fluctuations. If one good interest rate deal disappeared, another one was generally right around the corner. But today the mortgage market is very volatile, and rates are trending upwards. So losing out on a good deal may mean it's gone forever. If buyers see a bargain, say experts, they should pounce.
A good time to lock in mortgage rates - CNNmoney

Defending Your Money
Dicey economic times call for being proactive about investments, discretionary spending, and living expenses.
-- Battling a Property Tax Hike
-- How to Position Your Portfolio in Tough Times
-- An Arsenal for thd Defensive Investor
-- Protecting Your Income

10 Best Outdoorsy Places to Retire
If you like hiking or biking, these spots are for you. From Canyon Lake, Texas to Winchester, Virginia these places are for you.
10 Best Outdoorsy Places to Retire - US News and World Report

Three Cheers for the Cheapskate
The more we spend unnecessarily, the less money we save for our true priorities and future needs. That's especially important in challenging economic times. BusinessWeek asked financial advisors for tips on how to reduce expenses and boost savings. Changing spending habits can be difficult, but here are 25 suggestions to get started.
Twenty-Five Ways to Save More Each Month - BusinessWeek
Also: How to Cut Back

Permalink | Email this | Linking Blogs | Comments

'Singular' values: A, C, F, K, M, N, Q, S, T

Steven Halpern — 2008-08-03T16:23:00+00:00

Filed under: Ford Motor (F), AT and T (T), Citigroup Inc. (C), Sprint Nextel Corp (S), Agilent Technologies (A), Kellogg Co (K), Qwest Communications Intl (Q)

"One group of stocks that has always intrigued us are those whose symbols have one letter," notes George Putnam. The editor of The Turnaround Letter explains, "Odd as this idea may at first seem, it actually makes some sense for a deep value investor. These are often old-line companies with well-known brand names. In some cases the single letter symbols were awarded many decades ago."

After reviewing the 19 stocks with single letter symbols (7 are currently unused), Putnam offers six that he says, have been "beaten down pretty badly and now look particularly appealing."'

"Agilent Technologies (NYSE: A), which makes electronic and bio-analytic measuring devices, was spun out of Hewlett-Packard in 1999. Revenues surged in 2000 as did the stock price, reaching a lofty 162.

"But the company subsequently suffered along with its customers in the communications and technology sectors. However, the financials are sound, including strong cash flow that is supporting a $2 billion share buyback, and management has been restructuring and realigning operations for long-term growth.

Single-Ticker Selections

What have AT&T, Ford and Kellogg all got in common? They're among the 19 companies currently listed on the New York Stock Exchange using just one-letter trading symbols.

Richard Drew, AP

Company: Agilent Technologies (NYSE: A)
Industry: Electronic and bio-analytic measuring devices
This Hewlett-Packard spin-off was punished by the bursting of the dot-com bubble. "However, the financials are sound ... and management has been restructuring and realigning operations for long-term growth."

Paul Sakuma, AP

Company: Citigroup (NYSE: C)
Industry: Financial services
"Citigroup has struggled in the new credit environment that began a year ago. The new management team will probably divest many businesses, but they have a good core on which to rebuild."

Mary Altaffer, AP

Company: Ford Motor (NYSE: F)
Industry: Automobiles
"Ford looked like it was beginning to rebound when spiraling gas prices battered sales of the company's trucks and SUVs. Management has been quick to react, laying off workers and shutting down plants."

Linda Spillers, Ford Motors / AP

Company: Kellogg (NYSE: K)
Industry: Food
Despite Kellogg's steady fundamentals, investors have been spooked by rising commodities costs. "As a result, the stock trades near levels reached in 1997. This may be an opportunity to get an iconic brand at a bargain price."

Nati Harnik, AP

Company: Macy's (NYSE: M)
Industry: Retail
"Fearful of rising inflation and constrained consumer spending, investors have sold the stock off to a nearly 5-year low. Macy's has the financial strength to ultimately prevail, and at current valuations (0.4x sales and below book value), it could be cheap."

Mike Groll, AP

Company: NetSuite (NYSE: N)
Industry: Business management software
"The provider of on-demand business management software went public in late 2007. ... While its operating history is short, NetSuite's products look interesting. And with $170 million in cash, the company has time to prove itself."

Paul Sakuma, AP

Company: Qwest Communications International (NYSE: Q)
Industry: Telecommunications
This post-Bell progeny "is at a disadvantage to some of its peers because it doesn't have its own wireless business. ... that said, the old wireline franchise still has a lot of value as they figure out how to send more data and video over the phone lines."

David Zalubowski, AP

Company: Sprint Nextel (NYSE: S)
Industry: Telecommunications
"Sprint has struggled since the acquisition of Nextel in 2005, but there are some indications that the business may be at least leveling off."

Seth Perlman, AP

Company: AT&T (NYSE: T)
Industry: Telecommunications
The reconstituted AT&T "services some 60 million local phone lines, 15 million broadband subscribers and 71 million wireless customers. ... As merger-related charges begin to wane and synergies begin to payoff, operating results should begin to improve." Source: The Turnaround Letter

Mark Lennihan, AP

"Citigroup (NYSE: C) traces its roots date back to 1812 when it was formed as City Bank of New York. The wheeling and dealing of former CEO Sandy Weill created a financial services giant with some 200 million customers spanning more than 100 countries.

"However, giants are not particularly nimble, and Citicorp has struggled in the new credit environment that began a year ago. The new management team will probably divest many businesses, but they have a good core on which to rebuild.

"Ford Motor (NYSE: F) looked like it was beginning to rebound when spiraling gas prices battered sales of the company's trucks and SUVs.

"Management has been quick to react, laying off workers and shutting down plants. We think the brand is strong enough to survive, and so does legendary investor Kirk Kerkorian, who has been buying Ford shares as they drop.

"Kellogg (NYSE: K) has compiled decent results in recent years, including steadily rising revenues, earnings and cash flow.

"But the headwinds of rising costs for corn and wheat have spooked investors, leading to a sharp selloff in the shares earlier this year. As a result, the stock trades near levels reached in 1997. This may be an opportunity to get an iconic brand at a bargain price.

"Macy's (NYSE: M), operating under the Macy's and Bloomingdales names, has grown to become the nation's fourth largest department store. The $17 billion acquisition of Mays in 2005 expanded the Macy's brand nationwide, but the merger hasn't yet met expectations.

"And now, fearful of rising inflation and constrained consumer spending, investors have sold the stock off to a nearly 5-year low. Macy's has the financial strength to ultimately prevail, and at current valuations (0.4x sales and below book value), it could be cheap.

"NetSuite (NYSE: N) is the youngest of the single letter stocks. The provider of on-demand business management software went public in late 2007. (The N symbol formerly belonged to Inco, a nickel producer that was acquired in 2006.)

"After rallying to nearly $46 in its first few weeks, the stock declined sharply and has bounced around the $20 level for the last several months. While its operating history is short, NetSuite's products look interesting. And with $170 million in cash, the company has time to prove itself.

"Qwest Communications International (NYSE: Q) is the indirect progeny of another single letter stock, the original AT&T). Much of the current company is made up of the business of old US West, which was created by the break-up of AT&T in 1984.

"Qwest provides telephone services in 14 western and midwestern states. The company is at a disadvantage to some of its peers because it doesn't have its own wireless business.

"But, that said, the old wireline franchise still has a lot of value as they figure out how to send more data and video over the phone lines.

"Sprint Nextel NYSE: S) has struggled since the acquisition of Nextel in 2005, but there are some indications that the business may be at least leveling off.

"A new management team is aggressively pursuing new marketing schemes as well new technology such as WiMAX. If results don't improve, some or all of the company could be sold.

"AT&T (NYSE: T) was reconstituted when SBC bought AT&T in 2005 but kept the AT&T name and stock symbol. The company went on to purchase BellSouth in 2006, which brought with it full control of Cingular Wireless (since renamed AT&T).

"The company services some 60 million local phone lines, 15 million broadband subscribers and 71 million wireless customers.

"As merger-related charges begin to wane and synergies begin to payoff, operating results should begin to improve. The company's financials are sound, quite capable of supporting a share repurchase program and attractive dividend."

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

Permalink | Email this | Linking Blogs | Comments

Why I have changed my tune about Comcast

Jonathan Berr — 2008-07-30T15:03:00+00:00

Filed under: Earnings reports, Press releases, Competitive strategy, AT and T (T), Comcast Cl'A' (CMCSA), Verizon Communications (VZ)

Until recently, I believed that shares of Comcast Corp. (NASDAQ: CMCSA) had been unfairly punished by investors who were too skeptical about the company's prospects. Now, I am changing my tune because I have come to realize that the future of the company will be filled with endless pricing battles, which will force the Philadelphia-based cable giant to sacrifice the needs of shareholder to retain customers.

To be fair, Comcast reported a decent quarter Wednesday and was able to hold the line on capital expenditures. Net income was $632 million, or 21 cents a share, versus $588 million, or 19 cents, a year earlier. Sales jumped 11% to $8.55 billion. Results were short of the 23-cent forecast of analysts surveyed by Bloomberg but beat the $8.57 billion sales forecast.

Now, ordinarily missing the profit forecast would cause the shares to tank. Instead, they are trading up slightly because investors found much about the earnings report to like. For one thing, Comcast's free cash flow was $1.17 billion, more than triple from a year earlier. This beat the forecast of veteran cable industry watchers such as Craig Moffett of Sanford C. Bernstein. It also reaffirmed its earnings guidance for the year, countering worries that it would be hurt by cash-strapped customers falling behind in their bills.

Even so, Comcast has plenty of problems. Advertising sales fell 2% to $399 million amid softness in the economy. Average monthly revenue per customer fell in the phone and high-speed Internet businesses, though the overall rate rose slightly. The company also is embroiled in a dispute with the FCC over its policy of slowing some Internet traffic of people using BitTorrent and other file-sharing sites. It continues to bleed basic cable subscribers, losing 138,000 in the quarter. That rate has increased from 101,000 a year earlier.

Moreover, Comcast will continue to face tough sledding for years to come as customers - including me - will show the company little brand loyalty and base decisions on regarding telecom services on price alone. Verizon (NYSE: VZ) added 187,00 new FiOS Internet customers and 176,000 FiOS TV ones, while AT&T (NYSE: T) gained 170,000 clients for its U-Verse TV service. That's a recipe for great deals for Comcast consumers and lousy ones for shareholders.

Permalink | Email this | Linking Blogs | Comments

Analyst downgrades: VARI, CMG and MCD

Eric Buscemi — 2008-07-24T11:20:00+00:00

Filed under: Analyst reports, Analyst upgrades and downgrades, McDonald's (MCD), AT and T (T), China Mobile Limited (CHL)

MOST NOTEWORTHY: Varian, Chipotle Mexican Grill and McDonald's were today's noteworthy downgrades:

Thomas Weisel downgraded shares of Varian (NASDAQ:VARI) to Market Weight from Overweight following the company's Q3 results to reflect manufacturing relocation issues and the slowdown in organic growth. The firm lowered their target to $47 from $70.
Jefferies cut Chipotle Mexican Grill (NYSE:CMG) to Hold from Buy following the company's in-line Q2 results, as they believe consumer headwinds and commodity inflation are likely to pressure EPS in coming quarters. The firm lowered their target to $80 from $100.
Deutsche Bank downgraded McDonald's (NYSE:MCD) to Hold from Buy as they believe higher beef costs and slower traffic could drive reduced profitability and limit upside. The firm reduced their target to $63 from $67.

OTHER DOWNGRADES:

AT&T (NYSE:T) was lowered to Neutral from Overweight at JP Morgan.
Baird cut Citrix Systems (NASDAQ:CTXS) to Neutral from Outperform.
Raymond James (NYSE:RJF) was lowered to Market Perform from Outperform at Wachovia.

Permalink | Email this | Linking Blogs | Comments

Before the bell: AMZN, F, DOW, DAI, QCOM, MMM, LLY, COST ...

Melly Alazraki — 2008-07-24T08:10:00+00:00

Filed under: Before the bell, Earnings reports, Analyst reports, Analyst upgrades and downgrades, Law, Amazon.com (AMZN), DaimlerChrysler (DAI), Ford Motor (F), McDonald's (MCD), AT and T (T), 3M Corporation (MMM), Nokia Corp. (NOK), Boeing Co (BA), Costco Wholesale (COST), QUALCOMM Inc (QCOM), Dow Chemical (DOW), Lilly (Eli) (LLY), Economic data

Stock futures were mixed Thursday morning, indicating a similar start to U.S. stocks. While the S&P 500 showed weakness ahead of housing data to be released at 10:00 a.m. EDT, the Nasdaq composite was slightly positive after Amazon.com reported strong earnings Wednesday. Investors also braced for Ford's earnings, which indeed posted double the estimated loss. The earnings wave continues. Meanwhile, oil prices edged a little higher, but remained around $124 a barrel.

Starting with Ford (NYSE: F) then, the world's third largest automaker posted (after items) a loss of $1.38 billion, or 62 cents. Analysts surveyed by Bloomberg expected Ford to report a loss of 28 cents a share. The headlines scream of a loss of $8.7 billion though, which includes $8 billion in pretax writedowns of North American plants and assets of Ford Motor Credit Co. Ford also said it will convert three truck factories to produce small cars as rising gasoline prices sap U.S. truck sales.

Dow Chemical (NYSE: DOW) couldn't manage to offset higher costs of energy and raw materials with the recent price increases it announced, and posted a 27% decrease in profit for the period. Net income was $762 million, or 81 cents a share. Revenue is up 23% to $16.38 billion. Earnings were below analyst expectation according to Thomson Financial of 85 cents per share, but better than the sales estimates of $14.9 billion. DOW shares are dropping some 9.5% in premarket trading as the company said it expects the economy to weaken.

Amazon.com Inc. (NASDAQ: AMZN) posted strong earnings Wednesday after the close, proving its growth days aren't over in this weakened economy hurt by high gas prices. Not only did it beat estimates -- with a 41% climb in revenue to $4.06 billion compared to $3.96 expected, and EPS of 37 cents compared to expectations of 26 cents -- but it also raised its full-year revenue projections. AMZN shares are climbing about 6.5% in premarket trading.

Daimler AG (NYSE: DAI) shares are dropping nearly 11% in premarket trading after the world's second-biggest luxury carmaker cut its forecast for earnings this year. Daimler reported that second-quarter profit declined 25%.

Eli Lilly & Co. (NYSE: LLY) shares are down about a percent in premarket trading despite the world's biggest maker of psychiatric drugs posting said second-quarter earnings that rose 44% "on surging sales of the antidepressant Cymbalta and the impotence pill Cialis." Earnings were inline with estimates, but Lilly lowered its 2008 forecast.

Dow component 3M (NYSE: MMM) says its second-quarter profit rose slightly on strong double-digit growth in international markets. The industrial conglomerate's earnings came in at $1.39 per share excluding charges, beating estimates of $1.35 per share. Similarly, sales topped analysts forecast.

In non-earnings news, Qualcomm (NASDAQ: QCOM) shares are jumping about 20% in premarket trading after the cell phone chip maker and handset maker Nokia (NYSE: NOK) have finally agreed to settle a high-stakes licensing dispute and drop all legal complaints against each other in the U.S., Europe and Asia. NOK shares are trading over 2% higher in premarket action.

Some analyst calls:
JPMorgan downgraded Costco (NASDAQ: COST) and AT&T (NYSE: T) from Overweight to Neutral.
Cowen & Co downgraded Boeing (NYSE: BA) from Outperform to Neutral.
Deutsche Securities downgraded McDonald's (NYSE: MCD) from Buy to Hold.

Permalink | Email this | Linking Blogs | Comments

Early analyst calls (BA) (T) (C) (MCD)

Douglas McIntyre — 2008-07-24T07:46:00+00:00

Filed under: Before the bell, Analyst upgrades and downgrades, McDonald's (MCD), AT and T (T), Citigroup Inc. (C), Boeing Co (BA)

Morgan Stanley upgrades Citigroup (NYSE:C) to "equal weight" from "underweight", according to Briefing.com. The news service also reports that Deutsche Bank downgraded McDonald's (NYSE:MCD) from "buy" to "hold".

Standard & Poor's added Hansen Natural Corp (NASDAQ:HANS) and Chattem (NASDQ:CHTT) to its list of mid-sized companies that show the "highest growth characteristics.", according to the AP.

Boeing (NYSE:BA) Cut to Neutral at Cowen & Co, according to 24/7 Wall St. The financial website also reports AT&T (NYSE:T) Cut to Neutral at JPMorgan

Douglas A. McIntyre

Read | Permalink | Email this | Linking Blogs | Comments

Closing Bell: Earnings keep gains coming

Jon Ogg — 2008-07-23T16:21:00+00:00

Filed under: After the bell, Sirius Satellite Radio (SIRI), Market matters, AT and T (T), Bank of America (BAC), Costco Wholesale (COST)

Today we saw another market gain, but several key stocks gave back some recent gains. The oil inventories report as well as reports Hurricane Dolly only took down a max of 8% of Gulf of Mexico and nearby production, helped lower oil prices over $3.00 to under $125.00 per barrel. Today was rather light on the economic front so the market was led higher mostly thanks to earnings from DJIA components. Longer-term rates rose on Fed comments today calling for rates to rise sooner rather than later, although that was independent and slightly different than the actual Beige Book comments.

Here are today's unofficial closing bell levels:

DJIA 11632.70 (+30.30)
S&P500 1282.05 (+5.05)
NASDAQ 2325.88 (+21.92))
10YR T-Note 4.148 (+0.05%)
TOP ANALYST UPGRADES
TOP ANALYST DOWNGRADES
52-WEEK LOWS

AT&T Inc. (NYSE: T) was the winner of DJIA components after reporting earnings this morning, particularly since it has lost nearly one-third of its value. Shares were up 4% at $33.11 in today's final minutes.

Bank of America (NYSE: BAC) rose after announcing it was keeping its 64 cents dividend as Ken Lewis had promised. The real charm though was the new $3.75 billion common stock buyback plan to be executed over the next 12 to 18 months. Shares were up 3.7% at $33.57 in today's final minutes.

Costco Wholesale (NASDAQ: COST) tanked after warning earnings would fall short for the quarter due to higher energy, higher oil and higher wholesale costs that it hasn't passed on to consumers. Shares were down 12% at $63.28 in today's final minutes.

Sirius Satellite radio Inc. (NASDAQ: SIRI) was today's winner on multiple reports that the last FCC swing vote from the commissioners was going in favor of approving the merger. Shares were up over 10% at $2.63 in today's final minutes.

Permalink | Email this | Linking Blogs | Comments

Places the new iPhone won't work: Near Apple headquarters for starters

Douglas McIntyre — 2008-07-23T14:30:00+00:00

Filed under: Apple Inc (AAPL), AT and T (T)

Apple Inc. (NASDAQ: AAPL) says it sold one million 3G iPhones in its first three days on the market. Some analysts believe that company could sell 20 million of them in the next year.

One of the reasons some people waited for the new 3G version of the phone is that it runs on AT&T's (NYSE: T) faster wireless broadband network. The older version, which ran on the 2.5G network, could be very slow linking to the internet.

Now that over a million people have their faster phones, they may find that there are a lot of places they won't work. AT&T's 3G network is concentrated in large cities. Even in those urban areas and their suburbs, there are a lot of dead spots. At least a couple of those are within a short drive from the Apple and AT&T headquarters.

For people taking their iPhones to Las Vegas, the coverage is extremely good. Anyone taking a vacation to Vermont, New Hampshire, Wyoming, or Montana is out of luck. (For a more complete list of places the new 3G iPhone won't work, visit 247wallst.com.)

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

Read | Permalink | Email this | Linking Blogs | Comments

Investments that pay you every month, beware that new car smell & life after Paul for Newman's Own - Today in Money 7/23

Allan Halprin — 2008-07-23T08:57:00+00:00

Filed under: Yahoo! (YHOO), Pfizer (PFE), PepsiCo (PEP), McDonald's (MCD), AT and T (T), Money and Finance Today, Boeing Co (BA), Charles Schwab Corp (SCHW), Sara Lee Corp (SLE), Costco Wholesale (COST), US Airways Group (LCC), UAL Corp (UAUA), Crocs Inc (CROX)

In the News:

· Gas Prices Drop for 6th Straight Day

· Mortgage Rates Jump to Highest Level in a Year; 30-Year Fixed at 6.59%

· Wireless Growth Lifts AT&T Profit in 2Q

· McDonald's Has Another Great Quarter as It Tops Expectations

· Pfizer 2Q Profit More Than Doubles on International Sales

· Yahoo Earnings Don't Help Case for Independence as It Miss Estimates with a 18% Profit Decline

· Costco Warns, Hit By High Energy Costs

· Boeing Sees 2Q Profit Drop; Military Contract Cited

· FDIC Chair Says More Banks May Fail

· United Airlines Stock Jumps 65%, US Air 54% and Other Airlines Soar on Earnings News

· Pepsi Profit Rises 9% on Strong International Growth

· Whirlpool Reports 27% Profit Dip

· BMW Plans '09 Launch of Electric Car

· Schwab Founder Charles Schwab Stepping Down on Oct. 1

· Direct Mail Tries to Go Green. No, Really

· Rapper DMX Charged With Identity Theft

· Los Angeles Plans to Ban New Fast Food Outlets

· Los Angeles Bans Plastic Bagging in Stores

· Aaron Spelling's Widow Pays a Whooping $47M for L.A. Condo

Investments That Pay You Every Month
Expect a steady flow of cash from these three portfolios.
Investments That Pay You Every Month - Kiplinger.com

Recession Posts Greater Threat to Women
Women have become increasingly vulnerable to job losses during downturns, putting families at greater financial risk during these troubled times.
Women's jobs are more vulnerable in a downturn, report says - MarketWatch

How Whole Is Whole Grain?
Hundreds of bread and cereal brands claim to be "whole grain." But how many are "wholly" made from whole grain? A settlement between Sara Lee and the Center for Science in the Public Interest may lead to more accurate claims about whole grains on food labels.
How Whole Is Whole Grain? - BusinessWeek

The Price of Olympic Glory
Two athletes - one American, one Chinese - stand at the threshold of sports immortality next month in Beijing. The expense has been high, in money and family sacrifice. Winning will be the big payoff.
The price of Olympic glory - (1) - Money Magazine

Beware of That New Car Smell
Love that new-car smell? The bad news is dangers may lurk in new cars, children's seats and that smell can be harmful, and have been linked to long-term health problems. The good news is that consumers have a new guide to figure out which cars are safer.
Toxic Car Interiors - MarketWatch

Save on Food: Tips for Eating Local Produce
Roadside stands and farmer's markets can often provide fresher, cheaper food than the alternatives.
Save on Food: Tips for Eating Local Produce | MainStreet

Newman's Own: Preparing for Life After Paul
When brands are linked to iconic founders, outliving them is a tricky task. At Newman's Own, leaders are laying plans for the brand to reach the next generation.
Newman's Own after Paul - FORTUNE Small Business

Permalink | Email this | Linking Blogs | Comments

Before the bell: COST, YHOO, WM, BA, PEP, PFE, GOOG ...

Melly Alazraki — 2008-07-23T08:05:00+00:00

Filed under: Before the bell, Earnings reports, Analyst reports, Analyst upgrades and downgrades, Deals, Google (GOOG), Yahoo! (YHOO), Pfizer (PFE), PepsiCo (PEP), Amazon.com (AMZN), McDonald's (MCD), AT and T (T), Anheuser-Busch Cos (BUD), Boeing Co (BA), ConocoPhillips (COP), Costco Wholesale (COST), Washington Mutual (WM)

Stock futures were higher this morning, indicating stocks could have a positive start to the session as oil prices continued to decline, sinking below $127 a barrel. Weekly inventories numbers reported later today could have an impact on oil prices. Then there is continued optimism in the financial sector, which caused the rally Tuesday. Also, a bill aimed at helping the housing market will reach the House floor. But once again earnings will likely have investors' attention with Costco already giving a profit warning.

Costco Wholesale Corp. (NASDAQ: COST) shares are plunging over 8% in premarket trading after the wholesale retailer warned its August-ending quarter's profit would miss analyst estimates. This is most surprising as Costco had been one of the retailer that seemed to have benefited from consumers trying to save and buy lower-cost items. But Costco blamed the lower profit on rising energy costs, saying it will earn less than $1 per share.

Washington Mutual Inc. (NYSE: WM) late Tuesday reported second-quarter results, posting a loss of $3.3 billion, was worse than analysts had anticipated. Excluding one-time items, WaMu lost $3.34 per share, much wider than the expected loss of $1.05 per share. Piper Jaffray downgraded WM shares from Neutral to Sell and Friedman Billings halved its target price on the shares from $8 to $4. Shares are off nearly 3% in premarket trading.

Yahoo Inc. (NASDAQ: YHOO) also reported profits and sales that came up short of estimates. Second-quarter profit fell 18% to $131 million, or 9 cents per share. Analysts had projected earnings of 11 cents per share in the most recent quarter, according to Thomson Financial. Revenue grew 6% to $1.8 billion, or $1.35 billion after subtracting commissions, also below estimates. Yahoo! shares, however, are up about 3% in premarket trading since investors were relieved the performance wasn't as bad as many had feared after Google (NASDAQ: GOOG) reported last week and disappointed investors. Also, Yahoo didn't dramatically lower its revenue outlook for the remainder of the year.

Boeing Co NYSE: BA) has just announced results, saying quarterly profit fell due to a charge. The plane maker reported Q2 EPS of $1.16, with $0.22 charge, versus the consensus of $1.23. Revenues came in at $17 billion, versus the consensus of $17.24 billion. Boeing also reaffirmed 2008, 2009 forecast.

PepsiCo (NYSE: PEP) reported higher quarterly profit on Wednesday, as net income rose to $1.7 billion, or $1.05 per share. Excluding items, earnigns per share were $1.03. Net revenue rose 14% to $10.95 billion. The company benefited from strong international demand and the weak U.S. dollar. The company raised its revenue outlook.

Pfizer Inc. (NYSE: PFE) shares are up more than 3% in premarket after the pharmaceutical said second-quarter profits more than doubled. The company earned $2.78 billion, or 41 cents per share. Excluding special items, Pfizer earned 55 cents per share, beating estimates by a penny. Revenue rose 9% to $12.13 billion, of which 7% was due to the dollar. U.S. sales fell 2%.

Another busy day for earnings includes results from McDonald's (NYSE: MCD), AT&T (NYSE: T) and ConocoPhilips (NYSE: COP), Amazon.com Inc. (NASDAQ: AMZN) and Anheuser-Busch Cos (NYSE: BUD) among many others.

In non-earnings news, TechCrunch reports that Google Inc. (NASDAQ: GOOG) is in final negotiations to acquire Digg for "Around $200 Million."

Permalink | Email this | Linking Blogs | Comments

Option Update: AT&T & Verizon options active into EPS & outlook

Paul Foster — 2008-07-22T10:00:00+00:00

Filed under: AT and T (T), Verizon Communications (VZ), Options

AT&T (NYSE: T) closed at $31.83 Monday. T is scheduled to report Q2 EPS on July 23. T August option implied volatility of 36 is above its 26-week average of 32 according to Track Data, suggesting larger price movement.

Verizon (NYSE: VZ) is scheduled to report Q2 EPS on July 28. VZ announced second quarter wireless net customer additions of 1.5 million. At the end of the quarter VZ had 68.7 million customers. VZ August option implied volatility of 31 is near its 26-week average according to Track Data, suggesting non-directional price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Permalink | Email this | Linking Blogs | Comments

Analyst downgrades: WB, AIG, BT, NOK, ERIC, ALU, TWTI, T

Eric Buscemi — 2008-07-15T11:47:00+00:00

Filed under: Analyst upgrades and downgrades, AT and T (T), Nokia Corp. (NOK), Amer Intl Group (AIG), Wachovia Corp (WB), Alcatel-LucentADS (ALU)

MOST NOTEWORTHY: Wachovia, American International Group and BT Group were today's noteworthy downgrades:

Oppenheimer downgraded shares of Wachovia (NYSE: WB) to Underperform from Perform as they believe the outlook is "bleak" for equity shareholders. The firm thinks Wachovia's expenses can't come down fast enough too offset earnings erosion.
Wachovia downgraded shares of American International Group (NYSE: AIG) to Market Perform from Outperform as they believe AIG's CDO valuations worsened in Q2, which could result in a $2B-$7B after tax "valuation adjustment." Wachovia expects the value of AIG's core insurance franchise to be obscured by its credit exposure.
Collins Stewart cut BT Group (NYSE: BT) to Hold from Buy on concerns surrounding the company's fiber network expansion.

OTHER DOWNGRADES:

Nokia (NYSE: NOK) was downgraded to Add from Buy at WestLB; the firm also lowered Ericsson (NASDAQ: ERIC) to Hold from Buy and Alcatel-Lucent (NYSE: ALU) to Sell from Hold.
Third Wave (NASDAQ: TWTI) was cut to Hold from Buy at Deutsche Bank.
AT&T (NYSE: T) was removed from Goldman's Conviction Buy List.

Permalink | Email this | Linking Blogs | Comments

Early analyst calls (AIG) (T) (WB) (MOT)

Douglas McIntyre — 2008-07-15T07:40:00+00:00

Filed under: Before the bell, Analyst upgrades and downgrades, Motorola (MOT), AT and T (T), Amer Intl Group (AIG), Wachovia Corp (WB)

Wachovia downgraded AIG (NYSE:AIG) to "market perform" from "outperform", according to Briefing.com. The news service also reports that Oppenheiner downgraded Wachovia (NYSE:WB) to "under-perform" from "market perform".

AT&T (NYSE:T) maintained Buy but Removed from Conviction Buy List at Goldman Sachs according to 247wallst.com. The financial website also reports that Motorola (NYSE:MOT) Started as Sell at Societe Generale

Douglas A. McIntyre

Permalink | Email this | Linking Blogs | Comments

Apple sells a million iPhones -- will Jobs apologize for snafus?

Jonathan Berr — 2008-07-14T11:22:00+00:00

Filed under: Products and services, Consumer experience, Apple Inc (AAPL), Marketing and advertising, AT and T (T), iPhone

The new Apple Inc. (NASDAQ: AAPL) iPhone is even a bigger hit than analysts had expected. During its debut weekend, about a million units of the phone that can do everything but your taxes were sold. This number is already higher than earlier estimates from today Doug McIntyre has posted. Even Apple's prickly Chief Executive Steve Jobs was impressed.

"iPhone 3G had a stunning opening weekend," he said in a press release issued this morning. " It took 74 days to sell the first one million original iPhones, so the new iPhone 3G is clearly off to a great start around the world."

Indeed, diehard geeks camped out and around Apple and AT&T Inc. (NYSE: T) stores to be among the first to get their hands on the sleek new phone. A 22-year-old college student from New Zealand named Jonny Gladwell was the first to purchase the mother of all gadgets. He waited outside his Vodafone store for 60 hours, according to Vnunet.com. His parents must be proud (or horrified).

What makes this even more amazing is that many Apple fans are fuming over technical glitches and shortages of the phone their lives will not be complete without. Gizmodo dubbed this the iPocalypse. Mitch Wagner of Information Week argues that Apple has got some fence-mending to do with customers who clearly expected better.

"Some kind of apology would be nice, along with a bit of cash to compensate customers who had problems with activation, similar to the gift certificates Apple gave out last year when they cut iPhone prices too much too fast and left customers feeling ripped off," he writes. "But more importantly, Apple needs to sit down and figure out what went wrong on Friday, and make sure it never happens again."

Gene Munster of Pipper Jaffray & Co. figures AT&T sold a combined 225,000 devices in the U.S. even though a computer snafu in Apple's system meant that some buyers had to activate their iPhones at home, according to Bloomberg News.

Sounds like people are so enthused about the iPhone 3G that they are willing to put up with some major hassles to get it. Heck, I am going to buy an iPhone for my wife once the hoopla dies down, which I figure may happen sometime before the presidential election.

Steve Jobs apologizing twice in the same decade? I'll believe it when I see it.

Read | Permalink | Email this | Linking Blogs | Comments

Before the bell: FDX, GE, AAPL, MSFT, BA, GSK

Melly Alazraki — 2008-07-14T08:13:00+00:00

Filed under: Before the bell, Deals, Microsoft (MSFT), Apple Inc (AAPL), General Electric (GE), AT and T (T), Netflix, Inc. (NFLX), Boeing Co (BA), FedEx Corp (FDX), United Technologies (UTX)

Before the bell: Solid opening expected following Fannie/Freddie gov't plan; BUD takeover

FedEx (NYSE: FDX) may be in talks to buy its rival European rival TNT, according to a report from the Financial Times. TNT shares have jumped 25% in Europe.

General Electric Co. (NYSE: GE) announced Monday it will supply parts for Gulfstream Aircraft Corp.'s G650 business jet in a deal worth potentially more than $100 million. Separately, GE said it would develop with Safran SA a new line of fuel efficient jet engines to compete with United Technologies Corp. (NYSE: UTX) Pratt & Whitney.

Apple Inc. (NASDAQ: AAPL) may have sold as many as 425,000 of its new 3G iPhones in the first three days after the handset made its debut, in line with projections and despite serious technical and activation problems. Apple and AT&T (NYSE: T) sold a combined 225,000 in the U.S. Gene Munster of Piper Jaffray & Co. predicts Apple will sell 4.08 million this quarter.

Microsoft Corp. (NASDAQ: MSFT) announced late Friday that it was cutting the price on the lower-end model of its XBox 360 gaming console and introducing a new mid-range model with a 60GB hard drive. Meanwhile, there are rumors that Microsoft could announce a deal with Netflix, Inc. (NASDAQ: NFLX) at a gaming conference in Los Angeles on Monday that would allow streaming movies and TV shows from Netflix to be played through the Xbox 360.

Boeing (NYSE: BA) won an order from low-cost airline FlyDubai for 50 737-800 jets $3.74 billion at list prices.

GlaxoSmithKline (NYSE: GSK) will pay as much as $3 billion to license an insomnia drug from Switzerland's Actelion.

Permalink | Email this | Linking Blogs | Comments

Apple/AT&T iPhone 3G launch deemed a disaster

Brian White — 2008-07-11T18:31:00+00:00

Filed under: Products and services, Launches, Apple Inc (AAPL), AT and T (T)

After having monitored blogs and news of the iPhone 3G launch all morning and afternoon, the general feeling I get is that the launch of the iPhone 3G could be considered nothing less than a disaster. Blame Apple Inc. (NASDAQ: AAPL), blame AT&T Inc. (NYSE: T) -- but if you were brave enough to "have to have" an iPhone 3G on launch day, you may have a need for a stress ball by now.

It appears that Apple's integration with AT&T's activation system didn't fare so well on this day. Both companies should have known, like June of last year, that it would be a super-busy day for the iPhone universe. In what seems like a commonplace event on large product launches, activation servers crashed, software updates failed (even for the older iPhone owners who wanted to updated to the newer software) and scores of customers were left without working iPhones as the in-store activation process was completely fubar'ed by both companies.

For Apple to have such an awesome piece of hardware and software in the iPhone 3G, working with an aging and piecemeal telecom carrier was unfortunately a necessity. After all, Apple does not own a national wireless network with high-speed data capability. But the customer process failed miserably today -- something that zealous and exuberant iPhone 3G buyers should not forget. Did you really, really need that iPhone 3G today? If your answer is yes (yeah, right), you should have expected a nightmare. For many of you, that was delivered rather nicely. Hope you kept up with your pulse, eh?

Read | Permalink | Email this | Linking Blogs | Comments

CenturyTel (CTL): Share price cycles in bullish 'flag'

Larry Schutts — 2008-07-07T13:14:00+00:00

Filed under: Analyst upgrades and downgrades, Good news, AT and T (T), Technical Analysis, Stocks to Buy

CenturyTel (NYSE: CTL) is an integrated communications company, providing carrier and enterprise level network access, local and long distance voice service, Internet access and broadband services. Its rural local-exchange carrier subsidiaries operate in the smaller communities of 25 states. Its core service areas are in Alabama, Arkansas, Missouri, Washington, and Wisconsin. AT&T (NYSE: T) is a major competitor.

The company pleased investors late last month, when it increased its annual cash dividend from 27 cents to $2.80, declared a one-time dividend of 63.25 cents per share, and accelerated the current share repurchase program to complete the remaining balance of about $385 million by early 2009. Management also said it expected to meet, or exceed, previously announced Q2 guidance for EPS of 78-82 cents (80 cent consensus) and revenues of $647-$657 million ($652.7M consensus). Soleil and Stanford Research subsequently upgraded CTL shares to "buy" status.

The stock 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.

Brokers recommend the issue with two "strong buys", four "buys", eight "holds" and one "underperform". The CTL P/E ratio (8.88), Price to Sales ratio (1.34), Price to Book ratio (1.08), EPS Growth rate (19.12%), Operating Margin (29.90%) and Net Profit Margin (15.88%) compare favorably with industry, sector and S&P 500 averages. Institutions own about 90% of the outstanding shares. The stock is one of those used to calculate the S&P 500 Index. Over the past 52 weeks, it has traded between $30.55 and $49.91. A stop-loss of $30.25 looks good here. Note that the firm is expected to announce Q2 results late this month.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in either of the stocks mentioned above.

Permalink | Email this | Linking Blogs | Comments