Brand-Name Stocks Uner $10: Buyer Beware
These well-known names in the bargain bin may look appealing, but experts advise laying off until their earnings picture is clear. Among the stocks to be weary of are Sprint Nextel, Motorola, Ford Motor, Qwest, Washington Mutual, Northwest Airlines, Del Monte, Rite Aid, Chico's, Crocs, United Airlines, Palm, Sealy, Blockbuster, Circuit City and Orbitz.
Brand-Name Stocks Under $10: Buyer Beware
How to Play the Market in the Second Half of 2008
Market pro Todd Harrison discusses the top 10 themes for the rest of the year.
Where we are and where we're going: 10 market themes - MarketWatch
Finding Safety in a Bear Market
Here are five ways to protect your portfolio.
Keeping Your Balance in a Scary Market - Kiplinger.com
Brand name stocks under $10 to beware of, market themes for 2008's second half - Today in Money 7/2
Earnings highlights: AIG, Fannie Mae, Toyota, Warner Music, Qwest, MGM and others
Here are some highlights from this past week's earnings coverage from BloggingStocks:
- American International Group Inc. (NYE: AIG) reported a loss of $7.8 billion but raised its dividend.
- Barr Pharmaceuticals Inc. (NYSE: BRL) missed earnings estimates and lowered its guidance.
- D.R. Horton Inc. (NYSE: DHI) posted a larger-than-expected Q2 loss on further write-downs.
- Fannie Mae (NYSE: FNM) posted its third straight quarterly loss on the continuing housing slump.
- Hansen Natural Corp. (NASDAQ: HANS) lower-than-estimated Q1 profit led shares to a 52-week low.
- Lazard Ltd. (NYSE: LAZ) net income dropped 71% on a fall-off of M&A activity and a write-down.
- MGM Mirage Inc. NYSE: MGM) Q1 profits were dragged down by decreased consumer spending.
- Pilgrims Pride Corp. (NYSE: PPC) widened its Q2 loss due to the rising cost of feed.
- Playboy Enterprises Inc. (NYSE: PLA) swung to a Q1 loss as revenue declined in all units.
- Qwest Communications (NYSE: Q) net income and revenue fell in the first quarter.
- Scotts Miracle Gro Co. (NYSE: SMG) blamed a slow start to spring for its Q2 profit decline.
- Teva Pharmaceutical Industries Inc. (NASDAQ: TEVA) posted a Q1 loss due to a charge.
- THQ Inc. (NASDAQ: THQI) posted a loss for its fourth quarter and revenues flat for the year.
- Toyota Motor Corp. (NYSE: TM) posted lower-than-expected Q4 results due to the U.S. economic slump.
- Warner Music Group Corp. (NYSE: WMG) Q2 loss widened and it suspended its quarterly dividend.
Continue reading Earnings highlights: AIG, Fannie Mae, Toyota, Warner Music, Qwest, MGM and others
Closing Bell: Despite $120 oil, stocks post gains
- DJIA 13,025.31 +55.77 +0.43%
- S&P 500 1,418.42 +10.93 +0.78%
- NASDAQ 2,483.31 +19.19 +0.78%
- 10YR-Bond 3.893% (+0.048)
- TOP 10 ANALYST CALLS.
Continue reading Closing Bell: Despite $120 oil, stocks post gains
A challenging quarter for Qwest
Qwest Communications (NYSE: Q), a company whose competitors include Verizon (NYSE: VZ), AT&T (NYSE: T) and Sprint Nextel (NYSE: S), issued its Q1 results on Tuesday, and they weren't inspiring to me at all. Revenues declined 1% to $3.4 billion. Net income took a dive to the tune of 25%, coming in at $0.09 per diluted share. Those are year-over-year declines -- the sequential-quarter comparisons also told a tale of decline. Adjusting the earnings for some tax considerations did, however, yield a net-income increase of almost 6%.
But then there's one of my favorite measures of growth -- free cash flow. Qwest didn't hit this metric. Free cash, on an adjusted basis, was $56 million this time around versus $156 million last time around (I give Qwest credit for increasing its operating cash flow, however). Qwest was able to carve out some double-digit gains in its broadband and video subscribers, but that seemed to be of little help right now.
Overall, I came away from the earnings report -- which told a complex story of adjustments, EBITDA, and such -- not wanting to add this stock to my watch list. According to Briefing.com, Qwest missed expectations by a penny, and its revenues failed to go beyond what Wall Street was looking for. Considering the low price of the shares, and the fact that the dividend yield isn't one I'd chase, I'll feel free to leave this one alone.
Disclosure: I do not own shares in any company mentioned here; positions can change at any time.
Before the bell: With high oil prices, FNM on deck, futures decline
Stock futures were lower early Tuesday morning as oil prices remained high offsetting any recent optimism about the economy in light of Monday's surprise expansion in the service sector. Several companies are also reporting earnings today and will be in focus.U.S. stocks dropped on Monday after Microsoft withdrew its takeover bid for Yahoo and as commodity prices once again spiked. The Dow industrials lost 88 points, or 0.68%, the Nasdaq Composite fell 12 points, or 0.52%, and the S&P 500 lost 6 points, or 0.45%.
Without much economic news today, no doubt investors will have no choice but to focus on the high oil prices. After setting a record close Monday and hitting a new trading high of $120.93 a barrel Tuesday, crude retreated to $119.88, down 9 cents from Monday's close. It is interesting that just as hopes were growing the slowdown of the US economy may not be as deep and long as originally thought, crude prices surge again, concerning investors about inflation and profits once again.
Continue reading Before the bell: With high oil prices, FNM on deck, futures decline
Battle of the Brands: Verizon Wireless vs. AT&T Mobility
This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.
"I'm like Ma Bell, I got the ill communication." -- Beastie Boys
When considering these two particular companies, it is important to note their roots as offspring of the famous "Ma Bell" network. The Bell System, which has produced the most complex ongoing series of mergers and break-ups in the history of the United States, is the origin of the companies that are now AT&T Inc. (NYSE: T) and Verizon Communications Inc. (NYSE: VZ), as well as competitor Qwest Communications International (NYSE: Q). A lot has changed since those early times -- remember, after all, that the second "T" in AT&T stood for Telegraph. Now phones are the latest devices to be made supercomputers. AT&T has its exclusive deal with the Apple Inc. (NASDAQ: AAPL) iPhone, while Verizon slings the Research in Motion Ltd. (NASDAQ: RIMM) BlackBerry.
Since wireless is the way of the future, the wireless divisions of these companies is the most hotly contested, and the focus of this "Battle of the Brands." It is important to note that despite Verizon Wireless bearing solely Verizon's name, it is not owned by just them, it is a 55%-45% joint venture between Verizon and Vodafone Group (NYSE: VOD). It is also important to note that AT&T Mobility is the service formerly known as Cingular, which was acquired by AT&T in 2006 when it bought BellSouth for $86B.
Continue reading Battle of the Brands: Verizon Wireless vs. AT&T Mobility
8 comeback stocks, ways to dine out for less & cut your medical bills - Today in Money 3/31
There are legions of beaten-down stocks out there. These companies have disappointed investors for years. But each has a good chance of fixing its problems and bouncing back in 2008. These stocks include Sony, Interpublic Group, Starbucks, Nordstrom, Office Max, UnitedHealth, Qwest and CB Richard Ellis Group.
Stocks: Trawling for Turnaround Targets 8 Comeback Candidates
Student Loans Feel the Pinch
Credit market constriction is limiting the financial aid available to college students. We have tips for shopping for a private loan.
Student Loans Feel the Crunch
6 Ways to Dine Out for Less
World appetites for oil and grain have put higher food prices on the menu -- literally. To counterbalance rising costs, restaurants also are offering more promotions to tempt consumers into a night on the town. Savvy consumers can easily trim their bill by 50% or more -- without forgoing the filet mignon in favor of a cheap pasta dish. Try these six tips to spend less.
6 Ways to Dine Out for Less - SmartMoney.com
Cutting Medical Bills
Welcome to the brave new world of health care haggling, where patients have become bolder about their medical bills, and doctors more open to negotiation. We went trolling for discounts in the doctor's office to find out just how much work it takes.
Under the Knife: Cutting Medical Bills (- SmartMoney.com
How to Get Around Higher Bank Fees
Squeezed by the credit crunch, consumer banks are boosting ATM and overdraft fees. Here are some of the biggest fee culprits and tips to avoid them.
Banks Boost Fees for ATMs, Overdrafts - SmartMoney.com
Best Graduate Schools 2009
U.S. News has collected data from more than 12,000 graduate programs to bring you this year's rankings. Here is the best for business, science, law, health, fine arts and more.
Best Graduate Schools - Education - USNews
Stocks: what to do now?, Biggest Bear Stearns losers & Career-crushing sex scandals - Today in Money 3/18
With the Bear Stearns collapse, equities' age of anxiety just got an extra jolt of caffeine. Should individual investors give up on stocks?
Stocks: A Place Called Vertigo? - BusinessWeek
Also: Signs to Look for in a Market Bottom
8 Big Bear Stearns Losers Who Lost Hundreds of Millions Each
Bear Stearns employees, who own about 30% of the firm, and fund managers lost big when the Wall Street giant collapsed. Here's a look at some of the hardest hit.
Bear Stearns investors: Who lost big - FORTUNE
Also: How Subprimed Killed Bear Stearns
NYSE short interest makes record with huge increases in bank stocks
The short interest on the NYSE hit an all-time record in the period measured on February 29. Figures by company compare with shares sold short on February 15. Investors bet that shocks would drop across most sectors.
Financial firms had significant increases in short interest. At Citigroup (NYSE:C) the number rose 25.8 million shares to 118.6 million. At Wells Fargo (NYSE:WFC) the figure moved up 12.3 million to 108.8 million. At Wachovia (NYSE:WB) short interest jumped 6.3 million shares to 103.2 million.
At Fannie Mae (NYSE:FNM) shares short rose 14.7 million to 66.5 million.At Freddie Mac (NYSE:FRE) short interest soared 13.4 million to 53.5 million.
Shares short in telecom companies AT&T NYSE:(T), Verizon (NYSE:VZ), and Qwest (NYSE:Q) also rose by a significant margin.
Data from WSJ and NYSE.
Douglas A. McIntyre is an editor at 247wallst.com.
Earnings highlights: Coca-Cola, Deere, Abercrombie, Baidu, Playboy, Taser and others
Here are a few highlights of this past week's earnings coverage from BloggingStocks:
- Abercrombie & Fitch Co. (NYSE: ANF) beat estimates on strong sales and higher profit margins.
- Baidu.com Inc. (NASDAQ: BIDU) profit soared on strong revenue from online marketing.
- Coca-Cola Co. (NYSE: KO) earnings and revenue surged in the fourth quarer.
- Dean Foods Co. (NYSE: DF) missed expectations on rising commodity costs and lower profit margins.
- Deere & Co. (NYSE: DE) posted better-than-expected profits as rising grain prices spurred demand.
- Goodyear Tire & Rubber Co. (NYSE: GT) posted solid results on cost savings and debt reduction.
- Insight Enterprises Inc. (NASDAQ: NSIT) beat expectations and raised its guidance.
- LECG (NASDAQ: XPRT) posted a net loss despite a slight increase in revenue in the fourth quarter.
- Loews Corp. (NYSE: LTR) missed estimates due to profit decline in its CNA Financial (NYSE: CNA) affiliate.
- Marsh & McLennan Inc. (NYSE: MMC) missed estimates on weakness in its insurance services business.
- Playboy Enterprises Inc. (NYSE: PLA) posted disappointing results on weakness in publishing and TV.
- Qwest Communications International Inc. (NYSE: Q) fourth-quarter and full-year results met estimates.
- Sierra Wireless Inc. (NASDAQ: SWIR) beat esimates on the launch of new product s.
- Taser International Inc. (NASDAQ: TASR) profits doubled, which was in line with expectations.
- Visteon Corp. (NYSE: VC) posted a fourth-quarter loss on restructuring costs and write-downs.
- Waste Management Inc. (NYSE: WMI) beat espectations and offered 2008 guidance.
- Wyndham Worldwide Corp. (NYSE: WYN) earnings met expectations and were buoyed by lodging revenue.
- Zoltek Companies Inc. (NASDAQ: ZOLT) missed earnings estimates due to inventory buildup.
Upcoming results to watch for include Wal-Mart (NYSE: WMT), Hewlett-Packard (NYSE: HPQ), OfficeMax (NYSE: OMX), Whole Foods (NASDAQ: WFMI), MGM Mirage (NYSE: MGM), JCPenney (NYSE: JCP), and Safeway (NYSE: SWY).
Applied Materials and Qwest results lead to market gains
Tuesday's Applied Materials Inc. (NASDAQ: AMAT) first-quarter results and Qwest Communications International Inc. (NYSE: Q) fourth-quarter results have helped them lead Wednesday's tech gains and telecom gains respectively.
Semiconductor equipment maker Applied Materials said that its fiscal first-quarter profit declined as revenue fell due to the challenging global market for its products. Sales fell 8% to $2.09 billion from $2.28 billion in the same period of 2006. The company earned $262.4 million, or 19 cents per share, down 35% from $403.5 million, or 29 cents per share.
Excluding restructuring costs and other items, adjusted earnings were $345 million, or 25 cents per share. Analysts polled by Thomson Financial had expected a profit of 20 cents per share on sales of $2.01 billion.
Shares of Applied Materials rose Tuesday and Wednesday $3.10, or about 17%, to close at $19.91. Shares have been climbing from the 52-week low of $16.13 in mid January.
Continue reading Applied Materials and Qwest results lead to market gains
Analyst upgrades: British Airways, ADC Telecomm, Qwest
MOST NOTEWORTHY: British Airways, ADC Telecomm and Qwest were today's noteworthy upgrades:- Goldman upgraded shares of British Airways (OTC: BAIRY) to Buy from Neutral on valuation, and believes the company is the "jewel in the crown" in European aviation.
- Morgan Keegan expects ADC Telecomm (NASDAQ: ADCT) to benefit from carrier upgrade activity and views expectations as conservative. The firm raised shares to Outperform from Market Perform.
- Qwest (NYSE: Q) was raised to Buy from Hold at Soleil on valuation and yield support.
- VistaCare (NASDAQ: VSTA) was upgraded to Hold from Sell at Deutsche Bank.
- Banc of America raised Boston Scientific (NYSE: BSX) to Buy from Neutral.
- Lehman upgraded Kindred Healthcare (NYSE: KND) to Overweight from Equal Weight.
Early analyst calls: Q, BSX
Bear Stearns upgraded the financial sector to "market weight" from "market under weight," according to CNBC.
Qwest (NYSE: Q) was upgraded from "hold" to "buy" at Soleil and Boston Scientific (NYSE: BSX) was upgraded from "neutral" to "buy" at Bank of America, according to Briefing.com.
Douglas A. McIntyre is an editor at 247wallst.com.
US cellphone spending passes landlines
For the first time, the amount that an average American household spends on its cellphone service is passing spending on traditional landlines.
According to The Associated Press ,""the most recent government data show that households spent $524, on average, on cell phone bills in 20qa06, compared with $542 for residential and pay-phone services. By now, though, consumers almost certainly spend more on their cell phone bills, several telecom industry analysts and officials said."
The news sets up some probable winners and losers over the next several years. AT&T (NYSE:T) and Verizon (NYSE:VZ) should both come out ahead, but not by as much as investors may think. Each of the companies has large cell phone operations, but the number of US cell customers is beginning to reach a point of saturation, just as landline customers did years ago. Cellular revenue will continue to grow, along with operating profits. But, landline revenue at these companies is likely to shrink, and that may accelerate as more people move to VoIP and cell phones.
The big loser will be Qwest (NYSE:Q). Most of its revenue come from landlines. It has no cellular business to speak of, so it is on the losing end of a trend, but does not have a play at the winner's table.
Of course, handset companies are likely to benefit. Motorola (NYSE:MOT) is still the leader in US handset sales. Nokia (NYSE:NOK), the world's largest handset company, would like to change that. And, there is always the Apple (NASDAQ:AAPL) iPhone. These days Apple always wins.
Douglas A. McIntyre is an editor at 247wallst.com.
The long case for Gilat Satellite Networks
The following excerpt originally appeared as part of the Israel Opportunity Investor, a monthly newsletter I publish for paid subscribers.
Gilat Satellite Networks Ltd. (Nasdaq: GILT) provides Internet Protocol [IP] based digital satellite communication and networking products and services. The Company designs, produces, and markets very small aperture terminals (VSATs), two-way satellite ground stations with dish antennae smaller than 3 meters, and related network equipment. Gilat has customers in over 85 countries. Its products are primarily sold to communication service providers and operators that use VSATs to serve enterprise, government, and residential users. The company also provides services directly to end users in various market segments in the United States and Latin America. The Company competes with Hughes Network Systems, Viasat, Inc. (NASDAQ: VSAT), iDirect, AT&T, Inc. (NYSE: T), Verizon Communications (NYSE: VZ) and Qwest Communications International Inc. (NYSE: Q).
Investment Thesis
Gilat focuses on niche markets within emerging markets and the government sector, with a lot of opportunity for new deal flow in markets like Africa, Latin America, and Eastern Europe. A recent win with the US. Postal Service could be a good springboard to more deals of the sort. In the deal, Gilat's wholly-owned subsidiary, Spacenet Inc., is working with Verizon Business to deploy a custom satellite network for the Postal Service. The satellite network will provide high performance broadbandcommunications for over 5,000 Postal Service sites in the continental United States, Hawaii, Alaska, and Puerto Rico.










