BloggingStocks

How to profit from the Dark Knight Industrial Complex

Peter Cohan — 2008-07-21T18:09:00+00:00

Filed under: Time Warner (TWX), Nokia Corp. (NOK), Comcast Cl'A' (CMCSA), Mattel, Inc (MAT)

Dark Knight, the Batman movie starring Heath Ledger, did boffo box office: $158.3 million, according to Defamer. But this blockbuster will not just benefit Warner Brothers and DC Comics, which share parent Time Warner Inc. (NYSE: TWX) with BloggingStocks. There are at least six companies that will benefit from Dark Knight's success. According to Seeking Alpha, these companies include:

Time Warner -- through its Warner Brothers and DC Comics subsidiaries are profiting most directly.
Comcast Corporation (NYSE: CMCSA) partnered with Warner Bros. to offer "behind-the-scenes footage, trailers, and mini movies on demand"
Verizon Communications, Inc. (NYSE: VZ) and Nokia Corporation (NYSE: NOK) collaborated in creating the Nokia6205 The Dark Knight Edition. Seeking Alpha reports that "This batphone targets superfans, with bat wallpaper, voice tones, screensavers, and the film's trailer pre-loaded."

Mattel, Inc. (NYSE: MAT) has the license to sell toys related to The Dark Knight, and it turns out that both kids and adult collectors buy Batman toys.
Imax Corporation (NYSE: IMAX): the film is being shown in 94 Imax venues and CNBC reports it had a record $6.2 million weekend.

Is Dark Knight big enough to move the needle in favor of buying stock in these companies? I think it may be too early to tell. I have not seen the movie yet. If you saw it, please comment below on whether you think it will boost the fortunes of these companies. But with stocks in each of these six falling today, I am not sure whether investors were disappointed with the outcome or simply taking profits that they had been anticipating for months.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

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Analyst upgrades: BBBB, HOT and ACE

Eric Buscemi — 2008-07-17T11:05:00+00:00

Filed under: Analyst reports, Analyst upgrades and downgrades, Comcast Cl'A' (CMCSA), Starwood Hotels Worldwide (HOT)

MOST NOTEWORTHY: Blackboard, Starwood Hotels and ACE Ltd were today's noteworthy upgrades:

Baird upgraded Blackboard (NASDAQ:BBBB) to Outperform from Neutral based on two new state-wide deals with New Mexico and North Carolina, K-12 growth, and up-selling and cross-selling opportunities. The firm raised Blackboard's target to $45 from $38.
Wachovia raised Starwood Hotels (NYSE:HOT) to Outperform from Market Perform citing valuation, high international exposure, and secure capital structure and dividend.
Citigroup upgraded shares of ACE Ltd (NYSE:ACE) to Buy from Neutral on valuation, as they believe additional selling from the company's redomestication to Switzerland will be offset by short covering. They view the recent weakness as an attractive buying opportunity and raised their target to $63 from $58.

OTHER UPGRADES:

UBS upgraded Microchip (NASDAQ:MCHP) and Linear Tech (NASDAQ:LLTC) to Buy from Neutral.
Marshall & Ilsley (NYSE:MI) was raised to Market Perform from Underperform at Keefe Bruyette.
Comcast (NASDAQ:CMCSA) was upgraded to Buy from Neutral at Goldman.

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Early analyt calls (WFC) (DNA) (CMCSA)

Douglas McIntyre — 2008-07-17T07:58:00+00:00

Filed under: Before the bell, Analyst upgrades and downgrades, Comcast Cl'A' (CMCSA), Genentech Inc (DNA), Wells Fargo (WFC)

UBS downgraded Wells Fargo (NYSE:WFC) from "neutral" from "buy', according to Briefing.com. The new service reports that Citigroup initiated Genentech (NYSE:DNA) at "buy" with a $91 price target.

Comcast (NASDAQ:CMCSA) raised to Buy at Goldman Sachs, according to 24/7 Wall St. The financial news site also said that Starwood Hotels & Resorts (NYSE: HOT) Raised to Outperform at Wachovia.

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Oil at $200 & 2-year recession, sales tax holidays & first billionaire athlete - Today in Money 7/10

Allan Halprin — 2008-07-10T09:04:00+00:00

Filed under: Wal-Mart (WMT), Money and Finance Today, Boeing Co (BA), Comcast Cl'A' (CMCSA), Verizon Communications (VZ), US Airways Group (LCC), Marriott Intl'A' (MAR), Dow Chemical (DOW)

In the News:

· Dow Chemical Buys 100-Year Old Rival Rohm & Haas in One of Year's Biggest Deals

· All U.S. Stock Markets Officially in a Bear Market Now After Yesterday's Drop

· Wal-Mart Raises Forecast on Strong June Sales

· Boeing Wins New Shot at Multi-Billion Air Force Job

· Marriott Quarterly Profit Drops 24%

· Foreclosure Filings Surge 53% in June

· Northwest Airlines to Cut 2,500 Jobs

· Verizon to Pay $21 Million to Settle Lawsuit Over Termination Fees

· U.S. Airways Scraps Films to Save $10 Million Annually in Fuel & Other Costs

Oil at $200 and a Two-Year Recession
The predictions of $200 oil have made it to the front page of The Wall S Journal. They have been hanging around in less prominent places, but now they gain some further legitimacy. The Journal predicts this would push gas prices to $6 a gallon. Oil at $200 would seize up the economy to the extent that virtually no industry would me immune. Fixing the problem could take a year, and, perhaps, much longer.
24/7 Wall St.: Oil At $200 And A Two-Year Recession

Sales Tax Holidays
The sales-tax holiday season is upon us. Here's where to shop to land the best deals.
Some States Extend Sales-Tax Holidays This Summer - SmartMoney

One Grandmother's Mortgage Nightmare
The nation's housing meltdown is disrupting lives and devastating families. One New York grandmother is trying to put the pieces back together.
Life after losing your home - CNNmoney

Women Don't Save Enough
Longer lives and lower pay mean women need to save more for retirement. But a study finds a widening of the financial gender gap.
Women not saving enough - study - CNNmoney

Tiger Woods, the First Billionaire Athlete?
Bum knee or not, we estimate Tiger Woods will become the world's first 10-figure athlete in 2011.
Tiger's Next Trophy: Billionaire - Forbes.comBum knee or not, we estimate Tiger Woods will become the world's first 10-figure athlete in 2011.

How to Get Cable Customer Service on Your Side
Customer service calls getting you steamed? MainStreet explains what you can do to get the attention you deserve.
How to Get Cable Customer Service On Your Side | MainStreet

Shhh! Museum Secrets
American museums will greet some 850 million visitors this year; that's more than the turnout for major-league sporting events and theme parks combined, according to the American Association of Museums. They increasingly can't handle the crowds and are especially concerned about having to evacuate visitors quickly in the event of an emergency. Before you visit your next museum you should read this first.
10 Things Museums Won't Tell You (- SmartMoney.com

Buffy Won't Die
The Vampire Slayer has been off the air for five years, but she lives on-profitably-in comic books and compilations. Is a total resurrection next?
Buffy the Vampire Slayer is Back - Portfolio.com In Pictures: Buffy Products

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Early analyst calls (HD) (CMCSA) (CPB)

Douglas McIntyre — 2008-07-01T07:35:00+00:00

Filed under: Before the bell, Analyst upgrades and downgrades, Home Depot (HD), Campbell Soup (CPB), Comcast Cl'A' (CMCSA)

Deutsche Telekom (NYSE:DT) was upgraded to "overweight" from "neutral" at JP Morgan, according to MarketWatch. The financial news site also reports that France Telecom (NYSE:FTE) was upped to "buy" from "neutral" at Merrill Lynch.

Stifel Nicolaus & Co reiterated its "hold" rating on Campbell Soup (NYSE:CPB) ahead of the company annual meeting according to the AP.

Merrill Lynch resumed coverage of Home Depot (NYSE:HD) with an "underperform" rating, according to Briefing.com. The news service also reports that JP Morgan initiated Comcast (NASDAQ:CMCSA) with an "overweight" rating.

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

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Stocks to buy when markets crash -- lessons from Philadelphia Phillie Chris Coste

Jonathan Berr — 2008-06-26T17:00:00+00:00

Filed under: Products and services, Competitive strategy, Apple Inc (AAPL), General Electric (GE), Comcast Cl'A' (CMCSA), Research in Motion (RIMM), Stocks to Buy

The name of Chris Coste probably is not familiar to most investors. Heck, most fans of the Philadelphia Phillies never heard of the journeyman catcher until he made the team after languishing in the minors for more than a decade. But even investors who may not know the difference between a baseball and a football should get to know his story.

His road to the major leagues was a rocky one (both literally and metaphorically, like the movie), which is neatly described in his book The 33-Year-Old Rookie:How I Finally Made it to Big Leagues after 11 Years in the Minors. The North Dakota native never gave up on his major league dream even after he suffered setback after setback. He is not a a superstar and does not pretend to be one. Teams, though, need scrappy utility players such as Coste who can produce clutch hits to help them win games. The same is true for investors building a portfolio.

Too often, the superstar stocks like Google Inc. (NASDAQ: GOOG) or Apple Inc. (NASDAQ: AAPL) get all of the glory. But investors also have their reliable utility players that they can count on when the chips are down. Sometimes, like Coste, they have got some wear and tear on them, but they are still worth considering. Here are a few examples:

Research in Motion Ltd. (NASDAQ: RIMM) -- The maker of the BlackBerry reported disappointing earnings Wednesday, which sent the shares plunging. "Disappointing" may not be the right word. The results were actually outstanding, but just not as outstanding as Wall Street had hoped. Research in Motion may not be as cool as Apple, but it's unlikely that companies will dump their trusty BlackBerrys for iPhones without huge price cuts from Steve Jobs. That, of course, may happen.

Comcast Corp. (NASDAQ: CMCSA) -- Shares of the world's largest cable company have barely budged this year. Wall Street seems to think that the Philadelphia-based company will wither and die in the wake of competition from Verizon Communications Inc. (NYSE: VZ). In May, the company confirmed its 2008 outlook despite the economic downturn. It seems as if people may be buying fewer pay-per-view movies but are still signing up for digital phone service to save money.

Hain Celestial Group Inc. (NASDAQ: HAIN) -- Investors ditched the maker of natural foods and organic personal care products when it tightened its guidance for fiscal year 2008 to $1.38 to $1.40 versus $1.38 to $1.42 in May. The shares are down more than 23% this year. Yes, I know that consumer confidence is shaky and some wonder whether the good times will continue. But every time someone gets sickened from another tomato it encourages more people to buy organic and draws parents of young children like myself to products such as Hain's "Earth's Best" baby foods.

United Technologes Corp. (NYSE: UTX) -- This conglomerate often is overshadowed by its better-known and larger Connecticut neighbor General Electric Co. (NYSE: GE). That's a pity since over the past five years its shares have risen 74% while GE's have plunged more than 10%. United Technologies also recently approved a $4 billion buyback and reaffirmed its full year guidance in April. Shares are down about 18% this year, which seems a little harsh.

Of course, I can't guarantee that these stocks will be homeruns, but investing, like baseball, is about percentages. The proven performers may get into a slump, but they almost always get out of them too.

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Companies that vanished: Adelphia

Amey Stone — 2008-06-15T14:40:00+00:00

Filed under: Comcast Cl'A' (CMCSA), Time Warner Cable (TWC)

This post is part of a series on some of the most memorable companies that have disappeared.

I can't say I had much personal experience with Adelphia, which was the fifth largest cable company in the country when it filed for bankruptcy in 2002. But I did follow the case of the Rigas' family with interest. Dad and founder John and son Timothy Rigas ended up going to jail after treating this huge public company like their own personal candy store.

Founded in 1952 in Coudersport, Penn., Adelphia's name came from the Greek word for brother. The company went public in 1986 and grew by acquisition -- buying up smaller cable providers.

The company went bankrupt in 2002 after disclosing $2.3 billion in debt that was kept off the balance sheet. Federal prosecutors charged the Rigases and other officers of looting the company of an estimated $100 million, much of it spent on ridiculous excess -- like spending $6,000 to have Christmas trees flown in to New York.

Both Rigas men were found guilty and in 2007 started serving time in a Federal prison in Raleigh, North Carolina.

Time Warner Cable (NYSE: TWC) and Comcast (NASDAQ: CMCSA) bought up Adelphia's cable business in 2006, splitting up the customers by region.
Let us know in the comments what you miss about Adelphia. And be sure to check out other Companies That Have Vanished.

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Verizon gives up the phone business, at least for some

Douglas McIntyre — 2008-06-15T05:59:00+00:00

Filed under: Consumer experience, Competitive strategy, Comcast Cl'A' (CMCSA), Verizon Communications (VZ)

Verizon (NYSE: VZ) had decided that customers do not have to be landline clients to get the company's new fiber broadband and TV service. In other words, it is willing to walk away from its core business to move into the future.

According to the AP, "Surveys point to about one in seven U.S. households now lacking landlines." More people are using their cellphones instead of the traditional home phone connection.

The announcement points to the lengths to which Verizon will go to get customers away from cable companies like Comcast (NASDAQ: CMCSA). Cable does not require that people use its voice system, VoIP, to get cable television or broadband connections. If Verizon wants to match cable packages, it has to do the same.

To a large extent, the news is an indication that Verizon is not really a traditional "phone company" any more. The revenue from that part of its operations is shrinking. Its growth comes from cellular customers, home fiber subscribers, and DSL.

Alexander Graham Bell is turning in his grave.

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

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SeaChange International (SEAC): Price defines bullish 'pennant' consolidation

Larry Schutts — 2008-06-04T14:12:00+00:00

Filed under: Earnings reports, Walt Disney (DIS), Comcast Cl'A' (CMCSA), Verizon Communications (VZ), Technical Analysis, Stocks to Buy

SeaChange International (NASDAQ: SEAC) supplies digital server systems and software used by television and cable operators to automate the distribution and management of advertising, movies and other programming. Its ITV System allows operators to offer video on demand, pay-per-view, local ad insertions and other interactive services to subscribers, while its VODlink set-top box middleware allows cable subscribers to access a variety of interactive features. Customers include Comcast (NASDAQ: CMCSA), Verizon Communications (NYSE: VZ) and Walt Disney (NYSE: DIS).

The company surprised the Street last week, when it reported Q1 EPS of a penny and revenues of $45.3 million. Analysts had been looking for a loss of one cent and $43.6 million. The CEO noted that North American service provider spending for the firm's products continued to be strong, driving gross margins to 50% for the quarter. Management also guided FY09 revenues to about $197.9 million ($195.21M consensus) and said the company will be profitable in Q2 and FY09.

The SEAC price popped on the news and then moved into a bullish "pennant" pattern. Stocks frequently exit pennants moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the shares with four "strong buys," one "buy" and one "hold." Analysts see a 58% growth rate, through the next year. The SEAC Price to Book ratio (1.43), Price to Free Cash Flow ratio (23.88), Sales Growth rate (16.63% y/y) and EPS Growth rate (-0.12 to +0.01 y/y) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 75% of the outstanding shares. Over the past 52 weeks, the stock has traded between $4.95 and $9.23. A stop-loss of $6.90 looks good here.

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

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Before the bell: INTC, LEH, COP, GM, GS, BRK.a ...

Melly Alazraki — 2008-05-19T08:20:00+00:00

Filed under: Before the bell, Analyst reports, Analyst upgrades and downgrades, Deals, Google (GOOG), Apple Inc (AAPL), Intel (INTC), General Motors (GM), Berkshire Hathaway (BRK.A), Employees, Comcast Cl'A' (CMCSA), ConocoPhillips (COP), Goldman Sachs Group (GS), Morgan Stanley (MS), Time Warner Cable (TWC), Lehman Br Holdings (LEH)

Before the bell: Stock futures mixed as Microsoft resumes talks with Yahoo

The New York Times Bits blog says that according to several label executives, Apple Inc. (NASDAQ: AAPL) has approached some of the major music labels to try to expand the variety of ringtones and other musical features for the iPhone. The negotiations are very active right now and a final deal has not been set, but will likely be during the summer, but after June 9. Ringtones are quite a profitable market, and Apple wanting to have ringtones from major label makes total sense. Apple also wants to offer Answer Tones for the iPhone.

Intel Corp (NASDAQ: INTC) said Monday its venture capital arm has invested 50 million ringgit ($16 million) in Malaysia's Green Packet Berhad to help develop the country's first nationwide high-speed WiMAX network. Already earlier this month, Intel Capital along with Google Inc (NASDAQ: GOOG), Comcast Corp (NASDAQ: CMCSA), Time Warner Cable Inc (NYSE: TWC), and Bright House Networks agreed to invest $3.2 billion into a new company to speed up deployment of the next-generation mobile WiMAX network. But that's not all. Intel Capital also expects to close half a dozen deals in India this year, its regional head said on Monday.

Warren Buffett is apparently on the prowl for another acquisition. The Oracle of Omaha has begun his European tour Monday, looking for possible acquisitions for his Berkshire Hathaway Inc. (NYSE: BRK.A).

General Motors Corp. (NYSE: GM) shares are up over 1% after a tentative accord was reached May 16 with the United Auto Workers. American Axle & Manufacturing Holdings Inc. (NYSE: AXL) workers start voting Monday on a proposed contract that also calls for wage cuts and buyouts at five American Axle plants in New York and Michigan. This could end the 83-day strike that has slowed output at GM, the partsmaker's biggest customer.
State-run Saudi Arabian Oil Co., or Saudi Aramco, and ConocoPhillips (NYSE: COP) said Friday they have approved continued funding for the development of a refinery that will process 400,000 barrel-per-day of crude supplied by Saudi Aramco in Saudi Arabia's Red Sea city of Yanbu.

Citigroup slashed its earnings outlook for Goldman Sachs Group Inc (NYSE: GS), Morgan Stanley (NYSE: MS) and Lehman Brothers Holdings Inc (NYSE: LEH), which also Friday announced it is cutting 5%, or 1,400 people, of its staff. Citi said tough operating environment will be the culprit of lower earnings and the analyst expects significant asset sales.

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Media old fogies spend big on New Media

Tom Taulli — 2008-05-15T15:48:00+00:00

Filed under: CBS Corp 'B' (CBS), Comcast Cl'A' (CMCSA)

Over the past couple weeks, I've attended several conferences, such as Warrillow and Digital Hollywood. Of course, a big topic is New Media - and how it will somehow kill Old Media.

But, it seems that Old Media is still alive and well. In fact, this week we've seen some key media deals; that is, CBS' (NYSE: CBS) $1.8 billion deal for CNET Networks (NASDAQ: CNET) and Comcast's (NASDAQ: CMCSA) $175 million purchase of Plaxo.

Funny enough, yesterday I had breakfast with a big-wig from Comcast (from the ecommerce division). While he said that his revenue line was still modest - compared to the rest of the organization - it was still growing at a rapid clip.

He was also a big fan of email marketing and mentioned that experimentation was critical (and, with Plaxo, I think he'll need a lot of creativity to make the deal work). Yet, he also extolled the virtues of synergy ... between Old and New Media.

If anything, I think Old Media can bring some discipline to web properties. For example, CNET is a bloated organization and could use some aggressive cost cuts.

Oh, and Old Media still has a ton of money to throw around. So I suspect we'll see lots more dealmaking.

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.

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Newspaper wrap-up: General Electric to sell its appliance business

Laurie Pasternack — 2008-05-15T08:00:00+00:00

Filed under: Newspapers, Magazines, General Electric (GE), IAC/InterActiveCorp (IACI), Comcast Cl'A' (CMCSA), Merck and Co (MRK)

MAJOR PAPERS:

In a move to help turnaround its troubled business, General Electric Company (NYSE: GE) will sell or divest its appliance division, and could expect to receive between $5B and $8B for the unit, according to the Wall Street Journal. Potential buyers appliance makers BSH Bosch & Siemens Hausger of Germany and Haier Group of China, as well as private equity firms and Controladora Mabe, GE's partner in Mexico.
The Wall Street Journal also reported that Comcast Corporation (NASDAQ: CMCSA) will acquire Plaxo, a networking Web site, in an effort to increase its range of services. Terms of the deal were not disclosed.
To help improve its Ask.com search engine, the Wall Street Journal reported that IAC/InterActiveCorp (NASDAQ: IACI) will buy the Lexico Publishing Group, which owns Dictionary.com, Thesaurus.com and Reference.com.

WEB SITES:

Citing the New England Journal of Medicine, Bloomberg reported that migraine headache medicines, including Merck & Co Inc's (NYSE: MRK) Maxalt and GlaxoSmithKline Plc's (NYSE: GSK) Imitrex caused potentially fatal reactions in at least 11 people. The Journal said people using "triptans," an older class of migraine drugs, could develop serotonin syndrome, which may cause fever, shock, vomiting and rapid heartbeat.

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Analyst upgrades: Comcast, Time Warner Cable, YRC Worldwide, Syniverse

Eric Buscemi — 2008-05-07T12:12:00+00:00

Filed under: Analyst reports, Analyst upgrades and downgrades, Comcast Cl'A' (CMCSA), NYSE Euronext (NYX), YRC Worldwide (YRCW), Time Warner Cable (TWC)

MOST NOTEWORTHY: Comcast, Time Warner Cable, YRC Worldwide and Syniverse were today's noteworthy upgrades:

Soleil upgraded shares of Comcast (NASDAQ: CMCSA) and Time Warner Cable (NYSE: TWC) to Buy from Hold on improving fundamentals, as they believe the economic stimulus package should drive consumer demand in 2H08.
Stephens upgraded shares of YRC Worldwide (NASDAQ: YRCW) to Overweight from Underweight as they believe management is making meaningful changes.
Syniverse (NYSE: SVR) was raised to Overweight from Neutral at JP Morgan. The firm upgraded shares based on accelerating organic growth from consumer wireless data usage.

OTHER UPGRADES:

Deutsche Bank upgraded NYSE Euronext (NYSE: NYX) to Buy from Hold.
VASCO Data Security (NASDAQ: VDSI) was upgraded to Buy from Hold at Jefferies.
Goldman upgraded Lukoil (OTC: LUKOY) to Buy from Neutral.

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Newspaper wap-up: Tech firms to invest in wireless

Laurie Pasternack — 2008-05-07T08:05:00+00:00

Filed under: Newspapers, Magazines, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Intel (INTC), Sprint Nextel Corp (S), Comcast Cl'A' (CMCSA), Wachovia Corp (WB)

MAJOR PAPERS:

The Wall Street Journal reported that an alliance of cable, Internet and chip titans will announce plans to invest $3.2B in a company that will deliver Web access for laptops and cellphones using WiMax. The venture, valued at over $12B, includes Sprint Nextel Corporation (NYSE: S) and Clearwire Corporation (NASDAQ: CLWR) and will be backed by Comcast Corporation (NASDAQ: CMCSA), Time Warner Cable Inc (NYSE: TWC), Intel Corporation (NASDAQ: INTC) and Google Inc (NASDAQ: GOOG).
According to people familiar with the matter, Robert Verrone, one of the most zealous commercial real-estate lenders during the industry's boom, will leave Wachovia Corporation (NYSE: WB) within the next week, the Wall Street Journal reported.

WEB SITES:

Bloomberg reported that the Department of Justice is probing whether UBS AG (NYSE: UBS) helped clients evade American taxes. In an e-mailed statement, the firm said one senior bank employee was "briefly detained" by authorities.
Bloomberg also reported that Vallejo, California's city council voted to go into bankruptcy. Officials said that after talks with labor unions failed to win salary concessions from police and fire fighters, the city does not have enough money to pay its bills.
According to a rumor, TechCrunch reported that the Yahoo Inc (NASDAQ: YHOO) board of directors yesterday authorized Yahoo chairman Roy Bostock, rather than CEO Jerry Yang, to call Microsoft Corporation (NASDAQ: MSFT) CEO Steve Ballmer about re-starting negotiations.

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Before the bell: Futures lower ahead of data

Melly Alazraki — 2008-05-07T07:48:00+00:00

Filed under: Before the bell, Earnings reports, Deals, Google (GOOG), Cisco Systems (CSCO), Intel (INTC), Market matters, Walt Disney (DIS), Sprint Nextel Corp (S), Comcast Cl'A' (CMCSA), Economic data, Time Warner Cable (TWC), Oil, Housing

U.S. stock futures were lower early Wednesday as investors, worried about inflation, await data on pending home sales and labor costs. Earnings news in focus this morning comes from tech bellwether Cisco Systems, which gave a cautious outlook, and from Walt Disney, which reported good results.

Despite starting the day on a down note, as oil futures remained high, U.S. stocks closed higher on Tuesday, mostly due to some reassuring comments made on a Fannie Mae (NYSE: FNM) conference call. The Dow industrials ended up 51 points, or 0.40%, the S&P 500 rose 10 points, or 0.77%, and the Nasdaq Composite finished 19 points, or 0.78%, higher.

Today investors will finally have some data to sink in their teeth. First quarter labor productivity and unit costs is out at 8:30 a.m. EDT. Economists expect productivity to rise 1.5% in the first quarter, but for unit labor costs to climb as well.

Also on the docket today are March pending home sales data to be released at 10:00 a.m. and which probably fell another 1%.

After that, weekly crude inventories are scheduled to be reported. Crude futures have held up near $122 a barrel despite the dollar advancing against the yen and the euro.

There are many companies in focus this morning too. Cisco Systems (NASDAQ: CSCO) reported sales and earnings that exceeded analysts' expectations after the close Monday, but gave a sales guidance that was somewhat conservative.

Walt Disney (NYSE: DIS) also reported quarterly results after the market close Tuesday that also beat expectations. Interestingly, it seems that of all companies, the entertainment giant isn't getting hit by the economic slowdown as other companies do. Disney shares were up 2.3% in premarket trading.

And in deal news, Sprint Nextel (NYSE: S) and Clearwire (NASDAQ: CLWR) announced Wednesday the formation of a joint venture for the high-speed wireless network WiMax to create a $14.55 billion communications company in which Sprint will hold a 51% stake. The new company, to be named Clearwire, will receive a $3.2 billion investment from Intel Corp. (NASDAQ: INTC), Google Inc. (NASDAQ: GOOG), Comcast Corp. (NASDAQ: CMCSA), Time Warner Cable Inc. (NYSE: TWC) and Brighthouse Networks. Sprint shares are up over 7.7% in premarket trading, CLWR nearly 14.5%.

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Earnings highlights: Verizon, Comcast, CBS, DreamWorks, IAC, Kodak and others

Trey Thoelcke — 2008-05-04T13:10:00+00:00

Filed under: Earnings reports, Time Warner (TWX), Viacom (VIA), IAC/InterActiveCorp (IACI), CBS Corp 'B' (CBS), Colgate-Palmolive (CL), Comcast Cl'A' (CMCSA), Procter and Gamble (PG), Verizon Communications (VZ), Sun Microsystems (JAVA), Eastman Kodak (EK), Alcatel-LucentADS (ALU), RadioShack Corp (RSH)

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Alcatel-Lucent (NYSE: ALU) reported its fifth straight quarterly loss and lowered its outlook.
Anadigics Inc. (NASDAQ: ANAD) beat Q1 expectations and raised its Q2 guidance.
AuthenTec Inc. (NASDAQ: AUTH) Q1 revenues jumped 67% on new product offerings.
CBS Corp. (NYSE: CBS) posted better-than-expected Q1 results and raised its dividend.
Cognex Corp. (NASDAQ: CGNX) beat Q1 expectations and lifted its outlook.
Comcast Corp. (NASDAQ: CMCSA) posted soild Q1 results on high-speed internet/digital phone strength.
DreamWorks Animation Inc. (NYSE: DWA) earnings and revenues soared in the first quarter.
Eastman Kodak Co. (NYSE: EK) narrowed its Q1 loss but missed earnings estimates.
IAC/InterActivCorp (NASDAQ: IACI) Q1 profits fell but met analsts' expectations.
LSI Corp. (NYSE: LSI) beat Q1 expectations and raised its guidance for the next quarter.
NetSuite Inc. (NASDAQ: N) narrowed its loss on a surge in Q1 revenue.
Omniture Inc. (NASDAQ: OMTR) Q1 revenue jumped 136% on acquisitions.
RadioShack Corp. (NYSE: RSH) just beat low Q1 expectations on lower demand and narrower margins.
SAP AG (NYSE: SAP) earnings for the first quarter fell short of analysts' expectations.

Sohu.com Inc. (NASDAQ: SOHU) Q1 profits rose 156%, easily beating analysts' estimates.
Sun Microsystems Inc. (NASDAQ: JAVA) reported a Q3 loss and announced layoffs.
Teledyne Technologies Inc. (NYSE: TDY) posted its 25th consecutive quarterly earnings growth.
Verizon Communications Inc. (NYSE: VZ) posted solid Q1 profits in line with expectations.
Viacom Inc. (NYSE: VIA) posted solid Q1 profits despite weakness in movie business.
Virtual Radiologic Corp. (NASDAQ: VRAD) solid Q1 results failed to impress investors.

Also, Jim Cramer lauds Procter & Gamble Co. (NYSE: PG) for its success in these tough times and Colgate-Palmolive Co. (NYSE: CL) for bouncing back after taking a hit. And Time Warner Inc. (NYSE: TWX) investors may have been looking for more than they got in the quarterly report.

Upcoming results to watch for include Anadarko Petroleum (NYSE: APC), Cisco Systems (NASDAQ: CSCO), Fannie Mae (NYSE: FNM), Molson Coors (NYSE: TAP), Walt Disney Company (NYSE: DIS), and American International Group (NYSE: AIG).

Visit AOL Money & Finance for more earnings coverage.

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Comcast's earnings and cash flow impress, but wait for a pullback in share price

Steven Mallas — 2008-05-02T08:00:00+00:00

Filed under: Earnings reports, Comcast Cl'A' (CMCSA)

Cable operator Comcast (NASDAQ: CMCSA), a competitor of DirecTV (NYSE: DTV) and DISH Network (NASDAQ: DISH), issued its first-quarter earnings report on Thursday, and overall it was a satisfying set of data. Revenues grew 14% to $8.4 billion. Adjusted earnings per share increased 12% to $0.19 (on a reported basis, however, they did decline by 8%). One of my favorite things to look at is free cash flow -- Comcast scored here, as free cash jumped 59% to over $700 million.

I've never owned Comcast stock, and I'm on record as preferring content companies over distribution platforms. That being said, I do have to say that Comcast is a pretty good name in its industry, and that it seems to be doing quite well with its various offerings. Looking through the earnings release, I see that Comcast added close to half-a-million digital cable customers. The high-speed internet service and digital-phone service also seem to be performing (on an anecdotal level, it does feel like more and more people are taking up the triple-play suite that Comcast is constantly promoting). The programming segment, which includes channels such as E! and The Golf Channel, saw revenues increase 20% and it delivered a nice stream of cash flow. The company bought back almost 2% of its outstanding shares, and management plans to buy more under its repurchase initiative.

If you're looking to get in on the stock, I'd wait for a pullback after Thursday's 8% pop in share price. Like I say, I do like content companies, but Comcast might be an interesting long-term idea, since it will probably be the beneficiary of a desire on the part of media conglomerates such as Disney (NYSE: DIS), Time Warner (NYSE: TWX), and Viacom (NYSE: VIA) to engage more digital distribution via video-on-demand and to, in fact, experiment with day-and-date release (which I talked about in a recent piece). If this paradigm ever hits a critical mass, then Comcast should do well with it.

Disclosure: I own shares in Disney; positions can change at any time.

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Before the bell: Futures higher after Fed move and ahead of data, Exxon

Melly Alazraki — 2008-05-01T07:39:00+00:00

Filed under: Before the bell, Earnings reports, Forecasts, Ford Motor (F), General Motors (GM), Exxon Mobil (XOM), Market matters, Chevron Corp (CVX), Comcast Cl'A' (CMCSA), Sun Microsystems (JAVA), Economic data, Housing, Federal Reserve

The market hasn't seemed to have fully made up its mind yet regarding Wednesday's Federal Reserve announcement about its policy. While stocks shot up immediately after the announcement, markets finished the Wednesday in the red. Still, this morning stocks futures edged higher as investors not only continued to digest the news, but awaited several more economic reports. The Bank of England saying the worst of the credit crisis may be over, definitely helps boost sentiment this morning.

Indeed, stocks ended Wednesday's session lower despite the Dow topping 13,000 briefly after the Fed's statement. It seemed also investors were divided, some preferring the Fed to signal clearly a pause in rate cuts so the dollar would gain strength and halt the rise in commodity prices and hence inflationary pressures. Meanwhile others were more concerned about the economy and perhaps preferred either a more positive language regarding the economy or indications of further measure. Regardless, the Dow Jones Industrial Average fell 11.81 points, or 0.09%, and the S&P 500 index shed 5.35 points, or 0.38%. The Nasdaq dropped 13 points, or 0.55%.

On the economic calendar for Thursday are the March figures for personal income and spending, which includes a key inflation measure. The ISM index for manufacturing activity also is on tap as well as construction spending. The weekly jobless claims is due before the opening bell, but April jobs report is due tomorrow, and that will likely affect markets the most.

Naturally, the Fed rate cut had an impact on the dollar, which rose to the highest level in five weeks against the euro and climbed versus the yen as investors, who have already priced in the cut, took into account the possible pause in the easing monetary stance. Of course, the BoE signaling it believes the worst of the credit crunch may be over, helped strengthen the currency as well, as it said "risk appetite and confidence were likely to gradually return to the financial system." Also, the Bank projects total credit losses could eventually reach approximately $170 billion, lower than current market estimates.

Automakers will also report April car and truck sales throughout the day. Both Ford (NYSE: F) and GM (NYSE: GM) reported better-than-expected earning for the first quarter, with Ford even swinging to profit, but sales are still forecast to drop 6.7% and 8.5% respectively.

Earnings on tap today include oil giant Exxon Mobil (NYSE: XOM) which may very well set a new record for corporate profits, with analysts expecting earnings of $2.12 per share. Chevron (NYSE: CVX) will also report first quarter results today. Sun Microsystems (NASDAQ: JAVA) is expected to report earnings of 18 cents a share and Comcast (NASDAQ: CMCSA) earnings of 19 cents a share.

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Market highlights for next week: Two-day FOMC meeting

Eric Buscemi — 2008-04-25T16:37:00+00:00

Filed under: Earnings reports, Forecasts, Conventions and conferences, Annual meetings, Starbucks (SBUX), Exxon Mobil (XOM), Comcast Cl'A' (CMCSA), Verizon Communications (VZ), BP p.l.c. ADS (BP), Merck and Co (MRK), U.S. Steel (X), Genentech Inc (DNA), Tyson Foods'A' (TSN), Akamai Technologies (AKAM), Kraft Foods'A' (KFT)

Monday, April 28

PDUFA date for Genentech, Inc. (NYSE: DNA) and Roche Holding Ltd. (OTC: RHHBY)'s supplemental Biologics License Application for Herceptin for label expansion to include AC followed by docetaxel in treatment of adjuvant HER2+ breast cancer.
PDUFA date for Shire plc (NASDAQ: SHPGY) and New River Pharma's supplemental New Drug Application for Vyvanse (NRP-104) treatment of Attention Deficit Hyperactivity Disordre, or ADHD, in adult patients 18-55 years old; the drug is already approved for pediatric ADHD ages 6-12.
Verizon Communications Inc. (NYSE: VZ) to report Q earnings; conference call at 8:30am.
Tyson Foods, Inc. (NYSE: TSN) to report Q2 earnings; conference call at 9:00am.

Tuesday, April 29

Two-day FOMC meeting beginning at 8:30am.
PDUFA date for Merck & Co., Inc. (NYSE: MRK)'s New Drug Application for Cordaptive (MK-0524A) adjunctive therapy to diet for treating elevated LDL Cholesterol, low HDL Cholesterol and elevated triglycerides levels.
PDUFA date for Sucampo Pharmaceuticals, Inc. (NASDAQ: SCMP)'s supplemental New Drug Application for dose of 8mg treatment of Irritable Bowel Syndrome with Constipation; already approved for Chronic Idiopathic Constipation at 24ug dosage.
BP plc (NYSE: BP) to report Q1 earnings; conference call at 10:15am.
United States Steel Company (NYSE: X) to report Q1 earnings; conference call at 2:00pm.

Wednesday, April 30

Second day of two-day FOMC meeting.
Kraft Foods, Inc. (NYSE: KFT) to report Q1 earnings; conference call at 8:00am.
Akamai Technologies, Inc. (NASDAQ: AKAM) to report Q1 earnings; conference call at 4:30pm.
Starbucks Corporation (NASDAQ: SBUX) to report Q2 earnings; conference call at 5:00pm.

Thursday, May 1

PDUFA date for Discovery Laboratories, Inc. (NASDAQ: DSCO). On Nov 16, 2007, FDA established May 1, 2008 as its target date to complete its review of Surfaxin New Drug Application for prevention of Respiratory Distress Syndrome in premature infants.
Comcast Corporation (NASDAQ: CMCSA) to report Q1 earnings; conference call at 8:30am.
Exxon Mobil Corporation (NYSE: XOM) to report Q1 earnings; conference call at 11:00am.

Friday, May 2

SEC Advisory Committee to meet at 9:00am on Improvements to Financial Reporting.
PDUFA Date for The Medicines Company (NASDAQ: MDCO) New Drug Application, NDA for Cleviprex for treatment of Hypertension.
PDUFA Date for Akorn, Inc. (NASDAQ: AKRX) for Akten Ophthalmic Gel, an ocular anesthesia.

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AT&T (T) and Verizon (VZ): the fastest internet anywhere

Douglas McIntyre — 2008-04-04T03:51:00+00:00

Filed under: Forecasts, Consumer experience, Competitive strategy, Intel (INTC), AT and T (T), Sprint Nextel Corp (S), Comcast Cl'A' (CMCSA)

AT&T (NYSE:T) and Verizon Wireless will use the new spectrum they recently bought at FCC auction to create ultra-fast wireless internet called 4G by some experts.

According to The Wall Street Journal, "the so-called fourth-generation networks won't become available for at least three years." But, when it is, it could change the face of cellular service, cable service, and proposed WiMax deployments. The new wireless network may deliver broadband speeds at levels close to that which are available for consumers from companies like Comcast (NASDAQ:CMCSA). It may also ruin the plans of Sprint (NYSE:S) to build a national WiMax network to deliver fast wireless internet to devices including handsets and PCs.

It is rare that new technology offers such a sea change. At this point wireless cellular is still slow for data downloads and video. A faster service could un-tether handsets and PCs to be used almost anywhere with a large population. WiFi using cable signals could become obsolete as 4G wireless eliminates the need for being close to a WiFi base station to use broadband.

The change in wireless speeds could also launch a new generation of mini-PCs that is being pushed by Intel (NASDAQ: INTC). These light-weight devices are meant to do most of what a computer will but have a fraction of the weight and use low battery power.

Being in the cable or WiMax business is about to get tougher.

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

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