Under The Radar News - Wednesday

iPhones out'smart' Windows phones. Apple's (AAPL) iPhones outsold all Windows Mobile (MSFT) phones in Q4 with 28% of the U.S. converged device market, vs. WM's 21%. RIM (RIMM) lead the way with 41%. Globally, Nokia (NOK) owns 52.9% of the market, RIMM has 11.4% and AAPL has 6.5%.

Macy's may streamline operations. Sources say Macy's (M) is considering consolidating its seven regional operations into three, a move that could save it over $80M and affect 150-200 workers per regional office.

BHP/Rio: what the analysts say. Analysts say Rio Tinto's (RTP) reaction to BHP Billiton's (BHP) modest bid raise, before consulting with it or Chinalco (ACH), is likely to be hostile.

Sony leapfrogs LCD TV market. Sony (SNE) jumped from fourth to first place in U.S. LCD TV sales in Q4, largely due to its pushing big screens, and high-value, high-margin products.

30% drop - ouch. Jim Shepherd, editor of The Shepherd Investment Strategist newsletter, says he expects a 2008 recession will drop markets by 30%. Shepherd says investors should move to bonds, and consider short-term strategies to ride out the downturn.

Buffett rebuffs monolines. Berkshire Hathaway's (BRK.A) Warren Buffett says he has no plans to bail out Ambac (ABK) or MBIA (MBI).

Google cedes C block to Verizon. Google (GOOG) appears to have bowed out of the bidding for FCC spectrum, with Verizon (VZ) emerging as the most likely winner of the coveted C block. The developments are likely to please Google, which apparently only bid in order to ensure a minimum-required bid would open the C band to all wireless devices.

Analyzing mobile surfers. A British firm has launched an analytics service for the mobile web that could challenge offerings from Google (GOOG) and Yahoo (YHOO).

Microsoft shareholders come to Yahoo's aid. Microsoft shareholders have sold off the stock, effectively driving MSFT's $46.1B bid for Yahoo (YHOO) down to just $41B. If the trend continues, they may scuttle the deal -- which may be exactly what they want.

Airlines flirt. While there has been no confirmation of a potential merger between Delta (DAL) and Northwest Airlines (NWA), the two put on a show which suggests they are exploring a closer relationship.

Kuwaiti bank Investment Dar said it may invest up to $800M in a U.S. or European telecom. Sprint Nextel (S) is a likely candidate.

Feel their pain. Single-digit millionaires are the most likely to reduce their spending in the face of economic weakness, a trend that could impact luxury goods retailers and manufacturers.

High-speed, higher price. UK regulators are considering allowing BT Group (BT) to significantly raise the prices it charges rivals to access its broadband network.

Anheuser influence fizzles. Anheuser-Busch (BUD) has seen a significant drop in the number of distributors that sell its beer exclusively, a trend that could see rivals such as Molson (TAP) gain market share.

Citi, HSBC may dump UK subprime units. Sources say Citigroup (C) would like to sell CitiFinancial, which lends to British consumers with poor credit. HSBC (HBC) may sell HFC, a provider of subprime loans and insurance in Britain.

Buy or be bought. Novell (NOVL) says it wants to spend its $1.86B in cash to buy companies that specialize in Linux, data-center management software, and security software. Others say it may be an acquisition target.

Time Warner watch. Time Warner (TWX) may announce a plan to sell or spin off Time Warner Cable (TWC). It is also likely to tip its hat as to an AOL breakup over the coming year.

HIV-drug glitch. New AIDS drugs from Pfizer (PFE) and Schering-Plough (SGP) may stop working in 8-10% of patients due to a faulty test of patient efficacy.

Macrovision undervalued. Shares of copy-protection software developer Macrovision (MVSN) are cheap at 5.7x 2009 Ebitda. Investors are underestimating the impact of its scheduled takeover of Gemstar-TV guide (GMST), a move which will make its software the iTunes of TV sets.

Revver can't buy a buy. YouTube (GOOG) competitor Revver has unsuccessfully tried to sell itself for a paltry $300,000 to $500,000 (plus $1M in debt). The company's $12.7M venture funders can't be too happy.

Rumors: MasterCard (MA) is down sharply on rumors the ECB and EU will implement major cross-border charges which would crush profit margins. Merck (MRK) is down on negative chatter regarding Gardasil.

Comments

[Tom B:]

"Microsoft shareholders come to Yahoo's aid. Microsoft shareholders have sold off the stock,"

The stock price of potential acquirers in M&A's usually goes down. The fact that MSFT has slipped only a bit in a bear market, if anything, implies that MSFT stockholders are delusional and fail to comprehend how negatively a Yahoo deal will erode shareholder value, especially over the long term.

2008 Feb 06 01:29 PM