I am long both T and MSFT (and VZ also). However, I am confused about your arguments. Debt is not necessarily a bad thing if liquidity is properly managed and their businesses are throwing off tons of cash (so no liquidity issue). It is actually comforting to see that they did not have to issue new debt to finance their high dividend while investing in building out their networks. This is a plus. Not a minus. Secondly, their (and VZ also) utility-like characteristics lie in their owning the infrastructure to mobile internet. Yes, they will lose revenues and fees from international calls, text messaging etc...but they make them back on more people using data hence their top line is still growing. And the trend of data usage looks to keep on rising. Not sure how you will "subsidize" that. Unless someone comes along to provide free national internet access. That's not to say that MSFT is not cheap or cheaper. However, T and VZ are still very good investment options as well. Steady slow growth is not a bad thing. You get the benefit of slow and stable appreciation over long period of time and a healthy dividend in addition. What's there not to like?
Stephen Elop has until early to mid 2013 for Nokia's (NOK) fortunes to reverse, otherwise his job will be at risk, analysts and investors say. However, they're not holding out much hope that Nokia will have a particularly good Christmas, especially with Apple and Samsung dominating. [View news story]
Nothing in the article said someone will come along and do anything to Elop. Just people reiterating the same thing over and over again.
Disclosure. I am long NOK (and MSFT) and think Elop is doing a great job.
Attorney General Holder puts a $5B-plus target on how much S&P (MHP -6.5%) defrauded investors through faulty ratings on MBS, and says the DOJ is going after all of it. "S&P misled investors ... causing them to lose billions of dollars." S&P alone? (earlier: Even $3B seems far too high) [View news story]
This is ridiculous. The rating agencies did not ask people to rely on the ratings for the investment decisions. Many people (and funds) put in place the rating requirements as an additional way to tell people that their investment choices are supported. How is this different than I like a stock and then C or BAC analysts came out with upgrade and then I purchase but it turned sour. I can't go and sue them for that. Hind sight is 20/20. If the MBS is so "obviously" terrible why are we not suing all the analysts, managers and everyone person, including public pension fund managers, who bought them? It's obvious and they did not look. Just as guilty as the rating agencies. The exception is that they rating agencies just express their opinions, just like many of us here on SA. They do not have the burden of investing (and due diligence as a result) of a portfolio manager. The information that is provided to the rating agencies are also available to all money managers who bought them. Unless sometime tells me that rating agencies have access to additional information that investors do not have.
The Treasury violated its rules on executive pay as it went 18 for 18 in approving raises for AIG and GM execs over the past few years, according to SIGTARP. Treasury was warned of this a year ago, but disputes the report's findings. [View news story]
@Ted Bear: any data regarding the comments on BAC or just a random negative rant and assumption? I cannot find any info online regarding why they did it. However, the way I understand it, many banks set up subsidiaries in these offshore havens (Ireland, Luxembourg, Cayman etc...) because of the less regulated nature (and also less sophisticated regulation) of these jurisdictions which allow them to take more risks as well. So by moving it to London, it is actually a more conservative move and shine more light on these trades. So more transparent. Not obscuring like you suggest.
More on Nokia: Lumia shipments totaled 4.4M, up from Q3's 2.9M and generally above forecasts. Stephen Elop says Lumia 920 sales were supply-constrained. Total smart devices sales were 6.6M, -64% Y/Y (withering Symbian base), but thanks to a higher Lumia mix, ASP jumped to €182 from Q3's €155. Mobile phone units were 79.6M, -15% Y/Y, ASP roughly even Q/Q at €31. 9.3M Asha phones sold, up from 6.5M in Q3. NOK +17.6%. (PR) [View news story]
I guess Elop saw your article about don't expecting any surprise and he says "surprise!"
Microsoft May Have Just Hurt Lumia 900 Sales [View article]
Wait so all android devices are running on the latest version? Will the iPhone 3GS run on, and get all the features of, iOS6? Is the 3GS not selling at all because it does not have Siri? Aren't Aapl and all the other android manufacturers screwed since they do not have the latest OS version because only the latest version sells? Will the 4S stop selling because 5 is coming out in a few months? Will NOK stop making new phones when when WP8 comes out because their products stop at the 900?
Attorney General Holder puts a $5B-plus target on how much S&P (MHP -6.5%) defrauded investors through faulty ratings on MBS, and says the DOJ is going after all of it. "S&P misled investors ... causing them to lose billions of dollars." S&P alone? (earlier: Even $3B seems far too high) [View news story]
But that is not what they are selling - their approval that you can invest based on their ratings. They are just selling a personal assessment. What you choose to do with it is your own decision. When people buy a house, they can bring along someone to assess the value of the home. But there is no guarantee that the home is worth that much. Stop condoning laziness and irresponsibility. It's ok to buy research to support your own work and personal research. But you still should do your own homework and have the character to stand behind your own decision. Everyone makes mistakes.
Nokia: Positive News Followed By What? [View article]
Not sure I understand you. You want to know why they do not have their own OS? Like what they used to have with Symbian and was planning with Meego? Their decision to abandon it was because they do not have the resources to create a competitive platform to compete with iOS, Android and WP. They could not catch up with the competition and so they have to let it go and consolidate their resources around their strength as a premiere hardware company. They strategically allied with WP (and get paid for supporting the new ecosystem). Or if you are referring to creating apps for different ecosystem - they sort of doing that with the HERE app in iOS, the stripped down version of Nokia Maps.
You do realize that the "recession" that we are in started in 2008 right? Why select this period to point out the slow growth? Considering the severity of the recession, the consistently high unemployment rate and the additional recall issues that they have, the (slow) growth seems like a pretty good feat. Just a thought. Also, it's silly to say that they loss $2bn by spending it on interest payment. They borrowed money and deploy it elsewhere (presumably investments, acquisitions and R&D. You should look at the returns of their cash deployment vs. the interest RATE (not amount) that they are paying. Look at how much the US gov't is paying in interest each year! Are they wasting all that money because that can be used to give everyone a free house and healthcare? In the one hand you complain that they do not invest in their business. On the other hand you complain that they borrow money (because they are wasting money on servicing debt) to invest in their business. Please make up your mind. Confused enough to decide to leave a comment.
Wells Fargo (WFC) joins the list of banks adding fees where they can to make up for fee reductions mandated by Dodd-Frank. The bank plans to implement a $5/month fee for those checking accounts not maintaining a $1,500 balance or otherwise behaving as the bank wishes them to. [View news story]
But because it is not BAC, they will get a free pass. Only fees from BAC are attacked and derided.
Add Brian White to the growing list of Apple (AAPL -1.3%) fans who think a bigger iPhone is needed. "We are being told that the minimum size needed by Apple is a 4.5-inch display on the iPhone; however, a 5-inch to 5.5-inch would be optimal," writes the Topeka analyst after talking with Chinese/Taiwanese suppliers. Also: Cowen sees more room for iPad growth in the U.S., citing encouraging survey data, and BTIG's Walter Piecyk, who recently upgraded Apple, thinks a new capital-allocation plan will be timed to coincide with a downbeat FQ2 report (results are due on April 23). [View news story]
Mr. White needs a reason to explain why AAPL did not hit the $1,111 price target that he predicted.
Attorney General Holder puts a $5B-plus target on how much S&P (MHP -6.5%) defrauded investors through faulty ratings on MBS, and says the DOJ is going after all of it. "S&P misled investors ... causing them to lose billions of dollars." S&P alone? (earlier: Even $3B seems far too high) [View news story]
But that's not the product that they sell. The way the language of the ratings are worded, it is nothing more than an opinion. People choose to take those ratings and make it more than an opinion/assessment. Why is that their fault? Plenty of regulated (and respectable) investment houses issue upgraded to AAPL at $750 and downgraded to NFLX at $60. All worthy of having their heads cut off by the same standards.
Nokia (NOK) reverses course sharply after being higher earlier and is now -5.2% following its Q4 release. Despite net earnings of €202M - the company's first profit in six straight quarters - sales of €8.04B missed expectations of €8.12B and the company suspended its dividend. [View news story]
Actually, not sure if that is legal tho. Bordering on insider-trading/manipu... no? I am sure someone would sue if that is the case. Just to employ some lawyers.
Avoid AT&T's 2012 Dividend [View article]
Stephen Elop has until early to mid 2013 for Nokia's (NOK) fortunes to reverse, otherwise his job will be at risk, analysts and investors say. However, they're not holding out much hope that Nokia will have a particularly good Christmas, especially with Apple and Samsung dominating. [View news story]
Disclosure. I am long NOK (and MSFT) and think Elop is doing a great job.
Intel's Q3 Revenue Miss: A Fire Sale For Long-Term Investors [View article]
Attorney General Holder puts a $5B-plus target on how much S&P (MHP -6.5%) defrauded investors through faulty ratings on MBS, and says the DOJ is going after all of it. "S&P misled investors ... causing them to lose billions of dollars." S&P alone? (earlier: Even $3B seems far too high) [View news story]
Everyone is at fault for greed and laziness.
Nokia: Positive News Followed By What? [View article]
The Treasury violated its rules on executive pay as it went 18 for 18 in approving raises for AIG and GM execs over the past few years, according to SIGTARP. Treasury was warned of this a year ago, but disputes the report's findings. [View news story]
More on Nokia: Lumia shipments totaled 4.4M, up from Q3's 2.9M and generally above forecasts. Stephen Elop says Lumia 920 sales were supply-constrained. Total smart devices sales were 6.6M, -64% Y/Y (withering Symbian base), but thanks to a higher Lumia mix, ASP jumped to €182 from Q3's €155. Mobile phone units were 79.6M, -15% Y/Y, ASP roughly even Q/Q at €31. 9.3M Asha phones sold, up from 6.5M in Q3. NOK +17.6%. (PR) [View news story]
Microsoft May Have Just Hurt Lumia 900 Sales [View article]
Attorney General Holder puts a $5B-plus target on how much S&P (MHP -6.5%) defrauded investors through faulty ratings on MBS, and says the DOJ is going after all of it. "S&P misled investors ... causing them to lose billions of dollars." S&P alone? (earlier: Even $3B seems far too high) [View news story]
Nokia: Positive News Followed By What? [View article]
Short Johnson & Johnson [View article]
Wells Fargo (WFC) joins the list of banks adding fees where they can to make up for fee reductions mandated by Dodd-Frank. The bank plans to implement a $5/month fee for those checking accounts not maintaining a $1,500 balance or otherwise behaving as the bank wishes them to. [View news story]
Add Brian White to the growing list of Apple (AAPL -1.3%) fans who think a bigger iPhone is needed. "We are being told that the minimum size needed by Apple is a 4.5-inch display on the iPhone; however, a 5-inch to 5.5-inch would be optimal," writes the Topeka analyst after talking with Chinese/Taiwanese suppliers. Also: Cowen sees more room for iPad growth in the U.S., citing encouraging survey data, and BTIG's Walter Piecyk, who recently upgraded Apple, thinks a new capital-allocation plan will be timed to coincide with a downbeat FQ2 report (results are due on April 23). [View news story]
Attorney General Holder puts a $5B-plus target on how much S&P (MHP -6.5%) defrauded investors through faulty ratings on MBS, and says the DOJ is going after all of it. "S&P misled investors ... causing them to lose billions of dollars." S&P alone? (earlier: Even $3B seems far too high) [View news story]
Nokia (NOK) reverses course sharply after being higher earlier and is now -5.2% following its Q4 release. Despite net earnings of €202M - the company's first profit in six straight quarters - sales of €8.04B missed expectations of €8.12B and the company suspended its dividend. [View news story]