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  • AT&T's Comfy Status Quo Threatened By Google's Entry Into Wireless [View article]
    "...they [Google] don't even make any real products, there [sic] web search engine, that in reality is worthless!"

    Bruce -- There are some lame posts here, but yours is in a class of 1!

    First, you are quite uninformed, as T and VZ also "don't even make any real products"...they offer consumers a telecom service. Thus the discussion is not about making things, it is about having the monies, moxie, and name to be a successful competitor in the wireless space.

    Second, Google is extremely successful at offering services. Google generates more search traffic than all other search engines COMBINED! Google also offers ad placement services that generates 20% of its revenues.

    Third, as you have expressed such very strongly negative views of Google, including it being "worthless", here are some facts: Google isn't perfect, but has performed extremely well for shareholders--please include the VZ and T comparables in your reply...

    Annual Net Income Growth Rate:
    10yrs = 61.7%
    5yrs = 25%;
    1 yr = 20.3%

    Annual EPS Growth Rate:
    10yrs = 57.3%
    5yrs = 23.4%
    1 yr = 18%

    If only T and VZ shareholders could DREAM of those growth rates!

    Here's a forward look to these stocks, S&P Capital IQ's combined report indicates analyst expect 3-year EPS growth rates of:
    GOOGL = 17%
    T = 5%
    VZ = 7%

    As for their forward p/e ratios, consider these:
    GOOGL = 15.9
    T = 13.3
    VZ = 12.1

    I don't own GOOGL, but it's growth is looking very inexpensive.

    Though Google has the money, likely has the smarts, and clearly has the name, I also indicated success is not a given. Google will face challenges, and they will not take major telecom share by storm...this is a developing story.

    p.s. Start brain before starting mouth
    Jan 25, 2015. 08:15 AM | Likes Like |Link to Comment
  • Kinder Morgan Inc.'s Gutsy Move Into The Bakken [View article]
    It may be a tad early to have decided who got the best of the deal. Though these assets were valued at far less in the Hamm divorce proceedings, we don't know how, or when, those assets were evaluated.
    Jan 24, 2015. 09:24 PM | 2 Likes Like |Link to Comment
  • Kinder Morgan Inc.'s Gutsy Move Into The Bakken [View article]
    Casey -- IMO, you are correct, and your last paragraph sums up the most probable and most notable result of the present decline in oil's price.

    Jan 24, 2015. 05:57 PM | 3 Likes Like |Link to Comment
  • Enbridge Vs. Transcanada [View article]
    "The huge risk, I concede that is a relative term, is that of theoretically losing up to 100% of one's investment due to litigation, which if too successful for the defendant corporations bod to swallow, would cause them to seek bankruptcy protection."

    Duck -- You continue to abuse the language. It is thus useless to interact. Yours are the last words. Good luck.

    Jan 24, 2015. 01:21 PM | Likes Like |Link to Comment
  • AT&T's Comfy Status Quo Threatened By Google's Entry Into Wireless [View article]
    Followup to my first comment:

    Friday, the WSJ published 2 articles relating to Google's interest in offering cellphone services in competition with T and VZ (and the smaller players). Comments in [brackets] are my own:

    "Google's Wireless Effort is Led by a Geek's Geek"
    Craig Barrett (not the former Intel one) is Google's senior VP of Access and Energy. He is has 3 electrical engineering degrees and a Ph.D. He holds 34 patents and is acknowledged as a successful technology wizard.

    Google's (likely) entry into direct competition with the established wireless carriers is Barrett's idea. He is responsible for many of Google's efforts to extend Internet access (even if at cost break-even), and thus feed revenue from Google search to increase Google's bottom line. Barrett met with the FCC to request increased radio spectrum be allocated to the Internet, and that avenue may play a role in Google's ultimate cellphone plans. [A less expensive alternative compared to the recent spectrum auctions in which T and VZ are reputed to have bid $30 billion and more.]

    The key to the Google cellphone service is to rely as much as possible on local Wi-Fi networks, and as little as possible on the services of Sprint and T-Mobile. [This addresses the concerns of those who have questioned Google's business plan.]

    When implemented, the cellphone service will be managed by the Android team.

    Nonetheless, the science to make this work effectively is complex, and difficult to implement [thus Google dominance is not a sure thing, and certainly not right away.]

    "Google's Call Can't Be Ignored by America's Wireless Carriers"
    The U.S. wireless business is already under siege by intensifying competition--now Google shows up, and is reportedly preparing to sell wireless service directly to consumers via deals with Sprint and T-Mobile at the worst possible time.

    These agreements would give Google a way to prod the wireless industry into offering higher data speeds at lower prices. [Quarterly earnings reports indicate declining year-over-year fundamentals for T and VZ, which if further hastened by Google's presence, could threaten the earnings and dividends of T and VZ.]

    Google, earns most of its revenue from on-line advertising, thus it benefits from anything that eases Internet access. By utilizing these agreements, Google not need to invest in billions of dollars in infrastructure, as others have. [Using spare capacity from Sprint and T-Mobile is mutually advantageous, as those carriers receive revenue not otherwise available.]

    Some have asked why Sprint and T-Mobile would enter into agreements that effectively undercut them in the long-run?

    The answer is 'the classic prisoners dilemma'...they are each pushed toward the deal out of fear the other would move first if they refuse...they reason, if Google is coming anyway, better we get something out of our spare capacity.

    Final thought: Investors who single-source their monitoring (such as to SA) are likely limited to an incomplete picture of their companies and the challenges they face. Unless they rely on others to post the information for them (which is not a reliable plan).


    Jan 24, 2015. 01:16 PM | 1 Like Like |Link to Comment
  • AT&T's Comfy Status Quo Threatened By Google's Entry Into Wireless [View article]
    ...and exactly why would you ask if I'm related to one person in a population of over 300 million in the country?
    Jan 24, 2015. 12:02 PM | Likes Like |Link to Comment
  • Illustrating Why McDonald's Is Undervalued At Its Current Share Price [View article]
    Albert -- I certainly agree MCD is guilty of sleeping (or more likely focusing on international while taking the U.S. for granted) while competitors in fast casual have eaten their lunch (and dinner). If your experience with drive-thru were even close to typical, MCD's problems are more serious than I realized.

    BTW, have you eaten at Sonic, and what are your impressions?
    Jan 24, 2015. 07:17 AM | Likes Like |Link to Comment
  • AT&T's Comfy Status Quo Threatened By Google's Entry Into Wireless [View article]
    Note to self: It's OK to disagree, and not necessary or appropriate to always gush positive in your comments. Be wary of those who have an emotional attachment to the companies they own--we are not bound by blood oath to defend the companies we own. Call 'em as you are see 'em, but be logical and honest. Start brain before mouth. Don't be reluctant to express an opinion contrary to the popular assumptions and the dogma of the most popular strategies. It's OK that no one clicks 'like'.

    Recognize the cheerleading article and comment, and the ridicule by SDIs who can't handle contrary opinions or are unable to articulate logical thoughts. There are also trolls who sow conflict for the fun of it. It is particularly ironic some SDIs accuse others of either attempting to talk down a stock's price, or of shorting it*.

    * When considered logically, the probability any SA article or comment influencing the share price of a large cap stock trading 25 to 50 million shares daily is extremely remote and a waste of time and effort. First, SDIs occasionally trade mostly 100 to 500 shares of large caps; second, though SA is popular with its members, few of the entire SDI population will read the strongly pro or con article or comment; third, of those reading it, some will agree, some disagree, and some will wait for more information--one group's actions will be cancelled by the other.
    Jan 24, 2015. 06:54 AM | 3 Likes Like |Link to Comment
  • General Electric Finishes 2014 With A Bang [View article]
    nicthu -- Just rollover my handle to see a thumbnail of my profile, or click to see it in entirety.
    Jan 24, 2015. 05:13 AM | Likes Like |Link to Comment
  • Southern Company Retains Appeal For Long-Term Investors [View article]
    Long SO.

    IMO, the Kemper plant has likely become something of a gooney bird. Also, due to the cost over-runs, it may be many years (if ever) before it exceeds break-even and generates a profit to SO. This plant will convert coal to gas to drive a turbine producing electricity. Most likely SO agreed to the project for political reasons before the present administration declared war on coal...thus SO is unlikely to win the recognition it once hoped for because no one wants to discuss coal.

    SO's 4 operating companies provide electricity to 4 growing southern states. Its shares are up almost 12% in 3-months, and are presently over-valued, as pcikin has suggested.

    Jan 23, 2015. 06:09 PM | 4 Likes Like |Link to Comment
  • Could Microsoft's New HoloLens Become The iPhone Of Virtual Reality? [View article]
    It would be a very positive development for MSFT to be seen as a technology leader...which will take more than this VR product...but hopefully, MSFT will keep 'em come'in.
    Jan 23, 2015. 05:49 PM | 2 Likes Like |Link to Comment
  • General Electric Finishes 2014 With A Bang [View article]
    AA -- Thanks for the article.

    I don't see these results as indicating a GE turn-around is at hand; but OTOH, it is a sign of improvement. Nothing essential has changed. GE will do very well when the world economy does. Because the market is forward-looking, I expect GE shares to show positive signs ahead of reported statistics demonstrating it.

    Jan 23, 2015. 05:41 PM | 2 Likes Like |Link to Comment
  • The ECB Just Kicked Ronald In The McNuggets [View article]
    I'm far more interested in the content than the title.
    I agree MCD's task was made more difficult. Here's a thanks for writing the article.

    Jan 23, 2015. 05:37 PM | 2 Likes Like |Link to Comment
  • Illustrating Why McDonald's Is Undervalued At Its Current Share Price [View article]
    Thanks Alex for the reply.
    Jan 23, 2015. 05:33 PM | Likes Like |Link to Comment
  • AT&T's Comfy Status Quo Threatened By Google's Entry Into Wireless [View article]
    AR -- As you doubtless know, there is a long history of those who see a bloated high-profit business, and grab a large chunk of it by under-cutting its price and/or introducing a new technology.

    It appears Google has the monies, moxie, and name to become a serious competitor to T and VZ, and any customers they stole from T and VZ reduce their revenues (and potentially dividends).

    I hasten to add quality of service is important. If Sprint and T-Mobile service is today as bad as some claim, that could be a problem.

    There was also an item on CNBC suggesting Google could offer MVNO wireless service as a "white label" wireless service (i.e., no mention of Sprint or T-Mobile) at cost or a small loss, while making additional profit from their other products. In that event, it's potentially a win-win-win-lose (the losers being T and VZ).

    Note also these companion news items, starting with this on the 17th:
    Google leading talks to buy Softcard (so as to better compete with Apple's Wallet). Also see this fresh video report from the WSJ

    As a T and VZ long, I don't believe any of this will happen in the next 90 days, or the next year. But knowing the market prices on a look-ahead basis, I am monitoring this closely. In a 2% world, there is no such animal as a risk-free 5% or 5.5% yielding equity. Wide moats are indeed nice, but not one should believe their moat is impregnable.

    Jan 23, 2015. 05:32 PM | 5 Likes Like |Link to Comment