5 Earnings Reports to Set the Stage [View article]
"You have to understand that the social media tools actually have large economic moats and large barriers to entry."
That's largely untrue for many social media tools (daily deals space). Some graduate student or even a dropout in his parent's basement could be developing the next social media phenomenon right now. Even if your statement was true, Google has the means to drain the moat and scale the barrier.
"Google+ has to convince everyone to come there. Why would I want to leave Facebook if all my friends are there?"
Halliburton (HAL -1.1%) acknowledges 18 Oklahoma water wells have been contaminated by chemicals in an area where the company performed government contract work removing and burning spent missile fuel. It's currently working to correct the problem. [View news story]
They'll need a government subsidy to pay for the cleanup.
"Iceland's luck was that it did not qualify for a bailout," says Asgeir Jonsson, describing a country that - contrary to Ireland - refused to put the debt of its banks on the backs of citizens. A quick collapse ensued, but now the country is back borrowing on international markets (at 3%), returned to growth, and with a solid banking system. [View news story]
Iceland would not be able to do what it did if it was in the Eurozone.
Why Google (GOOG) increasingly considers Facebook a mortal threat: "The company that controls the traffic gets the power and the money... Social networks drive an ever increasing share of traffic on the internet, and that traffic is power and money." The threat is to Google's standing as the central internet company "that everyone gravitates around." [View news story]
I find it funny that people complain about Google's privacy issues when they voluntarily vomit everything about themselves onto Facebook.
Apple (AAPL) accuses Samsung (SSNLF.PK) of violating several patents and trademarks, but Samsung officials suspect Apple has violated the Japanese firm’s wireless technology patents instead. "Apple is one of our key buyers of semiconductors and display panels. However, we have no choice but to respond strongly this time," Samsung says. [View news story]
Has Google Taken Its Eye Off Its Core Search Business? [View article]
Who cares about China? Google would do better to strengthen its business in other developing markets such as Latin America, South Asia, Southeast Asia, and Africa than to return to China. There are plenty of people in those places that need/want what Google offers, too, and these markets could/will grow as fast as China. Competing against China Inc. is a loser's game in the long run, and Google was smart to get out when it did.
The House votes 235-193 to pass the Ryan plan that would cut federal spending by ~$6T and overhaul Medicare and Medicaid. All Democrats voted against; four Republicans opposed, including Ron Paul. The Senate is expected to come up with a much different budget plan in the coming weeks. [View news story]
I wondered if the Ryan budget was what seniors were hoping for when they voted overwhelmingly Republican during the 2010 election.
Now would be a good time for them to shout "Keep your government hands off my Medicare!"
Google's (GOOG) unnerving spending spike prompts a rare downgrade, as Citigroup drops shares to Hold and cuts its price target to $650 from $750. No less than eight brokerages lower price targets. BofA Merrill Lynch is more forgiving, maintaining its $750 target based partly on anticipation of a "strong Android Christmas" for new mobile devices. GOOG -5.5% premarket. [View news story]
Don't Worry About the Potential Closure of the Federal Government [View article]
I do not absolve Clinton for signing the repeal, and that remains a black mark on his record. I only highlight your (un)intentional exclusion of any Republicans from the repeal effort. Clinton signed the repeal, but the genesis of such a wholesale breakdown of regulatory structure could only have originated from a Reagan Republican.
You already made the tired Community Reinvestment Act argument in your with your McDonald's comment. What do you say to the fact that the majority of the subprime loans were written by unregulated independent mortgage lenders--not entities regulated under the CRA?
No one forced lenders to make bad loans. Lenders wrote loans, collected the fees, and passed on the risk by selling the loans to investors who believed that real estate prices would never fall again. They were more than happy to make bad loans--no government arm twisting necessary.
I did not give anyone a free pass. I merely stated the fact that Libya is small beans compared with Iraq. Care to dispute it?
Don't Worry About the Potential Closure of the Federal Government [View article]
1. Clinton repealed Glass-Steagal, but Gramm wrote the bill. Regardless, your comment shows why some people consider Clinton to be the best Republican president since Eisenhower.
2. The sophisticated party in a loan trasaction is the lender. Anyone can apply for a loan--the lender is responsible for separating the wheat from the chaff. No one forced WaMu to lend to hand out money to anyone with a pulse. One cannot blame the government for a complete abdication of corporate responsibility.
3. I assume you use quotation marks around "war" because Congress never issued a formal declaration. Anyway, Libya is small beans compared with Iraq.
Merger Mania: The Hidden Risks in Cheap Blue Chip Technology Stocks [View article]
"High priced, but inexpensive" is not an oxymoron. "High priced" refers to price per share, while "inexpensive" refers to the P/E ratio. Conversely, a $5 stock with a P/E of 100 would be low priced and expensive.
Chinese Government Going After Google? [View article]
The idea that a company needs to succeed in China in order to thrive is ridiculous. In fact, given the utter lack of intellectual property protection (more likely state-sponsored corporate espionage), why would any company want to do business there? There are five billion other people in the world to whom it can sell its products.
Let's see Baidu do anything meaningful outside of China.
Brazil's push to oust VALE CEO Agnelli reflects a troubling trend in which developing countries try to reassert control and get their hands on the massive profits of formerly state-owned commodity producers. Petrobas (PBR) has been a target of government meddling as well. [View news story]
Brazil's government has to balance making Brazil attractive for foreign investment with ensuring that a portion of profits generated by the country's mineral wealth benefits the local population. Much of the wealth redistributed from commodity companies will help 1) industrial companies as Brazil continues to build and modernize and 2) consumer-based companies as the rapidly-growing middle class spends more. Don't feel too sorry for Vale and Petrobras--they, and their shareholders, will continue to make money hand over fist.
If you do not like what is happening to Vale and Petrobras, feel free to sell your shares or to not purchase them at all. The government would appreciate you helping to reduce the flood of investment dollars into Brazil, which has driven up inflation and the value of the Real.
Anyway, regardless of government intervention, Petrobras will, one day, be larger and more important than Exxon and Chevron combined.
Comparing Heavyweight Tech Titans: Why Intel Is a Better Investment Than IBM [View article]
1. PCs (and servers) are not going away. Mobile devices are more convenient for simple tasks, but there are many things that they are simply not equipped to do. I like using my iPad a lot more than my PC, but I still need the PC.
2. There are legions of people around the world who do not have PCs. Growth in PCs will likely be slower than growth in mobile devices, but there will be growth.
3. I'm betting that Intel will eventually figure it out either through R&D or by acquisition. Once it does, it will eventually command an outsized, if not dominant share in the market. Why? That's just what Intel does.
4. Cloud computing is supposed to be a high-growth area, which would increase demand for servers. Intel is dominant here, and will remain dominant even as IBM and HP take share.
In conclusion, Intel will definitely be part of the future. Meanwhile, enjoy the high dividend yield and low PEG ratio.
5 Earnings Reports to Set the Stage [View article]
That's largely untrue for many social media tools (daily deals space). Some graduate student or even a dropout in his parent's basement could be developing the next social media phenomenon right now. Even if your statement was true, Google has the means to drain the moat and scale the barrier.
"Google+ has to convince everyone to come there. Why would I want to leave Facebook if all my friends are there?"
Myspace users left. Why can't Facebook users leave?
Halliburton (HAL -1.1%) acknowledges 18 Oklahoma water wells have been contaminated by chemicals in an area where the company performed government contract work removing and burning spent missile fuel. It's currently working to correct the problem. [View news story]
5 Undervalued Blue Chips With Above-Average and Growing Yield [View article]
"Iceland's luck was that it did not qualify for a bailout," says Asgeir Jonsson, describing a country that - contrary to Ireland - refused to put the debt of its banks on the backs of citizens. A quick collapse ensued, but now the country is back borrowing on international markets (at 3%), returned to growth, and with a solid banking system. [View news story]
Why Google (GOOG) increasingly considers Facebook a mortal threat: "The company that controls the traffic gets the power and the money... Social networks drive an ever increasing share of traffic on the internet, and that traffic is power and money." The threat is to Google's standing as the central internet company "that everyone gravitates around." [View news story]
Apple (AAPL) accuses Samsung (SSNLF.PK) of violating several patents and trademarks, but Samsung officials suspect Apple has violated the Japanese firm’s wireless technology patents instead. "Apple is one of our key buyers of semiconductors and display panels. However, we have no choice but to respond strongly this time," Samsung says. [View news story]
Has Google Taken Its Eye Off Its Core Search Business? [View article]
The House votes 235-193 to pass the Ryan plan that would cut federal spending by ~$6T and overhaul Medicare and Medicaid. All Democrats voted against; four Republicans opposed, including Ron Paul. The Senate is expected to come up with a much different budget plan in the coming weeks. [View news story]
Now would be a good time for them to shout "Keep your government hands off my Medicare!"
Google's (GOOG) unnerving spending spike prompts a rare downgrade, as Citigroup drops shares to Hold and cuts its price target to $650 from $750. No less than eight brokerages lower price targets. BofA Merrill Lynch is more forgiving, maintaining its $750 target based partly on anticipation of a "strong Android Christmas" for new mobile devices. GOOG -5.5% premarket. [View news story]
Don't Worry About the Potential Closure of the Federal Government [View article]
You already made the tired Community Reinvestment Act argument in your with your McDonald's comment. What do you say to the fact that the majority of the subprime loans were written by unregulated independent mortgage lenders--not entities regulated under the CRA?
No one forced lenders to make bad loans. Lenders wrote loans, collected the fees, and passed on the risk by selling the loans to investors who believed that real estate prices would never fall again. They were more than happy to make bad loans--no government arm twisting necessary.
I did not give anyone a free pass. I merely stated the fact that Libya is small beans compared with Iraq. Care to dispute it?
Don't Worry About the Potential Closure of the Federal Government [View article]
2. The sophisticated party in a loan trasaction is the lender. Anyone can apply for a loan--the lender is responsible for separating the wheat from the chaff. No one forced WaMu to lend to hand out money to anyone with a pulse. One cannot blame the government for a complete abdication of corporate responsibility.
3. I assume you use quotation marks around "war" because Congress never issued a formal declaration. Anyway, Libya is small beans compared with Iraq.
Merger Mania: The Hidden Risks in Cheap Blue Chip Technology Stocks [View article]
Chinese Government Going After Google? [View article]
Let's see Baidu do anything meaningful outside of China.
Brazil's push to oust VALE CEO Agnelli reflects a troubling trend in which developing countries try to reassert control and get their hands on the massive profits of formerly state-owned commodity producers. Petrobas (PBR) has been a target of government meddling as well. [View news story]
If you do not like what is happening to Vale and Petrobras, feel free to sell your shares or to not purchase them at all. The government would appreciate you helping to reduce the flood of investment dollars into Brazil, which has driven up inflation and the value of the Real.
Anyway, regardless of government intervention, Petrobras will, one day, be larger and more important than Exxon and Chevron combined.
Flame away.
Comparing Heavyweight Tech Titans: Why Intel Is a Better Investment Than IBM [View article]
2. There are legions of people around the world who do not have PCs. Growth in PCs will likely be slower than growth in mobile devices, but there will be growth.
3. I'm betting that Intel will eventually figure it out either through R&D or by acquisition. Once it does, it will eventually command an outsized, if not dominant share in the market. Why? That's just what Intel does.
4. Cloud computing is supposed to be a high-growth area, which would increase demand for servers. Intel is dominant here, and will remain dominant even as IBM and HP take share.
In conclusion, Intel will definitely be part of the future. Meanwhile, enjoy the high dividend yield and low PEG ratio.