Long-Short Guy

Microsoft/Yahoo Deal Should Go Through

...whereas MSFT can since its profitability and stock price are still strong, because businesses aren't yet read to move to open source software, Apple's superior OS and/or Google Apps.

But Windows and Office are decaying, and MSFT is making no headway on the 'Net. So it needs to use its cash flow and currency to bolster its position, before it's too late.

The question now is whether one broken company can fix another broken company.

Say Goodnight as Google Disappoints

Couldn't agree more -- when the leaders miss, the market is heading down.

Google: Social Networking Inventory Not Monetizing as Well as Expected

Why is this a surprise? Everyone knows that MySpace is really low quality ad inventory. Who wants to pay for clicks from MySpace?

Will Apple Double Its PC Market Share by 2011?

"Through 2011, the number of 3D printers in homes and business will grow 100-fold over 2006 levels. With a 3D printer, users send a file of a 3D design to a printer-like device that will carve the design out of a block of resin. Printers priced under $10,000 have been announced for 2008, “opening up the personal and hobbyist markets.”

Not sure what I'd want to print that's 3D. Unless I can print out an iPhone.
:-)

Amazon Strengthens Its Digital Hand With Purchase of Audible

Amazon's stock should take a hit for this. If Amazon was confident that it could maintain its market share in media as the market moves to digital downloads, it wouldn't need to do this acquisition. But it realizes that the shift to digital will result in a hit to its media market share. So it's just paid $300MM to stay in the game. And that's probably only a first move.

Why Fundamental Indexes Lagged Cap-Weighted in '07

Forgot to say: love your articles, Roger.

Why Fundamental Indexes Lagged Cap-Weighted in '07

I wonder also whether market cap weighted funds outperformed simply because large caps started to do better again.

On the issue of overweighting financials, that illustrates a problem with the fundamental funds. Some sectors always look cheap on a fundamental basis at certain points in the cycle, and that's why the market places a lower P/E on them. Examples: semis at the top of the cycle, financials. Fundamentally weighted indexes don't make that adjustment, so they get caught.

Amazon Call Details: Web Services Demand Grows, Kindle's a Hit

Thomas: completely agree with your point about the Kindle. Did Jeff Bezos give hard numbers for Kindle shipments on the call? (I haven't read the transcript yet.) If not, you have to ask yourself why.

Amazon Call Details: Web Services Demand Grows, Kindle's a Hit

Digital media is a threat to Amazon more than an opportunity. Why? Because Apple owns the market, Netfix is trying to enter, and the barriers to entry in providing standard MP3s is low. Contrast that with Amazon's competitive advantage until now: infrastructure for efficient storage and shipping of physical goods.

Amazon is trying to build competitive advantage in digital media by investing heavily in IT infrastructure. But the jury is out on whether it will be able to maintain the same market share in digital as it has in phyical media.

Time to Reconsider REIT ETFs

Another argument for owning US Reits: with the rate cut, inflation is more of a risk and the dollar will continue to fall. Foreign investors will buy real assets denominated in $s, and REITs and real estate are the obvious candidate.

What Happened to Tucows?

Any update? The stock is now at 65c. What are your thoughts on it?

The New GreenHaven Commodity ETF Versus Other Commodity ETFs

Excellent article. I'd consider this, were it not for the issues with the expenses and lack of sponsor information that you mention.

Is there any other way of buying cotton, corn or other ag commodities without having to buy futures directly?

Can eBay's New Fee Structure Fend Off Amazon?

I guess I'm one of those morons then.

I was chatting recently with one eBay seller who told me he gets much better prices on Amazon and prefers it.

And if you read eBay's transcript, it's focusing more and more on its fixed price business. Sounds like Amazon's third party sellers to me.

Under The Radar News - Tuesday

"Cold outlook for Chinese power providers. Heavy snow and sleet have forced 7% of Chinese power plants to shut down, and companies are struggling to secure enough coal to keep plants operating."

Wonder if lower Chinese output could hit Walmart.

5 Reasons to Buy McDonald's ASAP

Following on from my previous comment: Starbucks, in contrast, might get creamed (ahem) in a recession. Who can afford a $6 latte every day if you lose your job?

On the other hand, caffeine is addictive.