Archive for the “Stocks News” Category
Filed under: International markets, Google (GOOG), Marketing and advertising, Middle East
 It seems to me like the ultimate test of a tool lies not with its functionality, but with who uses it. This goes double for search tools, as their ability to access information vastly increases their popularity, and thus marketability. Personally, I firmly believe that most questions in the world can be answered by one of three sites. If it’s a motion picture or Television question, I head to IMDB. If IMDB doesn’t have the answer, I generally head over to Wikipedia. And if, for some reason, Wiki’s answer doesn’t suffice, I pull out the massive guns and head over to Google (NASDAQ: GOOG). Of course, so does pretty much everyone else in the world.
This, of course, explains why the United States has begun investing heavily in Google Ads in foreign countries. While the government’s on the web presence is pretty impressive, even the best website is only useful if it can generate hits; given the United States’ overseas unpopularity right now, getting foreign nationals to visit its sites is an uphill battle. With this in mind, Google now displays ads for various United Says government agencies when the user enters various key words and phrases. Currently, the terms that’ll generate an ad from the America.gov website include “terrorism,” “Middle East peace,” “human rights,” “press freedom,” and “U.S. elections.”
The U.S. is paying Google based on the number of hits that its ads generate. Currently, that ranges from $25,000 to $30,000 per month for the America.gov website and a further $15,000 for other Middle-East oriented sites. Given that the $15,000 expenditure generates roughly 300,000 hits per month, it seems like a pretty good deal. For that matter, it’s worth noting that an internet search platform has become the U.S. government’s go-to guy for worldwide advertising. If Google can get people in Saudi Arabia to express an interest in the U.S.’s informational website, it seems like there’s tiny that the company can’t do!
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Filed under: Deals, Newspapers, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO)
 I’m not a shareholder of Yahoo! (NASDAQ: YHOO) but I know many people who are. And, for the most part, they don’t like the company’s CEO and co-founder, Jerry Yang.
Isn’t the CEO supposed to look out for shareholders? Yes, I’m pretty sure this is the goal of the public markets. Then again, when a visionary founder must ultimately manage a global operation, things can get messy.
Well, there’s an excellent piece in the NY Times on the topic by Joe Nocera.
Yang had many chances to do a deal with Microsoft (NASDAQ: MSFT), yet, Yahoo is now left with a quirky marketing arrangement with rival Google (NASDAQ: GOOG). Ironically, such a deal is further evidence that Yahoo! is languishing in the marketplace. Although the deal may not even last long, especially in light of the antitrust implications.
No doubt, I have the ability to understand that Yang has an emotional pull with his company and its employees, but unfortunately, this can actually cloud judgment. Too often founders hire friends and keep them on board too long. Yahoo! has become a bloated organization (even though Yang stated he doesn’t want to become a part of Microsoft because he thinks it will lead to bureaucracy).
Something else to consider: Look at Yang’s severance plan, which offers substantial benefits for departing Yahoo! employees (in the event of a change-of-control). It’s a ticking time bomb, which goes beyond a typical “poison pill.”
Simply put, Yang has failed his most important constituency: the shareholders. As a result, he doesn’t have much credibility on a go-forward basis. When this happens, the typical outcome is that the CEO must leave.
Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar On the internet Guide to Decoding Financial Statements . He also operates MergerBook.com.
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Filed under: Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Exxon Mobil (XOM), McDonald’s (MCD), Diageo plc (DEO), Money and Finance Today, Best Buy (BBY), US Airways Group (LCC), AMR Corp (AMR), UAL Corp (UAUA), Burger King Hldgs (BKC)
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Filed under: Deals, Rumors, Google (GOOG), Yahoo! (YHOO)
 A joint announcement by Yahoo! (NASDAQ: YHOO) and Google Inc. (NYSE: GOOG) scheduled for 1:30 p.m. PDT today, after market close, has rumor-mongers wondering whether the two will be announcing a large deal. Yahoo! has been on the block for so long that even the slightest breeze of news has everyone guessing; this morning, Doug McIntyre wrote that short interest was increasing as pessimists pooh-poohed Carl Icahn’s plans.
Michael Arrington at TechCrunch states his sources are insisting it’s only a search partnership, a deal that would probably have far less impact on the fate of Yahoo! — it may signal more things to come, but let’s recall that a “global advertising partnership” deal between Google and Time Warner, Inc. (NYSE: TWX)’s AOL in December 2005, in which Google purchased 5% of the web company, never (yet) materialized into the acquisition many expected.
No major news outlet has the story yet, and there’s no announcement on Yahoo!’s investor relations page. After falling 80 cents today, the stock was rebounding swiftly on the rumors, at $25.97 at 2:10 p.m.
Update 6:21 p.m.: Microsoft has pulled its $33 per share offer for Yahoo!, and Yahoo! has announced a search advertising partnership with Google. Yahoo!’s stock ended the day down $3.34, or 12.77%, at $22.81.
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Filed under: Before the bell, Deals, Law, Google (GOOG), Microsoft (MSFT), Apple Inc (AAPL), Hewlett-Packard (HPQ), Johnson and Johnson (JNJ), Boeing Co (BA), Amer Intl Group (AIG)
 Before the bell: Stocks could rebound
The day has finally come. June 9 is here and Apple (NASDAQ: AAPL)’s Steve Jobs is expected to announced a new 3G iPhone in his keynote speech during the annual developers conference in San Francisco. The features of a new iPhone have been the subject of much speculation, all to be settled today, one way or the other. A new business model is also expected with subsidies paid by wireless carriers.
Boeing Co (NYSE: BA) said on Monday its 787 Dreamliner would make its first flight in the fourth quarter of 2008, on schedule according to the revised timeline announced in April for the new aeroplane’s launch. First deliveries of the plane were scheduled for the third quarter of 2009, also as previously stated.
American International Group Inc (NYSE: AIG)’s CEO, Martin Sullivan, is facing dissent from three massive shareholders who together control 4%, as reported Sunday on The Wall Street Journal. They sent a letter to the board regarding management improvements.
After Google Inc. (NASDAQ: GOOG) had done it, Microsoft Corp. (NASDAQ: MSFT) wants to as well. Microsoft and Kaiser Permanente, the biggest U.S. health maintenance organization (HMO), are working on a patient information exchange pilot program to help give patients more control over their health records. Google Health was launched in February.
Britain’s Astex Therapeutics, a privately owned biotech company, has signed a cancer drug research deal with Johnson & Johnson (NYSE: JNJ) potentially worth more than $500 million in milestone payments. “The deal grants a worldwide licence to J&J’s Janssen unit to develop and commercialise compounds arising from Astex’s FGFR inhibitor programme and establishes a novel drug discovery programme focused on two further cancer drug targets.”
Hewlett-Packard Co (NYSE: HPQ) stated on Sunday it had settled patent litigation with smaller Taiwan rival Acer.
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Filed under: Before the bell, Earnings reports, Forecasts, Deals, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO), Coca-Cola (KO), Market matters, US Airways Group (LCC), Economic data, Housing
 U.S. stock futures were blended to lower early Friday morning as investors awaited data on inflation. News about companies slicing workforce and Yahoo!’s failed talks with Microsoft also soured the mood.
On Thursday, U.S. stocks shut with gains following a surprisingly strong retail sales, but the gains were tempered as the day went on due to rising oil prices and the Yahoo! announcement about the failed Microsoft talks.The Dow industrials ended 57 points, or 0.48%, higher, the S&P 500 rose 4 points, or 0.33%, and the Nasdaq Composite rose 10 points, or 0.43%.
What might yet change the atmosphere on Wall Street is the Consumer Price Index is scheduled for release at 8:30 a.m. EDT. Economists surveyed by Briefing.com anticipate CPI to show an increase of 0.5% in May following a 0.2% rise in April. Core CPI, which excludes the volatile food and energy prices, is expected to have risen 0.2% in May, after it rose 0.1% the month before.
At 10:00 a.m., the preliminary University of Michigan consumer confidence gauge for June is also due.
Meanwhile, foreclosures data was already released and the number of U.S. homeowners forced into foreclosure further last month, up almost 50% compared with a year earlier,and up 7% from April, according to RealtyTrac Inc..
The main corporate headline this morning no doubt has to do with Yahoo! (NASDAQ: YHOO). The web portal said talks with Microsoft Corp. (NASDAQ: MSFT) have ended and announced late Thursday an online ad partnership with Google Inc. (NASDAQ: GOOG), which could be worth $800 million in revenue. Yahoo said it believes the ad deal would be better than selling its search business to Microsoft, but some are concerned anti-trust issues would derail that deal too. Yahoo shares sank 10% on Thursday.
Also US Airways (NYSE: LCC) said that it’s cutting capacity on routes by up to 8%, increasing fees and shedding 1,700 employees. LCC shares closed down almost 16%.
And while we’ve grown accustomed to problems at automakers and airlines, as well as the occasional retailer, arising from the economic slowdown, it seems that even Coca Cola (NYSE: KO) is not immune. It might be active as Coca Cola Hellenic Bottling (NYSE: CCH) warned over 2008 earnings, citing economic conditions in Italy, Ukraine and Romania, adverse weather in Central Europe, rising plastic prices and a strike in Greece.
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Filed under: Before the bell, Earnings reports, Deals, Google (GOOG), Yahoo! (YHOO), Apple Inc (AAPL), Starbucks (SBUX), Amazon.com (AMZN), General Motors (GM), Caterpillar (CAT), Amer Intl Group (AIG)
Before the bell: Futures higher after BUD offer, ahead of retail sales
American International Group (NYSE: AIG) shareholders — former AIG director, Eli Broad, and two fund managers , who together control about 4% — are asking for changes to the management and board of the world’s largest insurer, which has been struggling with the fallout of the subprime mortgage mess.
Caterpillar Inc. (NYSE: CAT) stated it will spend $1 billion over the next two years to expand capacity in five of its Illinois factories, and will shift production at some of its plants to address the demand for machines used mostly in mining and massive infrastructure projects.
Also, CAT and Navistar International Corp. (NASDAQ: NAVZ) will start cooperating to pursue new on-highway truck business and cooperate on an variety of engine platforms.
Starbucks Coffee Co. (NASDAQ: SBUX) said Thursday that it has reached a licensing agreement with SSP to open coffee retail stores in more than 150 airports and train stations in Europe. Financial terms were not disclosed.
William Ackerman, the billionaire hedge fund manager who is a major stakeholder in Borders Group Inc. (NYSE: BGP) is pushing for Amazon.com, Inc. (NASDAQ: AMZN) to go for Borders, saying it could become the “bricks-and-clicks” component of Amazon’s nationwide sales strategy.
BusinessWeek has an interesting article about how in Japan Apple Inc. (NASDAQ: AAPL), Google Inc. (NASDAQ: GOOG) and Yahoo! Inc. (NASDAQ: YHOO) will have to work together, despite being direct competitors in some things.
Thornburg Mortgage (NYSE: TMA) shares are climbing over 5.5% in premarket trading after it stated it swung to a first-quarter loss of $3.31 billion due to delinquent loans.
General Motors Corp (NYSE: GM)’s head of European operations sees European sales slumping to levels not seen in decades due to rising oil prices, high commodity costs and the strength of the euro.
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Filed under: Products and services, Google (GOOG), Clorox Co (CLX), Colgate-Palmolive (CL), General Mills (GIS), Procter and Gamble (PG), Kimberly-Clark (KMB), Kraft Foods’A’ (KFT)
I love coupons; who doesn’t? They are, arguably, one of the most important marketing tools used by companies such as Procter & Gamble (NYSE: PG), Colgate-Palmolive (NYSE: CL), and General Mills (NYSE: GIS). I also love coupon distribution on the internet, so I’m hoping a new technology reported on by BusinessWeek really takes off.
A company called Coupons, Inc. has developed a system dubbed Brandcaster. It essentially follows Google’s (NASDAQ: GOOG) model of monetization. Depending on where you are on the web and what you’re looking at, the Brandcaster will determine if a coupon might be applicable to you. It will then try to get you to access the coupon and print it up. Web sites who use the application will be given a cut of revenues generated from successful coupon printings. So, talking hypothetically, if I’m on a site that’s dedicated to video games, maybe this Brandcaster thing will someday tell me that I have the ability to print up a coupon allowing me to get $5 off a new software title.
If this is promoted properly, and if the value to consumer companies can be adequately communicated, then I think Coupons, Inc. has a hit on its hands. Like I state, people love coupons, and I think they’re more likely to act on printing out a coupon then they’re to, say, purchase a product immediately on the web through a banner ad. I see this kind of advertising as being more effective over the long-term than other kinds of ads.
But, there’s a significant challenge, in my opinion, to Coupons, Inc. and Brandcaster. I’m not sure how it is in all parts of the country, but in my area, there are lots of businesses, including a major regional supermarket chain, that are either very suspicious of World wide web coupons or don’t accept them at all. There’s a good reason for this that probably goes without saying, but I’ll state it anyway: the chance for counterfeit coupons is always there. I think web-coupon distributors are still a long way off from finding quality solutions to the piracy issue (or at least, that’s the current perception from where I sit).
Nevertheless, I think this Brandcaster is neat. Companies signed up so far for the program include Kraft (NYSE: KFT), Kimberly-Clark (NYSE: KMB), and Clorox (NYSE: CLX), as well as the aforementioned General Mills. Apparently 200 coupons will be distributed to over 3,000 websites initially, with hopes that the network can grow to over ten times as many websites in a short period of time. I think this has a great chance for success.
Disclosure: I don’t own any companies mentioned here; positions can change at any time.
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Filed under: Google (GOOG), Yahoo! (YHOO), Apple Inc (AAPL), Ford Motor (F), General Motors (GM), China, Toyota Motor Corp. (TM), McDonald’s (MCD), Johnson and Johnson (JNJ), Money and Finance Today, Gannett Co (GCI), Wachovia Corp (WB), AMR Corp (AMR), UAL Corp (UAUA), Kraft Foods’A’ (KFT), Tata Mtrs Ltd (TTM)
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Filed under: Deals, Rumors, Management, Rants and raves, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO)
 If you’ve read BusinessWeek’s latest story on the Yahoo! Inc. (NASDAQ: YHOO) saga, then you can’t really know what to believe!
According to the story, Microsoft Corp. (NASDAQ: MSFT) remains highly interested in re-entering speaks to acquire Yahoo!, and it also states those speaks may already be in progress.
Then it states Microsoft may want the whole company, but also might just be interested in the search element.
To this the magazine adds that if none of this works, Yahoo! might go ahead and work out a deal to give Google Inc. (NASDAQ: GOOG) a non-exclusive right to either sell its search results or include it in its auctions — or none of the above.
It concludes that sources think there is a 50% chance a deal will happen. Now that’s strong conviction! If a deal happens, they go on to say that the buyout price might be $33, $35, or $37 per share (it closed yesterday at $26.15) but that some compromise might be reached. Gee whiz, a 50/50 shot and projecting some sort of compromise.
Carl Icahn is rumored to be deeply involved in making something happen, but then again management is not interested in his input. “Something will definitely happen soon,” states one of the people involved in solving Yahoo’s conundrum.
This is all as clear as mud and any investment in Yahoo! is highly speculative unless you are actually at the table, whatever table that might be.
Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I don’t own shares in the stocks mentioned in this story.
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