BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2008 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/Sprint Nextel finally in the midst of a turnaround?http://www.bloggingstocks.com/2008/07/03/sprint-nextel-finally-in-the-midst-of-a-turnaround/http://www.bloggingstocks.com/2008/07/03/sprint-nextel-finally-in-the-midst-of-a-turnaround/http://www.bloggingstocks.com/2008/07/03/sprint-nextel-finally-in-the-midst-of-a-turnaround/#commentsFiled under: , ,

Much has been written about Sprint Nextel Corp.'s (NYSE: S) follies in recent quarters. The third-largest wireless carrier in the U.S. has lost millions of customers to larger and more successful competitors like Verizon Wireless and AT&T, Inc. (NYSE: T). But, with the launch of an extremely successful iPhone competitor (among other things), the company is showing signs of stemming its huge customer defections from past quarters.

The word of support initially came from Verizon Wireless President Denny Strigl , who told investors that Sprint's performance had picked up in the last months -- although Verizon still didn't consider Sprint to be a threat to Verizon Wireless' current results. Still, any improvement for Sprint is a good thing. Sprint CEO Dan Hesse, a wireless industry veteran with a largely successful track record, is the right person to be leading Sprint as well. So, are all the cards lined up for Sprint to become a resurgent force in the U.S. wireless industry?

It's stock has rebounded in a decent way, closing up from mid-March's $6/share to $8.91 recently (it closed yesterday at $8.94/share). Although Sprint lost over a million customers in the first quarter of 2008, the numbers should not be that bad in the second quarter. Sprint also won't be sold any time soon. Verizon Wireless, which just bought Alltel from its private owners, is the only company that could have made a merger work in buying Sprint Nextel. It would be disastrous to have another company come in and try to emulate what Sprint attempted with Nextel back in 2005, which has turned out to be a complete disaster and has led to tens of billions in write-offs (do you hear me now, Deutsche Telekom?).

Sprint has the chops to turn itself around in 2009 with some solid management and good decisions, but it still won't be easy. Spinning off the Nextel network (oops, I mean selling the spectrum off) and migrating all those customers to Sprint's network -- along with heavy retention incentives -- may be Hesse's biggest bet yet. That is, if he has the cahones to do it.

 

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]]>inthenewsiPhone killerIphoneKillerSSamsung InstinctSamsungInstinctSprint nextelSprintNextelVerizon CommunicationsVerizonCommunicationsBrian White2008-07-03T11:19:00+00:00Brand name stocks under $10 to beware of, market themes for 2008's second half - Today in Money 7/2http://www.bloggingstocks.com/2008/07/02/brand-name-stocks-undre-10-to-beware-of-market-themes-for-2008/http://www.bloggingstocks.com/2008/07/02/brand-name-stocks-undre-10-to-beware-of-market-themes-for-2008/http://www.bloggingstocks.com/2008/07/02/brand-name-stocks-undre-10-to-beware-of-market-themes-for-2008/#commentsFiled under: , , , , , , , , , , , , , , , , , ,

In the News:
· Car Sales Hit 10-Year Low as June Was Bleak Month; GM Dropped 18%, Toyota 21%
· Microsoft May Take Another Stab at Yahoo
· Starbucks to Close 600 Stores
· Blockbuster Ends Pursuit of Circuit City
· Bank of America Closes Countrywide Acquisition; More Misery Ahead for BofA?
· Citibank ATM Breach Reveals PIN Security Problems
· Deepening Cycle of Job Loss Seen Lasting Well Into 2009
· Netflix Stars in a Slow Economy
· Manhattan Real Estate Finally Starts to Soften

Brand-Name Stocks Uner $10: Buyer Beware
These well-known names in the bargain bin may look appealing, but experts advise laying off until their earnings picture is clear. Among the stocks to be weary of are Sprint Nextel, Motorola, Ford Motor, Qwest, Washington Mutual, Northwest Airlines, Del Monte, Rite Aid, Chico's, Crocs, United Airlines, Palm, Sealy, Blockbuster, Circuit City and Orbitz.
Brand-Name Stocks Under $10: Buyer Beware

How to Play the Market in the Second Half of 2008
Market pro Todd Harrison discusses the top 10 themes for the rest of the year.
Where we are and where we're going: 10 market themes - MarketWatch

Finding Safety in a Bear Market
Here are five ways to protect your portfolio.
Keeping Your Balance in a Scary Market - Kiplinger.com



Airports Cash in on Flight Delays
Your delayed flight is bad news for you and your airline, but it's money in the bank for the airports who are turning into multi-billion dollar shopping malls for stranded passengers.
Delayed flights mean big money for airport industry - CNNmoney

Meet the New King of Brand Names
The CEO of Fortune 500 newcomer Jarden Corp. is busy reviving old brands, but Wall Street has its doubts. Meet Martin Franklin who is snapping up undernourished brands and give them a shot in the arm. His company now markets more than 100 brands - among them Sunbeam, Oster, Rawlings, K2, Hoyle, Mr. Coffee, Crock Pot, and First Alert - and is the market leader in such retail categories as kitchen electronics, playing cards, tents, and grill-gas canisters.
The new king of brand names - FORTUNE

How to Protect Yourself If a Store Goes Bankrupt
When furniture seller Levitz closed last fall, its Web site informed customers that they might not receive ordered merchandise, that there would be no more returns or exchanges, and that some paid-for extended warranties would not be provided. With tough times forcing Levitz and other retailers-including Sharper Image, Linens 'n Things, and Lillian Vernon-to file for bankruptcy protection, it's wise for shoppers to take precautions. Here's how.
ConsumerReports.org - Protect yourself if a store goes bankrupt

How American is American Apparel?
CEO Dov Charney has Canadian passport, extraordinary business acumen and social grace of a subway flasher.
Minyanville - NEWS & VIEWS-How American is American Apparel?

 

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]]>Allan Halprin2008-07-02T08:59:00+00:00Sprint's new iPhone-killer selling like hotcakeshttp://www.bloggingstocks.com/2008/07/01/sprints-new-iphone-killer-selling-like-hotcakes/http://www.bloggingstocks.com/2008/07/01/sprints-new-iphone-killer-selling-like-hotcakes/http://www.bloggingstocks.com/2008/07/01/sprints-new-iphone-killer-selling-like-hotcakes/#commentsFiled under: , , ,

Doug pointed out recently that the new Samsung Instinct most likely could not save Sprint Nextel Corp. (NYSE: S) from its current financial and customer woes. He's right -- one phone does not resurrect a company. However, the Instinct -- which looks and functions very similar to an Apple, Inc. (NASDAQ: AAPL) iPhone -- is still selling like hotcakes. My guess? It's all due to Apple, not Sprint.

The Instinct, which apparently has become Sprint's best-selling 3G phone product ever in a very short time, is an impressive device. Feature-for-feature, it's right there with the upcoming 3G iPhone about to be released in a few weeks. Independent research that counted the movement of Instinct phones at 100 Sprint stores around the country report that it's selling out fast. Sprint contends that the smartphone is the fastest-selling phone in Sprint's history up to this point.

But, to those customers of Sprint (new and old) who just can't see themselves joining AT&T, Inc. (NYSE: T) just to get an iPhone, the Instinct is apparently turning out to be a perfect equivalent. If Apple had never released the original iPhone, the Instinct may have never been born. Apple, as usual, has made other hardware companies realize that hardware needs to be elegant, and software needs to be way elegant. The clumsy designs and complex cellphone interfaces may soon be extinct, thanks to Apple. And, Sprint's sales of the Samsung Instinct will at least owe partial credit to the iPhone maker.

 

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]]>AAPLinthenewsiPhone 3GIphone3gSSamsung InstinctSamsungInstinctSprint nextelSprintNextelBrian White2008-07-01T11:30:00+00:00Virgin Mobile buys Helio for chump changehttp://www.bloggingstocks.com/2008/06/29/virgin-mobile-buys-helio-for-chump-change/http://www.bloggingstocks.com/2008/06/29/virgin-mobile-buys-helio-for-chump-change/http://www.bloggingstocks.com/2008/06/29/virgin-mobile-buys-helio-for-chump-change/#commentsFiled under: ,

I've seen it many times: a cool product that finds few customers. That seems to be the case with Helio's mobile phones. Basically, customers didn't want to pay premium prices for such things as access to MySpace and other new-fangled features.

It's a tough lesson (and expensive). SK Telecom and EarthLink (NASDAQ: ELNK) formed Helio as a joint venture in 2005 with start-up capital of $440 million. SK Telecom invested an additional $270 million in the venture last year.

Yet, in the end, Helio turned out to be a big dud. That is, the company sold out for a measly $39 million to Virgin Mobile USA (NYSE: VM). In fact, the space is full of dead companies, such as Disney Mobile and Amp'd Mobile.

I had a chance to interview Frank Dickson, the co-founder and chief research officer of MultiMedia Intelligence. According to him:

Honestly, the merger is a desperate move. Overall, the MVNO (Mobile Virtual Network Operator) model makes sense in a limited number of situations. For example, if a cable MSO wants to leverage its customer base and offer triple or quadruple play offering, there is a clear distinctive competency and the MVNO route makes sense.
For MVNOs such as Virgin Mobile and Helio, where is the competitive advantage? What can be offered that the "big boys" cannot? In the current environment of price competition, with Sprint (NYSE: S) firing the latest $99 dollar all-you-can-eat salvo, MVNOs are hard pressed to maintain an advantage. Their positions are tenuous at best.

In the end, one has to view this as two weaker competitors trying to combine to create a critical mass. When one has competitors like Verizon (NYSE: VZ) Wireless, AT&T (NYSE: T), Sprint and T-Mobile, the merger will just not create enough scale.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

 

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]]>Ampd MobileDisney MobileEarthlinkELNKFrank DicksonHelioMVNOSK TelecomSprintT-MobileVerizon WirelessVirgin MobileVMVZTom Taulli2008-06-29T15:10:00+00:00Cramer on BloggingStocks: Motorola's worth will out http://www.bloggingstocks.com/2008/06/24/cramer-on-bloggingstocks-motorolas-worth-will-out/http://www.bloggingstocks.com/2008/06/24/cramer-on-bloggingstocks-motorolas-worth-will-out/http://www.bloggingstocks.com/2008/06/24/cramer-on-bloggingstocks-motorolas-worth-will-out/#commentsFiled under: , , , , , , , , ,

TheStreet.com's Jim Cramer says the slide has to end somewhere -- eventually, we'll see a bid.

Is someone having a margin call? That's what I keep thinking as I watch the sickening slide in Motorola's (NYSE: MOT) (Cramer's Take) stock. How can Motorola go down so much? This is a company with a lot of money and some businesses that are doing excellently. It has great existing contracts with telcos.

But someone sells it and sells it hard every day. It almost feels that Carl Icahn has a margin call, post-Yahoo! (NASDAQ: YHOO) (Cramer's Take), or he has to sell MOT to fund Yahoo!, and that doesn't seem right.

Otherwise, how can we explain the endless selling? Sure, as Piper said yesterday, they are losing share in America, but does anyone think this company is going away? Does anyone think this company is some sort of regional bank with its destiny completely out of its hands, that reliance on housing coming back will determine its viability? This is only a $16 billion company now with sales that are almost twice that?

At some price this one is going to get a takeover bid. It has fundamental worth.

To sell it down here makes no sense at all if you ask me.

But then again, I thought at $8 or $9 there was worth. I just don't believe this company is going away.

It is entirely possible that what might be going on here is the desire to show that you own none of the worst cell phone handset maker. It may also be a sign that the value people are at last running out of money. But it has a feel of Sprint (NYSE: S) (Cramer's Take) here, arriving at some level that, at last, might be as low as it might be able to go without the chatter that someone else wants to bring out the value.

Random musings: Kudos to the Stockpickr poster who caught my error on "Street Signs" yesterday. Goldman (NYSE: GS) (Cramer's Take) wants out of Nucor (NYSE: NUE) (Cramer's Take) and in to U.S. Steel (NYSE: X) (Cramer's Take). I disagree with that, as NUE is cheaper at these prices, although the product portfolio of X has improved mightily. ... The new iron ore prices out of China boosted Cleveland Cliffs (NYSE: CLF) (Cramer's Take) and are a reminder that a $150 price tag for oil doesn't mean too much for those willing to almost double the price they just paid for iron ore.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer was long Goldman Sachs.

 

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]]>clffeaturedgsjim cramerJimCramermotmotorolanuesxyhooJim Cramer2008-06-24T09:09:00+00:00The market bets Motorola cannot fix its handset businesshttp://www.bloggingstocks.com/2008/06/21/the-market-bets-motorola-cannot-fix-it-handset-business/http://www.bloggingstocks.com/2008/06/21/the-market-bets-motorola-cannot-fix-it-handset-business/http://www.bloggingstocks.com/2008/06/21/the-market-bets-motorola-cannot-fix-it-handset-business/#commentsFiled under: , , , , , , , ,

The week was full of news about handsets. Sprint (NYSE: S) said it would launch an "iPhone killer," a $129 phone from Samsung. Many brokerage firms upped estimates for Apple (NYSE: AAPL) iPhone sales as it appears that the demand for the new 3G version will be tremendous. Nokia (NYSE: NOK) launched its E71 and E66 high-end handsets. Lehman upped its targets for earnings estimates at RIM (NASDAQ: RIMM), the maker of the BlackBerry.

And Motorola (NYSE: MOT) shares hit a five-year low at $7.61. The company did not launch any new products. No one on Wall Street upped forecasts on the company. All that was clear is that the firm is taking a worse beating as each month passes.

Motorola plans to spin-off its handset business and keep its home networking and enterprise operations. The entire company has a market cap of under $18 billion now.

Based on Motorola's last 10-Q, the two units the company is keeping have an annual revenue run-rate of over $16 billion. They should make about $1.7 billion in operating profit in 2008. By many measures, together they would be worth $18 billion on their own.

It is a spectacular sign of how bad things are at Motorola's handset business, that, as an enterprise, it may have no financial value at all. Its market share is dropping too fast and its is losing too much money.

MOT may not even be able to give the operation away for nothing.

Douglas A. McIntyre is an editor at 247wallst.com.

 

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]]>AAPLAppleBlackBerryinthenewsiPhoneMOTMotorolaNOKNokiaRIMRIMMSSprintDouglas McIntyre2008-06-21T12:40:00+00:00Stocks to consider under $10 from CNBChttp://www.bloggingstocks.com/2008/06/19/stocks-to-consider-under-10-from-cnbc/http://www.bloggingstocks.com/2008/06/19/stocks-to-consider-under-10-from-cnbc/http://www.bloggingstocks.com/2008/06/19/stocks-to-consider-under-10-from-cnbc/#commentsFiled under: , , , , ,

Dragged down by the challenging market conditions, many stocks have fallen under $10 lately. CNBC's Cindy Perman suggests that some of these stocks could be become good investments for traders. However, not everything that is cheap could be such a good bargain, Perman reminds us. You must always do your homework on potential investment before buying.

For example, Ford Motor (NYSE: F) fell down to around $6 compared with $38 nine years ago -- is it a good investment? Well, while the automaker revealed its plans to shift production from trucks to cars and give a boost to its turnaround plan, it also warned it won't be profitable until 2010 at the earliest.

Perman quotes several investment specialists on the matter. John Schloegel, vice president of investment strategies at Capital Cities Asset Management says, "An investment in Ford today feels like being in the wrong place at the wrong time." And Greg Womack, president of Womack Investment Advisers, advices to stay away from the sector, which doesn't look promising now, for the next three to five years to find out the "winner."

Another stock to consider is Sprint Nextel Corp. (NYSE: S), which is currently trading around $8. There could be some recovery hopes for the company if we take into account its agreement with Clearwire to develop faster networks. Still, investors should keep in mind that earnings reported for the past year tumbled 80% and are expected to fall even more. Just like Ford, Sprint doesn't look like a bargain, it's simply cheap.

Cit Group Inc. (NYSE: CIT) was a victim of the suprime fallout. The company saw its stock dropping 85% in the past year and is currently trading around $9 a share. However, analysts have predicted a rebound for the company during the next two years. CIT is expected to be "a survivor of the subprime fallout," Michael Cohn, chief investment strategist at Atlantis Asset Management, stated. Perman warns, however, that it's not for the faint of heart.

Then there is Tenet Healthcare (NYSE: THC), which is trading below $6 a share. While the company has a high number of uninsured patients and bad patient debt and is risky, analysts like the company's turnaround plan and growth potential and forecast an earnings increase in the coming years.

A couple more companyies worth taking a look at are Motorola Inc. (NYSE: MOT), whose stock has lost 65% since October 2007 and is trading under $9 a share, and wholesale-power supplier Dynegy Inc. (NYSE: DYN) whose stock dropped 37% in the second half of last year and is trading over $9 a share.

Perman reminds us again to take a look at a company's fundamentals and trends and try to get a good feel for the company's ability to face competitors before investing in any low-priced stock. Also, she writes, that while it can definitely be scary to invest in stocks that have been beaten up recently, there are definitely some good buys out there with some great upside potential.

What low priced stocks have you been watching lately? Let us hear what stocks you are considering!

Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.

 

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]]>citCit GroupCitGroupdynDynegyfFord MotorFordMotormotMotorolasSprint NextelSprintNextelTenet HealthcareTenetHealthcarethcEliza Popescu2008-06-19T16:57:00+00:00Sprint (S) pushes into smartphone businesshttp://www.bloggingstocks.com/2008/06/19/sprint-s-pushes-into-smartphone-business/http://www.bloggingstocks.com/2008/06/19/sprint-s-pushes-into-smartphone-business/http://www.bloggingstocks.com/2008/06/19/sprint-s-pushes-into-smartphone-business/#commentsFiled under: , , ,

Some wonder whether Sprint (NYSE: S) can do anything to turn around its fortunes. It almost always ranks last in customer service among cellular carriers. It is still losing subscribers and its stock is down to $8.22. A year ago, it traded at almost $23.

Sprint continues to lose money. The firm has decided to get more deeply into the smartphone business with a product that it hopes can challenge the Apple (NADSAQ: AAPL) iPhone, which is marketed by AT&T (NYSE: T). Fat chance.

According to The Wall Street Journal, the No.3 cellular service provider "will be taking on the iPhone with a lower price for its own touch-screen smart phone, the Samsung Instinct."

While the new handset may be a good one, it is hard to find a product that sells itself more than the iPhone. The Apple phone is part of a cult of buyers who love products from Jobs & Co.

And even if the Samsung phone was better than the Apple product, Sprint's customer service may well undermine its sales. A hot product only does well for a short time if the company that markets it has an awful reputation for taking care of its subscribers.

Douglas A. McIntyre is an editor at 247wallst.com.

 

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]]>AAPLinthenewsiphoneSsamsungTDouglas McIntyre2008-06-19T10:52:00+00:00Stock picks under $10, 10 worst managed companies & historic site foreclosureshttp://www.bloggingstocks.com/2008/06/18/stock-picks-under-10-10-worst-managed-companies-and-historic-sit/http://www.bloggingstocks.com/2008/06/18/stock-picks-under-10-10-worst-managed-companies-and-historic-sit/http://www.bloggingstocks.com/2008/06/18/stock-picks-under-10-10-worst-managed-companies-and-historic-sit/#commentsFiled under: , , , , , , , , , , , , , , , , , , ,

In the News:
· Morgan Stanley 2Q Profit Plunges 57%
· FedEx Profit Wrecked By High Fuel Costs, Company Warns
· Generic Versions of Lipitor Expected in 2011
· Apple's iPhone Sales May Double in 2009
· Northwest Airlines to Cut Flights, Offer Early Buyouts
· Kellogg Shrinks Size of Fruit Loops, Apple Jacks and Other Cereals
· Unhappy 1-Year Anniversary for Yahoo CEO Jerry Yang
· LinkedIn Valued at $1 Billion; Big Plans Afoot
· Tomatoes Back at Fast Food Restaurants
· Red Cross and Johnson & Johnson Dispute Over Red Cross Symbol Settled

Stock Picks for Under $10
There are a lot of once-highflying stocks that have fallen below $10 and look like bargains ripe for the picking. See if CIT Group, Ford, Motorola, Tenet Healthcare, Dynegy and Interpublic.
Stock Picks for Under $10 - CNBC

10 Worst Managed Companies in America
With the trading year almost half over and results from the first quarter out, 24/7 Wall St. presents its latest installment of its Ten Worst Managed Companies In America list. They include Sun Microsystems, Sears, Boston Scientific, Starbucks, Sprint, Circuit City, Motorola, AMD, AIG and Pfizer.
24/7 Wall St.: The 24/7 Wall St. Ten Worst Managed Companies In America

Historic Sites in Danger of Foreclosure
Mark Twain, Edith Wharton and other boldfaced names among the dead have something in common with living Americans in these hard financial times.
Foreclosure Looms Over Historic Sites - AOL Money & Finance

The Credit Trap
How rising home values and easy credit put your finances at risk.
How rising home values, easy credit put your finances at risk - USATODAY.com

Wal-Mart: The New Green Giant
From solar panels to less packaging, the retailer continues to unveil Earth-friendly initiatives.
In Pictures: Green Giant - BusinessWeek

Coffee Drinkers Live Longer?
For women, especially, the brew could boost heart health, study finds.
Coffee Drinkers Might Live Longer

Prepare Now, Save Come Winter
Taking these steps to lower your heating bills now will pay off when winter hits.
Prepare Now for a Pricey Winter Heating Season - SmartMoney.com

Tap Water Making a Comeback
With a day's worth of bottled water -- the recommended 64 ounces -- costing hundreds to thousands of dollars a year depending on the brand, more people are opting to drink water that comes straight from the sink.
Feeling thrifty, the thirsty reach for tap, not bottle - USATODAY.com

Can Mizrahi Revive Liz Claiborne?
January, Liz Claiborne hired Mizrahi away from Target to become the new creative director for women's apparel, accessories, and licensing. Claiborne C.E.O. Bill McComb hopes Mizrahi's touch will awaken Liz from the extended slumber of dowdy, forgettable styles and make the brand back into a wardrobe essential for fashion-conscious working women. Can he do it?
Liz Claiborne's Mizrahi Moment - Portfolio.com

 

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]]>Allan Halprin2008-06-18T09:29:00+00:00Companies that vanished: WorldComhttp://www.bloggingstocks.com/2008/06/14/companies-that-vanished-worldcom/http://www.bloggingstocks.com/2008/06/14/companies-that-vanished-worldcom/http://www.bloggingstocks.com/2008/06/14/companies-that-vanished-worldcom/#commentsFiled under: , , ,

This post is part of a series on some of the most memorable companies that have disappeared.

Ah WorldCom. Aside from its storied history as one of the world's biggest accounting frauds, I remember it as my first cell phone company. My husband bought me a WorldCom phone as a gift and it turned out to not only have terrible service, but ridiculous billing practices, and we ended up paying to get out of the contract as I recall. I remember thinking that there was something really wrong with that company and later wishing I had pursued it as an investigative story, since I was then a writer at BusinessWeek Online and WorldCom was a hot stock.

But no, I never got onto such a story. In fact, I followed WorldCom's stock with interest since I had picked it in an office stock-picking contest years earlier and felt some satisfaction at its meteoric rise through the 1990s (even though I never actually owned the shares; it was just part of a fantasy portfolio).

But here's the WorldCom history that is worth remembering now: WorldCom started as Long Distance Discount Services (LDDS) in 1983. It changed its name to WorldCom in 1995. A series of mega-mergers transformed the company, culminating in its $40 billion deal for MCI. It was rechristened MCI WorldCom in 1998, the second largest long-distance calling company. The following year, just as it announced a deal with Sprint (now Sprint Nextel (NYSE: S)) that never came to fruition, the telecom industry started a prolonged downturn.

As WorldCom merged itself into hugeness, its charismatic founder and CEO, Bernard Ebbers (known as the telecom cowboy), gained great riches and notoriety. But as the company flailed in the telecom downturn, management resorted to accounting tricks to try to keep the stock afloat. By 2002, an elaborate accounting fraud was revealed, WorldCom admitted to $3.85 billion in misstatements and filed for bankruptcy. The accounting fraud tally ultimately grew to a shocking $11 billion.

Ebbers was convicted of securities fraud and conspiracy in 2005 and is currently serving a 25-year prison sentence in Louisiana.

In bankruptcy, WorldCom changed its name back to MCI, reorganized and began an effort to pay back creditors. Bondholders got about 36 cents on the dollar. The once high-flying stock became worthless. In 2006 Verizon Communications (NYSE: VZ) purchased MCI, and most of its remaining operations became what is now called Verizon Business. There, is where the WorldCom story ends.

Let us know in the comments what you remember about WorldCom. And be sure to check out other Companies That Have Vanished.

 

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]]>accountingBernie EbbersBernieEbbersfraudMCISprintWorldComAmey Stone2008-06-14T10:10:00+00:00FCC plan to lower cellphone termination fees may not be fairhttp://www.bloggingstocks.com/2008/06/13/fcc-plan-to-lower-cellphone-termination-fees-may-not-be-fair/http://www.bloggingstocks.com/2008/06/13/fcc-plan-to-lower-cellphone-termination-fees-may-not-be-fair/http://www.bloggingstocks.com/2008/06/13/fcc-plan-to-lower-cellphone-termination-fees-may-not-be-fair/#commentsFiled under: , ,

Kevin Martin, the chairman of the FCC, has made it his business to try to cut the costs that customers are charged when they cancel their service before the end of a contract. According to The New York Times, "Mr. Martin's plan would require that fees be related to the actual cost of the phones. A fee for a $50 phone would be higher than for a $5 phone." It would also take into account how many months a customer had left on a contract.

The cellular companies, including Sprint (NYSE: S), spend a lot of money on their poor customer service. They ought to have a chance to get some of that back when a customer walks. It probably also costs the firms money to reconnect all of those dropped calls.

The cellular companies do have initial costs to set-up service and billing when a new customer comes on board. The Martin plan does not appear to take that into account.

Just because the service is no good does not mean that the cellular provider is not out a lot of money to provide it.

Douglas A. McIntyre is an editor at 247wallst.com

 

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]]>FCCinthenewskevin martinKevinMartinSsprintDouglas McIntyre2008-06-13T10:35:00+00:00Before the bell: BUD, XOM, F, LEH, PFE ...http://www.bloggingstocks.com/2008/06/13/before-the-bell-bud-xom-f-leh-pfe/http://www.bloggingstocks.com/2008/06/13/before-the-bell-bud-xom-f-leh-pfe/http://www.bloggingstocks.com/2008/06/13/before-the-bell-bud-xom-f-leh-pfe/#commentsFiled under: , , , , , , , , , , , ,

Before the bell: Futures edge lower ahead of CPI

Anheuser-Busch Cos. (NYSE: BUD) is holding preliminary talks with rival Grupo Modelo SAB (Corona maker), according to The Wall Street Journal, in an attempt to thwart the $46 billion unsolicited offer it received Belgian brewer InBev SA.

Exxon Mobil (NYSE: XOM) said it plans to exit its U.S. retail gasoline business over the next few years, shedding the 820 service stations it still owns and operates and another 1,400 company-owned outlets operated by dealers of its branded fuels. Separately it also said it could spend more than $100 million for offshore oil exploration in the Philippines.

Tracinda Corp. on Friday said it will purchase 20 million shares of Ford's (NYSE: F) common stock in a tender offer at a purchase price of $8.50 per share, for a total purchase price of $170 million. That would increase billionaire Kirk Kerkorian, who controls Tracinda Corp., stake in Ford to 5.5%. Shares are up 2% in premarket trading.

Lehman Brothers (NYSE: LEH) shares may experience further volatility as there are reports Chief Executive Richard Fuld is looking for outside capital, possibly from a sovereign wealth fund or a U.S. investor. Meanwhile, speculation continues that after ousting CFO and COO Thursday, Fuld's days are numbered too. The Wall Street Journal says that Lehman "hopes to restore investor confidence by turning to a seasoned trading executive" such as new president McDade.


Pfizer (NYSE: PFE) may make a counter offer for Ranbaxy Laboratories, according to a report in India's Business Standard. Japan's Daiichi Sankyo offered $4.6 billion for the Indian generic drug maker.

This columnist, from Economist.com, thinks that with the new iPhone Apple Inc. (NASDAQ: AAPL) has recently unveiled, not only Palm (NASDAQ: PALM) and Research in Motion (NASDAQ: RIMM) ought to be "seriously concerned," but Sprint (NYSE: S) too as Apple is pushing toward LTE (4G) while Sprint is supporting the WiMax.

IBM (NYSE: IBM) is holding an analysts meeting today, some news could come out of there.

 

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]]>aaplbudfibminthenewslehpalmpferimmsxomMelly Alazraki2008-06-13T08:25:00+00:00Verizon bought Alltel for $28.1 billion: Is Sprint Nextel next?http://www.bloggingstocks.com/2008/06/09/verizon-bought-alltel-for-28-1-billion-is-sprint-nextel-next/http://www.bloggingstocks.com/2008/06/09/verizon-bought-alltel-for-28-1-billion-is-sprint-nextel-next/http://www.bloggingstocks.com/2008/06/09/verizon-bought-alltel-for-28-1-billion-is-sprint-nextel-next/#commentsFiled under: , ,

Now that Verizon Wireless has agreed to purchase privately held Alltel from its private equity owners (giving them a small profit and an out), what else is on tap for the soon-to-be largest wireless carrier in the U.S.? Verizon Wireless is chomping at the bit to overtake AT&T Inc. (NYSE: T) as the largest wireless carrier in the U.S., and its acquisition of Alltel will give it an 8 million+ wireless subscriber advantage over Ma Bell.

Although Alltel's buyout by Verizon was expected last year, it's now going to finally happen. Both companies use the same technical wireless standard, so this will be an easy merger. There will be no issues like when Sprint merged with Nextel in 2005 and the two incompatible networks caused an epic failure of those two companies to merge into one. Speaking of Sprint Nextel Corp. (NYSE: S), where does it play into the Verizon-Alltel landscape? Does its WiMAX plans now become derailed with the Verizon announcement, adding more insult to injury about the state of the company?

If anything, look for Verizon to take a strong look at buying Sprint Nextel shortly after its deal with Alltel closes. There would be way more regulatory scrutiny than the Alltel deal (overlapping markets, etc.), but a one-two knockout punch like this would make Verizon Wireless the pre-eminent wireless carrier in the U.S. for a long time. AT&T would have no choice but to plead with Deutsche Telekom to buy T-Mobile USA, the nation's fourth-largest wireless carrier, and one who also shares the same type of technical network as AT&T. Perhaps 2009 will see some of the neatest consolidation in the wireless world yet.

 

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]]>AlltelfeaturedSprint NextelSprintNexteltelecom stockstelecommunicationsTelecomStockstelecoomVerizon buys alltelVerizon WirelessVerizonBuysAlltelVerizonWirelessVZwirelessBrian White2008-06-09T10:45:00+00:00Sprint's iPhone competitor to require $70 monthly billhttp://www.bloggingstocks.com/2008/06/02/sprints-iphone-competitor-to-require-70-monthly-bill/http://www.bloggingstocks.com/2008/06/02/sprints-iphone-competitor-to-require-70-monthly-bill/http://www.bloggingstocks.com/2008/06/02/sprints-iphone-competitor-to-require-70-monthly-bill/#commentsFiled under: , , ,

When Sprint Nextel Corp. (NYSE: S) releases its own Apple, Inc. (NASDAQ: AAPL) iPhone competitor this month, all eyes will be on deck to see if this new phone can save the Titanic that is Sprint from sinking. The wireless carrier has been in terrible shape for over a year now, losing millions of customers and just struggling to maintain its customers. Although an Apple iPhone -- by its nature -- invites copycats from all over the globe, this new handset from Sprint looks like the most serious effort yet.

The wrinkle is this: Sprint will require a calling and data plan of at least $69.99 per month to activate and use the new Samsung Instinct phone. There are so many data features that Sprint decided to tack on quite a hefty minimum monthly bill. Hey, AT&T, Inc. (NYSE: T) is doing this with the iPhone, right? This may be the start of a new trend: minimum monthly plans (high minimums) for all these new whiz-bang phones soon to be released. Will customers bite, or will they choose phones with similar capabilities but without the large minimum monthly charge? We'll soon see.

Sprint believes the target customer for the new Samsung Instinct phone may have concerns about being "nickel and dimed" to death on all the charges needed to make the phone work with all its functionality intact. So, the carrier decided to have a flat-rate price and get rid of those concerns. Fair enough -- but don't automatically force the customer to a $70 plan. In Sprint's defense, that larger minimum hasn't swayed iPhone customers from buying gobs of that device with AT&T. But again, this is no iPhone -- it just looks like one. It appears to be packed with many more features than the iPhone, but just as thousands of competitors before it have shown, Apple is Apple -- nobody else is. Can it save Sprint? Hardly.

 

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]]>AAPLappleat and tAtAndTiPhonesSamsung InstinctSamsungInstinctSprintSprint NextelSprintNexteltBrian White2008-06-02T11:00:00+00:00A Virgin Mobile-Helio hookup?http://www.bloggingstocks.com/2008/05/18/a-virgin-mobile-helio-hookup/http://www.bloggingstocks.com/2008/05/18/a-virgin-mobile-helio-hookup/http://www.bloggingstocks.com/2008/05/18/a-virgin-mobile-helio-hookup/#commentsFiled under: , ,

Since its IPO last year, the shares of Virgin Mobile USA Inc. (NYSE: VM) have imploded -- going from $15.69 to a low of $1.90. The stock has lifted somewhat lately though, and is now trading at $3.43.

Actually, the company has confirmed that it is talking with Helio -- majority owned by SK Telecom (NYSE: SKM) -- about a possible merger.

Both companies are known as mobile virtual network operators (MVNOs), which means that they provide cell services by using another carrier's infrastructure. Unfortunately, the MVNO model has been extremely difficult to pull off (in fact, there have been several high-profile blow-ups in the space, such as Amp'd).

So will a combination help things?

To get some perspective on things, I had a chance to interview Frank Dickson, who is the Chief Research Officer at MultiMedia Intelligence. According to him:

"For MVNOs such as Virgin Mobile and Helio, where is the competitive advantage? What can be offered that the 'big boys' cannot? In the current environment of price competition, with Sprint firing the latest $99 dollar all-you-can-eat salvo, MVNOs are hard pressed to maintain an advantage. Their positions are tenuous at best.

"A merger of Virgin Mobile and Helio makes some sense as it gives them more scale. Scale is good. However, the customer bases and marketing strategies are different, creating little synergy there. In the end, one has to view this as two weaker competitors trying to combine to create a critical mass. When one has competitors like Verizon Wireless (NYSE: VZ), AT&T (NYSE: T), Sprint (NYSE: S) and T-Mobile, the merger will just not create enough scale."

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

 

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]]>AT and TFrank DicksonHeliointhenewsMVNOSK TelecomSKMSprintT-MobileVerizonVirgin MobileVMVZTom Taulli2008-05-18T11:10:00+00:00Earnings highlights: Wal-Mart, Macy's, Sony, Sprint, Sirius, Whole Foods and othershttp://www.bloggingstocks.com/2008/05/17/earnings-highlights-wal-mart-macys-sony-sprint-sirius-who/http://www.bloggingstocks.com/2008/05/17/earnings-highlights-wal-mart-macys-sony-sprint-sirius-who/http://www.bloggingstocks.com/2008/05/17/earnings-highlights-wal-mart-macys-sony-sprint-sirius-who/#commentsFiled under: , , , , , , , , , , , , , , , , ,

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Also, after AIG's (NYSE: AIG) dismal results, International Lease Finance Corp. wants to be spun off from its parent. Analysts see JC Penney, Kohl's and the rest of the retail sector rebounding in the latter half of the year. Jim Cramer ponders some suprising responses to so-so earnings reports, and looks ahead to Lowe's (NYSE: LOW) and Home Depot (NYSE: HD) as a sign for the housing sector.

Other upcoming results to watch for include Campbell Soup (NYSE: CPB), Autozone (NYSE: AZO), Hewlett-Packard (NYSE: HPQ), Intuit (NASDAQ: INTU), Staples (NASDAQ: SPLS), Target (NYSE: TGT), Limited Brands (NYSE: LTD) The Gap (NYSE: GPS) and Barnes & Noble (NYSE: BKS).

Visit AOL Money & Finance for more earnings coverage.

 

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]]>AIGANNAnnTaylorBBIBlockbusterearningsearnings reportsElectronic ArtsERTSFOSLFossilHome DepothousingIMAXInternational Lease FinanceJC PenneyJCPJim CramerJWNKohlsKSSLIZLiz ClaiborneLLLOWLowesLumber LiquidatorsMacysNextelNissanNordstromNSANYPCLNPricelineretailRock BandSIRISiriusSNESonySprintTIFTiffanyWal-MartWFMIWhole FoodsWild OatsWMTXMXMSRTrey Thoelcke2008-05-17T09:40:00+00:00Syniverse Holdings (SVR): Shares in bullish 'flag'http://www.bloggingstocks.com/2008/05/13/syniverse-holdings-svr-shares-in-bullish-flag/http://www.bloggingstocks.com/2008/05/13/syniverse-holdings-svr-shares-in-bullish-flag/http://www.bloggingstocks.com/2008/05/13/syniverse-holdings-svr-shares-in-bullish-flag/#commentsFiled under: , , , , , ,

Syniverse Holdings (NYSE: SVR) provides a variety of technology services to wireless telecommunications companies. Those services enable phone number portability; fraud management; the invoicing and settlement of wireless roaming calls; and the routing and translation of services between carriers. The company also offers data clearing and financial clearing services. Customers include AT&T (NYSE: T), Sprint Nextel (NYSE: S) and Verizon Communications (NYSE: VZ).

The firm pleased investors last week, when it reported Q1 EPS of 37 cents and revenues of $115.6 million. Analysts had been looking for 26 cents and $102.4 million. In discussing the quarter, the CEO noted particular strength in messaging and mobile data. Management also guided FY08 revenues to $455-$465 million ($435.83M consensus). JP Morgan subsequently upgraded the shares to "overweight". Wedbush Morgan reiterated its "strong buy," Lehman Brothers its "overweight" and Brean Murray its "buy." Price targets ranged between $24 and $26.

SVR shares popped through 30-day/50-day moving average resistance on the news and then moved into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Altogether, brokers now recommend the issue with four "strong buys," five "buys" and three "holds." Analysts expect a 15% growth rate, through the next year. The SVR Price to Book ratio (2.91), Price to Free Cash Flow ratio (14.61), Sales Growth rate (37.06%) and EPS Growth rate (99.67%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 66% of the outstanding shares. Over the past 52 weeks, the stock has traded between $11.65 and $22.23. A stop-loss of $18.25 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.

 

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]]>SSVRSyniverse HoldingsSyniverseHoldingsTtechnical analysisTechnicalAnalysisVZLarry Schutts2008-05-13T13:30:00+00:00Sprint Nextel's quarterly loss widenshttp://www.bloggingstocks.com/2008/05/12/sprint-nextels-quarterly-loss-widens/http://www.bloggingstocks.com/2008/05/12/sprint-nextels-quarterly-loss-widens/http://www.bloggingstocks.com/2008/05/12/sprint-nextels-quarterly-loss-widens/#commentsFiled under: , , , , ,

Shares of wireless carrier Sprint Nextel Corp. (NYSE: S) are plunging after the company reported a large first quarter loss this morning. The company posted stronger-than-expected adjusted earnings, but this was not enough to reassure investors who pushed the stock down more than 3%.

Sprint Nextel posted a quarterly loss of $505 million, or 18 cents per share, compared with a loss of $211 million, or 7 cents, in the same period a year ago. Its quarterly numbers were dragged down by losses of more than 1 million subscribers and severance charges. However, excluding one-time charges, the company would have earned 4 cents. Analysts had expected earnings on that basis of only 2 cents per share, according to Thomson Financial. Revenue tumbled 7.5% to $9.3 billion, well below expectations of $9.4 billion.

The company said that its total subscribers number dropped by 1.09 million to 52.8 million, including 1.07 million post-paid customers. This was actually a good news since the company anticipated a loss of 1.07 million post-paid customers.

Sprint still expects further challenging times but, on the other side of the coin, the company is "making progress in methodically attacking the sources of our performance issues." The wireless carrier had a difficult 2007, but has shown signs of recovery since the beginning of this year. In addition, Chief Executive Officer Dan Hesse believes Sprint's finances will stabilize toward the end of the year.

Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.

 

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]]>earningsforecastinthenewssSprint NextelSprintNextelwireless carrierWirelessCarrierEliza Popescu2008-05-12T10:31:00+00:0016 double-your-money stocks, 8 ways to make a million & 10 real estate markets set for steeper losses - Today in Money 5/12http://www.bloggingstocks.com/2008/05/12/16-double-your-money-stocks-8-ways-to-make-a-million-and-10-real/http://www.bloggingstocks.com/2008/05/12/16-double-your-money-stocks-8-ways-to-make-a-million-and-10-real/http://www.bloggingstocks.com/2008/05/12/16-double-your-money-stocks-8-ways-to-make-a-million-and-10-real/#commentsFiled under: , , , , , , ,

In the News:
· Bond Insurer MBIA Slides to Whooping $2.41 Billion Loss
· Sprint Nextel Quarterly Loss Widens as Subscribers Flee
· Stamp Prices Rise a Penny
· Gas Prices Hit Fifth Straight Record
· Cablevision Buys Newsday for $650 Million
· Did Microsoft Overpay for Its Facebook Stake?
· Toyota Delays New U.S. Auto Plant Due to Economy
· Social-Networking Sites Try to Turn Users Into Profits
· Hybrid Cars Recoup Higher Costs in Less Time
· Fox Business News Refines Daytime Lineup
· BlackBerry Bold Finally Arrives; Take a Peek

16 Double-Your-Money Stocks
It's an investor's dream: A stock with the potential to double in price. How do you spot companies that could potentially rise 100% in price? BusinessWeek asked experts for some advice and their favorite stock picks. Here are 16 stocks that expert investors believe could double in price. They include Rubicon Technology, OM Group, Wonder Auto Technology, IHS, Ansys and Volterra Semiconductor.
Stocks: The Double-Your-Money Club - BusinessWeek

8 Ways to Make a Million
Don't just dream about striking it rich. Learn from those who did. A growing number of Americans are achieving millionaire status. And in the stories of these ten people you'll find a lot that will make your life richer, whether you become a millionaire or not. See how these entrepreneurs, investors and savers have made a million.
Eight Lessons: Ways to Make a Million - Kiplinger.com


Turn $461 a Month Into a Million Bucks
If you're 30 years old, you need to set aside $448 per month for next 35 years to become a millionaire -- if you earn a reasonable 8% annualized return in a retirement account. Don't have $448 to spare -- or even $248? Maybe you do and don't realize it. Here are some simple you can come up with the cash.
How to Find Extra Cash - Kiplinger
Also: Strategies to Save a Million if You are 25, 35, 45 and 55

The Confessions of Barry Diller
The media mogul almost lost it all in an epic battle with partner John Malone. Now he talks about what went wrong -- and how he plans to reinvent himself one more time.
Barry Diller Profile - Executive Articles - Portfolio.com

Real Estate Markets Set for Steep Losses
The worst isn't over for Miami, Phoenix, and hard hit areas of California, which are forecast to see big price drops in the next 12 months, according to Money Magazine.
10 markets set for steep losses - Money Magazine
Also: California Screaming: Tales From the Housing Bust

10 Cars for Aging Baby Boomers
Baby boomers came of age driving muscle cars and SUVs. As they get older, they can continue their love affair with the car, but instead of powerful engines or flashy exteriors, they will need new features and technology that aid their weaker eyes and creakier joints.
http://images.businessweek.com/ss/08/05/0509_old_boomer_cars/index_01.htm?technology+slideshows

 

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]]>Allan Halprin2008-05-12T09:02:00+00:00Before the bell: Futures higher as oil retreats, dollar strengthenshttp://www.bloggingstocks.com/2008/05/12/before-the-bell-futures-higher-as-oil-retreats-dollar-strength/http://www.bloggingstocks.com/2008/05/12/before-the-bell-futures-higher-as-oil-retreats-dollar-strength/http://www.bloggingstocks.com/2008/05/12/before-the-bell-futures-higher-as-oil-retreats-dollar-strength/#commentsFiled under: , , , , , , , , , , , ,

Stock futures were higher early Monday morning as the dollar strengthened and oil prices retreated. Investors may be coming into the market looking for bargains as a result of the recent selloff, meanwhile digesting news of a profit warning from FedEx, upbeat outlook from HSBC and Cableivision may be close to buying Newsday.

On Friday, stocks tanked after oil kept setting new highs, passing the $126 per barrel level. Losses from American International Group -- a Dow component -- also contributed to the bearish sentiment as many had hoped financials were on their way to a recovery. The Dow industrials lost 120 points, or 0.94%, the Nasdaq Composite declined 5 points, or 0.23%, and the S&P 500 declined 9 points, or 0.67%.

Without much economic news, investors will focus on the dollar and oil prices. After breaking the $126 per barrel level Friday and settling at $125.96, oil prices retreated Monday in Asia as the dollar strengthened against the euro and yen. Of course, the retreat is relative and oil has been trading around $125.34 recently.
And for the first time since December 2005, futures traders are turning bullish on the dollar, according to Bloomberg. According to two measures of currency trading, it seems traders expect further dollar appreciation, and not only that, that the rally will hold.

Late Friday, FedEx (NYSE: FDX) warned its fourth-quarter profits could be hurt due to the increase in fuel cost and it cut its quarterly guidance. FDX shares were trading over 3% lower in after-hours Friday.

But while FedEx gave a gloomy outlook, HSBC (NYSE: HBC) said it expects to record larger first-quarter profit than a year earlier despite $3.2 billion in writedowns it disclosed Monday. HSBC CEO said there has been a lull in U.S. delinquencies. HBC shares have been up over 2% in Europe.

In deal news, Cablevision Systems Corp. (NYSE: CVC) may be close to buying Newsday newspaper Tribune Co. after Rupert Murdoch's News Corp. (NYSE: NWS) withdrew its offer. The price mentioned is $650 million.

And finally, companies reporting today include Quarterly updates also are due from Sprint Nextel (NYSE: S), which has been in the news lately with a large WiMax deal and possible intereste from Deutche Telekom (NYSE: DT), MBIA (NYSE: MBI), which has seen much better days in its past, and Sirius Satellite Radio (NASDAQ: SIRI), which is still waiting for approval of its purchase of rival XM Satellite Radio (NASDAQ: XMSR).

 

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]]>aigcvcdtfdxfeaturedhbcmbinwsssirixmsrMelly Alazraki2008-05-12T07:38:00+00:00