Hewlett-Packard (HPQ), the famous maker of printers and PCs, and a colleague of entities such as Microsoft (MSFT), Dell (DELL), and International Business Machines (IBM), issued Q4 results on Monday after the end of the trading day. Revenues didn't impress me, as sales saw a decline of 8%. Net income, however, was better. On an adjusted basis, earnings per share increased 11% to $1.14.

Also doing well was the operating margin. The adjusted metric increased 170 basis points during the quarter. The annual statement of cash flows should look good to any long-term shareholder. Management still had cash left over from operations after share repurchases, dividend obligations, and capital spending.

Continue reading Hewlett-Packard reports growth in profit and operating margin in Q4

Hewlett-Packard reports growth in profit and operating margin in Q4 originally appeared on BloggingStocks on Tue, 24 Nov 2009 09:00:00 EST. Please see our terms for use of feeds.

From TheStreet.com Network

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TheStreet.com's Jim Cramer says if the market made sense, you could buy retail and restaurants off the lower oil price.

Here's the pattern: We get shelled by oil. It drops to $76 or $77, all energy goes down, and it takes everything else with it. Some of tech has been spared lately because of 3Com (COMS) (Cramer's Take).

Then, in the following couple of days, oil stabilizes (but not after it hurts the oils again), rallies, and everything goes with it.

That's what's been occurring. I don't know why it's any different. In this moment in time, it's often best to buy the most hammered natural gas stocks because they come back fast. The best value is Devon (DVN) (Cramer's Take), but it simply isn't down enough. Apache (APA) (Cramer's Take) would make sense below $60, which is still a ways from here.

Continue reading Cramer on BloggingStocks: Recognize the ludicrous pattern

Cramer on BloggingStocks: Recognize the ludicrous pattern originally appeared on BloggingStocks on Fri, 13 Nov 2009 10:40:00 EST. Please see our terms for use of feeds.

3Com (COMS) agreed to be acquired by Hewlett-Packard (HPQ) in a deal that values 3Com at $7.90 a share, a 39% premium to Wednesday's closing price of $5.69. 3Com over-all option implied volatility of 53 is below its six-week average of 57. 3Com traded 7,957 contracts on November 11, according to Track Data. 3Com's average daily volume is 2,030 contracts according, to IVolatility.

Verisign (NASDAQ: VRSN) closed at $22.91. Verisign is scheduled to host an analyst day on November 19. November option implied volatility is at 46; December is at 43; near its 26-week average, according to Track Data, suggesting non-directional price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Options Update: 3Com options active into Hewlett-Packard's $2.7 billion purchase originally appeared on BloggingStocks on Thu, 12 Nov 2009 09:00:00 EST. Please see our terms for use of feeds.

Continue reading HP's deal for 3Com: A missile launch at Cisco?

HP's deal for 3Com: A missile launch at Cisco? originally appeared on BloggingStocks on Thu, 12 Nov 2009 08:30:00 EST. Please see our terms for use of feeds.

In terms of estimates, 3Com did well. The market was expecting 5 cents per share. The analyst community was obviously worried that the recession was going to hamper profit growth more than it did. Of course, who could blame the analysts, right? After all, 3Com did see a better than 8% slide in top-line sales.

Continue reading 3Com shows little profit growth, stock sells off

3Com shows little profit growth, stock sells off originally appeared on BloggingStocks on Thu, 09 Jul 2009 16:00:00 EST. Please see our terms for use of feeds.

The quarter is winding down, and here are some highlights from this past week's earnings coverage from BloggingStocks:

• Air Products & Chemicals Inc. (NYSE: APD) lowered its guidance for the current quarter.
• AutoZone Inc. (NYSE: AZO) missed Q4 earnings estimates despite a modest increase in profits.
• Bed Bath & Beyond Inc. (NASDAQ: BBBY) reported disappointing Q2 results that met analysts' expectations.
• Chevron Corp. (NYSE: CVX) faces earnings declines if the Paulson plan fails, says Jim Cramer
• Circuit City Stores Inc. (NYSE: CC) earnings declines finally led to the ouster of CEO Schoonover.
• Discover Financial Services (NYSE: DFS) beat Q3 expectations despite charges and reserves.
• General Electric Co. (NYSE: GE) lowered its Q3 and full-year forecast due to financial sector woes.
• KB Home (NYSE: KBH) reported a greater-than-expected loss for Q3, and yet shares rose.
• Lennar Corp. (NYSE: LEN) posted significantly smaller Q3 losses on cost cutting.
• McCormick & Co. Inc. (NYSE: MKC) topped Q3 expectations due to the sale of a brand.
• Nike Inc. (NYSE: NKE) posted better-than-expected Q1 results despite a decline in net income.
• Research in Motion Ltd. (NASDAQ: RIMM) posted strong Q2 results accompanied by a weak forecast.
• Rite Aid Corp. (NYSE: RAD) Q2 net loss more than doubled and revenues were flat
• Secure Computing Corp. (NASDAQ: SCUR) missing estimates didn't stop a deal with McAfee (NYSE: MFE).
• 3Com Corp. (NASDAQ: COMS) Q1 results topped both analysts estimates and previous guidance.
• 3M Co. (NYSE: MMM) faces significant earnings declines if the Paulson plan fails, says Jim Cramer.

Also, are analysts' expectations for the the coming year too optimistic?

Upcoming quarterly reports include Circuit City (NYSE: CC), Walgreen (NYSE: WAG), Pepsi Bottling Group (NYSE: PBG), Constellation Brands (NYSE: STZ), Marriott International (NYSE: MAR), Family Dollar Stores (NYSE: FDO).

Visit AOL Money & Finance for more earnings coverage.

Earnings highlights: Nike, Research in Motion, Lennar, GE and others originally appeared on BloggingStocks on Sat, 27 Sep 2008 14:40:00 EST. Please see our terms for use of feeds.

3Com (COMS) investors catching a break on earnings originally appeared on BloggingStocks on Tue, 23 Sep 2008 11:20:00 EST. Please see our terms for use of feeds.

Earnings reports continue to dribble in as the quarter winds down. Much of the attention this week will be on homebuilders KB Home (NYSE: KBH) and Lennar Corp. (NYSE: LEN) as investors look for any sign that the housing sector has bottomed (home sales numbers are also due out this week; see below). Analysts surveyed by Thomson Financial anticipate that both companies will report that they narrowed their losses in the most recent quarter.

KB Home's expected $1.25 per share loss, on revenue of $725.5 million, compares to the previous quarter loss of $3.30 and to a year-ago loss of $6.19. However, KB Home's losses in the past few quarters have been deeper than expected. The Los Angeles-based homebuilder's long-range earnings growth forecast is 10.5%, less than the S&P 500. Analysts continue to recommend holding KB Home, and have for at least 120 days. Shares, however, reached a new 52-week high of $31.69 on Friday, and they are up 10.5% year to date.

Lennar is expected to post a loss of 52 cents per share, on revenue of $1.1 billion. That compares to the previous quarter's per-share loss of 76 cents and to a year-ago loss of $3.25. While Lennar also has tended in the past few quarters to miss expectations, the Miami-based company managed a positive surprise in the first quarter of 2008. Lennar's long-range earnings growth forecast is 10.3%, about the same as KB Home's. Analysts also recommend holding Lennar. Friday, shares of Lennar also reached a 52-week high, $27.75, but they are down 6.4% year to date.

Continue reading The week in preview: A bottom for the housing sector?

The week in preview: A bottom for the housing sector? originally appeared on BloggingStocks on Sun, 21 Sep 2008 12:30:00 EST. Please see our terms for use of feeds.

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

• Archer Daniels Midland Co. (NYSE: ADM) said Q4 profit plunged, missing analysts' expectations.
• Berkshire Hathaway Inc. (NYSE: BRK.A) posted yet another solid quarter and topped analysts' expectations.
• Cisco Systems Inc. (NASDAQ: CSCO) reported solid results and reaffirmed its revenue guidance.
• General Mills Inc. (NYSE: GIS) performance despite rising commodities costs impressed Jim Cramer.
• Hansen Natural Corp. (NASDAQ: HANS) Q2 earnings surged on popularity of Monster energy drink.
• Humana Inc. (NYSE: HUM) beat Q2 expectations, sending shares of health insurers higher.
• LeapFrog Enterprises Inc. (NYSE: LF) narrowed its Q2 loss, sending shares up near its 52-week high.
• MGM Mirage (NYSE: MGM) Q2 profit tumbled but revenues topped analysts' expectations.
• NetSuite Inc. (NYSE: N) cut its Q2 loss and revenues surged on 400 new customers.
• Orbitz Worldwide Inc. (NYSE: OWW) narrowed its net loss while revenues inched upward.
• Polo Ralph Lauren Corp. (NYSE: RL) easily topped Q1 expectations and raised its full-year guidance.
• Pzena Investment Management Inc's (NYSE: PZN) CEO admits that its Q2 was "awful, just terrible."
• 3Com Corp. (NASDAQ: COMS) raised its Q1 profit and sales forecasts due to gains in China.
• Toyota Motor Corp. (NYSE: TM) net income fell due to the strong yen and rising materials costs.
• Warner Music Group Corp. (NYSE: WMG) reported a smaller-than-expected Q3 net loss.
• World Wrestling Entertainment Inc. (NYSE: WWE) flat year-over-year earnings fell short of estimtates.

Continue reading Earnings highlights: Toyota, Cisco, ADM, MGM, General Mills, Warner Music and others

Earnings highlights: Toyota, Cisco, ADM, MGM, General Mills, Warner Music and others originally appeared on BloggingStocks on Sat, 09 Aug 2008 16:40:00 EST. Please see our terms for use of feeds.

Some may be concerned due to recent reports of China's slower economic growth. But two things are worth mentioning here. First, China's slower GDP growth is still a whopping 9%, down from 11%. And second, telecom infrastructure will likely continue at the same pace.

It isn't surprising, then, that 3Com has raised guidance for both sales and earnings. Specifically, 3Com expects sales in China to be 10% higher than in the previous quarter on stronger sales to Huawei.

Continue reading 3Com shares jump 12% after guidance raised

3Com shares jump 12% after guidance raised originally appeared on BloggingStocks on Tue, 05 Aug 2008 13:45:00 EST. Please see our terms for use of feeds.

• DJIA 12,302.70 (-120.16; -0.97%)
• NASDAQ 2,280.83 (-43.53; -1.87%)
• S&P500 1,325.77 (-15.36; -1.15%)
• 10YR-TBond 3.534% (+0.04%)
• Key 52-Week Lows

Continue reading Closing Bell: More negative close than it felt like

Closing Bell: More negative close than it felt like originally appeared on BloggingStocks on Thu, 27 Mar 2008 16:57:00 EST. Please see our terms for use of feeds.

The US government has been looking into a deal which would allow Chinese interests to buy US telecom equipment company 3Com (NYSE: COMS). That investigation is now being extended, a sign the the transaction could be killed.

According to the FT, The Committee on Foreign Investment in the United States "is studying possible national security implications of the 3Com takeover." Huawei Technologies, a Chinese telecom equipment maker, could end up with intrusion prevention technology used by the US Defense Department..

The investigation pits the needs of investors against concerns of the government. 3Com lost money in the last quarter. The only reason the stock trades at $4.52 is the buyout offer. The stock could easily drop to it recent low of $3.22 if the deal is killed.

Aside from the investor pain that the government could cause, the news opens the door wider to issues of which companies are strategic to US interests and which are not. As sovereign funds from other nations put money into US banks and technology companies the problems are likely to become more complex.

The American government is getting into the business of deciding whether shareholders can get money from some corporate buyouts.

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

US government could kill 3Com deal originally appeared on BloggingStocks on Wed, 02 Jan 2008 08:45:00 EST. Please see our terms for use of feeds.

This morning 3Com (NASDAQ: COMS) announced that private equity firm, Bain Capital, would put it out of its misery and pay $2.2 billion in cash for the company. 3Com has lagged so far behind that it has been painful to watch. 3Com and Cisco Systems (NASDAQ: CSCO) indeed could provide at least two to three chapters in an investing teaching and history book. Here's the CliffsNotes version:

Summer of 1994 was a tough technology environment. Technology had a great run from 1990 through 1994, till summer that is. Valuations contracted and investor fatigue set in for about four to five months. I was traveling through Silicon Valley with a couple of British portfolio managers visiting companies. One day we had a breakfast meeting with then CEO Eric Benamou of 3Com and lunch with a senior VP at Cisco (whose name escapes me). Benamou was an intellectual, a refined man, but did not possess the street smarts necessary for a tech company CEO. He was arrogant and bluntly declared that Cisco's days were numbered and 3Com would acquire any tech company necessary to achieve total domination. OK, great, and we went on to Cisco for lunch.

The senior VP was a classy guy, never said a bad word about any competitor and just explained Cisco's game plan and execution philosophy. Here is the funny part: In July 1994, BOTH companies had a market capitalization of $9 billion.

Continue reading Cisco (CSCO) today 100 times bigger than 3Com (COMS) -- it wasn't in 1994

Cisco (CSCO) today 100 times bigger than 3Com (COMS) -- it wasn't in 1994 originally appeared on BloggingStocks on Fri, 28 Sep 2007 13:40:00 EST. Please see our terms for use of feeds.

According to the Wall Street Journal [subscription required] Marlborough, MA-based 3Com Corp. (NASDAQ: COMS) is going private with the help of Bain Capital and Huawei Technologies for more than $2 billion -- or $5.50 a share. 3Com is up 34% to $4.94 in pre-market.

3Com has been hobbled for most of this decade but it has a storied history. Its founder invented Ethernet -- a way for computers to share information. It bought a company that made a very popular modem during the era when people dialed up the Internet on a telephone line. And with this acquisition came a technology which became the Palm Pilot -- a Personal Digital Assistant (PDA) which was an indispensable appendage for dot-commers in the 1990s.

Unfortunately, 3Com's financial position was weak -- it lost $89 million on $1.27 billion in sales in the year ending June 2007 but it generated $58 million in cash. It couldn't maintain its technology lead and it was surpassed by competitors in all its markets.

Continue reading 3Com (COMS) gone private

3Com (COMS) gone private originally appeared on BloggingStocks on Fri, 28 Sep 2007 09:10:00 EST. Please see our terms for use of feeds.

Continue reading Corporate sponsorship targets colleges

Corporate sponsorship targets colleges originally appeared on BloggingStocks on Thu, 02 Aug 2007 17:31:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Goldman upgraded IBM Corp (NYSE: IBM) to Buy from Neutral to reflect the company's valuation creation moves, as the firm believes IBM's accelerated buyback program and pension expense reduction will be accretive to earnings.

• Despite ThinkEquity's belief that the company was faltering, Amazon.com (NASDAQ: AMZN) customers have grown in size and accelerated their purchases. The upgrade to Accumulate from Source of Funds was based on Amazon.com's increase of market share in core categories.

• AG Edwards upgraded Hewlett Packard (NYSE: HPQ) to Buy from Hold based on higher estimates, continued share gains and the evidence that HPQ has continued its cost cutting abilities.

• BMO Capital upgraded shares of Universal Technical Institute (NYSE: UTI) to Market Perform from Underperform following the company's Q1 results.

• 3Com (NASDAQ: COMS) was upgraded to Hold from Sell at Matrix USA based on the company's improving balance sheet ..

• Jefferies upgraded Lionbridge Technologies (NASDAQ: LIOX) to Buy from Hold.

• Bear Stearns raised Time Warner Telecom Inc (NASDAQ: TWTC) to Outperform from Peer Perform.

• Morgan Keegan upgraded Jones Apparel Group, Inc (NYSE: JNY) to Market Perform from Underperform and Bebe Stores, Inc (NASDAQ: BEBE) to Outperform from Market Perform.

• Prudential upgraded Alcan Inc (NYSE: AL) to Neutral from Underweight.

Analyst upgrades 5-09-07: AMZN, COMS, HPQ, IBM and JNY originally appeared on BloggingStocks on Wed, 09 May 2007 11:04:00 EST. Please see our terms for use of feeds.

Continue reading 3Com suitor may now be sought

3Com suitor may now be sought originally appeared on BloggingStocks on Wed, 29 Nov 2006 18:09:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY: Notable companies from today's downgrade list include the New York Stock Exchange (NYX) and Nokia (NOK).

• JP Morgan downgraded the New York Stock Exchange Group Inc. (NYSE:NYX) to Neutral from Overweight based on valuation; they also foresee potential integration issues with Euronext.
• Nokia Corp. (NYSE:NOK) was downgraded to Hold from Add at West LB.

OTHER DOWNGRADES:

• YRC WorldWide Inc. (NASDAQ:YRCW) and Arkansas Best Corp. (NASDAQ:ABFS) were downgraded at Stephens to Underweight from Equal Weight, citing the deteriorating Less-Than-Truckload environment.
• Bear Stearns downgraded 3Com Corporation (NASDAQ:COMS) to Peer Perform from Outperform citing increased execution; Lehman Brothers downgraded 3Coms (COMS) to Underweight from Equal Weight.

Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Analyst downgrades 11-29-06: NYSE group, Nokia downgraded originally appeared on BloggingStocks on Wed, 29 Nov 2006 11:02:00 EST. Please see our terms for use of feeds.

After reaching $100 a share in 2000, it's been mostly torture for shareholders of 3Com as it spiraled lower and lower. But today, the stock got some juice, increasing 12.58% to $5.01.

A report from Bloomberg indicates that the company is a possible takeover target. The theory is that one or more private equity firms will make a bid of $7 per share.

Apparently, the big interest is in 3Com's joint venture with Huawei Technologies Co. This has been a key growth driver.

But, with the recent big buyout deals - such as the takeover of Freescale - there are now a lot of rumors swirling. For the most part, rumors are just that. So, as always: investors beware.

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.

3Com: Buyout Bait? originally appeared on BloggingStocks on Thu, 05 Oct 2006 16:30:00 EST. Please see our terms for use of feeds.