Continue reading Closing Bell: Slow Growth Better Than No Growth (NYT, SLAB, V, MA, ZGEN, JASO)

Closing Bell: Slow Growth Better Than No Growth (NYT, SLAB, V, MA, ZGEN, JASO) originally appeared on BloggingStocks on Wed, 08 Sep 2010 16:00:00 EST. Please see our terms for use of feeds.

Continue reading America Movil Makes Bid for Telmex

America Movil Makes Bid for Telmex originally appeared on BloggingStocks on Thu, 14 Jan 2010 13:00:00 EST. Please see our terms for use of feeds.

Emergencies make strange bedfellows. Carlos Slim, the Mexican billionaire, will put $250 million into The New York Times Company (NYSE: NYT). According to The New York Times, "Under the terms of the deal, Mr. Slim, who already owns 6.9 percent of the Times Company, would invest $250 million in the form of six-year notes with warrants that are convertible into common shares." The notes carry a 14% interest rate, which makes them the equivalent of junk debt.

If Slim lived in the US, The Times writers would beat him like a rented mule because of his close, some say too close, ties to the Mexican government. These cozy relationships are often viewed as one of the reasons he has done so well financially.

Forbes reports that Slim may be well-regarded outside Mexico, "But not in Mexico, where the media and the masses long have held a sneaking suspicion that there is something shady about Slim. He is decried as a rapacious monopolist who built his empire on cozy ties to Mexican presidents and other politicians."

Slim is a perfect target for investigative reporting, something The Times prides itself on. But, the paper needs the money, so Slim's potential conflicts of interest in his own country will be overlooked.

Douglas A. McIntyre is an editor at 24/7 Wall St.

Carlos Slim invests in The New York Times, which should be his critic originally appeared on BloggingStocks on Tue, 20 Jan 2009 08:35:00 EST. Please see our terms for use of feeds.

During a financial crisis, the US markets should be open everyday. That includes Christmas and the Fourth of July. It includes Thanksgiving and Martin Luther King Day.

The reason is that US investors and the US banking system lose a day in their ability to react to news like the big UK banking and financial system bailout. While markets in Asia and Europe trade and make efficient work of creating or destroying the value of shares in companies which are effected by the news, the measurement of the worth of American shares is frozen. Investors have to pass up an ability to trade. Because of that a British bank's shares can be revalued in the stock market. A US bank's cannot.

If the US is going to present itself as the center of the global capital markets, it cannot afford to have "days off" The big news from the UK proves the case. According to several news reports, Carlos Slim will lend money to The New York Times Company (NYSE:NYT). The news is to a large extent useless beyond the fate of the company itself.

The US markets should be open every day. Otherwise capital use is inefficient.

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

Keeping US markets open every day originally appeared on BloggingStocks on Mon, 19 Jan 2009 09:15:00 EST. Please see our terms for use of feeds.

Carlos Slim to invest $250 million in New York Times originally appeared on BloggingStocks on Mon, 19 Jan 2009 08:40:00 EST. Please see our terms for use of feeds.

The Wall Street Journal reports (subscription required) on speculation that Mexican billionaire Carlos Slim may provide The New York Times Co. (NYSE: NYT) with some much-needed cash.

Mr. Slim disclosed a 6.4% stake in the company back in September, but the stock has taken a beating since then. The company is looking desperately to raise cash with a sale and lease-back of part of its headquarters and "various other financing alternatives," including "private placements."

But the Journal notes that "The big question is whether Mr. Slim would demand some degree of control for an infusion. The next question then would be the response of the fractious Sulzberger family."

Here's my take on it: Slim would have to be absolutely mental to toss another hundred million dollars or more into a company with a history of terrible shareholder returns without demanding that the Sulzberger family give up their total control of the company's destiny.

A New York Times Co. controlled freely by its shareholders would be good news for the company and its investors. The Sulzberger family has never demonstrated a willingness to let outsiders have a say in the company's future, but at this point they may not have much of a choice. The question is whether it's too late for new leadership to make a difference.

Will Carlos Slim save The New York Times? originally appeared on BloggingStocks on Sat, 17 Jan 2009 11:40:00 EST. Please see our terms for use of feeds.

Saks adopts poison pill: Why? originally appeared on BloggingStocks on Fri, 28 Nov 2008 11:15:00 EST. Please see our terms for use of feeds.

Has management of New York Times Co. (NYSE: NYT) finally woken up and smelled the coffee? Not only did the third-largest newspaper publisher report awful earnings, but the New York-based company also announced that it might cut its dividend, a move that will hit the controlling Sulzberger-Ochs family where it hurts -- in the pocketbook.

Net income at the publisher of the namesake newspaper fell 51.4 percent to $6.52 million, or 5 cents a share, compared with $13.4 million, or 9 cents, a year earlier, the company said in a press release. Total revenues decreased 8.9 percent to $687.0 million from $754.4 million. Advertising revenue fell a whopping 14.4 percent as companies reduced marketing spending because of the uncertainty about the economy.

Continue reading The New York Times' financial situation continues to grow more dire

The New York Times' financial situation continues to grow more dire originally appeared on BloggingStocks on Thu, 23 Oct 2008 14:48:00 EST. Please see our terms for use of feeds.

Will the Paulson plan make money? Don't forget where we're getting the cash! originally appeared on BloggingStocks on Thu, 25 Sep 2008 12:12:00 EST. Please see our terms for use of feeds.

Mexican businessman Carlos Slim Helú is believed to be the richest man in the world. As chairman of Teléfonos de Mexico, better known as Telmex (NYSE: TMX) and América Móvil (NYSE: AMX), Slim has substantial influence over the telecommunications industry in Mexico, and much of Latin America as well.

The past year has been good to Slim. In the spring, with an estimated net worth of $53.1 billion, he overtook investing guru Warren Buffett as the world's second richest person. By the end of the summer, Fortune reported that Slim's net worth had grown to $59 billion, allowing him to overtake Microsoft founder Bill Gates as the world's wealthiest person.

Carlos Slim's personal wealth grew by $12 billion during the year, and he also controls a $150 billion business empire. His family's holdings represented more than 5% of Mexico's 2006 gross domestic product, and Slim-controlled companies made up one-third of the $422 billion Mexican stock exchange.

With his political connections and business savvy, Slim has managed to fend off accusations of monopolistic business practices for years, but the hammer may finally be about to fall. A probe of Carlos Slim's empire by Mexican antitrust regulators is scheduled to ramp up in the new year. Will 2008 see his empire crumble?

Continue reading Money Winners of 2007: Carlos Slim, the world's richest person

Money Winners of 2007: Carlos Slim, the world's richest person originally appeared on BloggingStocks on Fri, 14 Dec 2007 14:10:00 EST. Please see our terms for use of feeds.

Continue reading Plug pulled on CompUSA: Retailer to close by year's end

Plug pulled on CompUSA: Retailer to close by year's end originally appeared on BloggingStocks on Mon, 10 Dec 2007 10:15:00 EST. Please see our terms for use of feeds.

Carlos Slim looks to unload more CompUSA stores originally appeared on BloggingStocks on Fri, 07 Dec 2007 11:45:00 EST. Please see our terms for use of feeds.

Seems the world economy is growing and changing so fast that staying on top for very long will become harder. Carlos Slim of Mexico did not retain the title very long, as CNBC is reporting Meet the World's New 'Richest Person' -- For Now, a story about Mukesh Ambani. It has been reported that he is just completing a ONE BILLION DOLLAR HOME! Here's how the Indian press reports rank the world's top five richest people as of today, based on known public stock holdings:

• Mukesh Ambani - $63.2 billion
• Carlos Slim Helu - $62.2993 billion
• William (Bill) Gates - $62.29 billion
• Warren Buffett - $55.9 billion
• Lakshmi Mittal - $50.9 billion

What's more important is who is taking what actions. What are these supernova rich guys doing with their wealth? In the case of Gates and Buffett, they have become the world's biggest philanthropists. Carlos Slim has expressed a desire to share his wealth as well by setting up a $10 billion foundation -- I'm not sure how far he has gone with that idea. Mittal is still busy buying up all the steel production on the planet, and is now the largest player in the market. That will increase his wealth for now. On the other hand, the Hunt Brothers of Texas thought that way in the 1970s about silver, and found out rather quickly that was not their brightest idea. Steel is likely a much better bet.

Continue reading World's richest is Mukesh Ambani: Billion-dollar decisions from a billion-dollar home

World's richest is Mukesh Ambani: Billion-dollar decisions from a billion-dollar home originally appeared on BloggingStocks on Mon, 29 Oct 2007 20:14:00 EST. Please see our terms for use of feeds.

Eat your heart out Warren Buffett. Carlos Slim is the world's richest man, and the Wall Street Journal took a fascinating look at his investment secrets in the weekend edition. According to the piece:

It's hard to spend a day in Mexico and not put money in his pocket. The 67-year-old tycoon controls more than 200 companies -- he says he's "lost count" -- in telecommunications, cigarettes, construction, mining, bicycles, soft drinks, airlines, hotels, railways, banking, and printing. In all, his companies account for more than a third of the total value of Mexico's leading stock market index, while his fortune represents 7% of the country's annual economic output.

His secret? Monopolies. He has a stranglehold on the telephone industry in Mexico, and has drawn the inevitable comparisons to the robber barons of the early industrial days of the United States. While I lack the time or the familiarity with Slim's career to opine on the ethics of his maneuvers, I do note an interesting similarity between Warren Buffett, Bill Gates, and Carlos Slim, the world's three richest men: Gates built his fortune by creating a product that everyone needed and has many monopolistic qualities. Buffett built his by buying brands with "strong moats" at reasonable prices. Slim has sought to eliminate competition in the industries he operates in.

All three sought moats in some way, and seeking a moat is arguably the way to make money: If you're a worker, develop a valuable skill that other people don't have. That's a monopoly. Anytime you have something that other people want and can't get without you, that's a moat/monopoly.

Carlos Slim: Success secrets of the world's richest man originally appeared on BloggingStocks on Sun, 05 Aug 2007 10:10:00 EST. Please see our terms for use of feeds.

If you're reading this on 7/7/07, today is your lucky day. That's because Reuters reports that today is the day that an organization called New 7 Wonders of the World is releasing its list of the 7 Wonders of the World in Lisbon. Europe's leading contenders are the Acropolis in Athens, Rome's Colosseum, and the Eiffel Tower. They are competing with Machu Picchu, Mexico's Chichen Itza ruins, India's Taj Mahal, Petra in Jordan, Christ Redeemer in Brazil, and the statues of Easter Island.

In honor of 7/7/07 and those 7 Wonders, I've picked 7 Wonders of the Investment World. Rather than select a stock from each of the countries where the 7 Wonders reside, I've decided to pick seven companies from around the world that I perceive as global leaders in significant industries that may make good long-term investments.

Here are my 7 Wonders of the Investment World -- listed in alphabetical order:

Continue reading 7 Wonders of the Investment World

7 Wonders of the Investment World originally appeared on BloggingStocks on Sat, 07 Jul 2007 12:40:00 EST. Please see our terms for use of feeds.

For his latest recommendation, buyback specialist David Fried is following Carlos Slim - who just past Bill Gates to be the world's richest man.

Telefonos de Mexico (NYSE: TMX), majority controlled by Slim, is the latest buy from The Buyback Letter.

Based in Mexico City, Telmex, as it is commonly called, controls more than 95% of Mexico's fixed-line telephone market and is a major provider of long-distance services, notes Fried. Telefonos de Mexico, he sates, is the leading telecommunications company in Mexico, with more than 15 million telephone lines in service and more than 1 million Internet access accounts.

Fried explains, "It is currently positioned as the regional market leader in telecommunications, and in recent years has bought telephone, cable and data transmission assets in Argentina, Brazil, Chile, Colombia and Peru.

Formerly owned by the Mexican government, the advisor notes, Telmex was privatized in 1990 and is now majority controlled by billionaire magnate Carlos Slim, the world's third richest man.

Says Fried, "Slim is quite a character, and aside from the sheer magnitude of his $49 billion fortune, he also gained the most wealth in the last year ($19 billion). Slim has also invested in cigarettes, real estate, soda bottling, auto parts, and insurance, and, of course, made a fortune in telecom."

He continues, "Slim also is branching out to other countries. In 2005, Telmex spent $350 million to acquire the majority stake in Colombia's biggest phone company, and bought Chilean mobile telecom Smartcom for $472 million."

Each day, Steven Halpern's TheStockAdvisors.com features the latest investment ideas and market commentary from the financial newsletter community.

TelMex: Buyback bet on world's richest man originally appeared on BloggingStocks on Tue, 03 Jul 2007 14:45:00 EST. Please see our terms for use of feeds.

Microsoft Corp. (NASDAQ: MSFT) Chairman Bill Gates -- net worth: $59.2 billion -- is no longer the world's wealthiest person. According to the HeraldSun, Mexico's Carlos Slim -- net worth: $67.8 billion -- now sits in that throne. In April, Slim surpassed Berkshire Hathaway Inc.'s (NYSE: BRK.A) CEO Warren Buffett as the world's second richest person. And today, Slim surpasses Gates.

How must Gates feel? I don't know. He has commented in the past that he doesn't think about being the world's wealthiest person much. But he has occupied that throne since 1995. After 12 years, there could be a twinge of regret at having lost the crown. But Gates still has plenty of money, particularly since Buffett contributed a huge chunk of his fortune to Gates' foundation.

Meanwhile how did Slim climb so fast? A 27% surge in the share price of America Movil (NYSE: AMX), Latin America's largest mobile phone operator controlled by Slim, from March to June enabled Slim to surpass Gates by $8.6 billion. The 5.7% increase in Microsoft stock in the second quarter was no match for the sharp rise in valuations of Slim's companies. He also owns shares of Telefonos de Mexico (NYSE: TMX) up 11% and Grupo Financiero Inbursa S.A. (MXK: GFINBURO) up 20%.

While I don't have earnings forecasts to evaluate Inbursa, it's not too late to consider buying in to Slim's other companies.

• American Movil. AMX's PEG of 1 -- based on a P/E of 26.2 on earnings growth of 26% to $4.22 in 2008 -- looks reasonable to me.
• Telmex. TMX's PEG of 2.5 -- based on a P/E of 12 on earnings growth of 4.9% to $3.31 in 2008 -- looks expensive to me -- I'd avoid this one.

It's not every day that a king gets dethroned. The market is sending a signal that might be worth heeding.

Peter Cohan is president of Peter S. Cohan & Associates, a management consulting and venture capital firm. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned in this post.

Bill Gates dethroned as world's richest person originally appeared on BloggingStocks on Tue, 03 Jul 2007 11:33:00 EST. Please see our terms for use of feeds.

Last December, over 100 stocks were featured in our Top Picks for 2007 report. Now, at mid-year, we turn to the 20 advisors whose picks showed the strongest gains to get an update on their previous picks, as well as a new favorite stock for the second half of the year.

Nick Vardy, editor of the Global Stock Investor, chose América Móvil (NYSE: AMX) as his favorite stock for 2007. It rose 39% as of 6/1/07. Here is Nick's original recommendation for AMX and his new favorite stock for the second half of 2007.

Updating his outlook on AMX, the advisor says, "Mexico-based América Móvil has been my #1 blue chip play on the global cell phone megatrend. The Latin American markets have been the strongest performing region globally. But even in that context, América Móvil has been a strong relative performer, handily outperforming the broader Mexican market, itself up 18%.

"And América Móvil has done more than make money for investors. It's also propelled controlling shareholder Carlos Slim ahead of Warren Buffett as the #2 wealthiest man in the world. If América Móvil's stock price continues its torrid pace, Slim will dethrone Bill Gates as the world's #1 by the end of the year.

"Should you still buy América Móvil? Absolutely! The stock remains a favorite of some of the world's top hedge funds. With Latin American cell phone penetration rates still hovering around 40%, América Móvil still only has one way to go -- and that's up.

"The stock is still a very good value based on a PEG ( price earnings to growth) of .58. Thanks to América Móvil's fast growth, this number has barely budged since I first recommended the stock in December."

Top 20 advisors: Nick Vardy calls on América Móvil originally appeared on BloggingStocks on Mon, 25 Jun 2007 10:09:00 EST. Please see our terms for use of feeds.

Last December, over 100 stocks were featured in our Top Picks for 2007 report. Now, at mid-year, we turn to the 20 advisors whose picks showed the strongest gains to get an update on their previous picks, as well as a new favorite stock for the second half of the year.

John Christy, editor of the Forbes International Investment Report, chose Nokia Corp. (NYSE: NOK) as his favorite stock for 2007, which rose 39% as of 6/1/07. Here is his original recommendation for Nokia and his current opinion on the stock.

For his new favorite stock, the advisor looks south of the border, recommending América Móvil (NYSE: AMX). He explains, "Latin America has been one of the hottest regions for global investors in 2007. As of May 25, the Morgan Stanley Capital International Latin America index is up over 17% in U.S. dollar terms.

"But there's still plenty of money to be made south of the border. AMX is the dominant mobile phone service provider in Mexico. The company's reach extends beyond its home market to more than 125 million subscribers throughout Latin America, with operations in more than a dozen countries.

"Revenue topped $21 billion last year, about half of which came from outside Mexico. The company is controlled by Carlos Slim Helú, who overtook Warren Buffett earlier this year as the world's second-richest man.

Continue reading Top 20 advisors: John Christy rings up América Móvil

Top 20 advisors: John Christy rings up América Móvil originally appeared on BloggingStocks on Tue, 19 Jun 2007 10:00:00 EST. Please see our terms for use of feeds.

Carlos Slim may be the second-richest man in the world, but he's tops with Jim Cramer.

The "Mad Money" host sang Slim's praises at length tonight on CNBC. He even said the shares of Slim's company American Movil S.A.B. (NYSE: AMX) are a buy even though they are trading at a 52-week high. The company has 80% of the Mexican wireless market and is expanding in Brazil.

Keep in mind that American Movil is up almost 100% off the lows of the year and the company has a market cap of $90 billion. This isn't exactly an unknown stock nor is it an unknown investment.

"Como se dice, el Cramero?"

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Is Cramer's Latin American pick magnifico? originally appeared on BloggingStocks on Thu, 19 Apr 2007 19:20:00 EST. Please see our terms for use of feeds.