Continue reading Sprint Nextel gets downgraded as Deutsche Telekom deal becomes more unlikely

Sprint Nextel gets downgraded as Deutsche Telekom deal becomes more unlikely originally appeared on BloggingStocks on Thu, 17 Sep 2009 16:30:00 EST. Please see our terms for use of feeds.

Nippon Telephone (NYSE: NTT), a Japanese based telecommunications company, closed at $24.17 Thursday. NTT January option implied volatility of 60 is above its 26-week average of 35 according to Track Data, suggesting larger price movement.

China Telecom (NYSE: CHA), a provider of wireline telecommunication services in China, closed at $39 Thursday. Goldman Sachs has a Sell rating on CHA. CHA overall option implied volatility of 91 is above its 26-week average of 60 according to Chicago, suggesting larger price movement.

Deutsche Telekom (NYSE: DT), Europe's largest telecommunications carrier by sales, closed at $13.99 Thursday. DT January option implied volatility of 54 is above its 26-week average of 48 according to Track Data, suggesting larger price movements.

Telmex (NYSE: TMX), an operator of wireline telecommunication systems in Mexico, closed at $17.28 Thursday. TMX December option implied volatility of 66 is above its 26-week average of 49 according to Track Data, suggesting larger price movement.

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

Options Update: Global Telecom providers volatility elevated; NTT, CHA, DT, TMX originally appeared on BloggingStocks on Fri, 05 Dec 2008 10:10:00 EST. Please see our terms for use of feeds.

Analyst upgrades:

• Canaccord upgraded Rio Tinto (NYSE: RTP) to Buy from Hold citing valuation following the severe price decline following BHP Billiton's (NYSE: BHP) dropped bid.
• UBS upgraded Itron (NASDAQ: ITRI) to Buy from Neutral citing valuation and defensive business mix.
• Jefferies upgraded shares of HealthSouth (NYSE: HLS) to Buy from Hold on valuation and maintains a $13.50 target.
• Melco PBL Entertainment (NASDAQ: MPEL) was raised to buy from Neutral at Goldman.
• PG&E (NYSE: PCG) was upgraded at Merrill Lynch to Buy from Neutral.
• HSBC Holdings (NYSE: HBC) was upgraded to Buy from Neutral at UBS.

Analyst downgrades:

Continue reading Analyst calls: RTP, ITRI, HLS, BHP, BX, DT, UL, GPC, KND . . .

Analyst calls: RTP, ITRI, HLS, BHP, BX, DT, UL, GPC, KND . . . originally appeared on BloggingStocks on Wed, 26 Nov 2008 11:45:00 EST. Please see our terms for use of feeds.

Minyanville contributor Sean Udall dares to share the kind of keen insight and actionable information you won't find in any prospectus. For more original thought, visit www.minyanville.com.

Goldman Sachs removed Apple Inc. (NASDAQ: AAPL) from its conviction buy list. I've jested in the past that this list tends to have little conviction itself. At any rate, I'm still in a holding pattern on AAPL as it moves closer to levels that I really find attractive -- $125 and lower.

Though the stock made a nice turn off lows, AAPL appears to be assessing whether the Dell (NASDAQ: DELL) news will have a material spillover effect. Some of DELL's weakness is due to AAPL so we will have to see how much macro driven issues affect AAPL's peak season growth. Piper noted that AAPL is in need of a Mac refresh -- this is true and is in the works.

Meanwhile, T-Mobile (NYSE: DT) has announced it will start selling Google (NASDAQ: GOOG) Android-based phones. Time will tell if this hits the iPhone's growth, but I don't suspect it will.

Apple (AAPL) loses some conviction originally appeared on BloggingStocks on Tue, 16 Sep 2008 14:30:00 EST. Please see our terms for use of feeds.

"The ongoing renaissance of Eastern Europe is generating tremendous economic activity, boosting profits for companies across the continent," says Nick Lanyi in High Yield International.

He explains, "As Europe's largest economy, Germany is well positioned to continue benefiting from this growth." And within Germany, his current top pick is Deutsche Telekom (NYSE: DT), which offers a dividend yield of 6.7%.

"German stocks are currently available at historically low valuations. The country's DAX Index is trading at only about 12 times 2008 earnings estimates, with an average dividend yield of 3.4%.

"One of the world's largest telecommunications companies, Deutsche Telekom is much more than the descendant of Germany's monopoly local phone utility. It generates more than half its revenue from outside Germany -- from diversified operations across Europe and in the U.S.

"Outside of Germany, DT garners more growth from its wireless operations in Eastern Europe, the U.K. and the U.S. Most of these operate under the well-known T-Mobile brand. Overall, worldwide wireless activities account for about 55% of the company's revenue.

Continue reading Ring up gains in Eastern Europe with Deutsche Telekom (DT)

Ring up gains in Eastern Europe with Deutsche Telekom (DT) originally appeared on BloggingStocks on Wed, 21 May 2008 12:50:00 EST. Please see our terms for use of feeds.

Continue reading Cramer on BloggingStocks: Europe is starting to eye U.S. gems

Cramer on BloggingStocks: Europe is starting to eye U.S. gems originally appeared on BloggingStocks on Thu, 08 May 2008 09:00:00 EST. Please see our terms for use of feeds.

• DJIA 12,968.97 (-89.23; -0.68%)
• S&P500 1,407.48 (-6.42; -0.45%)
• NASDAQ 2,464.12 (-12.87; -0.52%)
• 10YR-TBond 3.845% (unch.)
• 52-WEEK LOW CLUB
  

Continue reading Closing Bell: Oil surge drowns equities

Closing Bell: Oil surge drowns equities originally appeared on BloggingStocks on Mon, 05 May 2008 16:20:00 EST. Please see our terms for use of feeds.

A Deutsche Telekom-Sprint deal is far from a certainty originally appeared on BloggingStocks on Mon, 05 May 2008 10:35:00 EST. Please see our terms for use of feeds.

Deutsche Telekom (NYSE: DT) is examining a possible bid for Sprint Nextel (NYSE: S), reported Germany's Der Spiegel.

S closed at $7.89 Friday. S is scheduled to report Q1 EPS on May 12.

S option volume was heavy on May 2, with 42,682 contracts trading. S May option implied volatility went out at 84 on May 2, June at 61. S average option implied volatility over the last 26-weeks is 62 according to Track Data, suggesting larger price movement.

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

Option Update: Sprint Nextel May volatility up into report of DT buyout originally appeared on BloggingStocks on Mon, 05 May 2008 07:53:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• According to people familiar with the matter, the Wall Street Journal reported that JP Morgan Chase & Co (NYSE: JPM) is in talks about potentially taking a half-interest in Target Corporation's (NYSE: TGT) credit-card operations for about $4B.
• The Wall Street Journal also reported that executives at Microsoft Corporation (NASDAQ: MSFT) met with Yahoo! Inc (NASDAQ: YHOO) executives earlier this week to discuss Microsoft's takeover offer for the company, marking a breakthrough in communication between the two companies.
• HSBC Holdings Plc (NYSE: HBC) wants to expand its operations in sub-Saharan Africa, the Financial Times reported, as the region becomes increasingly significant for the bank's Asian and Indian clients.

• Due to its plunging stock price and the expected departure of millions of subscribers this year, sources are speculating about the fate of Sprint Nextel Corporation (NYSE: S). While analysts believe a company such as Deutsche Telekom AG (NYSE: DT) may look to buy Sprint, the Associated Press reported that neither Sprint nor its potential suitors are commenting.

Newspaper wrap-up: JP Morgan may take half-interest in credit-card operations originally appeared on BloggingStocks on Fri, 14 Mar 2008 08:00:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Oppenheimer upgraded shares of Northrop Grumman (NYSE: NOC) to Outperform from Perform after the Pentagon selected the company over Boeing (NYSE: BA) for the newly designated KC-45A Aerial Refueling Tanker with a potential value of $35B.
  
• Citigroup upgraded shares of Groupe Danone (OTC: GDNNY) to Buy from Hold on valuation, as they believe the sell-off on commodity cost concerns is overdone.
  
• MercadoLibre (NASDAQ: MELI) was raised to Outperform from Sector Perform at RBC Capital, as they believe MELI's long-term thesis is more compelling now vs. six months ago and notes favorable reaction to Mercado Pago v2.0.

• Goldman upgraded Societe Generale (OTC: SCGLY) to Neutral from Sell.
  
• Jefferies upgraded Exelon (NYSE: EXC) to Buy from Hold.
  
• Deutsche Telekom (NYSE: DT) was raised to Neutral from Underweight at JP Morgan.

Analyst upgrades: NOC, GDNNY and MELI originally appeared on BloggingStocks on Mon, 03 Mar 2008 11:11:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Lehman upgraded Pfizer (NYSE: PFE) to Equal Weight from Underweight on valuation.
  
• Friedman Billings raised Dell (NASDAQ: DELL) to Outperform from Market Perform, citing expectations for improved margins next quarter, and valuation.
  
• Quest Diagnostics (NYSE: DGX) was upgraded to Outperform from Neutral by Credit Suisse, which cited valuation.
  
• Lehman upgraded shares of Societe Generale (OTC: SCGLY) to Overweight from Underweight to reflect a potential takeover by BNP Paribas and limited downside.

• Bayer (OTC: BAYRY) was raised to Overweight from Equal Weight by Lehman.
• Deutsche Telekom (NYSE: DT) was upgraded to Hold from Sell by Citigroup.
• Public Storage (NYSE: PSA) was raised to Buy from Hold by Deutsche Bank.
• UBS raised Entergy (NYSE: ETR) to Buy from Neutral.

Analyst upgrades: PFE, DELL DGX and SCGLY originally appeared on BloggingStocks on Fri, 29 Feb 2008 11:28:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• In what may be a sign of interest from large media companies looking to delve into the "content delivery space," the Wall Street Journal reported that EdgeCast Networks is set to announce it has raised up to $6M from Steamboat Ventures, The Walt Disney Company's (NYSE: DIS) venture-capital arm.
• Barron's "The Trader" section says they'd stay away from Federal National Mortgage Association (NYSE: FNM), even though the Bush administration's subprime-mortgage freeze program caused the stock to rebound some. Barron's speculates that Fannie should take an earnings hit in the range of $6.4B to $14B.

• According to the UK's Telegraph, The Blackstone Group LP (NYSE: BX) is "in the middle" of putting together a consortium to make an offer for Rio Tinto PLC (NYSE: RTP).
• According to the Financial Times Deutschland, Deutsche Telekom AG's (NYSE: DT) T-Mobile is selling less than 700 of Apple Inc's (NASDAQ: AAPL) iPhones a day; this compares to the 10,000 iPhones the unit sold on a daily basis during Christmas.

Newspaper wrap-up: Fannie Mae may take $14B earnings hit originally appeared on BloggingStocks on Mon, 10 Dec 2007 09:15:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Citigroup upgraded shares of Dick's Sporting (NYSE: DKS) to Buy from Hold based on valuation, margin expansion and increased visibility.
• Ericsson (NASDAQ: ERIC) was raised to Buy from Hold at WestLB on valuation following yesterday's sell-off. The firm feels investors need to look beyond 2008.
• Lehman upgraded shares of Deutsche Telekom (NYSE: DT) to Equal Weight from Underweight as they believe earnings momentum will be seen in the near-term.

• UBS upgraded Nova Chemical (NYSE: NCX) and Orient-Express (NYSE: OEH) to Buy from Neutral.
• Office Depot (NYSE: ODP) was upgraded to Neutral from Underperform at Credit Suisse.
• Goldman upgraded AON Corp. (NYSE: AOC) to Buy from Neutral.

Analyst upgrades: DKS, ERIC and DT originally appeared on BloggingStocks on Wed, 21 Nov 2007 09:45:00 EST. Please see our terms for use of feeds.

• According to the Wall Street Journal's "Heard on the Street," as the economy continues to slow and the credit markets face further turmoil, high-profile companies like Countrywide Financial Corporation (NYSE: CFC) and The Home Depot Inc (NYSE: HD) are cutting back on buybacks as their shares drop.
• The New York Times reported that BlackRock Inc (NYSE: BLK) is expected to be the main asset manager for a $75B fund being created by Bank of America Corporation (NYSE: BAC), Citigroup Incorporated (NYSE: C), and JP Morgan Chase & Co (NYSE: JPM) to help stabilize the market fJor asset-backed securities, according to a source. The Bank of New York Mellon Corporation (NYSE: BK) is reportedly a leading contender to be a custodian of the fund.

• A ruling in Vodafone Group Plc's (NYSE: VOD) favor may cause Apple Inc (NASDAQ: AAPL) to rethink its business model for the iPhone device. The injunction against Deutsche Telekom AG (NYSE: DT)'s T-Mobile unit may force Apple to "unlock" its iPhones, the UK Times reported.
• Struggling airline UAL Corporation (NASDAQ: UAUA), along with its unit United Airlines, is struggling, but finding a carrier willing to merge may be a problem, BusinessWeek speculated.

Newspaper wrap-up: Countrywide, Home Depot cut back on buybacks originally appeared on BloggingStocks on Wed, 21 Nov 2007 09:15:00 EST. Please see our terms for use of feeds.

Apple (NASDAQ: AAPL) has begun to round up the press for a big news conference next Tuesday. The event will be in London and will probably cover Apple's plans for its iPhone in the UK, France, and Germany.

Apple's PR machine does not know how to do anything small, so it is expected that the company will say that it will "hand a UK sale deal to Spanish Telefonica's O2 UK unit, a German deal to Deutsche Telekom's (NYSE:DT) T-Mobile and a French deal to France Telecom's (NYSE: FTE) Orange."

With the iPhone's price already dropped, sales in Europe can be expected to be strong.

The product, however, has at least two problems as it moves overseas. One is that the phone is currently a 2.5G product while Europe cellular users are, in many cases, already on 3G networks. Apple would need a short time table to get a next-generation product to market.

The other issue with the iPhone is that technology pirates have figured out how to "unlock" the device so that it can work on more than one cellular network. It is too early to say whether this will affect the exclusivity that Apple is seeking from network partners, but it at least raises the question of how easy it will be to force consumers to stay with one provider.

Now it's on to Asia.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Apple's (AAPL) Sept. 18 announcement: iPhone in Europe? originally appeared on BloggingStocks on Thu, 13 Sep 2007 08:58:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Barron's Online's (subscription required) "Weekday Trader" suggest investing in several pharmaceutical names during the stock market woes, including Merck & Co Inc (NYSE: MRK), Eli Lilly & Co (NYSE: LLY) and Schering Plough Corporation (NYSE: SGP).
• Speculation intensified that the Federal Reserve is going to cut interest rates shortly, and moreover, some are suggesting that it already has cut them stealthily, reported the Wall Street Journal (subscription required).
• Sprint Nextel Corporation (NYSE: S) will spend $5B on WiMAX through 2010, reported the Wall Street Journal.
• Wal-Mart Stores Inc (NYSE: WMT) is considering smaller, higher-end stores for introduction early next year, reported the Wall Street Journal.

• The CEO of Deutsche Telekom (NYSE: DT) , René Obermann, called for the European mobile phone networks to be consolidated, reported the Independent.
• Citigroup Incorporated (NYSE: C) is believed to be negotiating the purchase of a European pension plan worth about GBP200M, reported the U.K. Times.
• U.S. Treasury Secretary Henry Paulson said the economy and markets are "resilient," and can absorb any losses from the recent market instability, and has not raised the possibility of policy changes to deal with the markets' problems, reported the New York Times.

Newspaper wrap-up: Fed rumored to be cutting rates shortly originally appeared on BloggingStocks on Fri, 17 Aug 2007 09:20:00 EST. Please see our terms for use of feeds.

The New York Times writes that amid all the Apple (NASDAQ: AAPL) iPhone frenzy, the news of the launch of a "game changing" cellular product by T-Mobile may have been lost.

T-Mobile, the US cellular arm of Deutsche Telekom (NYSE:DT), currently runs in fourth place for cell subscribers in the US. Verizon Wireless, AT&T (NYSE: T) Wireless, and Sprint (NYSE: S) are ahead of it.

T-Mobile's new phones allow customers to make regular calls on the cell network, but have a WiFi feature set up to make free internet calls within WiFi hot spots. Even when on the internet consumers "still get call hold, caller ID, three-way calling and all the other features."

It is a classic case of whether form beats function. The iPhone has a tremendous set of features, but only works on the AT&T Wireless 2.5 G network, a step down from 3G-enabled handsets. The T-Mobile product offers the potential of huge savings.

T-Mobile may be taking a risk by offering a phone where its customers can make some of their calls for free, but that is what you do when you are in fourth place.

Douglas A. McIntyre is a partner at 24/7 Wall St.

Did T-Mobile launch an iPhone killer? originally appeared on BloggingStocks on Thu, 05 Jul 2007 08:30:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• Barron's Online's "Weekday Trader" section said that Bankrate Inc (NASDAQ: RATE), Answers Corporation (NASDAQ: ANSW), WebMD Health Corp (NASDAQ: WBMD) and The Knot Inc (NASDAQ: KNOT) may be the next preferred takeover targets for Google Inc (NASDAQ: GOOG) and Microsoft Corporation (NASDAQ: MSFT).
• The Wall Street Journal reported that Brad Tierney is interested in Dow Jones and Company (NYSE: DJ), which in talks with News Corporation's (NYSE: NWS) Rupert Murdoch for a possible $5B sale.
• According to the Wall Street Journal, citing a person close to the deal, Deutsche Telekom (NYSE: DT) will acquire the Orange Netherlands unit of France Telecom for about EUR1.3B, and simultaneously sell Ya.com for EUR320M to them.
• The Financial Times reported that three separate research teams showed the embryonic stem cells can be created by reprogramming some of the genes in adult mice skin cells, without creating an embryo. The news will be well-received by opponents of embryonic stem cell research, but scientists said it is too early to tell if the technique can be used with human cells.

• The Herald Sun reported that a new $237B Chinese state-owned investment fund may be interested in acquiring natural resources company BHP Billiton Limited (NYSE: BHP), according to Bell Potter research chief Peter Quinton.

Newspaper wrap-up 6-07-07: Brad Tierney interested in Dow Jones originally appeared on BloggingStocks on Thu, 07 Jun 2007 09:17:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• The Wall Street Journal reported that XM Satellite Radio Holdings Inc (NASDAQ: XMSR) is being sued by members of the National Music Publishers Association over XM receivers with the XM+MP3 service, which allows listeners to store songs they hear on XM onto their players. The suit is charging XM with "unlawfully reproducing and distributing copyrighted music without paying appropriate royalties."
• The Wall Street Journal speculated that the most plausible course of action for Cadbury Schweppes ADS (NYSE: CSG) confectionery operations would be a merger with Hershey Company (NYSE: HSY), which the article said would be "tasty for investors."
• General Electric Company (NYSE: GE) said it would launch a $1.14B takeover bid for leasing firm Sanyo Electric Credit, marking a potential windfall for major shareholder Goldman Sachs Group Inc (NYSE: GS). Sanyo Credit agreed to the offer which will run from Monday to May 9, reported the Financial Times.

• According to India's Economic Times, Google Inc (NASDAQ: GOOG) is open to acquiring Indian technology companies with "interesting technologies." The company already said it would invest in two Indian early stage venture capital funds last month.
• The Economic Times also reported that Tata Group is in talks about buying a stake in Deutsche Telekom ADS's (NYSE: DT) business unit, T-Systems, citing a report from German business weekly Focus Online.

Newspaper wrap-up 3-23-07: XM hit with lawsuit originally appeared on BloggingStocks on Fri, 23 Mar 2007 09:33:00 EST. Please see our terms for use of feeds.