Continue reading Serious Money: AIG Takeover by Fairholme Capital?

Serious Money: AIG Takeover by Fairholme Capital? originally appeared on BloggingStocks on Tue, 30 Nov 2010 15:30:00 EST. Please see our terms for use of feeds.

Bookstores disappearing, music stores almost gone, video stores all but done -- and GameStop Corp. (GME) is next. Yes, it's days are numbered, we just don't know what that number is yet.

I have been pondering this for a while, off and on, and did a very limited survey of two teenage boys -- mine -- asking them their thoughts about GameStop. The 17-year-old was playing a game on his Apple (AAPL) MacBook Pro at the time. He said he downloads free games or buys them, but all from the Web. He knew he could buy used games inexpensively at GameStop but had never done so and thought this business activity would fade.

The 14-year-old was also on his Mac, using FaceBook and YouTube. He said he had been to GameStop with friends in the past but never bought anything. Both boys use their cell phones to play games in the car.

Continue reading Chasing Value: Are GameStop's Days Numbered?

Chasing Value: Are GameStop's Days Numbered? originally appeared on BloggingStocks on Wed, 29 Sep 2010 09:30:00 EST. Please see our terms for use of feeds.

The market continues to be very volatile and trending down. When the seas are this turbulent you want to be on the biggest ships and thus I continue my review of the super cap stocks. This time, I'm going to examine return-on-equity (ROE) and return on-invested-capital (ROIC).

I started with the 12 highest valued companies but remained with 10 after running them through several screens. Among those 10 super, caps the company that is producing the highest returns is Microsoft (MSFT).

Continue reading Serious Money: Buying the Super Caps, Part 5 -- ROE, ROIC

Serious Money: Buying the Super Caps, Part 5 -- ROE, ROIC originally appeared on BloggingStocks on Mon, 24 May 2010 12:00:00 EST. Please see our terms for use of feeds.

It's a cliché but it rings so true: just show me the money! In the case of stocks that's profits and distributions, or dividends.

The super cap review, in which I examine large cap stocks through different valuation methods, started with the 12 stocks with the highest capitalization and through several stock screens has been trimmed to just 10 stocks.

It has been widely reported that dividends contribute as much as 40% of the market stock appreciation on long term holdings. All things being equal, a diversified basket of dividend paying stocks should outperform a similarly diversified portfolio that does not.

Continue reading Serious Money: Buying the Super Caps, Part 4 -- the Dividend

Serious Money: Buying the Super Caps, Part 4 -- the Dividend originally appeared on BloggingStocks on Thu, 20 May 2010 12:00:00 EST. Please see our terms for use of feeds.

It really didn't take Yahoo! (YHOO) long to pull the trigger. Only a few weeks ago, the perpetual also-ran in the search engine market announced that, like Microsoft (MSFT) and Google (GOOG), it would integrate Twitter data into its search capabilities, part of a race among the three companies toward "real-time search." Unlike its competitors, though, Yahoo! didn't shell out a dime for its access to the microblogging service's data, instead using existing developer tools to get what it needs.

Earlier this week, Microsoft announced that it wasn't in a rush to win in real-time search ... while indicating that it wasn't exactly lagging Google. Both companies have yet to demonstrate a fully integrated Twitter capability. While Yahoo! still has a long way to go, its announcement on Thursday suggests that it has an early lead, despite not having licensed any data from Twitter.

Continue reading Yahoo! makes another Twitter move, market yawns

Yahoo! makes another Twitter move, market yawns originally appeared on BloggingStocks on Fri, 11 Dec 2009 10:20:00 EST. Please see our terms for use of feeds.

Unless you already have a major foothold in the search engine market - or an amazing, disruptive technology that can make the world take notice - there isn't much point in staying. Competing with Google (NASDAQ: GOOG) is hard enough, even when you're Yahoo (NASDAQ: YHOO) or Microsoft (NASDAQ: MSFT) ... and, apparently, when you're IAC/InterActive Corp (NASDAQ: IACI). Barry Diller is ready to give up Jeeves, but only if asked nicely.

Diller's presence in the search space is Ask.com, ranked #4 behind Google, Yahoo and Microsoft's Bing. With a substantial gap between first and second, fourth barely registers at all. Ask.com has only a 2% U.S. market share, according to Hitwise, more than 60 percentage points behind the industry leader.

Continue reading Would anybody buy Jeeves? Ask might go on block

Would anybody buy Jeeves? Ask might go on block originally appeared on BloggingStocks on Wed, 28 Oct 2009 15:30:00 EST. Please see our terms for use of feeds.

Windows 7, the latest operating system from Microsoft (NASDAQ: MSFT), is expected to help jumpstart some IT spending. Intel (NASDAQ: INTC) also sees this happening. A new operating system often means a chance to upgrade from dated equipment that isn't worth upgrading, especially with favorable pricing for technology right now. Everything's coming together for a strong 2010 for the high-tech sector, so it's also worth watching Hewlett Packard (NYSE: HPQ), Dell (NASDAQ: DELL) and EMC (NYSE: EMC).

Continue reading Stars aligned for increase in IT spending

Stars aligned for increase in IT spending originally appeared on BloggingStocks on Tue, 27 Oct 2009 15:20:00 EST. Please see our terms for use of feeds.

Carl Icahn, the famous activist investor, resigned from the Yahoo! (NASDAQ: YHOO) board of directors Friday.

This comes just over a year after he scored the position, following the seemingly endless talks the company had with Microsoft (NASDAQ: MSFT) over the possibility of a takeover. Icahn told Yahoo that he was resigning effective immediately because Yahoo! didn't need an activist investor on the board at this time.

Continue reading Icahn bails from Yahoo! board of directors

Icahn bails from Yahoo! board of directors originally appeared on BloggingStocks on Sat, 24 Oct 2009 12:20:00 EST. Please see our terms for use of feeds.

Microsoft unveiling "upgraded" Xbox 360 to appease the Street originally appeared on BloggingStocks on Fri, 30 Mar 2007 12:02:00 EST. Please see our terms for use of feeds.

We continue to hear about how Google could face stiff competition in the Internet search arena from the likes of a re-energized Yahoo! and Microsoft. Both competitors have been reinventing their search businesses in an attempt to get in on the lucrative paid-search advertising business that Google now essentially owns.

But Google has an advantage: The core competency of the company is search. That is Google's brand identity and therefore, the one core service that customers turn to it for.

I mention this because try as it might, Yahoo! won't be able to compete to the point of causing Google lost sleep in the Internet search business -- and strangely it has even admitted this. It plans instead to focus on building content relationships with its customers and offering distinguishing services that are compelling.

Microsoft, arguably the toughest competitor in the computing age, also will not be able to take much share away from Google regarding search. It may be able to beef up search relevance under the new Windows Live moniker. But branding is all important in the consumer mind (just ask Nike or Apple about this). And, try as it might,  Microsoft's brand will never stand for search.

Continue reading Why Microsoft and Yahoo! won't threaten Google's search dominance

Why Microsoft and Yahoo! won't threaten Google's search dominance originally appeared on BloggingStocks on Mon, 22 May 2006 09:58:00 EST. Please see our terms for use of feeds.