The wireless communication world is about to receive a new entrant, as the country's third-largest cable company will start a cellular network in three areas today. The company? Cox Communications.

Before you think that this wireless network will be available across the U.S., Cox's wireless offerings will be available in Orange County, California; Omaha, Nebraska; and Hampton Roads, Virginia. These three locales are where Cox is the local cable company, and they hold roughly 1.5 million residents.

Continue reading Cox Communications Launches Cell Phone Service

Cox Communications Launches Cell Phone Service originally appeared on BloggingStocks on Fri, 19 Nov 2010 12:30:00 EST. Please see our terms for use of feeds.

Verizon Communications (VZ) is down over 2% as I write this. Shares are exchanging hands for $31.79. Volume isn't that impressive, but we'll have to see where it ends up when the trading day is completed (there's still over two hours to go before the bell is rung).

According to the Associated Press, the telecom entity reported adjusted income of 56 cents per share for the third quarter. Expectations were set at 54 cents per share. So management was able to beat the analysts.

Continue reading Verizon Drops After Third-Quarter Report

Verizon Drops After Third-Quarter Report originally appeared on BloggingStocks on Fri, 22 Oct 2010 15:30:00 EST. Please see our terms for use of feeds.

Goldman Sachs (GS) was quite the busy brokerage this morning, as it trekked through the financial sector and also issued a number of other upgrades, including one for Sprint Nextel (S).

The brokerage upped Sprint to buy from neutral, issuing a $6 price target, a nice elevation from the previous target of $3.50. Goldman noted that the reason for the upgrade is churn, and that the company is "about to move the needle." Goldman stated, "Sprint's gross add/upgrade activity slowed sharply in 2008, which ironically should benefit the company over the course of 2010 as the logical pool of churn subscribers is reduced." The upgrade comes basically from a glorified hunch.

Continue reading Sprint Nextel Upgraded to Buy

Sprint Nextel Upgraded to Buy originally appeared on BloggingStocks on Mon, 24 May 2010 12:30:00 EST. Please see our terms for use of feeds.

Continue reading Sprint Nextel First-Quarter Net Loss Widens

Sprint Nextel First-Quarter Net Loss Widens originally appeared on BloggingStocks on Wed, 28 Apr 2010 10:00:00 EST. Please see our terms for use of feeds.

Continue reading Communication Firms Take On the FCC

Communication Firms Take On the FCC originally appeared on BloggingStocks on Thu, 25 Mar 2010 12:00:00 EST. Please see our terms for use of feeds.

While Ciena (CIEN) has shown strength lately, the company had a setback Thursday as it disappointed investors on its fiscal first-quarter results. The company, which is a major supplier of telecom equipment, posted a loss of $53.3 million, or $0.58 per share, which compares to a loss of $24.8 million, or $0.27 per share in the same period a year ago. Revenues were up 4.9% to $175.9 million.

Excluding certain one-time items, Ciena's loss came to $0.12 per share. However, the Street consensus was for a loss of $0.09 per share. So, in morning trading, the shares of Ciena were off 9% to $13.24.

Continue reading Ciena Has a Disconnect with Investors

Ciena Has a Disconnect with Investors originally appeared on BloggingStocks on Thu, 04 Mar 2010 12:40:00 EST. Please see our terms for use of feeds.

BT Group, which virtually owns the UK telecommunications market, isn't waiting for Google (GOOG) to launch a full attack. The company probably expects to be under assault from the search engine (and advertising and e-mail) giant, so it's taking early action. Google Voice is still being tested, but words like "free" and "powerful" and "internet-based" are bound to inspire fear in even the most established of companies.

To protect itself from the eventual attack from Mountain View, BT picked up Ribbit Mobile, and testing is in progress. Ribbit's technology has some overlap with Google Voice and even beats it with a few capabilities, according to Bloomberg. Ribbit just launched its beta product this month. It allows either the user's current phone number or a new one from Ribbit -- which is no different from Google's alternative. The product suite is generally the same, with phone- and web-based voicemail retrieval and automatic transcriptions that can be sent by text message or e-mail. For an extra fee, BT's Ribbit does provide human transcription, though it is free during testing. And, calls can be taken directly from a computer, using a microphone and speakers.

Continue reading BT and Google battle over the spoken word

BT and Google battle over the spoken word originally appeared on BloggingStocks on Mon, 16 Nov 2009 11:20:00 EST. Please see our terms for use of feeds.

Just a couple years ago, the shares of Ciena Corp. (NASDAQ: CIEN) were above $40. But since then, it's been brutal -- with the shares eventually falling to $5.35. After all, the company is in the competitive telecom-equipment space.

However, things have been getting better lately. In fact, the share price is now at $13.06.

And this week Ciena reported its fiscal Q3 earnings report. While revenues dropped 35% over the past year, they were actually up 14% over the prior quarter. There was a net loss of $26.5 million, or $0.29 per share.

Continue reading Ciena shows some telecom hope

Ciena shows some telecom hope originally appeared on BloggingStocks on Thu, 03 Sep 2009 17:30:00 EST. Please see our terms for use of feeds.

Continue reading Verizon reports second quarter earnings, matches estimates

Verizon reports second quarter earnings, matches estimates originally appeared on BloggingStocks on Mon, 27 Jul 2009 09:20:00 EST. Please see our terms for use of feeds.

Christine A. Varney heads up antitrust at the Department of Justice, and she's going hunting. She is the point person for a group consisting of the presidential administration and some Congressional Democrats that is looking to put the breaks on large companies in several industries.

Already, airlines have run into roadblocks when requesting relief from antitrust regulations. Varney & Co. are digging into complaints by AT&T (NYSE: ATT) and Verizon (NYSE: VZ) that cable competitors - e.g., Cablevision (NYSE: CVC) - have locked them out of the market for cable company-produced programming.

(Imagine that, a phone company complaining! Usually, they're the objects of derision.)

Continue reading Antitrust orgy coming: Airlines, tech and others in sights

Antitrust orgy coming: Airlines, tech and others in sights originally appeared on BloggingStocks on Mon, 27 Jul 2009 09:00:00 EST. Please see our terms for use of feeds.

Rumor has it that Nortel Networks (OTC: NRTLQ) will sell its enterprise division in the near future.

This would be part of a broader plan to break the company apart instead of trying to restructure its way out of bankruptcy. The company is planning to sell its CDMA and LTE wireless businesses to Nokia (NYSE: NOK) for $650 million -- the first unit sale since the January bankruptcy filing.

Continue reading Nortel could be dumping enterprise division

Nortel could be dumping enterprise division originally appeared on BloggingStocks on Wed, 24 Jun 2009 12:20:00 EST. Please see our terms for use of feeds.

"The Obama administration is poised to spend a lot of money on infrastructure; one important sector is the the nation's electric power grid and the communications system," notes growth stock advisor Dave Dyer.

In his Dave Dayer's Newsletter, he explains, "Some products will win big, others will get nothing, but one company will get more business regardless of which products win: Quanta Services (NYSE: PWR), the leading electrical contractor in the country.

"Quanta's service business stands ready to expand with the infrastructure buildout no matter which products are selected.

"They do design, installation, maintenance, and repair on just about any type of network infrastructure (electric power, telecom, broadband cable, and gas pipelines.) Their moat against competitors is size. They are the largest in their field and that is in no danger of changing.

Continue reading Power play: Rebuilding the electric power grid

Power play: Rebuilding the electric power grid originally appeared on BloggingStocks on Tue, 10 Feb 2009 12:40:00 EST. Please see our terms for use of feeds.

I have stated numerous times that in our system of capitalism, killing a company is almost impossible to do. It just doesn't happen very often, especially with older companies with deep roots.

Years of losses, shrinking markets, and a failed business strategy matter little. If there is a will, there is a way. Until the credit crisis in November, there was always a way to raise needed capital to keep the dream alive.

A great example of this is Nortel Networks Corporation (NYSE: NT). The giant telecommunication networking firm was a darling for investors during the dot-com boom. In early 2000, the stock peaked at close to $1,000 per share on a split adjusted basis.

As the crash unfolded, NT collapsed. By the end of 2002, NT was a stock on life support and trading for pennies a share (pre split). At the time, the company was bleeding cash and facing an entirely different market for its products and services.

Continue reading Nortel can't cheat the Reaper any longer

Nortel can't cheat the Reaper any longer originally appeared on BloggingStocks on Wed, 14 Jan 2009 15:39:00 EST. Please see our terms for use of feeds.

Nortel Networks Inc.

Continue reading Nortel files for Chapter 11 bankruptcy protection

Nortel files for Chapter 11 bankruptcy protection originally appeared on BloggingStocks on Wed, 14 Jan 2009 09:48:00 EST. Please see our terms for use of feeds.

"Investors have been focusing on the shortcomings at Qwest Communications International (NYSE: Q), and to be sure, it has plenty," observes turnaround specialist George Putnam.

In his The Turnaround Letter, he adds, "But the company also has very valuable assets and strong cash flow. In addition, we believe the stock would command a good premium in a takeover." Here's his bullish review.

"Following its IPO in 1995, Qwest expanded via acquisitions and partnerships, and participated in the telecom bubble of the late 1990's.

"Unlike many of the other high-flying telecoms of that era, however, Qwest realized that in addition to a story you needed customers. In 2000, it went out and acquired US West, which gave Qwest the revenue base to survive the bursting of the telecom bubble

"Although the company survived, the shareholders have had a rocky ride during the current decade. The stock peaked around 60 in 2000, dropped to just above 1 in 2002, rebounded to 10 in 2007 and then declined to its present level.

"Management's challenge is too maximize the value of its assets. One of Qwest's greatest assets, and biggest challenges, is its huge traditional landline telephone business. The landline business is in a slow but steady decline as customers move to wireless or Internet telephony.

Continue reading Qwest (Q) for profits: Turnaround or takeover?

Qwest (Q) for profits: Turnaround or takeover? originally appeared on BloggingStocks on Mon, 15 Dec 2008 10:42:00 EST. Please see our terms for use of feeds.

Sprint Nextel looks to close at least 20 call centers in 2009 originally appeared on BloggingStocks on Wed, 10 Dec 2008 11:55:00 EST. Please see our terms for use of feeds.

This post is part of a feature in which we wonder whatever happened to some notorious financial figures. See the other 17.

As Wall Street implodes around us, the word "hubris" is getting tossed around quite a bit. Hubris -- also known as excessive, overweening pride -- has become the catchall explanation for most of the market's ills. Our financial system has gone up in flames, we're told, simply because so many CEOs and regulators thought they were too smart to fail, no matter how highly leveraged their subprime mortgage portfolios may have been.

Assuming this is true, let's call Joseph Nacchio a trendsetter. As the chief executive of Qwest Communications International (NYSE: Q), Nacchio was determined to construct the world's biggest, best, and most totally awesome fiber-optic network. (Mind you, this was back in the late '90s, when the telecom bubble was just a glimmer in the market's eye.) However, the plucky CEO was driven not by a personal commitment to excellence, but rather by spite.

Nacchio left his old job at AT&T (NYSE: T) because he wasn't granted a plum promotion to president, which he felt he so richly deserved. What better way to show up his former employer than to build a superior network and steal away market share?

Unfortunately, Nacchio's impure motivations were not the best recipe for success. To give you some idea as to how his plans for world telecom domination played out, check out this blog entry I wrote about Qwest and Joseph Nacchio as part of our series on the worst S&P 500 stocks of the past 25 years.

Continue reading Financial Felon? Joseph Nacchio

Financial Felon? Joseph Nacchio originally appeared on BloggingStocks on Sun, 23 Nov 2008 14:40:00 EST. Please see our terms for use of feeds.

Telefonaktiebolaget LM Ericsson (ADR) (NASDAQ: ERIC), a telecom-related business whose colleagues include Alcatel-Lucent (NYSE: ALU) and Cisco Systems, Inc. (NASDAQ: CSCO), reported earnings for the third quarter. And, unless I miss my guess, the market liked what it saw. As I write this, shares are up over 15%, and the trading volume is high. So, what's going on here?

Well, according to this source, revenue and profit for the quarter went beyond the expectations of analysts. The top line soared 13%. Nothing wrong with that. The bottom line, however, went down 28%, even though it exceeded what was expected. And then there was the gross margin improvement. A lot of times that can work wonders for a company's shares. Gross margin went from 35.6% to 37%. Wall Street was impressed.

Now, this is all well and good, but am I a buyer of Ericsson after the report? No. There are a few things to consider here. First, the global economy is a mess. Second, statements made by management in terms of the near future indicate a cautious stance. Third, there's no way I'm buying a stock that just rallied by a double-digit percentage in this market. Especially not a tech stock. There are harder ways to lose money. The 52-week low on the ADR's is about $6 per share, and I can easily see this one revisiting that level as we continue to get news on the economy throughout the quarter. Obviously, many investors out there disagree with me. But this is not the time to play momentum trader, in my opinion. I'm happy to sit on the sidelines in this case, even if I turn out to be wrong.

Disclosure: I don't own any company mentioned; positions can change without notice.

Ericsson is rallying, but I'm not joining in originally appeared on BloggingStocks on Mon, 20 Oct 2008 16:00:00 EST. Please see our terms for use of feeds.

On a day when many telecom stocks were hit with downgrades, China Mobile Limited (NYSE: CHL) distinguished itself this morning by scoring an upgrade. Goldman Sachs raised its rating on CHL from "sell" to "neutral," while simultaneously trimming the stock's price target from HK$95 to HK$90. The price-target cut echoes a similar move made by Citigroup on Sunday; the brokerage firm cut its target on CHL from HK$120 to HK$100.

In response to today's mixed analyst comment, CHL is down more than 7% at midday. The equity has shed about 42% year-to-date, and its lengthy decline could prompt additional price-target cuts during the short term. According to Thomson Financial, China Mobile shares are trading about 60% south of their average 12-month price target of USD $81.01.

Today's upgrade from Goldman comes as CHL is approaching former support at the $44 level. This region buoyed the stock in early 2007 and earlier this month, which suggests that it could once again provide a floor for the shares. Unfortunately, though, the stock is also looking up at stiff technical resistance from its 10-week moving average, which means China Mobile might find itself bouncing sideways in the weeks to come. Or -- even more troubling -- a continued drop in the share price could spark an unwinding of widespread optimistic sentiment.

Continue reading China Mobile scores an upgrade, but plunges on price-target cut

China Mobile scores an upgrade, but plunges on price-target cut originally appeared on BloggingStocks on Mon, 29 Sep 2008 13:15:00 EST. Please see our terms for use of feeds.

"Apple (NASDAQ: AAPL) and Research in Motion (NASDAQ: RIMM) are taking the smartphone market by storm," says Toby Smith in his ChangeWave Investing.

"AAPL and RIMM are both pushing all of the other manufactures to the sidelines. It's clear that RIMM's BlackBerry is the dominating force in the corporate smartphone market, but the Apple iPhone has shaken things up quite a bit on the consumer side.

"The combination of the new Apple model flying off the shelves, and rumors of a postponement for one of RIMM's new releases, has raised questions among some analysts as to RIMM's ability to fight back.

"Research in Motion may be planning to release several new smartphones this year, including the KickStart, the Thunder and the already announced Bold.

Continue reading AAPL and RIMM: Smart buys for smart phones?

AAPL and RIMM: Smart buys for smart phones? originally appeared on BloggingStocks on Mon, 18 Aug 2008 12:12:00 EST. Please see our terms for use of feeds.