Continue reading Closing Bell: The bull returns ahead of earnings (GE, WFC, FOLD, CIEN, VG)

Closing Bell: The bull returns ahead of earnings (GE, WFC, FOLD, CIEN, VG) originally appeared on BloggingStocks on Mon, 05 Oct 2009 16:00:00 EST. Please see our terms for use of feeds.

From TheStreet.com Network

• Price Action Suggests Dollar Upside Break
• AIG's Benmosche to Get Paid

TheStreet.com's Jim Cramer says the bizarre rules these days make it worth looking at stocks through a different lens.

How much should we care about low-dollar speculation? How much should we care about the incessant trading in CIT (NYSE: CIT) (Cramer's Take) and Fannie Mae (NYSE: FNM) (Cramer's Take), Alcatel-Lucent (NYSE: ALU) (Cramer's Take), or Vonage (NYSE: VG) (Cramer's Take) and Sprint (NYSE: S) (Cramer's Take)? Or even Citigroup (NYSE: C) (Cramer's Take)?

First, I have to tell you that I worry about it less than I used to. Why? Because when we used to have rules and government officials that were willing to speak the truth about stocks, we wouldn't have these single-digit players out there every day. But without it, how in heck can people not believe that Fannie and Freddie Mac (NYSE: FRE) (Cramer's Take) are the biggest and best bets on a turn in housing?

Continue reading Cramer on BloggingStocks: Reasonable speculation

Cramer on BloggingStocks: Reasonable speculation originally appeared on BloggingStocks on Thu, 27 Aug 2009 09:30:00 EST. Please see our terms for use of feeds.

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

• Alcatel-Lucent (NYSE: ALU) shares rose even though it reported a wider loss for the quarter.
• American Express Co. (NYSE: AXP) posted better-than-expected Q1 results but warned of challenges.
• Blackstone Group (NYSE: BX) reported a net loss and slumping revenues for the first quarter.
• Center Financial Corp. (NASDAQ: CLFC) was downgraded following its Q1 earnings report.
• Cisco Systems Inc. (NASDAQ: CSCO) posted lower Q3 earnings that still topped analysts estimates.

Continue reading Earnings highlights: Disney, Cisco, News Corp., Marvel, Sirius, Blackstone and more

Earnings highlights: Disney, Cisco, News Corp., Marvel, Sirius, Blackstone and more originally appeared on BloggingStocks on Sat, 09 May 2009 12:40:00 EST. Please see our terms for use of feeds.

Continue reading Stocks in the news: RTP, AA, VIA, KO, ATVI, DEO, TOL, SIRI, GM ...

Stocks in the news: RTP, AA, VIA, KO, ATVI, DEO, TOL, SIRI, GM ... originally appeared on BloggingStocks on Thu, 12 Feb 2009 08:05:00 EST. Please see our terms for use of feeds.

For the first time in a long time, the future at Vonage (NYSE: VG) is brightening. According to The Wall Street Journal, "Vonage said Thursday that it had entered into a commitment letter with hedge fund Silver Point Finance LLC for as much as $215 million in financing." The company is about to bring in a new CEO to replace founder Jeffrey Citron.

The new money will allow Vonage to pay down a significant part of its debt.

A better balance sheet does not necessarily make for a better operating business, but it does buy the company time to prove that there is room in the market for an independent VoIP company. Fortunately for Vonage, there probably is.

While cable companies now dominate the voice-over-IP market because they can deliver the product as part of their broadband and TV offering, not all customers want their eggs in one basket. Cable companies often score low on customer satisfaction surveys. Vonage can use this to its advantage.

By positioning itself as the better service alternative, Vonage has a reasonable chance to build a decent business. Over time, that should get the stock up from $1.59.

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

Vonage (VG) refinances and CEO steps down originally appeared on BloggingStocks on Fri, 25 Jul 2008 09:35:00 EST. Please see our terms for use of feeds.

Vonage (NYSE: VG) must has 100 people in its general counsel's office. The company only has 1,600 people.

The comment may be fanciful, but the Vonage patent problems are not. Nortel (NYSE: NT) has now become one of a long list of companies to sue the VoIP company, which went public at $17. Vonage shares now trade for $2.

The Wall Street Journal writes (subscription required) that "the patents relate to technology that forms the basis of Internet-based voice service, as well as features such as 911 and 411 calling and click to call, according to Nortel spokesman Mohammed Nakhooda."

Investors in Vonage had hoped that the company's intellectual property problems were behind it. The company has already lost legal actions to several large U.S. telecom companies, including Verizon (NYSE: VZ).

And, Nortel needs to be careful. The Canadian company may be better off with a quick settlement than with a lengthy lawsuit. Vonage is already crippled by lost legal battles and negative cash-flow. On its last balance sheet, the company had $350 million in cash and investments and $275 million in long-term.debt. Payables were $332 million.

Nortel could win the suit and end up with nothing to show for it.

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

Nortel (NT) sues Vonage (VG) originally appeared on BloggingStocks on Sun, 16 Dec 2007 11:40:00 EST. Please see our terms for use of feeds.

The Vonage (NYSE: VG) saga continues. Douglas McIntyre reported recently of a "sucker rally" in Vonage stock as Vonage tried to fight off a patent lawsuit brought against the company by Verizon (NYSE: VZ). Friday brought with it a refusal of an appeal made by Vonage and slapped the voice-over-IP telephony firm with a $120 million lawsuit.

Legal costs have hurt Vonage and may increase its risk of bankruptcy. The company said that it may not have enough money to pay $253.5 million in debt due as early as December 2008.

The firm had a first-move advantage and created an innovative service. Unfortunately, the legal issues and commoditization of voice-over-IP technology has severely hampered the prospects for the young company. I would expect the company and its customer-base would not be a standalone business a year or two from now.

Zack Miller is the lead equity analyst for America Israel Investment Associates, LLC., the managing editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund. Author holds no positions in the stocks mentioned above.

Vonage Holdings (VG): Going, going, gone originally appeared on BloggingStocks on Sun, 18 Nov 2007 17:10:00 EST. Please see our terms for use of feeds.

Continue reading Before the bell: MS, F, TOL, WMT, HPQ ...

Before the bell: MS, F, TOL, WMT, HPQ ... originally appeared on BloggingStocks on Thu, 08 Nov 2007 08:22:00 EST. Please see our terms for use of feeds.

The earnings season crunch continues next week, and among companies reporting are Verizon Communications Inc. (NYSE: VZ) and Viacom Inc. (NYSE: VIA).

When it reported second quarter results back in July, Verizon's earnings were 58 cents per share, in line with Wall Street estimates, but six cents less than in the same period of the previous year. It was the first time since the second quarter of 2005 that Verizon failed to beat expectations. For the current quarter, analysts surveyed by Thomson Financial are expecting 62 cents per share, which is six cents less than a year ago.

The consensus recommendation on Verizon has shifted from buy to hold, though 12 of 31 analysts still consider it a buy or strong buy. Verizon's share price has climbed this past quarter to a five-year high of $46.24 recently, but closed Friday at $45.60.

For more on the Vonage (NYSE: VG) settlement and other telco news that could influence Verizon's results, check out BloggingStocks' Verizon coverage.

Continue reading Earnings previews: Verizon (VZ) and Viacom (VIA)

Earnings previews: Verizon (VZ) and Viacom (VIA) originally appeared on BloggingStocks on Sun, 28 Oct 2007 09:40:00 EST. Please see our terms for use of feeds.

Vonage (NYSE: VG) settled its big patent dispute with Verizon (NYSE: VZ). After hours yesterday, shares in the VoIP pioneer were up over 70% to $2.61.

According to The Wall Street Journal, "Vonage agreed to pay Verizon either $80 million or $117.5 million, depending on the outcome of a decision by the U.S. Court of Appeals for the Federal Circuit." The company has settled a suit with Sprint (NYSE: S) and has another legal fit pending over patent matters with AT&T (NYSE: T).

The rally in the stock misses the point that Vonage is still losing a lot of money and its cash balance drops with each settlement. At the end of the June quarter, the company had $275 million. But, operational deficits and settlements have probably cut that considerably. Vonage had an operating loss of $33 million during that quarter.

The market is also moving away from Vonage. Fiber products from the large telecom companies are encouraging customers to stick with them by offering the "triple play" of TV, voice, and broadband. Cable stock prices have been pulled down sharply by the ability of old line phone companies to offer competing service. So Vonage may no longer have an easy leg up in taking customers from traditional land-line users.

Vonage is facing the classic problem of the small innovator. The market has been able to copy its services and bleed off its cash. The company may not be around in a year.

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

A sucker rally in Vonage (VG) originally appeared on BloggingStocks on Fri, 26 Oct 2007 11:33:00 EST. Please see our terms for use of feeds.

Before the bell: VG, VZ, ORCL, BEAS, M originally appeared on BloggingStocks on Fri, 26 Oct 2007 08:17:00 EST. Please see our terms for use of feeds.

Vonage settles Verizon patent lawsuit originally appeared on BloggingStocks on Thu, 25 Oct 2007 17:44:00 EST. Please see our terms for use of feeds.

Deaths come in threes and the latest lawsuit against Vonage Holdings Corp. (NYSE: VG), the VoIP pioneer, may just put it under. It is the third such suit by a major telephone company.

Vonage has now lost or settled patent infringement suits brought by Verizon Communications Inc. (NYSE: VZ) and Sprint Nextel Corp. (NYSE: S). Each loss has brought a one time payment and royalties on future revenue.

An SEC filing by the VoIP company disclosed that an action has been filed buy AT&T Inc. (NYSE: T), which accuses Vonage of "violating a single patent that lets users access an Internet phone system using a standard phone device," according to The Wall Street Journal.

Vonage opened at $17 on its IPO in 2006. The stock is lucky to hold $1 now. And, the AT&T suit may be the end of the line. In the June quarter, the company had an operating loss of $33 million on $20 million in revenue. The company's cash was down to under $350 million.

It is Chapter 11 time for Vonage. One of the large cable companies would probably be willing to pay enough for the company to pay off lawsuits and, perhaps, leave a few pennies for the shareholders.

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

One more lawsuit may spell the end for Vonage (VG) originally appeared on BloggingStocks on Sat, 20 Oct 2007 13:40:00 EST. Please see our terms for use of feeds.

Vonage Holdings Corp. (NYSE: VG) has escaped the hangman's noose for now, settling a patent dispute with Sprint Nextel Corp. (NYSE: S) for $80 million that threatened to sink the company. Shares of the Internet phone service provider surged on the announcement.

Hold the applause for a second.

Remember, the Holmdel, NJ company recently was ordered to pay $58 million with Verizon Communications Inc. (NYSE: VZ) to settle another paent dispute. Though the company say it can "work around" the disputed patents, it has other serious problems.

The company is locked in a competitive struggle against much bigger competitors such as Verizon and Comcast Corp. (NASDAQ: CMCSA) that over time it will lose even as more telephone service migrates to the Internet. Yes, I know Vonage has a cadre of customers who are just crazy about it and even liked those annoying commercials that thankfully have disappeared but I don't see how the company will survive over the long term.

Vonage (VG) settles patent dispute, escapes hangman's noose originally appeared on BloggingStocks on Mon, 08 Oct 2007 11:21:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Baird reduced estimates across the board in the process control sector due to lower expectations for North American industrial and residential construction. The firm downgraded Roper Industries (NYSE: ROP), Regal-Beloit Corp (NYSE: RBC) and Baldor Electric (NYSE: BEZ) to Neutral from Outperform and AO Smith Corporation (NYSE: AOS) to Underperform from Neutral.
• Goldman downgraded shares of R.H. Donnelley Corporation (NYSE: RHD) to Neutral from Buy after the company updated its 2007 guidance to reflect deteriorating trends in local advertising.
  
• Vonage Holdings Corp (NYSE: VG) was downgraded to Sell from Hold at Soleil due to liquidity concerns.
  
• Coca-Cola Enterprises (NYSE: CCE) was downgraded to Hold from Buy at Deutsche Bank on valuation and mixed near-term trends.
  
• Transocean Inc (NYSE: RIG) was downgraded to Hold from Buy at Gabelli. Even though the deepwater market continues to be strong, the firm is concerned regarding the continuing weakness in the jackup market as well as the limited upside potential due to the company's ships being in use through 2009.

• XM Satellite Radio Holdings (NASDAQ: XMSR) and Sirius Satellite Radio Inc (NASDAQ: SIRI) were downgraded to Neutral from Buy at UBS.
  
• Blue Nile Inc (NASDAQ: NILE) was downgraded to Neutral from Buy at Suntrust.
  
• Citigroup downgraded shares of CheckFree Corporation (NASDAQ: CKFR) to Hold from Buy.
  
• Morgan Stanley downgraded McAfee Inc (NYSE: MFE) to Underweight from Equal Weight.

Analyst downgrades: Process control sector, RHD, VG, CCE and RIG originally appeared on BloggingStocks on Wed, 19 Sep 2007 11:35:00 EST. Please see our terms for use of feeds.

Continue reading More bad news for VoIP industry

More bad news for VoIP industry originally appeared on BloggingStocks on Thu, 19 Jul 2007 10:51:00 EST. Please see our terms for use of feeds.

Sun sets on SunRocket originally appeared on BloggingStocks on Tue, 17 Jul 2007 11:05:00 EST. Please see our terms for use of feeds.

Zac Bissonnette posted earlier how Moody's Corp. (NYSE: MCO) criticized private equity. What strikes me is just how late Moody's is to join the critical chorus.

Roughly 11 months ago I made arguments similar to the ones that Moody's is making today. And I was pleased that some media outlets -- specifically Barron's Alan Abelson -- picked up on them. What really got me going is that as of August 2006, there were two busted IPOs from which Bain Capital -- as the Boston Globe reports enriched presidential candidate Mitt Romney -- took enormous fees:

• Vonage Holdings Corp. (NYSE: VG) - Bain Capital and others lent Vonage $200 million before taking this money-loser public. VG has lost 80% of its value since the May 2006 IPO.
• Burger King Holdings, Inc. (NYSE: BKC) - That same month, Bain Capital and others took a $30 million "management termination fee" out of Burger King before taking it public. (This fee is chump change compared to the $367 million dividend Bain Capital and its partners extracted from Burger King in February 2006.) By August 2006, Burger King had tumbled 26% since its IPO after announcing that it lost $9 million in its fiscal fourth quarter due, in part, to the management termination fee. Fortunately for its shareholders, the stock has doubled since then.

It takes a long time for a battleship the size of private equity to turn. But when Moody's -- which is supposed to be protecting the public from poorly structured debt rather than profiting from it -- kills its formerly golden goose, the time for turning may be closer than it was a year ago.

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.

Moody's late to the private equity bashing party originally appeared on BloggingStocks on Mon, 09 Jul 2007 11:26:00 EST. Please see our terms for use of feeds.

Even if Vonage Holdings Corp. (NYSE:VG) can resolve its patent issues with Verizon Communications Inc. (NYSE: VZ) -- and that's a huge if -- , the pioneering Internet phone service provider is still doomed.

As I've argued before, Vonage is in a commodity business where people decide what to buy based solely on price. I just don't see how the Holmdel, New Jersey-based company will be able to compete against much larger rivals including Verizon and Comcast Corp. (NASDAQ: CMCSA).

Plus, the company continues to spend bucket loads of money. Selling, general and administrative expenses soared 72 percent in the first quarter compared with a year earlier and 11 percent from the fourth quarter in part because of the Verizon litigation. SG&A represented 46 percent of revenue in the quarter, up from 44 percent last year, and 45 percent in the fourth quarter.

Customer churn, long a problem for Vonage, rose in the 2.4 percent from 2.3 percent in the last quarter. Earlier this week, Vonage named Jamie Haenggi, who joined the company last year from ADT, as chief marketing officer where she will be responsible for "spearheading a more unified marketing approach at Vonage in line with the company's announced strategy of improving its competitive position in the marketplace," according to a press release.

Ultimately, the court will decide whether CEO Jeffrey Citron's claims that the company has found a way to work around the Verizon patent is correct. His opinion, which helped push Vonage's shares up yesterday and today, isn't the one that matters.

Vonage is still doomed originally appeared on BloggingStocks on Fri, 11 May 2007 14:00:00 EST. Please see our terms for use of feeds.

Internet telephone provider Vonage Holdings Inc. (NYSE: VG) released quarterly results on Thursday that were better than what most analysts had expected. The company, though, still faces a tough legal fight with Verizon Communications Inc. (NYSE: VZ) that threatens the viability of the Internet phone provider.

It would help if the company had ever made money, but it hasn't. This sounds like the satellite television and radio companies in their infancies as well. Vonage, though, may be able to get there faster. That is, if Verizon doesn't run it into the ground.

Vonage's first quarter loss was $72.3 million ($0.47 per share). Although this is less than the year-ago quarterly loss of $85.2 million, the improvement has been overshadowed by legal messes with incumbent and overpowering telecom giant Verizon.

To a point, Verizon (and all other established telecoms) are frightened by the emergence of new technology which could take customers away from them. When an Internet connection can be used for television broadcasts, radio, telephone and web usage, telecom companies who can't cash in on that start sweating. In other words, it's no surprise Verizon is going for the jugular here.

Customers clearly want Vonage's services, as the company's revenue increased 64% to $195.9 million in the first quarter, up from $119.7 million a year ago. Shares went up by about 11% as investors were pleased with such large revenue and customer gains.

Vonage CEO Jeffrey Citron stated that technical workarounds are almost in place to allow Vonage to not "infringe" on two (of the three) Verizon patents that have it in legal trouble. If Vonage can bypass the alleged legal issues it has with Verizon soon and can continue signing up customers, the company may yet make a profit and survive.

Vonage loss narrows as revenue rises 64% originally appeared on BloggingStocks on Fri, 11 May 2007 09:39:00 EST. Please see our terms for use of feeds.