Zac Bissonnette posts
FeedPosted Aug 29th 2009 12:10PM by Steven Mallas (RSS feed)
Filed under: Competitive strategy, General Electric (GE), Time Warner (TWX), Walt Disney (DIS), Viacom (VIA), News Corp'B' (NWS), Lions Gate Entertainment (LGF)
Coinstar's (NASDAQ: CSTR) Redbox, a convenient movie-rental kiosk, has really shaken things up in the media industry. BloggingStocks has covered recent events surrounding this asset: Zac Bissonnette wrote an article earlier in the month discussing the subject of litigation with certain studios, and Brent Archer covered a possible options play connected to a deal with Viacom (NYSE: VIA).
I won't rehash all of the details, but let me boil it down to the salient issue: studios such as Disney (NYSE: DIS), General Electric's (NYSE: GE) NBC Universal, and Time Warner (NYSE: TWX) are all worried about the devaluation of physical media. Redbox charges a single dollar per day for a DVD rental. This frightens content makers. Executives at these companies believe that discs must be defended since they are an important way of amortizing costs associated with making films. Even those entities that have decided to engage the Redbox model probably aren't happy about it. Lions Gate (NYSE: LGF) surely doesn't enjoy the deflation of the DVD, but it is playing ball nevertheless.
Continue reading Redbox is really irritating the studios, but they should calm down
Posted Mar 29th 2009 10:30AM by Steven Mallas (RSS feed)
Filed under: Yahoo! (YHOO), Time Warner (TWX), Walt Disney (DIS), Sony Corp ADR (SNE), Media World, Film
Just when it looks like it's safe to buy Lions Gate Entertainment (NYSE: LGF), something comes along to ruin the party. In this case, it's Carl Icahn.
Well, that's not exactly fair. Lions Gate has been ruining its own party to some degree. I remember taking a look at the studio's Q3 numbers and finding that the movie business is indeed risky. Lions Gate is more of a pure play on Hollywood than say Disney (NYSE: DIS), Time Warner (NYSE: TWX), or Sony (NYSE: SNE) are. Because of that, the exposure to a bad slate of projects hurts it more than a company that also owns a theme park and/or a major television network. Poor Lions Gate reported a loss in Q3, and cash was used for operations. Not a good situation.
Continue reading Lions Gate just can't get a break
Posted Mar 21st 2009 3:10PM by Trey Thoelcke (RSS feed)
Filed under: Earnings reports, Blockbuster Inc 'A' (BBI), Adobe Systems (ADBE), Best Buy (BBY), Darden Restaurants (DRI), FedEx Corp (FDX), General Mills (GIS), Xerox Corp (XRX), NIKE, Inc'B' (NKE), Oracle Corp (ORCL), Palm Inc (PALM)
Here are some highlights from this past week's earnings coverage from BloggingStocks:
Continue reading Earnings highlights: FedEx, Nike, Oracle, General Mills, Palm, Adobe and more
Posted Jan 2nd 2009 1:30PM by Steven Mallas (RSS feed)
Filed under: General Electric (GE), Film, Marvel Entertainment (MVL)
Recently, Zac Bissonnette took Amazon (NASDAQ: AMZN) and its press-release wizards to task for essentially issuing a document that was full of spin but low on substance. This was in regard to Amazon having its "best Christmas ever." I'm sure you've heard about it. Well, I was looking at an article yesterday that talked about some box-office numbers from General Electric's (NYSE: GE) Universal Pictures asset. I kind of got the same feeling about the numbers as Zac did about the Amazon Christmas thing.
Of course, keep in mind, the article I was looking at was not a press release. Still, the execs at NBC Universal are surely pretty proud about the numbers. After all, they are supposed to be best-ever stats. On the domestic side of things, Universal achieved a total box-office gross of approximately $1.1 billion.
On the international front, the studio brought in $1.7 billion. The year-over-year growth rate was flat for domestic theaters, and for international theaters, the company saw a robust 66% increase. Personally, I'm not impressed. To begin with, domestic was flat, and that's not good. And as for international, well, there was no context in terms of the effects of currency rates.
Plus, does it really matter if a studio is achieving high grosses? There's never any comment about profits and losses on specific titles, compensation structures for the stars, etc. To me, this data doesn't say a lot (admittedly, I'll never be satisfied with the amount of disclosure that studios are required to give on their movie projects).
The article mentions two films as drivers for the year that, in my opinion, underperformed in the domestic marketplace: The Incredible Hulk, based on the Marvel (NYSE: MVL) character, and the latest sequel in the Mummy franchise. The latter barely made it over the $100 million mark, and the former only grossed a little better than $130 million. Big deal. You would have figured that Universal could have squeezed some more box-office bucks out of these properties.
Many on Wall Street believe that GE should rid itself of NBC Universal. I'm not one of them, but I concede that Universal Pictures needs to do better. Seriously, Universal Pictures did okay, but not great, in '08. I sincerely hope that CEO Jeffrey Immelt does not allow the studio to rest on these laurels. That would be a shame, and a slap in the face to shareholders.
Disclosure: I own GE; positions can change without notice.
Posted Oct 15th 2008 9:45AM by Steven Mallas (RSS feed)
Filed under: Television, General Electric (GE), News Corp'B' (NWS), Media World, Film
Okay, here is an absolutely brilliant idea. And no, I'm not being sarcastic. According to this blurb at The Hollywood Reporter, News Corp. (NYSE: NWS) is interested in doing a sequel to the classic 1987 film Wall Street.
Some of you younger investors out there might not be familiar with the movie, but perhaps you're familiar with the now-famous quote "Greed, for lack of a better word, is good." It was uttered by the loathsome Gordon Gekko, whose alliterative name almost oozes corporate scandal and villainy. That character was played by Michael Douglas. Wall Street was directed by Oliver Stone and it portrayed the evil side of capitalism, replete with insider trading and share-price manipulation. It's considered a classic, iconic fictional snapshot of the current zeitgeist at the time: the only thing that mattered was upward mobility and accumulation of as much net worth as conceivable without consideration for the little guy. It came out around the time of the '87 market crash, so it had that going for it.
This is why News Corp. needs to fast-track the project. According to this source from May of last year, a sequel to Wall Street was already in the works. Obviously, the fact that The Hollywood Reporter mentioned the project this week means that execs at Fox feel that the timing for a sequel is approaching an optimal point. In fact, they really should try to get it out into the marketplace as quickly as they can, and hopefully with Michael Douglas reprising his role as Gekko (Douglas' return is not set in stone at this point). Not only could the movie gross a decent amount at the box office, but think of the synergy potential here.
News Corp. is fighting a battle with General Electric's (NYSE: GE) CNBC as we speak. The Fox Business Channel wants to take away as many viewers as possible from the stock-market network. Problem is, CNBC is a very powerful brand in its arena. Of course, that doesn't deter the pit bulls at Fox. If you had to describe the media company with only one word, that word would, by necessity, be a hyphenate: ultra-competitive. In fact, Fox Business Channel recently slammed BloggingStocks' own Jim Cramer in a recent promo (see a piece on this subject by Zac Bissonnette).
Continue reading Would a sequel to "Wall Street" help Fox Business Channel?
Posted Aug 8th 2008 11:10AM by Steven Mallas (RSS feed)
Filed under: Earnings reports, Magazines, Internet, Media World
I get depressed whenever I read a Playboy Enterprises (NYSE: PLA) earnings report these days (see more of today's earnings news). I mean, sex sells, right? And one has to assume that Playboy has the best brand equity when it comes to selling sex, correct? Apparently not. Playboy's situation seems to be getting worse. The magazine is no longer the cool taboo it once was, the internet is killing it, and subscriptions and newsstand sales are fading. The magazine is arguably the driving heart of the brand. Without it, things will be rough. The numbers tell the tale.
For the second quarter, revenues declined over 14% to $73.4 million. The net loss was 6 cents per share. In the year-ago period, Playboy booked a 6 cents per-share profit. According to Briefing.com, revenue estimates were missed, as were expectations for earnings. In fact, Playboy missed by 11 cents! Not sexy at all.
All of the major operating segments saw declines in their top lines. Licensing increased its operating income by 9%. Publishing, believe it or not, actually narrowed its operating loss. Neither of these two positives is worth much in the grand scheme of things.
Continue reading Will Christie Hefner ever get Playboy's house in order?
Posted Mar 16th 2008 2:40PM by Sheldon Liber (RSS feed)
Filed under: Forecasts, Bad news, Rumors, Rants and raves, Scandals, Sunday Funnies,
My collegue Zac Bissonnette posted a story about Societe Generale, the French bank that suffered a $7 billion loss at the hands of a 30-year-old trader. He points out that according to French law, the bank could not fire this big time loser without a formal explanation of the problems they have with his performance. I guess they have no dollar limit. Zac confessed to wanting to be a fly on the wall and I went into my Saturday Night Live alter-ego adding the following:
- You don't need to be a fly on the wall Zac. You know what will be said:
"We find that your performance over the last year has been quite extroadinary. We have never seen or heard of anyone losing $7 billion that was not a government official. This is so far outside of our expectatations that we feel we must put you on notice that should you lose another $7 billion we will be forced to ask for your resignation. However, you should not worry because, as is blatantly obvious the government would probably jump at the opportunity to retain someone of your experience. You would need no training and could start to lose money on the first day."
Continue reading Sunday Funnies: $7 billion loss and S&P sees the light
Posted Mar 9th 2008 1:10PM by Sheldon Liber (RSS feed)
Filed under: Wal-Mart (WMT), Limited Brands (LTD), Sunday Funnies
One of our more commented-on stories, We're too sexy ... per Victoria's Secret's CEO, received some very funny ones. The best one, that I thought showed the wildest mis-characterization of the worlds population, was "supermodels only make up 7% of the world."
Obviously a few decimal places were left out, otherwise we would have 500 million supermodels. I'm not sure anyone has an exact count, but the number is likely less than a hundred, perhaps two. However, this might explain the rash of UFO sightings -- beings from other planets surely would be eager to travel from light years away to do 'meet and greets' in a world where better than 1 in 15 people were supermodels!
I don't know how our readers are doing with their investments, but there are some that clearly need to get a grip on percentages. The following gem of a coment was sent to my colleague Zac Bissonnette's after his post: Congress grills overpaid executives:
"I personally do not feel that any CEO of publicly traded company should receive more than 300% of the lowest paid permanent employee. Private companies they should receive what ever they can."
Continue reading Sunday Funnies: World awash in supermodels
Posted Nov 18th 2007 2:10PM by Zack Miller (RSS feed)
Filed under: Consumer experience, Competitive strategy, Apple Inc (AAPL), Starbucks (SBUX), Marketing and advertising, McDonald's (MCD)
In a post yesterday, BloggingStocks' Zac Bissonnette blogged about the announcement that Starbucks (NASDAQ: SBUX) will be launching a national TV advertising campaign for the first time. Bissonnette makes a good case why this could be a bad sign for Starbucks, the paradigm and case study for word-of-mouth marketing.
From one Zack to another, I'd like to take the other side of the argument. I actually think this could be good for Starbucks and good for investors. I think this is a clear case of a corporation reaching a new stage of growth and using age-accepted tools to continue growing its business. Far from being negative, I think this is a good thing.
Rather than being a smear on the brand, I think customers will see this as the maturation of the brand. After lowering guidance and reporting negative traffic numbers in its stores, Starbucks has seemingly exhausted effective use of word-of-mouth marketing and now needs to turn elsewhere for growth. In essence, the "cool factor" is no longer driving huge growth for the company (keep in mind, even 20% long-term growth is still impressive).
Continue reading Starbucks' new ad campaign piping hot for investors
Posted Nov 3rd 2007 10:10AM by Trey Thoelcke (RSS feed)
Filed under: Earnings reports, Microsoft (MSFT), Dell (DELL), Intel (INTC), Sirius Satellite Radio (SIRI), Exxon Mobil (XOM), IAC/InterActiveCorp (IACI), Avon Products (AVP), Chevron Corp (CVX), CIGNA Corp (CI), Kellogg Co (K), Clorox Co (CLX), Colgate-Palmolive (CL), MasterCard Inc'A' (MA), Procter and Gamble (PG), Trump Entertainment Resorts (TRMP), Verizon Communications (VZ), Alcatel-LucentADS (ALU), U.S. Steel (X), Under Armour'A' (UA), Newmont Mining (NEM), RadioShack Corp (RSH), Burger King Hldgs (BKC), Teva Pharm Indus ADR (TEVA), Kraft Foods'A' (KFT), Crocs Inc (CROX), Jones Apparel Group (JNY)
Lots more quarterly reports rolled out this past week, and here are some highlights of earnings coverage from BloggingStocks:
Continue reading Earnings highlights: Crocs, Exxon, Kraft, P&G, Sirius, and others
Posted Oct 27th 2007 11:40AM by Trey Thoelcke (RSS feed)
Filed under: Earnings reports, Microsoft (MSFT), Apple Inc (AAPL), Amazon.com (AMZN), Motorola (MOT), Estee Lauder (EL), Halliburton (HAL), Netflix, Inc. (NFLX), New York Times'A' (NYT), Aetna Inc (AET), American Express (AXP), , , Boeing Co (BA), Bristol-Myers Squibb (BMY), , Coach Inc (COH), Comcast Cl'A' (CMCSA), , United Parcel'B' (UPS), Merck and Co (MRK), Lockheed Martin (LMT), Hasbro Inc (HAS), Amgen Inc (AMGN), UAL Corp (UAUA), Dow Chemical (DOW), Texas Instruments (TXN), EMC Corp (EMC), Juniper Networks (JNPR), JetBlue Airways (JBLU), General Dynamics Corp (GD)
The earnings crunch continues to roll along, and here are a some highlights of this past week's earnings coverage from BloggingStocks:
Continue reading Earnings highlights: Apple (AAPL), Merrill Lynch (MER), UAL (UAUA), and many others
Posted Jul 23rd 2007 4:44PM by Kevin Kelly (RSS feed)
Filed under: Products and services, Industry
Investors who are familiar with the conditions of the economy and stock market of the bubble days of the late 90's and 2000 are probably also familiar with the term "domain speculation."
According to the AP, those days seem to be back in the domain world.
The underlying premise behind the domain speculation game is that you can find domains that are undervalued or under-appreciated and sell them to someone when they become in-demand or needed. While this theme does make sense in many cases, such as purchasing a domain name that is unclaimed for a few dollars, I think that the average investor should steer far away from the purchase of already-expensive domain names with the hopes of selling them later.
Continue reading Flashback: just like 2000 domain name speculation back in style