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Best Buy (BBY) Says 'Bye Bye' to analog TVs

Technology continues to evolve faster than most of us can follow -- if you blink, you might miss the next-best thing and find yourself surrounded by obsolete devices. My pale-pink iPod Mini is less than 3 years old and already worthy of mockery -- and don't get me started on my embarrassingly large collection of single tapes. MP-what?

At least Best Buy (NYSE: BBY) is helping prevent consumers from unknowingly buying a television that will quickly be seen as a relic. It's taking all analog television sets off the market. The familiar electronics retailer told its store locations to drop analog offerings at the beginning of October and focus exclusively on selling flat-panel and high-definition sets.

By February 17, 2009, all U.S. television programming will be required to be digital, as ordered by the Federal Communications Commission. Those holding on to old analog sets will be able to convert to the sharper signal using boxes, satellite equipment, or other methods of conversion. More than 60 million U.S. viewing households still watch their favorite shows via analog cable or antennas, and the government plans to offer coupons that can be used to purchase converter boxes. Where can one redeem such coupons and acquire such boxes? Well, Best Buy, of course, beginning early next year.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

Analyst initiations 6-19-07: BIG, DIS, NWS, TWX and VIA.B

MOST NOTEWORTHY: Atheros Communications (ATHR), Analog Devices (ADI), Omniture (OMTR) and TriZetto Group (TZIX) were today's noteworthy initiations:
  • Oppenheimer expects a seasonally stronger 2H07 out of Atheros Communications (NASDAQ: ATHR) given continued growth from 802.11n design wins and started shares with a Buy rating.
  • AG Edwards believes Analog Devices (NYSE: ADI) has plenty of room to gain additional market share and started shares with a Buy rating.
  • Jefferies believes Omniture (NASDAQ: OMTR) is positioned to benefit from the rapid growth of Web analytics, but has near-term valuation concerns, and started shares with a Hold rating.
  • Deutsche Bank started TriZetto (NASDAQ: TZIX) with a Buy rating, citing the company's diversified product mix and opportunities to drive adoption rate of consumer-driven health plans for their Buy rating...
OTHER INITIATIONS:
  • The Banc of America assumed the entertainment sector with a Market Weight rating and assumed coverage of Time Warner (NYSE: TWX) and News Corp (NYSE: NWS.A) with Buy ratings and a $25 target and $26 target, respectively, as well as The Walt Disney Co (NYSE: DIS) and Viacom (NYSE: VIA.B) with Neutral ratings and a $37 target and $43 target, respectively.
  • JP Morgan started Big Lots (NYSE: BIG) with a Neutral rating.
Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

Analyst initiations 4-24-07: ADM, QSFT, NSM, MXIM and UTX initiated today

MOST NOTEWORTHY: Four analog semiconductors, Archer Daniels Midland Co (ADM) and United Technologies Corp (UTX) were today's more noteworthy initiations:
  • Archer Daniels Midland Co (NYSE: ADM) was initiated with a Neutral rating at Banc of America based on expected declines in ethanol margins. JP Morgan started shares with an Overweight rating.
  • United Technologies (NYSE: UTX) was started with a Strong Buy rating at Matrix USA with a $90 intrinsic value...
OTHER INITIATIONS:
  • Merrill Lynch started BigBand Networks, Inc (NASDAQ: BBND) with a Neutral rating, ThinkEquity started shares with an Accumulate rating and $19 target, Jefferies started them with a Buy rating and Cowen started shares with an Outperform rating.
Analyst summaries provided by TheFlyOnTheWall.com (subscription required).

How far forward do you like to look?

There's an interesting little website that I like to visit and lurk around called, FreeSoftwareMagazine.com . For the most part, those folks are talking waaaaay over my head, but I like to go there and read with the hope that something worth while might sink into this massively opinionated brain of mine. A wonderfully gifted writer over there has documented an opinion of his which really grabbed my attention. I'm thinking that this guy is giving us a look directly into where a major portion of the future of our tech world is going.

Jabari Zakiya is the author and what he is predicting the eventual demise of the CD and DVD. His claim is that as the costs related to flash drive data storage systems recede into a consumer affordable context, those drives shall come to replace the optical disc drives we are so familiar with. He states that he believes this will change the very design and nature of our PCs. He makes a compelling case in which I'm inclined to agree.

I suspect that companies such as Sony Corp. (NYSE:SNE), Apple Computer Inc. (NASDAQ:AAPL), Hewlett-PackardCo. (NYSE:HPQ) and Dell Inc. (NASDAQ:DELL) are quite up to speed on this concept and the implications it entails. This could be an upcoming change with an impact similar to the changes in data presentation from analog to digital. I don't really think that flash drives will bring on the demise of the CDs we've come to know. I will, however, buy into the concept that the coming generations of computers are preparing to take on new systems and forms that we have only dreamed about up until now.

Symbol Lookup
IndexesChangePrice
DJIA+20.0310,246.97
NASDAQ-2.982,151.08
S&P 500-0.071,093.01

Last updated: November 11, 2009: 04:23 AM

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