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.

MOST NOTEWORTHY:

• Keefe Bruyette upgraded the European Banks sector to Neutral from Underweight on valuation as they see limited downside from current levels. Included in the firm's top picks are HSBC Holdings Plc (NYSE: HBC) and Banco Santander SA (NYSE: STD).
• Credit Suisse upgraded the Paper and Forest Products sector to Overweight from Underweight citing valuations and expectations that fundamentals will bottom this fall. The firm raised shares of Temple-Inland Inc (NYSE: TIN) and Smurfit-Stone Container Corporation (NASDAQ: SSCC) to Outperform from Neutral.
• Friedman Billings upgraded shares of Kindred Healthcare Inc (NYSE: KND) to Outperform from Market Perform on valuation following the recent pullback and believes the company is well-positioned to beat modest expectations over the remainder of the year. The firm raised their target to $36 from $29.
• Oppenheimer raised Convergys Corporation (NYSE: CVG) to Outperform from Perform on valuation, as they believe investors should look at the company's business lines separately. Their sum of parts valuation yields an $18 target.

• Suncor Energy Inc (NYSE: SU) was upgraded to Overweight from Neutral at JP Morgan and to Outperform from Market Perform at Friedman Billings.
• UBS upgraded BT Group Plc (NYSE: BT) to Neutral from Sell.
• Broadcom Corporation (NASDAQ: BRCM) was upgraded to Buy from Neutral at Piper.

Analyst upgrades: European Banks, Paper and Forest Products sectors, BRCM, KND and CVG originally appeared on BloggingStocks on Mon, 07 Jul 2008 11:33:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Merriman downgraded shares of Level 3 Communications Inc (NASDAQ: LVLT) to Neutral from Buy, as they believe the risks outweigh the rewards until the company can complete its integration and turn FCF positive.
• BT Group Plc (NYSE: BT) was downgraded to Equal Weight from Overweight at Lehman to reflect the company's slowing revenue growth.
• Bear downgraded Limited Brands Inc (NYSE: LTD) to Peer Perform from Outperform, citing the unfavorable macro backdrop, execution issues and management turnover.

• Societe Generale lowered its rating on GlaxoSmithKline Plc (NYSE: GSK) to Hold from Buy.
• Morgan Stanley downgraded Cox Radio Inc (NYSE: CXR) to Equal Weight from Overweight.
• UBS dropped Anglogold Ashanti Limited (NYSE: AU) to Neutral from Buy.

Analyst downgrades: LVLT, BT and LTD originally appeared on BloggingStocks on Fri, 08 Feb 2008 09:57:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• JP Morgan downgraded shares of Cisco Systems Inc (NASDAQ: CSCO) to Neutral from Overweight following its Q2 results, as they believe the company's international exposure is not enough to offset slowing in North America and Europe. Shares were also downgraded to Neutral from Outperform at Baird, citing the meaningful slowdown in fundamentals.
• Lehman downgraded Virgin Mobile USA Inc (NYSE: VM) to Equal Weight from Overweight based on reduced visibility following its Q4 report.
• Polo Ralph Lauren Corporation (NYSE: RL) was lowered to Hold from Buy at Citigroup, as they believe the company is facing fundamental challenges in key markets and a lack of visibility on the Japanese market. They see more upsideelsewhere.

• Bear Stearns downgraded BT Group Plc (NYSE: BT) to Peer Perform from Outperform.
• Think Equity lowered Napster Inc (NASDAQ: NAPS) to Accumulate from Buy.
• UBS downgraded Elbit Systems Ltd (NASDAQ: ESLT) to Neutral from Buy.

Analyst downgrades: CSCO, VM and RL originally appeared on BloggingStocks on Thu, 07 Feb 2008 10:06:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Merriman upgraded Sonus Networks (NASDAQ: SONS) to Neutral from Sell following its win at BT Group (NYSE: BT) for its ASX platform, which the firm believes endorses the company's technology.
  
• Cantor upgraded Kenexa (NASDAQ: KNXA) to Buy from Hold. The firm finds the stock being 40%+ off due to the 3Q weak earnings report as quite an overreaction and believes there is more than enough upside to advise buying shares. Management announced a 2M share buyback program.
  
• Shares of Canadian Pacific (NYSE: CP) was upgraded to Sector Outperformer from Sector Performer at CIBC, as they believe the strong Canadian Dollar and the delay in STB approval of the DM&E acquisition is priced into shares.
  
• Applied Materials (NASDAQ: AMAT) was upgraded to Outperform from Neutral at JP Morgan and to Buy from Hold at Citigroup; Citigroup expects capex revisions to start to reverse in mid-08 and views solar as a free option.
  
• Piper Jaffray raised its rating on Powerwave Technologies (NASDAQ: PWAV) to Outperform from Market Perform on valuation and seasonally strong Q4 capex trends.

• eBay (NASDAQ: EBAY) was upgraded to Outperform from Market Perform at Piper Jaffray.
  
• Morgan Joseph upgraded Perini (NYSE: PCR) to Buy from Hold and Shuffle Master (SHFL) to Hold from Sell.
  
• Goldman upgraded China Petroleum & Chemical Corp (NYSE: SNP) to Buy from Neutral.

Analyst upgrades: SONS, KNXA, CP, AMAT and PWAV originally appeared on BloggingStocks on Fri, 09 Nov 2007 11:00:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• ING Group upgraded shares of BT Group (NYSE: BT) to Hold from Sell to reflect the company's more stable revenue trend and improving cash flow generation.
  
• Deutsche Bank upgraded shares of Luminent Mortgage Capital (NYSE: LUM) to Hold from Sell, as they believe the company's portfolio is beginning to stabilize and its liquidity has improved.
  
• Goldman upgraded Cognos Inc (NASDAQ: COGN) to Buy from Neutral following its Q2 report.
  
• Thor Industries (NYSE: THO) was raised to Sector Perform from Underperform at RBC Capital Markets. The firm's checks indicate strengthening backlog and lower promotional spending.
  
• Roth Capital believes Watson Pharmaceuticals (NYSE: WPI) is about to enter a growth phase with Paul Bisaro at the helm and is positive on Silodosin potential. The firm upgraded shares to Buy from Hold.

• Bank of the Ozarks (NASDAQ: OZRK) was upgraded to Buy from Neutral at B. Riley.
  
• Bear upgraded Harman International (NYSE: HAR) to Outperform from Market Perform.
  
• Goldman upgraded Packagaing Corporation (NYSE: PKG) and Smurfit-Stone Container (NASDAQ: SSCC) to Buy from Neutral.
  
• Friedman Billings raised Conseco Inc (NYSE: CNO) to Outperform from Market Perform.

Analyst upgrades: BT, LUM, COGN, THO and WPI originally appeared on BloggingStocks on Fri, 28 Sep 2007 11:00:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Friedman Billings downgraded Aventine Renewable Energy (NYSE: AVR) and Pacific Ethanol Inc (NASDAQ: PEIX) to Underperform and VeraSun Energy Corporation (NYSE: VSE) was downgraded to Market Perform from Outperform. The firm said the ethanol market has become increasingly challenging as spot market prices have declined by 30% in the past few months and expect pressure to remain through 2008 as the industry's growing pains continue.
  
• Morgan Stanley downgraded shares of BT Group (NYSE: BT) to Underweight from Equal Weight on valuation and regulation uncertainty ahead of Ofcom's first consultation document next week.
  
• AMR Corporation (NYSE: AMR) was downgraded to Sell from Neutral at Goldman to reflect the company's U.S. exposure as they expect the U.S. economy to slow.
  
• Banc of America downgraded shares of Kyphon Inc (NASDAQ: KYPH) to Neutral from Buy on valuation as the spread on the acquisition by Medtronic Inc (NYSE: MDT) has now narrowed.

• Pepsi Bottling Group Inc (NYSE: PBG) was downgraded to Market Perform from Outperform at Bernstein.
  
• Oppenheimer downgraded Signature Bank (NASDAQ: SBNY) to Neutral from Buy.
  
• ThinkEquity downgraded BioCryst Pharmaceuticals (NASDAQ: BCRX) to Accumulate from Buy.
  
• Merrill Lynch downgraded Luxottica Group (NYSE: LUX) to Neutral from Buy.

Analyst downgrades: Ethanol sector, BT, AMR and KYPH originally appeared on BloggingStocks on Thu, 20 Sep 2007 10:45:00 EST. Please see our terms for use of feeds.

MOST NOTEWORTHY:

• Deutsche Bank believes the worst is over for Motorola (NYSE: MOT) and expects an improvement in growth over the next several quarters, upgrading shares to Buy from Hold.

• CIBC upgraded shares of SanDisk (NASDAQ: SNDK) to Sector Outperformer from Sector Performer following checks that indicate NAND supply is being allocated, visibility is improving, and SanDisk positioning is strengthening.

• Pali Capital raised Time Warner (NYSE: TWX) shares to Buy from Neutral as they believe the "valuation has become too attractive to ignore."

• JP Morgan upgraded Schering-Plough (NYSE: SGP) and GlaxoSmithKline (NYSE: GSK) to Neutral from Underweight based on valuation.

• CIBC upgraded Openwave Systems (NASDAQ: OPWV) to Sector Performer from Sector Underperformer believing the Street's expectations are now in line with expectations, limiting downside potential at these levels...

• Merrill upgraded BT Group (NYSE: BT) to Buy from Sell.

• JP Morgan assumed coverage of Arkansas Best (NASDAQ: ABFS) with a Neutral rating, up from an Underweight rating.

• AG Edwards upgraded UnitedHealth (NYSE: UNH) to Buy from Hold.

• Merrill upgraded Dean Foods (NYSE: DF) to Neutral from Sell.

• UBS upgraded Marvell Technology (NASDAQ: MRVL) to Buy from Neutral.

Analyst upgrades 7-16-07: ABFS, DF, MOT, SNDK and TWX originally appeared on BloggingStocks on Mon, 16 Jul 2007 10:13:00 EST. Please see our terms for use of feeds.

"Investors have shied away from the big telcos in recent years because of concerns that their traditional businesses were shrinking," notes George Putnam III, an expert in uncovering turnarounds.

But now, he explains, "After years of concern about the cable companies invading their turf, the big telecoms are now well positioned to fight back."

In his The Turnaround Letter, the advisor looks at seven leaders in the global telecom space, all of which he says represent global leaders, with dominant positions in their local markets and the "potential to grow steadily by expanding the services they offer."

AT&T (NYSE: T) Putnam notes, gained control of Cingular Wireless due to its merger with Bellsouth. The renamed AT&T Wireless, he says, will account for about 35% of AT&T's revenues.

The advisor observes, "In addition to a strong wireless presence, AT&T is rolling out fiber-based landline services. With revenues expected to be north of $120 billion in 2007 and substantial operating cash flow, AT&T is a force to be reckoned with." Further, he notes, the dividend was just raised for the 22nd consecutive year, and the company is expected to repurchase roughly $7 billion worth of stock in 2007.

Continue reading Telecom turnarounds: Putnam's 7 global favorites

Telecom turnarounds: Putnam's 7 global favorites originally appeared on BloggingStocks on Fri, 01 Jun 2007 09:30:00 EST. Please see our terms for use of feeds.

There is some news out of the U.K. that Sony Corp. (NYSE: SNE)'s PSP, the PlayStation Portable, may actually get turned into a phone with BT Group (NYSE: BT), formally known as British Telecom. There is already a clip-on mini-camera available for it, and the advanced communications just takes it that much further into a PC and total communications device with video, voice, and wi-fi.

One small problem. Last weekend I was at GameStop looking for a gift for my nephew and when I asked the people working about the PSP, they told me that it was a disaster. They said the Nintendo DS was far better, and this was a bit surprising considering the sleekness of the PSP. Even a buyer at the register that owned a PSP said he wished he didn't buy it.

So maybe as a phone and full-on communications center it may be better, but if the people selling it are going to directly discourage this, then how successful can it be? Sounds like they'll need to convince at least some more of the sellers of the PSP that improvements have been made.

Jon Ogg is a partner at 24/7 Wall St.; he does not own securities in the companies he covers.

Sony and BT turn PSP into a phone originally appeared on BloggingStocks on Wed, 23 May 2007 19:50:00 EST. Please see our terms for use of feeds.

The British newspaper, The Telegraph, reported rumors over the weekend that Yahoo! (NASDAQ: YHOO) may be taking another run at purchasing the social networking site Bebo, for as much as $1 billion. Bebo, launched in 2005, has become the MySpace of the U.K., with a reported 25 million members, mostly young people.

News Corp (NYSE: NWS) bought the 500 pound gorilla of social networking, MySpace, and its 100 million members for a paltry $580 million in 2005. That's $5.80 per member, compared to $40 per member in the conjectured Yahoo! deal. Ouch.

Bebo has been the subject of speculation for the past year, and is rumored to have fended off offers from BT Group plc (NYSE: BT) and Viacom (NYSE: VIA). The site can afford to wait, as it has access to capital, via backing from Benchmark Capital.

Last year, Yahoo! offered $1 billion for another popular site, Facebook, but was rejected. The Telegraph reported that a Bebo co-founder would prefer to take the site public. I think, though, that by taking the time to prepare an IPO, Bebo runs the risk of missing out on the gold rush currently taking place. I hesitate to use the word bubble, but with billion-dollar deals a daily occurrence, and the fickleness of the consumer in this market, the time may never be better for the founders to cash in.

Yahoo, on the other hand, has been all too quiet while its competitors glom onto properties, and I expect it to pull the trigger on a newsworthy acquisition soon.

Yahoo! pursuing social network site Bebo? originally appeared on BloggingStocks on Wed, 23 May 2007 10:40:00 EST. Please see our terms for use of feeds.

MAJOR PAPERS:

• According to the Wall Street Journal's (subscription required) "Heard on the Street" column, Clear Channel Communicationss Inc's (NYSE: CCU) CEO, Mark Mays, is starting to sound desperate, afraid that shareholders would vote against a $26B takeover of Clear Channel by two private equity firms. Many investors have written off the vote's chances of success, as it needs 2/3 approval, unless a higher bid emerges.
• The Financial Times (subscription required) reported that Cisco Systems Inc (NASDAQ: CSCO) and IBM Corporation (NYSE: IBM) will today announce a partnership to develop software that combines voice, instant messaging and other communications services.
• Barron's Online's (subscription required) "Weekday Trader" feels that Dell Inc (NASDAQ: DELL), Nokia Corporation (NYSE: NOK) and Activision Inc (NASDAQ: ATVI) shares haven't reflected the companies' improving prospects.

• The Telegraph reported that Aston Martin, which is owned by Ford Motor Company (NYSE: F), will be sold by the end of the week for an estimated GBP500M. The sale will go to a consortium of business interests from the U.S. and the Middle East, headed by Prodrive founder and owner David Richards.
• According to Polymerupdate.com (subscription required), citing an industry source, Koch Industries and the Blackstone Group are planning to team up to launch a bid for General Electric Company's (NYSE: GE) GE Plastics unit.
• The U.K. Times reported that BT Group plc ADR (NYSE: BT) rose yesterday on the London Stock Exchange on rumors that a private equity group was considering a leveraged buyout of the telecom company.
• Investor's Business Daily's "The New America" column mentioned steel giant United States Steel Corporation (NYSE: X) positively.

Newspaper wrap-up 3-7-07: Aston Martin to be sold by Ford originally appeared on BloggingStocks on Wed, 07 Mar 2007 09:30:00 EST. Please see our terms for use of feeds.