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DISH Networks Wins Blockbuster Auction

DISH buys Blockbuster VideoTroubled movie renter Blockbuster has been looking for a buyer, and we learn today that DISH Network (DISH) has won the auction for the company, with a deal valued at $228 million in cash.

Blockbuster was once the biggest name in video rentals, but it has been unable to keep up with changes in the market created by companies such as Netflix (NFLX) and Redbox.

Continue reading DISH Networks Wins Blockbuster Auction

Dish Network Emphasizing Financials with New Pricing Strategy

Dish Network logoDish Network (DISH) competes with satellite pay-TV providers like DirecTV (DTV), cable companies like Comcast (CMCSA) and Time Warner Cable (TWC), and telecom operators like AT&T (T) and Verizon (VZ). The company recently released its earnings and, due primarily to improved margins primarily, we have updated our price estimate for Dish Network's stock to $27.77. Our price estimate stands at a premium of roughly 20% to market price.

Continue reading Dish Network Emphasizing Financials with New Pricing Strategy

Analyst Calls: ALU, AVP, BRCD, CVH, DISH, EL, INTC, NSM, PCS, SWY ...

Analyst Upgrades

  • Intel (INTC) was upgraded to buy from neutral at UBS.
  • Wells Fargo upgraded MetroPCS (PCS), Coventry Health (CVH) and Scientific Games (SGMS) to outperform from market perform.
  • Estee Lauder (EL) was upgraded to overweight from equal weight at Barclays.
  • Simon Property (SPG) was upgraded to buy from hold at Jefferies.
  • Citigroup upgraded BreitBurn Energy (BBEP) to buy from hold.

Continue reading Analyst Calls: ALU, AVP, BRCD, CVH, DISH, EL, INTC, NSM, PCS, SWY ...

Dish Network Loses 19,000 Subscribers in Q2

DISH logoDish Network (DISH - option chain) stock is trading lower today after the company reported earnings this morning, posting a second-quarter profit of $257 million, or 57 cents per share, on revenue of $3.17 billion. Analysts had forecast a profit of 53 cents per share on revenue of $3.13 billion. However the company also said it lost a net of 19,000 customers during the quarter, which is certainly not good news for the stock. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on DISH.

This morning, DISH opened at $19.33. So far today the stock has hit a high of $19.59 and a low of $18.47. As of 11:55, DISH is trading at $18.69, down $2.15 (-10.3%). The chart for DISH looks neutral and S&P gives DISH a neutral 3 STARS (out of 5) hold ranking.

Continue reading Dish Network Loses 19,000 Subscribers in Q2

TiVo Records Another Loss in Q1

Tivo Q1 lossTiVo (TIVO), an expert in digital-video recording, closed Tuesday's regular session at $9.15. It was up over 1%. Sure, that sounds swell when juxtaposed with Tuesday's market action. It does nothing, however, to make me like the stock.

The 52-week low for the shares is $6.41. The 52-week high is $18.93. The one-year chart is ... not appealing. You've got a big spike in buying interest near the right side, preceded by sideways action. Then, a nasty plunge. How can you possibly comprehend this technical situation? It's difficult at best, and I'm not going to pretend I know where the stock is heading.

Continue reading TiVo Records Another Loss in Q1

Earnings Highlights: BBI, CI, CSCO, DIS, DISH, ERTS, JCP, M, NVDA, PCLN, WEN, WFMI ...

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

  • Blockbuster Inc. (BBI) Q1 net loss was in line with estimates and same-store sales declined, shares also fell.
  • CA Inc. (CA) shares sold off on high volume following the Q4 earnings miss and disappointing guidance.
  • Cigna Corp. (CI) reported better-than-expected Q1 earnings and higher revenue, and reaffirmed its full-year outlook.
  • Cisco Systems Inc. (CSCO) beat Q3 earnings and revenue expectations in the "strongest quarter in our history."
  • Dean Foods Co. (DF) lower Q1earnings beat analysts' estimates, but shares fell on heavy volume afterward.
  • Denny's Corp. (DENN) bested consensus estimates and year-ago EPS by a penny, but said same-store sales fell.

Continue reading Earnings Highlights: BBI, CI, CSCO, DIS, DISH, ERTS, JCP, M, NVDA, PCLN, WEN, WFMI ...

DISH Network: Buy or Sell?

DISH Network Corp. (DISH), a provider of television entertainment channels whose competitors include Comcast Corporation (CMCSA) and DIRECTV (DTV), is trading higher about an hour before the closing bell. It's up 50 cents, or over 2%, to $21.80. Volume isn't that great, though. And I have to say, I'm not sure I'd want to join in with the buyers.

Over the last twelve months, the stock has seen a nice rise. Before you become too impressed, keep in mind that the 52-week range is a relatively narrow one. The low is $14.17, while the high is $23.06.

Continue reading DISH Network: Buy or Sell?

Dish Network Reports Fourth-Quarter Earnings

DISH Network (DISH) reported Monday a 1.4% increase in its 2009 fourth quarter revenue to $2.96 billion. In the fourth quarter of 2008, DISH's revenues were $2.92 billion. The news wasn't as good for DISH's earnings. Diluted earnings of 40 cents per share were lower than the 48 cents per share it earned in the 2008 quarter.

For the fiscal year, DISH saw total revenue of $11.66 billion -- 0.4% better than the $11.62 billion logged in the previous fiscal year. The network gained 249,000 net subscribers during the past quarter, pushing the year-end subscription numbers to 14.1 million by year's end.

Continue reading Dish Network Reports Fourth-Quarter Earnings

Comcast earnings preview: NBC deal may overshadow Q3 results

Philadelphia-based Comcast Corp. (NASDAQ: CMCSA), which is said to be buying a controlling stake in NBC Universal, is scheduled to discuss its third quarter 2009 financial results in a conference call Wednesday at 8:30 AM ET. You can catch the live webcast of the call on the company's website.

During the three months that ended in September, Comcast launched an internet portal for kids, a collaboration with the NFL, and a trial of On Demand Online. Analysts surveyed by Thomson Reuters expect this leading entertainment, information, and communication provider to report earnings of $0.25 per share, just a penny per share lower than in both the previous quarter and a year ago. Comcast earnings have beat the Street view in the past four quarters, by as much as seven cents per share. Revenue for the third quarter is expected to be 3.5% higher to $8.9 billion.

Continue reading Comcast earnings preview: NBC deal may overshadow Q3 results

The week in preview: A peek at apparel retail earnings

As earnings season begins to wind down, some apparel retailers are scheduled to report quarterly results this week. Analysts polled by Thomson Reuters anticipate that Walmart Stores Inc. (NYSE: WMT), the 800-pound gorilla in the space, will report that it earned $0.77 per share in the first quarter, about the same as in the first quarter of last year. But JCPenney Co. (NYSE: JCP), Kohl's Corp. (NYSE: KSS), Nordstrom Inc. (NYSE: JWN), and Urban Outfitters Inc. (NASDAQ: URBN) are expected to report lower profits for the first quarter as consumers continued to hold off on spending. Macy's Inc. (NYSE: M) and Abercrombie & Fitch Co. (NYSE: ANF) are expected to have swung to a loss year over year.

Whole Foods Market Inc. (NASDAQ: WFMI) and Winn Dixie Stores Inc. (NASDAQ: WINN) are likewise expected to report declining earnings, while the Great Atlantic & Pacific Tea Co. (NYSE: GAP), parent of the A&P supermarket chain, is expected to have narrowed its net loss 68.9% to $0.28 per share.

Continue reading The week in preview: A peek at apparel retail earnings

The week in preview: Earnings season winds down

While the release of economic data doesn't stop next week (see economic schedule highlights below), the earnings season does wind down dramatically. Most of the S&P 500 companies already have reported on the past quarter, which means dismal earnings news is largely behind us, at least for a while. About the only companies of note expected by analysts surveyed by Thomson Reuters to report falling earnings this week are Costco Wholesale Corp. (NASDAQ: COST), Wendy's/Arby's Group Inc. (NYSE: WEN), Foot Locker Inc. (NYSE: FL), Bank of Montreal (NYSE: BMO), and Steinway Musical Instruments Inc. (NYSE: LVB).

While PetSmart Inc. (NASDAQ: PETM) and Big Lots Inc. (NYSE: BIG) quarterly profits are expected to be about the same as a year ago, Liz Claiborne Inc. (NYSE: LIZ), Kenneth Cole Productions Inc. (NYSE: KCP), Ciena Corp. (NASDAQ: CIEN), and Trina Solar Ltd. (NYSE: TSL) are expected to have swung to losses in the most recent quarter.

Continue reading The week in preview: Earnings season winds down

Comcast delivers the cash in 2008 and increases its dividend -- is it a buy?

Comcast Corporation (NASDAQ: CMCSA), a cable/broadband entity that competes with Verizon Communications Inc. (NYSE: VZ) and DISH Network (NASDAQ: DISH), reported earnings for the fourth quarter on Wednesday. Adjusted revenues increased 7%, and earnings per share jumped 35% to $0.27. Not a bad performance, and in fact, earnings beat estimates by four pennies according to this source.

Perhaps the biggest piece of news in the release is the increase in free cash flow for the full fiscal year. That jumped 56% to $3.7 billion, driven in part by a decrease in capital spending. I liked reading that management intends on focusing on free cash flow. It better, because it's going to be a challenging environment for the cable business, and the company committed itself to raising its dividend by 8%. On the flip side, though, as has been noted in a couple news reports, Comcast stated in the release that it doesn't feel like buying back stock at the moment. That won't be comforting to shareholders who have seen their shares hovering closer to a 52-week low than a 52-week high.

Continue reading Comcast delivers the cash in 2008 and increases its dividend -- is it a buy?

Money losers of 2008: Billionaires who lost billions this year

This post is part of our feature on Money Losers of 2008. See all 20.

There's no doubt about it -- times are tough. People are struggling to find work and to pay the bills as the value of their homes and savings dwindle. The poor get poorer, and the rich get richer.

Or do they? It's all relative, of course, but world's billionaires have been taking some big hits too. We take a look at Sheldon Adelson, Kirk Kerkorian, and Lakshmi Mittal in their own separate posts, but here are some other billionaires who have lost billions this year (courtesy of Forbes and Business Sheet).

  • Brothers Anil and Mukesh Ambani of India's private conglomerate Reliance lost $32.5 billion and $28.2 billion, respectively.
  • Warren Buffett, the Sage of Omaha, lost $16.5 billion. Shares of Berkshire Hathaway Inc. (NYSE: BRK.A) are down about 32% since the beginning of the year.
  • Microsoft (NYSE: MSFT) founders Bill Gates and Paul Allen lost $12.3 billion and $2.6 billion, respectively, while CEO Steve Balmer lost $6.5 billion. Shares of Microsoft are down 46% since the beginning of the year.
  • Larry Page and Sergey Brin, cofounders of Google Inc. (NYSE: GOOG), lost $11.9 billion and $11.7 billion, respectively, and CEO Eric Schmidt lost $3.8 billion. The share price of Google has fallen 55% since the beginning of the year.
  • Larry Ellison, CEO of Oracle Corp. (NASDAQ: ORCL), lost $8.2 billion. Shares of Oracle are down 21% since the beginning of the year.
  • Media maven Sumner Redstone lost $7.2 billion. Shares of his private investment firm National Amusements fell 70% this year.

Continue reading Money losers of 2008: Billionaires who lost billions this year

Comcast's Q3 should please investors

Cable entity Comcast (NASDAQ: CMCSA) had a kicking third quarter. A look through the press release shows a string of double-digit growth rates. Can't complain about that in a distressed economic period. Revenues, operating cash flow, and free cash flow really shined. Adjusted earnings per share increased 33% to $0.24.

According to this article, the bottom line beat expectations by two pennies. However, that article also contained a bit of a bearish take on Comcast's quarter from an analyst. I don't know, I thought Comcast did a decent job considering the recession. There's no question that the business will be affected by the slowdown and the bad housing market. I concede that. But, given that management is maintaining its outlook for revenue and operating cash flow growth, I just don't feel bearish on the stock from a longer-term perspective. And let's think about this. If digital content distribution is destined to be the wave of the future, won't Comcast be a major player in that wave? I would think it would be. Don't get me wrong, it has competition to contend with. You've got Verizon (NYSE: VZ) and its FiOS product, DISH Network (NASDAQ: DISH) and its satellite offerings, etc. Comcast and its Internet/phone services have had great success in terms of resonating with subscribers. The company is doing well, in my opinion, of building valuable brand equity for itself.

And keep in mind that content providers such as Disney (NYSE: DIS), Time Warner (NYSE: TWX), Viacom (NYSE: VIA), and Sony (NYSE: SNE) will always find it to their advantage to work with Comcast on hatching new distribution avenues for content, a fact that will provide further growth opportunities for the cable company. As an example, Comcast, with partners Lions Gate Entertainment (NYSE: LGF) and Sony, is involved with the Fearnet horror channel. Yes, I would definitely say that Comcast is going to increase its reputation as a player in Hollywood. And that should be good for the stock.

Disclosure: I own Disney; positions can change at any time.

DirectTV (DTV) should gain on AT&T (T) deal

DTV logoDirecTV (NYSE: DTV - option chain) shares are basically flat today, but with today's market that is great performance. The company announced a deal Friday after the close that DTV and AT&T Inc. (NYSE: T) will launch a co-branded satellite television service that will be available to AT&T customers beginning after T's current deal with Dish Network (NASDAQ: DISH) expires early next year. Terms of the deal were not disclosed, but this is a big move for the smaller company and DISH is down more than 13% currently. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on DTV.

DTV opened this morning at $26.05. So far today the stock has hit a low of $26.05 and a high of $27.30. As of 12:25, DTV is trading at $26.54, down one cent (-0.04%). The chart for DTV looks neutral and S&P gives DTV a 3 STARS (out of 5) hold ranking.

For a bullish hedged play on this stock, I would consider an November bull-put credit spread below the $22.50 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 11.1% return in just eight weeks as long as DTV is above $22.50 at November expiration. Direct TV would have to fall by more than 14% before we would start to lose money. Learn more about this type of trade here.

DTV hasn't been below $22.50 since February and has shown support around $24.50 recently.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in DTV nor DISH, but he does control a bullish hedged position on T.

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Symbol Lookup
IndexesChangePrice
DJIA-89.2312,801.23
NASDAQ-23.352,903.88
S&P 500-9.311,342.64

Last updated: February 11, 2012: 04:42 PM

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