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From Microcap SpeculatorHighway Holdings (HIHO) (articles) declared a semi-annual dividend of $.20, payable on December 8, 2006 to shareholders of record on November 28, 2006. The company also paid a $.20 dividend in August.Even after the dividend and the recent purchase of Golden Bright Plastic Manufacturing, Highway Holdings will still have plenty of cash left on the balance sheet. However, it is important to remember that the company generated a lot of that cash by selling off an unprofitable legacy business and certain trademarks. HIHO will not earn $.40 next year (no analysts cover the company but I expect somewhere between $.22 and $.30 from operations).Therefore, if it decides to maintain the dividend rate, it will cut into the company’s cash hoard. I really like what HIHO management is doing here. In the course of the past year, they have divested unprofitable businesses, deployed capital efficiently to acquire a new, highly profitable operation, and returned a substantial chunk of excess capital to shareholders. Any microcap of this size should be considered speculative (especially a Chinese microcap) but to me this is a speculation worth taking.I am long the stock from $3.50 (really $3.30 if you adjust for the dividend I received in August) and will likely buy more this week.DISCLOSURE: I am long HIHO. Not a recommendation to buy or sell any security. For informational and educational purposes only.http://themicrocapspeculator.blogspot.com/

Count on Microsoft to be as clever as the devil. The new Zune business model will turn Apple on its ear. Microsoft will give Universal Music a cut of the sales price of each Zune sold. Apple only gives content providers a piece of the downloaded music or video.One of the reasons that model is attractive to music companies is that much of the content on most iPods comes from ripped CDs. In that case, the music publisher gets nothing. Microsoft has found a way to make sure each music firm is assured revenue from the Zune.The ball now goes to Apple’s court. It does have over 70% of the share in portable multimedia devices, but music companies are somewhat ambivalent about the device. It gives them huge distribution, but Apple keeps most of the revenue pie.Apple will probably see no need to counter Microsoft’s move immediately, but if the music industry warms to it, MSFT may find itself in the role of preferred provider to entertainment companies that think its revenue model is more attractive.And, that could be tough for Apple.

(VZ)(T)(FTE)(GOOG)It is not enough that companies like Verizon and AT&T are cutting deals with studios, TV networks, and even YouTube to get programming for their fiber-to-the-home IPTV initiatives. The deals may end up being lucrative for the studios who are stuggling with their mix of distribution that includes theaters, DVDs, and airplane movies. The list get longer.Money from downloading films over the internet may end up being a big business and will be critical to telecoms war with cable to own the pipe to the home.But, why should the content guys take little risk and get all the money.That’s what France Telecom want to know. Their answer is to start their own production operation and invest in content themselves. The company has already started a large division to buy exclusive content for its customer, but that does not seem to be enough. France Telecom plans to invest in 10 to 15 movies a year.The move may have a ripple affect in the US. Studios often take on private partners to spread the risk of high budget films. There is no reason that those partners could not be Verizon or AT&T. This move might give them an earlier window to show the programming, a flanking move against the cable companies.Of course, the cable companies might want to get into the act themselves.Being in the studio business may not be so tough after all.

Stock Tickers: STEM, GERN, ASTM, VIAC, KOOL, CCELThere are some fresh developments that can affect the prices of stocks that would benefit from additional uses and additional applications for stem cell research, and these new developments may in fact lift certain cloning bans under some pre-set conditions. While these initiatives are overseas, they are un the UK and in Australia.Stem cell stocks up on lift of cloning ban in certain studies:Stemcells inc.-STEMGeron-GERN Aastrom Bio-ASTMViaCell-VIACThermogenics-KOOLCryo-Cell-CCELScientists in the United Kingdom have applied for a license to create hybrid embryos that use human cells and animal eggs for stem cell research. Some of the targeted areas will be to develop new treatments for Parkinson’s, stroke and Alzheimer’s. Kings College London and the North East England Stem Cell Institute (NESCI) submitted the application to the Human Fertilisation and Embryology Authority (HFEA), the regulatory body that regulates and supervises embryo research and fertility treatment. The proposed hybrid embryo will be 99.9 percent human and 0.1 percent animal, which may overcome a shortage of human eggs left over from IVF treatments, which have been used for stem cell research.Australia’s Prime Minister, John Howard, has allowed a vote on the controversial issue of lifting a cloning ban for stem celll research. The initial senate vote Tuesday a private members’ bill seeking to legalise therapeutic cloning won by 34 votes to 31 before the senate moved to discussion of proposed amendments. This would allow researchers to clone human embryos to extract their stem cells for disease treatment, although cloned embryos would have to be destroyed within 14 days and could not be implanted in a woman. Existing laws allow stem cells to be harvested only from surplus IVF embryos.Stem cell research has also, of course, been one of the issues in the U.S., and the elections today could be influential on the forward direction of stem cell research uses in the U.S. While that holds true in the US, cloning measures have raised far more controversy than stem cell research, so if you combine the two you will definitely be wanting a Congressional regime change today.

Toyota’s stock hit an all-time high in trading in Tokyo overnight.Small wonder. The largest Japanese car company watched its operating profits rise 44% in the most recently announced quarter. Toyota said that sales in Europe and the US of fuel-efficient cars like the Camry helped its results. Of course, Detroit relies on SUVs and pick-ups for most of its profits. These have fallen out of favor as fuel prices rise.Leaving aside the fact that at $215 billion, Toyota’s market cap is as large as the next four most valuable car companies combined and that the company is upping its sales forecasts for the year. The most frightening announcements for the Big Three is that Toyota will start producing and pushing it Tundra pick-up, a move directed at the heart of Detroit’s most lucrative model lines and that it will begin to market additional fuel-efficient cars like its Scion.Toyota will increase production by over 500,000 units next year as it opens new plants in countries like China and Russia.During the first three quarters of 2006, Toyota has increased its market share in the US from 13% last year to 15.2% this year. At that rate, Toyota will have almost 21% of the US market by the end of 2008. Most, if not all of that, would come from US manufacturers.Ouch.