Daily Archives: September 8, 2007

The Media Gaffe of the Week (September 8, 2007)

Everyone makes mistakes from time to time, and many of the mistakes just don’t point themselves out as a major gaffe.  Computers are only so smart, and even Gaff or Gaffe make the cut on spell checking.   Forget about abbreviations and initials being caught.

But the MEDIA GAFFE OF THE WEEK goes to Financial Times, who must think that white supremacists are getting into the M&A GAME we have seen.  Obviously "KKK" is supposed to be KKR, and that editorial room probably got a good laugh out of it later.  Unfortunately, the mere mention of this group enrages many so many won’t find this with any humor at all.  Hence, the media gaffe of the week.

The Financial Times did finally correct their mistake if you look at the link now, although I did take a picture here (see below) so you can see how it was originally run.  It also stayed that way for quite some time.  The Brits probably don’t know who the KKK is in the colonies, but they aren’t exactly the world’s most popular group.
Kkk_pic

Here is the file we saved from Yahoo! Finance where we first noticed this.
Download kkr_not_kkk.htm

Jon C. Ogg
September 8, 2007

Posted on: September 8, 2007 – 9:24 am in The Week

What You Missed This Last Week (September 3 to 7, 2007)

A lot happened this last week, even if many of you were still on holiday.  Here is a snippet of what happened:

The jobs numbers sucked on Friday and gave the first negative jobs growth since 2003, but the Thursday retailer numbers looked better than you would have imagined.  Although CostCo (COST) unfortunately stank up the store.

Countrywide Fincial (CFC) announced it was sending 12,000 more workers pink slips, and that is after the crummy jobs report.  Oddly enough, the stock went up atfer-hours.

If it is time to go defensive, here is a list of 17 DEFENSIVE STOCKS.  These only fell 0.85% on average, much less than the DJIA, S&P, and NASDAQ.

Get ready for VMware’s (VMW) VMWORLD 2007 CONFERENCE next week.  Both EMC (EMC) and VMware (VMW) were hit Friday by a quasi-downgrade from Goldman Sachs.

Amgen (AMGN) looks like it is repeating the history of Biogen-Idec (BIIB).  If so, this ex-biotech turned big pharma could go much higher.

Palm (PALM) lost the prestige of having Cisco Systems (CSCO) as a client.  The networking giant started switching phones out this week after dropping the Palm Treo, so Palm may now have to list "ill-will" instead of Goodwill on its books. H-P (HPQ) has determined it wants in the business class cell phone business.  Not smart.
Palm (PALM) also cancelled its Foleo launch.  Apple (AAPL) mistakenly cut its iPhone prices, and the reaction was severe enough that no one cared about the new iPods.  Cisco Systems (CSCO) kept its targets from last month and still maintains the best market in years.

Boeing (BA) delayed the initial flight for its Dreamliner mega-jumbo jet again, but kept its launch date static.

XM satellite Radio (XMSR) and Sirius Satellite Radio (SIRI) may actually be closer to getting their merger closed.  Leap Wireless (LEAP) received a buyout offer from MetroPCS (PCS), in a move that may be the obvious.  Someone tell Qualcomm (QCOM) to settle with Broadcom (BRCM). Otherwise, Jacobs the Younger is going to see the corporate guillotine.

Jim Cramer has a new caffeine play.

Oil companies better be paying attention to how large General Electric (GE) is going to get in the oil and gas sector.  Speaking of which, Baker Hughes filed to sell $2 Billion in securities.  They are selfsufficient and don’t need the cash, so who on earth are they going toacquire next?

If you were out for the entire week before as well, here’s what you missed the week before Labor Day.

Jon C. Ogg
September 8, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: September 8, 2007 – 9:02 am in The Week

As Chrysler Looks Overseas, GM, Toyota, And VW Wait

It would be nice to think that hiring one person could help Chrysler build its business overseas where it has very little market share. The company did pick-up GM’s (GM) former head of China Phil Murtaugh.

But, Chrysler’s path out of the US is blocked by larger and much more well-financed rivals, especially GM, Toyota (TM) and VW. GM and VW are the clear market leaders in China. The European market is fragmented with a number of relatively successful companies which include GM, Toyota, VW, Renault, Mercedes, and Fiat. There is not much room there.

And, in Latin American, GM and Ford (F) are likely to do what is necessary to guard their turf. The region is one of the few where they make real money. The Japanese have seen this and can be expected to be even more aggressive getting their piece of the pie.

Chrysler may want to balance its US sales with units sold outside its home market, but that is easier said than done.

Douglas A. McIntyre

Posted on: September 8, 2007 – 8:12 am in Autos, , , ,

This Week on StockHouse September 4 to 7

Investors came back to the markets after the Labor Day long weekend ready to buy, although credit jitters refused to be put to rest altogether. The new fall season brings the launch of StockHouse ever closer.

The StockHouse Top Five (http://www.stockhouse.ca/shfn/article.asp?edtID=20175) is the fastest way to get the lowdown about the most prolific bloggers, posters and most read features, along with the rest of the top StockHouse content.

StockHouse Publisher, Executive Editor reminded readers that reputation (http://www.stockhouse.ca/shfn/article.asp?edtID=20168) is where it’s at, or where it will be in the relaunched Stockhouse. Want to add to your reputation? Submit an article or a proposal. Check here (http://www.stockhouse.com/shfn/article.asp?edtID=20146) for guidelines, or write to submissions@stockhouse.com.

And from the community Derek Henwood continued his look at the sometimes mystifying world of options trading (http://www.stockhouse.ca/shfn/article.asp?edtID=20166).

Martin Wong reported about a steel fabricator that’s ready to rebound (http://www.stockhouse.ca/shfn/article.asp?edtID=20177) after years of legal woes.

Selodong (http://www.stockhouse.ca/shfn/article.asp?edtID=20184) is the key to valuing Southern Arc Minerals (TSX: V.SA), wrote Kevin Graham in the second part of his examination of the gold exploration company.

And from our columnists…

A new deal with a large radio network prompted Danny Deadlock to reexamine a small digital audio company in his Microcap Monday (http://www.stockhouse.ca/shfn/article.asp?edtID=20167) column.

The IPO market may be getting a fresh start. Jon Ogg sifted through a stack of recent filings (http://www.stockhouse.ca/shfn/article.asp?edtID=20169).

What action will help investors who are worried about the recent credit worries in the markets? Doug Casey advised that they should buy gold (http://www.stockhouse.ca/shfn/article.asp?edtID=20173).

Steven Saville published a collection of notes (http://www.stockhouse.ca/shfn/article.asp?edtID=20174) about stocks, debt and gold.

Meantime, reports from a recent cardiology conference (http://www.stockhouse.ca/shfn/article.asp?edtID=20176) did nothing to shore up confidence in stents and drug-coated stents, or the companies that make them, according to the Bio Check.

An accounting restatement (http://www.stockhouse.ca/shfn/article.asp?edtID=20179) at a RF and microwave company may have hurt investors who bought the stock this spring, wrote the Securities Sleuth.

Tech Trader guru Harry Boxer highlighted five stocks (http://www.stockhouse.ca/shfn/editorial.asp?edtID=20182) that are set to make big moves in the near term.

Another tech guru, Donald Dony wrote that gold may flag (http://www.stockhouse.ca/shfn/editorial.asp?edtID=20183) during its normal period of seasonal strength, because of the flatlining U.S. dollar.

Sometimes even seasoned investors make mistakes. Nancy Zambell gathered a list of five counterproductive behaviours that everyone should avoid in order to grow their nest egg. (http://www.stockhouse.ca/shfn/editorial.asp?edtID=20190)

John J. De Goey noted that it’s impossible to forecast which managers will outpace their benchmarks. (http://www.stockhouse.ca/shfn/editorial.asp?edtID=20188)

Gold charts and ratios were the order of the day for Troy Schwensen, who outlined both short and intermediate term outlooks for the precious metal. (http://www.stockhouse.ca/shfn/editorial.asp?edtID=20191)

Sean Mason found out what posters really think about two junior energy companies in Buzz on the BullBoards. [http://www.stockhouse.ca/shfn/article.asp?edtID=20189]

Posted on: September 8, 2007 – 7:31 am in International Markets

Motorola: An Empty Promise Of A Turnaround

Ed Zander, Motorola’s (MOT) CEO, promised that things would be better for the company’s shareholders. Soon.

Handsets sales at the firm have fallen off a cliff. Once the clear No.2 behind Nokia (NOK), MOT now has a global market share of only about 15% and has probably been passed by Samsung for second place. A surging Sony Ericsson is also picking up share, and a lower-priced Apple (AAPL) iPhone will be a threat at the high end of the market.

Referring to the company’s past success with the RAZR, Zander said to CNN Money ‘We’ve done it, we’ve been there,’ he said. ‘We’ve got to get back on it, and do it not for three years but 30 years.’

But, MOT is unable to articulate any plan for improvement.

Which means they probably don’t have one.

Douglas A. McIntyre

Posted on: September 8, 2007 – 7:27 am in Consumer Electronics, ,

IPO FILING: BlueArc Corporation

BlueArc Corporation has filed to come public in an IPO of up to $103.5 million in securities sales.  It has no ticker applied and has not determined if it will list on NYSE or NASDAQ, although NASDAQ is seemingly a more appropriate launch vehicle for a company of this sort.  The lead underwriters are Credit Suisse and Lehman as joint book-runners, and co-managers are listed as RBC Capital, Thomas Weisel, and Pacific Crest.

The company is a provider of high performance unified network storage systems to enterprise markets and data intensive markets such as electronic discovery, entertainment, federal government, higher education, Internet services, oil and gas and life sciences.  Its products support both network attached storage, or NAS, and storage area network, or SAN, services on a converged network storage platform.  It sells via direct sales force and under an OEM agreement with Hitachi and through Cray Inc. (NASDAQ:CRAY). It also has a network of over 40 value added resellers.

Here is the industry numbers the company threw out there: According to IDC, networked storage systems revenue, consisting of NAS, Fibre Channel SAN and Internet Small Computer Systems Interface, or iSCSI SAN, is expected to grow from $12.5 billion in 2006 to over $21.6 billion by 2011, representing a 11.6% compound annual growth rate.  As far as how it fits into the picture, it is still a small fry.  Its annual revenues have grown from approximately $11.5 million in 2004 to $42.1 million in 2007 (Jan. 31 fiscal end) and headcount has grown from 145 in 2004 to 212 as of July 31, 2007; net losses were $27.4 million (2005), $21.1 million (2006) and $12.8 million (2007).

The company was founded in 1998 and began commercial shipments in 2001 and uses Sanmina-SCI (NASDAQ:SANM) as its manufacturer.  BlueArc is heavily venture capital-backed: 31.2% owned by Meritech Capital Partners, 20.33% owned by Crosslink Capital, and 13.03% owned by Morgenthaler Ventures.

Jon C. Ogg
September 8, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.

Posted on: September 8, 2007 – 6:31 am in IPOs, Technology Companies, ,