Daily Archives: July 20, 2008

Apple (AAPL) Earnings: Steve Jobs Slips Into The Past

Apple may be the most extraordinary technology company of the last two decades. It has introduced three products: the Mac, which took years to become a financial success; the IPod, arguably the most fantastic consumer electronics device ever introduced; and the Iphone, which now appears likely to become one of the world’s preeminent smart phones.

Steve_jobs
While Steve Jobs founded the company, his banishment in 1985 and return in 1998 puts the beginning of the current Apple, Apple 2.0, with the launch of the iMac, a version of the company’s first product and the phoenix he used to rebuild the firm.

Read More »

Posted on: July 20, 2008 – 8:23 pm in Earnings, , , , , , ,

Are Airlines Worth 50% More? (AMR)(CAL)(UAUA)(DAL)(NWA)

American_airlinesStocks in a number of airlines rose over 40% last week with some, including AMR (AMR) moving up over 50%. The price of oil sold off sharply enough to warrant some of the improvement in the shares. Earnings for some of the companies were moderately better than expected.

All of that is a bit thin as a defense for such rabid buying.

Read More »

Posted on: July 20, 2008 – 4:09 pm in Airlines, , , , ,

A Boost For Time Warner (TWX): Batman “Dark Knight” Takes In $155 Million

R218533_855025Executives at Time Warner (TWX) can enjoy their time this summer at their mansions and on their yachts. The company’s Warner studio’s latest film, "Dark Knight", part of the Batman series, has taken in $155 million.

The opening weekend box office figure is the largest for any film in history. Can anyone say $1 billion?

Douglas A. McIntyre

Posted on: July 20, 2008 – 10:26 am in Entertainment,

Federal Reserve: A Vote For Recession?

The old saw is that the Federal Reserve cannot battle inflation and recession at the same time. If true, it would appear that more agency governors are opting for letting an economic downturn run its course, even if it is a long one. That would be a mistake.

According to Bloomberg,  "The Federal Reserve shouldn’t wait for housing and financial markets to stabilize before it begins raising interest rates, central bank policy maker Gary Stern said."

Read More »

Posted on: July 20, 2008 – 8:14 am in Economy

Citigroup (C) Chairman Sees Two-Year Housing Recession

If Citigroup (C) chairman Win Bischoff is right, then his bank and the US economy are going to be cornered by a deepening recession for the next two years. According to Reuters, the Citi chair "has warned that house prices in Britain and the United States are likely to keep falling for another two years."

The implications of his comments go well beyond housing. Prices for home have dropped over 10% this year and in some regions including parts of California and Florida housing has slipped 20%.

A housing depression that moves deep into 2010 would certainly take the wind from the sails of any recovery for the earnings of banks and brokerages. The auto industry would have no chance of breaking out of its present funk, one which threatens the independece of the entire sector.

Read More »

Posted on: July 20, 2008 – 7:36 am in Economy,