Posts for Ticker ‘GYI’

Getty Images Goes Bye-Bye (GYI, GOOG, MSFT)

The long-awaited $34.00 cash buyout of Getty Images, Inc. (NYSE: GYI) by Hellman & Friedman looks as though it is coming to an end.  The company has issued a statement that today is the closing date and this is the last day that Getty shares will trade because of going private and being de-listed at the NYSE.

What is interesting is that Hellman & Friedman bought DoubleClick back in 2005 in a deal that was valued around $1.1 Billion, and within three years this was a leading huge Internet acquisition where the firm sold DoubleClick to Google (NASDAQ: GOOG).  The private equity firm sold DoubleClick to Google for around $3.1 Billion.

Getty Images was our top performing Special Situation Newsletter pick where we identified the company’s structure in early 2007 as one that would fall victim to the equivalent of an effective industry de-merger.  We saw the issues affecting Getty and taking it far south and the total buyout price was still under our expected price return exit.  That’s because the erosion we expected came far faster and even harder than we expected.

Getty Images is roughly worth $2 Billion today.  You could argue that the entire DoubleClick profit is being used to buy Getty.  We think Getty will actually do better as a private company for now and the company has taken many steps (which readers and critics have written about how personally Draconian the measures were) to protect their business interests.  Hellman & Jordan may do the same and it may not. 

We aren’t inclined to predict who will own Getty Images after 2010 or 2011, but we are fairly certain that it will look different as an operating company or via who runs it.  Hell, Bill Gates may even want to be a free agent by then and there is another shot for a monopoly or at least a highly dominant market share… and we aren’t talking about Microsoft (NASDAQ: MSFT)

Jon C. Ogg
July 2, 2008

Posted on: July 2, 2008 – 12:31 pm in Internet, Media, Mergers and Buy Outs, , ,

Top 10 Pre-Market Analyst Calls (ACAS, AAPL, CAi, CMA, DBD, GYI, UST, WHQ, YHOO)

These are some of the analyst calls affecting shares this Monday morning:

  • American Capital Strategies (NASDAQ: ACAS) downgraded to Sell at UBS.
  • Apple (NASDAQ: AAPL) raised target to $220 from $200 at RBC.
  • CACI International (NYSE: CAI) raised to Buy at Jefferies & Co.
  • Comerica (NYSE: CMA) raised to Buy at Deutsche Bank.
  • Countrywide (NYSE: CFC) cut tp underperform at FBR.
  • Diebold (NYSE: DBD) raised to Buy at KeyBanc Capital Markets.
  • Getty Images (NYSE: GYI) downgraded to Market Perform at William Blair.
  • UST Inc. (NYSE: UST) raised to Buy at Deutsche Bank.
  • W-H Energy Services (NYSE: WHQ) raised to Buy at Deutsche Bank.
  • Yahoo! (NASDAQ: YHOO) downgraded to Sell at Citigroup.

Jon C. Ogg
May 5, 2008

Posted on: May 5, 2008 – 7:12 am in Analyst Calls, , , , , , , , ,

Despite “Strategic Alternatives,” Does Anyone Want Getty Images? (GYI, JUPM)

Getty Images Inc. (NYSE: GYI) is one of the few stocks up considerably today, and its business wasn’t likely going to be helped all that much or hurt that much based upon the Fed’s interest rate actions.  After a New York Times report, the stock photo and digital media company did confirm in a press release that it has hired Goldman Sachs as financial advisor to help explore strategic alternatives to enhance shareholder value. 

  • There is just one small problem: it may find that no one is willing to acquire the company even with its valuations trading at what will seem incredibly low. 

We noted for our Special Situation Investing Newsletter subscribers back in May 2007 (See Full Report; now off embargo as position was closed out) when shares were around $50.00 that the company was going to fall victim to what was effectively an industry segment de-merger that the company just couldn’t prevent.  It isn’t that Getty will die entirely.  It does have some key advantages when it comes to sporting event photos other media from other live events and that is where the company’s value and future lies.  But the problem is that even though it has tried to adopt a royalty-free model for certain aspects of its digital imaging business, it cannot just keep acquiring new age digital media companies.  After we noted for clients to take profits on Getty Images we noted that it would be under review for the possibility that ultimately it may want to or need to seek a buyer.  The problem we had is that while it looked like a great value stock, we noted that it may just be another value-trap. It did make some great acquisitions to stave off up-start and more nimble digital competitors, but there is potentially no end in sight for the competition in this space.

If anyone is unsure about the value of having a digital stock photo business, go refer back to our coverage of the post-merger fallout in Jupitermedia (NASDAQ: JUPM) when Getty was supposedly going to buy it.  Opening up a digital stock photo business can be done by anyone.  We have previously noted how we thought the entire business model could be wiki’d and duplicated for $20,000 or less, although an industry contact noted it could be done for a small fraction of that.

Someone may buy Getty in the end.  They just better make sure all the sporting events and live concert and other live event exclusive coverage contracts are locked in place for many many years.  Otherwise they are just buying a business whose model is being wiki’d away chiseled away at every hour.

Getty Images shares are up some 13% today to $24.95 and its 52-week trading range is $21.80 to $57.28.  Reports out yesterday did put the potential sale at $1.5 Billion, and after the rally today its shares have a market cap of $1.49 Billion.  It will post earnings on Thursday, January 31, 2008.

Jon C. Ogg
January 22, 2008

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Posted on: January 22, 2008 – 3:12 pm in Internet, Media, Mergers and Buy Outs, ,

Media Digest 1/21/2008 Reuters, WSJ, NYTime, FT, Barron’s

According to Reuters, BHP Billiton (BHP) is lining up more bank financing in its bid to buy Rio Tinto (RTP).

Reuters writes that the GE (GE) jet engine backlog in China has hit $5 billion.

The Wall Street Journal writes that most indicators now point to the US being in a recession.

The Wall Street Journal reports that energy costs are driving inflation in Europe.

The Wall Street Journal writes that HBO will begin testing an online video service.

The Wall Street Journal reports that booming LCD sales are driving profits at Samsung and Sharp.

The New York Times writes that Getty Images (GYI) has put itself up for sale.

The FT writes that management at GE unit NBC will begin to cut out expensive traditions like "pilots".

The FT reports that China’s second-largest insurer, Ping An, plans to raise about $22 billion in a stock offering.

Bloomberg writes that oil has dropped below $90 on recession concerns.

Bloomberg reports that profits at Philips doubled.

Douglas A. McIntyre

Posted on: January 21, 2008 – 4:31 am in Press Digest, , , ,

Pre-Market Earnings Gappers (November 2, 2007)

(ALY) Allis-Chalmers $0.37 EPS vs $0.36 est.
(ASVI) A.S.V. Inc. $0.13 EPS vs $0.19 est.
(BEBE) bebe stores traded up 3% despite slight revenue miss.
(CBB) Cincinnati Bell $0.09 EPS vs $0.08 est.
(CI) CIGNA $1.14 EPS vs $0.93 est.
(DUK) Duke Energy $0.48 EPS vs $0.39 est.
(ENCY) Encysive -$0.32 EPS vs -$0.31 est.
(ERTS) Electronic Arts trading up 3% after beating earnings.
(GYI) Getty Images traded up 5% after earnings.
(HAIN) Hain Celestial rose almost 5% after beating earnings expectations.
(HIMX) HIMAX trading up 7% after earnings.
(IP) International Paper $0.57 EP vs $0.57 est.
(ITRI) Itron trading down 11% after earnings.
(LVS) Las Vegas Sands trading down $16+ to $109 pre-market on net loss.
(MSO) Martha Stewart Enterprises -$0.08 EPS vs -$0.13 est.
(NI) NIsource $0.08 EPS vs $0.10 est.
(NTLS) NETELOS $0.18 EPS vs $0.14 est.
(NYX) NYSE $0.76 EPS vs. $0.73 est.
(OMG) OM Group $1.30 EPS vs $1.17 est.
(RDEN) Elizabeth Arden $0.04 EPS vs -$0.05 est.; sees Q2 $1.11-1.16 vs $1.21 est.
(SGMS) Scientific Games down 4% after earnings.
(SYNA) Synaptics traded up 10% after beating earnings expectations.
(VCLK) ValueClick trading down 0.5% after lackluster earnings.
(VIA) Viacom $0.65 vs 0.60

Posted on: November 2, 2007 – 7:31 am in Earnings, Pre-Market Activity, , , , , , , , , , , , , , , , , , , , , ,

Web 2.0 Industry De-Merger of Getty Starting To Be Factored In (GYI)

Getty Images (NYSE:GYI) is seeing shares trade up in after-hours activity as some fears of imminent implosion from Web 2.0 start-ups eating its dominance may be getting priced in based on its forward guidance.

The company posted earnings at $0.47 EPS before items and $0.43 after on revenues of $209 million.  Analysts were expecting $0.43 EPS on $209.47 million.  The implied guidance for the fourth quarter of 2007 is $0.48 EPS on revenue of approximately $210 million for the fourth quarter of 2007.  It looks like analysts expect $0.53 EPS on $213.1 million revenues.  It is actually going farther out on a limb: For 2008, the company expects revenue of approximately $900 million; analysts are looking for just under $890 million for the quarter, although there are higher estimates out there.

The company has expanded its multi-site and multi-business strategy.  Its commercial music license operation was entered and it has launched its low-resolution web use model.

Back when this stock was at $50-ish in May, 24/7 Wall St. sent subscribers our own playbook on how to profit off of what was a nearly certain de-merger equivalent force that was going to cause more than just trouble for Getty.  Our target was achieved, but this kept falling much farther than we expected in the relative time frame.  That was when we took the wait and see attitude, and from an objective standpoint it seems like some of the forces against the company are being priced in. 

Read More »

Posted on: November 1, 2007 – 4:00 pm in Earnings, Internet, Media,

Pre-Market Analyst Calls (September 25, 2007)

ACLI cut to Hold at Cantor Fitzgerald.
ARRS cut to Mkt Perform at FBR.
BKR cut to Neutral at Oppenheimer.
BRCM cut to Mkt Perform at FBR.
BZH started as Sell at UBS.
CAKE started as Outperform at Credit Suisse.
CCBL cut to Mkt Perform at FBR.
CKR started as Outperform at Credit Suisse.
CSG cut to Underperform at Bear Stearns.
CTX started as Buy at UBS.
DF cut to Peer PErform at Bear Stearns.
DHI started as Sell at UBS.
EMC started as Buy at B of A.
EMC started as Buy at Jefferies.
FLWS raised to Outperform at CIBC.
GOL raised to Neutral at JPMorgan.
GYI started as Sector Perform at CIBC.
HOV started as Neutral at UBS.
JBX started as Outperform at Credit Suisse.
K cut to Peer PErform at Bear Stearns.
KBH started as Buy at UBS.
LEN started as Sell at UBS.
MCD started as neutral at Credit Suisse.
MMC cut to Neutral at JPMorgan.
MTH started as Neutral at UBS.
NILE started as Sector Perform at CIBC.
NTAP started as Neutral at Bank of America.
NVDA started as Neutral at UBS.
PACR cut to Neutral at JPMorgan.
PFCB started as Underperform at Credit Suisse.
PHM started as Sell at UBS.
RHT started as Sector Perform at RBC.
RT started as Outperform at Credit Suisse.
RYL started as Neutral at UBS.
SNIC raised to Overweight at JPMorgan.
SPF started as Sell at UBS.
TAM raised to Neutral at JPMorgan.
TXRH started as Outperform at Credit Suisse.
WON raised to Buy at Deutsche Bank.

Jon C. Ogg
September 25, 2007

Posted on: September 25, 2007 – 7:08 am in Analyst Calls, , , , , , , , , , , , , , , , , , , , , , ,

Avid Tech & Web 2.0: A Savior or Disaster? (AVID, GYI)

In a screen of 52-week lows this morning, a peculiar name hit the list that we haven’t seen under that screen before yesterday. Avid Tech (NASDAQ:AVID) is trading down $0.45 on the day at $28.10, under the $28.38 prior year low.  Shares are now down almost 20% from the August 9 highs over $35.00 and the high over the last 52-weeks is $40.68. 

The real problem is that this isn’t just a 52-week low, it’s a low not seen since 2003.  This is also after its CEO left in July.

What is interesting is that Avid is "THE GO-TO" media and broadcast technology company.  The company sells all the camera, graphic, and broadcast technology that is required for television networks and for high-end Web 2.0 media operations.  All the big boys use their equipment or at least equipment sold by them. 

If you have done any investigation of running Web 2.0 operations like video shows and the like you will know that Avid is considered the Rolls Royce equivalent in digital video and broadcast equipment systems.  The problem is that not everyone can afford Rolls Royce."  The malaise that has hit traditional media companies and the lower ad spending that has started may be contributing to Avid’s woes.  It wouldn’t take a rocket scientist to realize that lower revenues from media companies might delay and slow down some cap-ex spending on more super high-end equipment.

Most of the shoestring budget Web 2.0 companies can’t afford the Avid solutions.  When you look at what people are able to put together with some less than perfect digital cameras and basic edit packages, it is no surprise that the myriad of Web 2.0 companies out there are piece mealing together much cheaper systems.  The cheaper systems definitely are not in the same league as Avid, but a budget of less than $1,000.00 for many dictates that many of these companies and individuals use a band-aid solution that is less than perfect.

Maybe Avid can figure out more ways to tap that lower-end user without watering down its existing high-end base.  Many individuals and small companies in and around the Web 2.0 model operations need better low-end systems and that market is still very fragmented right now.  But Web 2.0 also has a habit of eating many high-end traditional go-to operations. 

Our Special Situation Investing Newsletter subscribers (sample here for the first call in May and exit call early last month) saw this firsthand where we predicted the Web 2.0 and wiki-models would result in a rapid drop in shares of Getty Images (NYSE:GYI).  There is an opportunity for Avid to capture this lower-end market IF it wants to.  But the industry trends are not really trends, they are headwinds.

With this stock hitting new multi-year lows, maybe they are willing to try reaching down to more of a lower-end customer with a goal of making it up in volume.  The company just recently sold its DigiDelivery®, asecure digital file-exchange system developed by Avid’s Digidesignaudio division, to Aspera so maybe they are considering some more changes.

Jon C. Ogg
September 12, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he produces the 24/7 Wall St. Special Situation Investing Newsletter and he does not own securities in the companies he covers.

Posted on: September 12, 2007 – 11:16 am in HI/LOW, Internet, Media, , , ,

Getty Images Stock Hits Multi-Year Lows (GYI)

We have covered Getty Images (NYSE:GYI) about how they are a business at risk, how they are going to lose market share, how their margins are going to compress almost routinely into the future, and how they are going to be under direct attack from hundreds or more lean start-ups and early-stage stock photo and media companies.  Today, shares hit a multi-year low.  We still are reviewing whether or not this is going to become a value stock or a value trap.

Getty, and Bill Gates’ Corbis, has perhaps the easiest business to attack with a wiki-model business out of anyone out there.  I have estimated that their model could be attacked by anyone employing a wiki-model in a Web 2.0 world for $20,000.00 with operating capital to last 6-months.  An industry contact Augustine Fou, CEO of PictureSandbox.com says this can be done far less: "Anyone with $1,000 can build a web 2.0 service — something as simple as a meta search engine for photos which searches across every available microstock collection. Helping the potential buyer more quickly and easily find and license a photo means that purchase will occur outside walls of traditional stock houses."

Today Getty’s stock didn’t just hit a 52-week low.  At $30.10 it has now given up all the stock gains back to early 2003.  In early 2003 this went from a stock in the high-$20’s and low-$30’s rapidly up to $40+, then $50+ by December 2003, and it reached the $70’s, $80’s, and even the $90’s before the end of 2005.  There is less and less war coverage now and the coverage that requires photos can be had for far less.  But the main area of attack is the non-copyright (royalty-free) event photos in what is becoming more and more royalty-free.  A high resolution picture of a bear eating a salmon just isn’t worth what it was even in 2005.  As media conglomerates merge it creates fewer clients, and any new media start-up out there knows it can get stock photos and digital audio or video media for free or very close to free.

Getty won’t implode, or at least we are fairly sure it has a place in the future.  We sent out our Special Situation Investing Newsletter in early May when Getty Images stock was just above $50.00 with a $36.00 to $38.00 target price by early 2008.  We even gave the options strategy for it as the maximized way to limit risk.  Early in August we sent out an alert after it hit our downward target.  It has continued its slide, even worse than we thought it would.  At some point we feel that this could become an incredible value stock as long as it can stay profitable, but we aren’t about to go out with any call like that this soon.

We are constantly looking at special situation investing opportunities out there for our newsletter subscribers.  We won’t be putting Getty on any reverse list for any private equity or management buyouts in the immediate future, but we’ll be issuing for more and more special situation opportunities that have the same criteria.  Some special situations are buyouts, some are break-ups, some are pending de-mergers wrecking an industry, and others are special situations for other reasons.

Jon C. Ogg
August 15, 2007

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

Posted on: August 15, 2007 – 5:12 pm in Internet, , , ,

Jupitermedia: Earnings Miss & Stock Photo Issues (JUPM, GYI)

Jupitermedia Corp. (NASDAQ:JUPM) shares gapped down significantly with what looks to be new 52-week lows, although it appears the shares are back above that low.  Shares closed at $6.79 yesterday ahead of earnings and shares hit $5.25 right after the open. The company posted $0.02 EPS diluted after including option charges of $0.01 and revenues were $34.7 million.  Estimates were $0.04 EPS and $36+ million in revenues.  Revenues from Online Images increased from $26.8 million to $27.4 million, while revenues from Online Media decreased from $8.2 million to $7.3 million.

Frankly, it is at least refreshing to see a company be honest about the current trends in stock photos.  If they are honest enough, well that is another topic but this at least addresses the compression of the value here and the trends that are coming into play upfront instead of the company trying to explain how it didn’t get it 6-months from now.  This should actually create more and more future writedowns to the value of goodwill and intangibles, and that won’t be good for Jupitermedia with the state of its balance sheet now. 

Getty Images (NYSE:GYI) was the one we felt had the most to lose, partly because they were the largest pure-play in stock photos and partly because the company hasn’t been as forthcoming about the future of these businesses even after it has made recent acquisitions to try to stave off some of the onslaught.  The wiki-model is too powerful here for this sort of business.  It will probably continue to make money and it will have a solid place in many copyright enforced venues, but much of its business will face severe margin compression.  This is an overly simplified explanation for a highly complex issue, but it is what it is.

Here are Alan Meckler’s quotes regarding the trends in the stock photo sector: "Despite a challenging period for the stock photo industry, our Jupiterimages division had some bright spots in the second quarter and for the first six months of 2007. Our Rights Managed category experienced over 30% growth for the first six months of this year compared to the same period of 2006. In addition, our JupiterimagesUnlimited high level royalty-free subscription offering grew over 200% for the first six months of 2007 compared to the same period last year. On a sequential quarterly basis, operating income for our Jupiterimages division increased from $8.6 million for the three months ended March 31, 2007 to $9.2 million for the three months ended June 30, 2007. Due to the evolution taking place in the stock photo industry, we are currently focusing our direct sales team to further emphasize our strengths: sales of Rights Managed images and JupiterimagesUnlimited. We have also initiated a rigorous review of our operating expenses that we expect will result in annual expense reductions of $2.0-$3.0 million on a prospective basis starting in the third quarter of 2007. Additionally, we have also identified opportunities to streamline various capital projects and content production that we expect will result in a reduction of over $3.0 million in annual cash expenditures. Combined, this restructuring is expected to improve our annual after-tax cash flows by approximately $4.0 million and possibly more."

No one is going take this report well in its entirety, and the stock is seeing the punishment for it.  But it is at least a step in the right direction.  This industry is rapidly changing and changing faster than a mere writeup here can address in a few hundred words.  Jupitermedia’s prior 52-week trading range is $5.45 to $10.48.  At least it owns the Internet.com domain name and is entering new operations with venues such as MediaBistro.com.  Things are bad, but they could have been much worse.

Jon C. Ogg
August 9, 2007

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

Posted on: August 9, 2007 – 8:36 am in Earnings, Internet, Media, , , , , , ,

Jupitermedia Mystery 10% Stock Rise Ahead of Earnings (JUPM, GYI)

Jupitermedia (NASDAQ:JUPM) reports earnings after the close.  The stock is actually up 11% today and it hasn’t yet reported.  First Call estimates are $0.04 EPS on revenues of just over $36.2 million, and next quarter is also $0.04 EPS on $35.8 million revenues.

Analysts have been somewhat cautious in general and the average target looks very close to the adjusted current price after today’s gains.  The chart has also been closer to the lower-end of a longer-term trading band, but the pre-earnings gain puts this one in a neutral stance with no clearread either way.  Options are hard to read with today’s gain, but it looks like options traders would be expecting a move of up to $0.45 to $0.50 in either direction.  Sorry the actual internals are hard to read today, but that is what the tea leaves are indicating.  Lastly, NASDAQ has its short interest as 2.318 million shares for July, more than 6-days average volume.

This one will be interesting to report because of some overlaps with recent earnings and recent industry changes.  The Jupierimages unit was the likely reason for the buyout offer from Getty Images (NYSE:GYI).  If you subscribe to our special situation newsletter or if you read some exit updates this week regarding what we thought was going to happen to Getty Images and legacy stock photo businesses, then the run in Jupitermedia today will even be more of a headscratcher.  The good news for Jupiter is that it has other operations and has been trying to keep itself diversified in new media areas (see its last acquisition of MediaBistro.com) that will keep that major stock photo business from being such a key factor in the years ahead.

The balance sheet on this one is not one we normally we would want to give a solid evaluation to because of the large goodwill and intangibles, even if it does own the beloved Internet.com domain.  This 10% rise ahead of the numbers is more than puzzling.

Jon C. Ogg
August 8, 2007

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

Posted on: August 8, 2007 – 1:08 pm in Earnings, Internet, , , , , ,

Getty Images: Value Stock or Value Trap? (GYI)

Getty Images Inc. (NYSE:GYI) is a stock that is in a conundrum.  It looks like a great value stock with a very low P/E multiple now, but it also has all of the set-ups and industry developments that could make it a serious value trap.  Back in early May 2007 when shares were north of $50.00 we issued in our Special Situation Investing Newsletter a projected target of $36.00 to $38.00 for Getty Images’ stock.  On August 2 we got the entire expected price drop four to six months sooner than expected, and then some.  Shares have continued their fall since and we are reviewing this one again, but there are many other fish to fry and we likely won’t have any major changes of heart in getty for a while.  Attached at the end of this article you can read each of the reports that went out to newsletter subscribers in Adobe Acrobat (R) format.

Last week Getty Images posted an earnings and revenues increase, but the company’s lowered guidance (which we expected) is taking a serious toll.  Revenues rose 6% to $218 million and earnings came in at $0.56 on a diluted basis. First Call estimates were $218.8 million revenues and $0.58 EPS.  Getty also announced a restructuring and related reduction in workforce of about 100 employees.  Unfortunately it also trimmed guidance for Q3 and Fiscal 2007.  Cash balances were $288.6 million at June 30, 2007. During the quarter, the company spent a total of $248 million for acquired businesses, of which $120 million was financed through the company’s senior credit facility and the remaining $128 million paid from existing cash balances.  The cash is very important here, at least it will be more important ahead.

We aren’t entirely negative on Getty Images, because even if it faces rough waters it still has a shot of maintaining high profitability if it focuses on what will be its core markets and can fend off fledgling competitors for a while longer.  Getty will likely have a strong place in a few lines of copyright protected material for live events.  With a 15 forward P/E ratio the company doesn’t expensive at all, but they are going to have to fight harder and harder to compete in the same pricing model.  At some point, it wouldn’t even be uncharacteristic for the co-founders Mark Getty and Jonathan Klein to try to mount an MBO.  They didn’t exactly come from nowhere and could probably get financing even in a liquidity crunched world.

The argument that it is really just a value trap for investors is equally or even more overwhelming.  Vast portions of the company’s business will fall prey to mass collaboration, and anyone with about $20,000 can build a similar wiki-model stock photo and copyright video and audio business.  It isn’t that Getty will start losing money, it is that margins could face a perpetual squeeze here.  Once these online digital photo hubs begin to  take a C2C or C2B (yeah, remember those terms?) (now p2p) approach a step further, then there is more trouble for Getty.  The value of digital, audio, and video images is unfortunately not what it was once even 12 or 24 months ago (see article on Jupiter Media deal falling apart).  Not in a world where your business has the easiest model to mass collaborate or Wiki at any rate.  Getty Images is now and will continue to be the true wiki-model victim.  Even though it has made some good acquisitions it cannot acquire everyone.

If you think the $20,000.00 sounds low, an industry contact of a relatively new competitor estimated only a fraction of that.  Augustine Fou, CEO of PictureSandbox.com, stated, "Anyone with $1,000 can build a web 2.0 service — something as simple as a meta search engine for photos which searches across every available microstock collection. Helping the potential buyer more quickly and easily find and license a photo means that purchase will occur outside walls of traditional stock houses."

So, is Getty Images now great value stock, or is it just a major value trap?  We are looking into this now to see if there is a reason to reverse our negative projection.  This stock didn’t really participate in the last major market rally, and this last drop from guidance has made it fare much worse than the broader markets.  For now, we are looking at many other special situation investing situations and going to just call this one a victory for now. 

Download ssin_getty_may_8_2007.pdf
Download ssin_getty_close_aug_2_2007.pdf

Jon C. Ogg
August 6, 2007

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

Posted on: August 6, 2007 – 1:02 pm in Earnings Warning, , , , ,

Pre-Market Analyst Calls (August 2, 2007)

AAPL started as Buy at B of A.
ALVR raised to Buy at First Albany.
BARE cut to Sector Perform at CIBC.
BRCM raised to Outperform at CIBC.
COCO raised to equal weight at Lehman, raised to Outperform at Piper Jaffray.
DB cut to Peer Perform at BEar Stearns.
DELL started as Buy at B of A.
DJ raised to Equal Weight at Lehman.
EDS cut to Hold at Jefferies.
ENDP cut to Neutral at UBS.
FCH raised to Outperform at Wachovia.
GMR raised to Outperform at Bear Stearns.
GYI cut to Sell at Deutsche Bank.
HPQ started as Buy at B of A.
IBM started as Neutral at B of A.
MI raised to Buy at Deutsche Bank.
MRVL cut to Sector Perform CIBC.
MVIS started as Buy at Merriman Curhan Ford.
OMX raised to Overweight at JPMorgan.
Q raised to Outperform at CIBC.
SUNW started as Buy at B of A.
SYMC raised to Outperform at Baird, raised to Outperform at FBR.
ZGEN raised to Buy at B of A.

Jon C. Ogg
August 2, 2007

Posted on: August 2, 2007 – 7:02 am in Analyst Calls, , , , , , , , , , , , , ,

Pre-Market Stock News (June 13, 2007)

(AOB) American Oriental enters into a letter-of-intent to acquire an established plant based pharmaceutical company named Changchun Xinan Pharmaceutical Group for up to $30 million.
(CEN) Ceridian largest shareholder says the private equity buyout is underpriced.
(EBAY) eBay is still in court over this MercExchange LLC patent over its “Buy It Now” patent.
(F) Ford confirmed that it is reviewing sales of Jaguar and Rover; Goldman Sachs and others hired.
(GWR) Genesee & Wyoming reported a total carload decrease of 0.3%.
(GYI) Getty Images announced it has filed its 10-K for 2006.
(HS) Healthspring lowered guidance.
(LWSN) Lawson Software raised guidance to $0.05 to $0.07 EPS vs $0.04e.
(MAGS) Magal Security announced a new strategic partnership in Brazil for services providers.
(PAY) VeriFone Holdings announced it has been selected as the sole provider of electronic payment systems by the China Postal Savings Bank.
(POR) Portland General Electric announced the pricing of a 21 million share secondary at $26.00; seller is Enron Disputed Claims Reserve.
(SAPE) Sapient $0.07 EPS vs $0.01+e.
(SHLM) A. Schulman lowered guidance.
(SNY) Sanofi-Aventis diet drug all in one pill is being reviewed; already marketed as Acomplia in other countries.
(SSYS) Stratasys will replace LSS on S&P Small Cap 600 Index on June 14.
(TYC) Tyco will take a $500 Million pre-tax and $370 million after tax impairment charge for the sale of its Power Systems business.
(VLCM) Volcom will replace PXR on the S&P Small Cap 600 Index on June 15.

Jon C. Ogg
June 13, 2007

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

Posted on: June 13, 2007 – 6:51 am in Pre-Market Activity, , , , , , , , , , , , , , , , ,