BloggingStocks

Dell commits to its PCs using 25% less energy by 2010

Brian White — 2008-05-16T10:59:00+00:00

Filed under: Products and services, Dell (DELL), Hewlett-Packard (HPQ)

Computer maker Dell, Inc. (NASDAQ: DELL) wants to make its laptop and desktop PCs way more energy efficient within the next few years. For those of you who haven't been following Dell's "green" initiatives, this is just the latest in a string of them this year.

In addition to powering its entire corporate headquarters using green energy, Dell now wants to make its consumer PCs use 25% less power by 2010. For the world's second-largest PC maker, making that kind of a radical change in less than 24 months could prove to be an engineering challenge.

But then again, Dell seems to be playing the "one up" game with larger competitor Hewlett-Packard Co. (NYSE: HPQ), which also played up the "green" card recently. The good news is that Dell's laptop and desktop computer systems --consumer and corporate -- are already some of the most energy efficient in the marketplace. And, if Dell can seize upon this projected change and sell energy reduction to the customer base it has instead of giga this and giga that, perhaps it can boost its sales. For many companies and consumers, even base models have enough horsepower to do most daily computing tasks. The "green-ness" of a new PC purchase could be the next frontier in PC marketing.

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Closing Bell: survey says national home prices tumbled 7.7%

Jon Ogg — 2008-05-13T16:14:00+00:00

Filed under: Dell (DELL), Hewlett-Packard (HPQ), International Business Machines (IBM), Clear Channel Commun (CCU), Countrywide Financial (CFC), Electronic Data Systems (EDS)

National home prices tumbled by 7.7% in the first quarter in a recent survey. While retail sales did fall -0.2% overall in the month of April, the ex-autos numbers were actually positive by +0.5%. Below are the unofficial closing levels for major averages:

DJIA 12,833.97 (-42.34; -0.33%)
S&P500 1,403.42 (-0.16; -0.01%)
NASDAQ 2,495.34 (+6.85; +0.28%)
10YR-TBond 3.909% (+0.134%)
TOP 10 ANALYST CALLS

Clear Channel Communications Inc. (NYSE: CCU) was up again on news of a settlement between the buyers and the banks for the $20 billion delayed buyout by Bain Capital and THL Partners. The court was adjourned until 2 pm today to allow settlement talks to continue. Shares were up 4% to $34.24 at the end of the day.

Countrywide Financial Corporation (NYSE: CFC) is on track for acquisition by Bank of America Corporation (NYSE: BAC) in the third quarter. Bank of America reported increased credit costs today as a result of the economic downturn and stated that the acquisition will alleviate the damage. Shares were up 3% at $4.93 at the end of the day.

Dell Inc. (NASDAQ: DELL) is rising today in the wake of the Hewlett-Packard Co. purchase of Electronic Data Systems Corp. for $13.9 billion in cash. Dell also announced a promo to encourage consumers to spend their tax rebates on personal computers. Shares were up 3% at $20.00 in the final minutes of the day.

Hewlett-Packard Company (NYSE: HPQ) announced the purchase of Electronic Data Systems Corporation (NYSE: EDS) for $25 per share for a total value of $13.9 billion in cash today. The combination will make the second-largest tech services provider behind International Business Machines Corporation (NYSE: IBM), whose shares were up almost 1% at $126.32 late in the day. Both Dell and Hewlett-Packard recently posted earnings that beat expectations. Hewlett shares were down more than 5% at $44.34 and EDS Shares were up 1% at $24.32 at the end of the day.

Sovereign Bancorp, Inc. (NYSE: SOV) was upgraded by Friedman Billings today after successfully raising $1.2 billion in a public common stock offering yesterday in its efforts to raise $1.5 billion to fortify itself in the economic uncertainty. Shares rose by more than 5% to $8.59 in the final minutes of the day.

Website Pros, Inc. (NASDAQ: WSPI) fell hard today after reporting earnings Tuesday evening. The company posted a net income of $0.6 million, the same as the first quarter in 2007, despite revenue growth of 88% and a non-GAAP operating income increase of 142%. Shares were down over 12% at $8.79 late in the day.

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Battle of the Brands: Apple vs. Dell

Brandon Barker — 2008-05-08T11:00:00+00:00

Filed under: Apple Inc (AAPL), Dell (DELL), Battle of the Brands

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

Going by ad campaigns alone, you would think that every person -- or, at least every cool person -- had abandoned their Windows PCs and hoisted themselves onto the Macintosh bandwagon. Not so. The truth is that PCs far outnumber Macs in the market. The big-business worlds of finance, law, medicine use predominantly PC, while the areas of video production, web design and art use Mac. These computers do most of the same things (play games and DVDs, word-process, create web pages, store and play music) but they are completely different operating systems. Even though Apple computers now include the Intel processor that makes it possible to use Windows-only applications, it can still be hard to compare products.

But what about the companies themselves? What does the Apple brand signify that the Dell brand does not? And vice versa.

Apple (NASDAQ: AAPL): Providing innovative products and a user-friendly interface, Apple has turned the whole computer thing into a fashion accessory. For someone who used Dell products for years and then switched to Mac, the difference is like night and day. A Mac is so easy to use. With a clean interface, a near-universal compatibility with external products and tools, these computers are a beautiful breeze. And now that Macs include Intel processors, one can switch back and forth between a Windows interface and a Mac interface, making previous incompatibilities (software, games, etc.) now perfectly compatible. And when it comes to customer service (see below) Apple really socks the house.

Dell (NASDAQ: DELL): The Apple brand may have a glossy sheen, but when it comes down to it, Dell's products can run circles around your typical Mac. Offering more memory, speed and features, a Dell laptop -- when set against a comparable Mac -- also comes through the finish line with a slightly lower price tag. Also, Dell systems are compatible with Apple's innovative (and ubiquitous) iPod products. But no matter how you slice it, Dell falls short in the customer service arena. Not only does Dell grade low among consumers, it also lacks Apple's neighborhood appeal: Dell -- long a catalog-oriented business -- has suffered in trying to imitate the Apple Store success, which allows customers to see actual products and talk to actual Mac "gurus." Dell has attempted the retail thing with Dell Direct stores, and it's also in talks with Radio Shack to expand its sidewalk visibility.

Therefore, this battle is still somewhat up in the air. Dell won the war (long ago) by providing big businesses and corporations with truckfulls of laptops and desktops that are still being used, but Apple has won the peace by courting and satisfying today's key market: the consumer.

B. Brandon Barker also writes for Political Machine.

Vote in our poll for Apple or Dell as your preferred brand, and let us know in the comments why you love it.

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Before the bell: BRK.A, HOV, UAUA, BMY, MO, F ...

Melly Alazraki — 2008-05-05T08:19:00+00:00

Filed under: Before the bell, Apple Inc (AAPL), Dell (DELL), Ford Motor (F), General Motors (GM), Berkshire Hathaway (BRK.A), Altria Group (MO), Bristol-Myers Squibb (BMY), US Airways Group (LCC), UAL Corp (UAUA)

Before the bell: Futures lower after Microsoft's Yahoo deal fails

Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) reported a 64% drop in quarterly profit late Friday. At the company's annual meeting this past weekend, the legendary investor said that while a Berkshire unit has bought portfolios of subprime mortgages (and has frozen resets that were due to send interest rates on those loans higher) he warned investors that housing-market weakness isn't over yet and predicted more losses for banks. At the same time, Buffett said Sunday he will consider investing in the insurance business of U.K. banking giant Royal Bank of Scotland (NYSE: RBS) and is close to buying a medium-sized company in the country.

Hovnanian Enterprises Inc. (NYSE: HOV) estimated on Monday it would take $225 million to $275 million of land-related charges for the that fiscal second-quarter and said that home deliveries dropped 21% to 2,494 homes in the period. The company also turned cash-flow positive faster than it expected and tripled its full-year estimate of cash flow.

After being rejected by Continental Airlines Inc. (NYSE: CAL) last month, United Airlines parent UAL Corp. (NYSE: UAUA) is intensifying merger talks with US Airways Group Inc. (NYSE: LCC), according to The Wall Street Journal. A deal is said could emerge in as soon as 10 days. In light of rising fuel costs, the more than $1.5 billion in potential cost savings and revenue enhancements the companies see from joining forces is no doubt appealing more and more.

Bristol-Myers Squibb (NYSE: BMY) will sell its ConvaTec wound therapy unit to Nordic Capital Fund VII and Avista Capital Partners for $4.1 billion.

Altria (NYSE: MO) shares are trading 1% higher in premarket trading. Bloomberg reports that the tobacco company said it will raise prices on its top-selling Marlboro and other cigarette brands as of May 5. The company will reduce discounts to distributors or increase list prices.

The Canadian Auto Workers, 9,000 of which work for Ford in Canada, voted to ratify a three-year contract with Ford Motor Co. (NYSE: F), an agreement the union expects Chrysler LLC and General Motors Corp. (NYSE: GM) to match. The deal keeps Ford's labor costs essentially the same as they are now, the union said.

Apple vs. Dell -- Fortune looks at the differences, starting at the top of course.

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My best stock ideas: Looking through Q2 and into the second half of 2008

Gary E. Sattler — 2008-04-25T14:45:00+00:00

Filed under: Forecasts, Apple Inc (AAPL), Dell (DELL), General Electric (GE), Wal-Mart (WMT), Home Depot (HD), Altria Group (MO), Commodities, Stocks to Buy, Burlington Northern Santa Fe (BNI)

I've received a few chuckles for investment directions I've suggested in the past, but if you care to review a couple of my previous generalities, I believe that my record has held up fairly well.

I submit for approval the following investment angles for the balance of 2008 and possibly beyond:

Have I suggested investments in water holdings? Yes, I do believe that I have. I believe that going long in water stocks could be an investment hedge of the decade. I also suggest a look into the desalination technology from General Electric Co. (NYSE: GE).

I'd think it's a good idea to stick with the railroads, such as Burlington Northern Santa Fe (NYSE: BNI). I claim that, with all things given, for now, railroads can't fail. Conversely, I think it's a good time to back away slowly from trucking. I think misery lies ahead there.

In retail, for investors who haven't already, I believe that it's time to exit the high end sector. Shorts sellers can probably clean up nicely on the way out. I'd look for the specialty retail stocks which are artificially high and consider shorting them now. It may be prudent to move retail bets to companies such as, Wal-Mart Stores Inc. (NYSE: WMT) for it's incredible staying power, and Overstock Com Inc., (NASDAQ: OSTK) for it's much maligned growth potential. Both these stocks could benefit greatly from the tightening consumer spending environment.

Oats and rice are ticking up, but the best rice boat may have already sailed. I'd stick with these and other commodity grains as strong short term plays, pulling the profits as contracts expire. Then I'd consider returning the initial investment for another go around. I'd play the companies which consume grain commodities with a light hand. Profits will be stretched as commodities continue to surge. One possible exception might be Altria Group Inc.(NYSE: MO), which has been beaten down badly. However, I wouldn't get caught with all my eggs in that one basket.

I fear that it may be time to back out of consumer electronics, except possibly for Apple Inc.(NASDAQ: AAPL) and Dell Inc. (NASDAQ: DELL). Yes, mobile devices are going to keep moving but I don't think there will be much profit growth there for a while. Gaming devices are still selling strong but I think their profitability is going the way of the albatross. Heavy research is required in this sector. There's not much "cutting edge" going on which I consider worthy of extra attention.

Someone will hate me for this, but I say that it's time to exit gold. Do we really need to suffer though yet another bubble burst? Smart working capital is going into real consumables. Gold is fast becoming a well oiled trap, in my humble opinion.

There may be some good speculative plays in the home improvement sector on stocks which have totally bottomed out. People are going to be staying close to home for awhile. It might be the right time to take advantage of that.

Gary Sattler is a freelance blogger with no professional stock-picking credentials (which may be an asset, depending on your point of view). With the possible exception of Overstock.com, via Vanguard Capital Management, he does not knowingly have interest in the companies mentioned in this blog post.

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Citrix Systems: Virtualization is still elusive

Tom Taulli — 2008-04-25T10:59:00+00:00

Filed under: Microsoft (MSFT), Dell (DELL), Hewlett-Packard (HPQ)

Citrix Systems (NASDAQ: CTXS), a top enterprise software player, is striving to supercharged growth with the marvels of virtualization (a technology that gets more firepower from existing resources). Yet, with the slowing economy, things are proving kind of difficult.

This week Citrix announced its Q1 results. Revenues increased 22% to $377 million and net income came to $34.4 million, up 8.5%. Yes, when trying to conquer new technology frontiers, there's a need to ramp expenses (especially for marketing and R&D).

Citrix has an expanding global footprint, which has muted the downturn in the US. Also, the company has a nice assortment of products, such as its GoToMeeting franchise (which is one of the top on-demand offerings in the marketplace).

Still, Citrix is betting heavily on its virtualization technology, which is part of last year's acquisition of XenSource. Indeed, traction, such as with distribution deals with Dell (NASDAQ: DELL) and HP (NYSE: HPQ) is evident. Citrix was also able to expand its alliance with Microsoft (NASDAQ: MSFT).

But there is still much to prove to the Street. After all, the marquee virtualization player, VMWare (NYSE: VMW), had a particularly strong Q1.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates MergerBook.com.

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Analyst initiations: AAPL, DELL, IBM, XOM, GRMN ...

Eric Buscemi — 2008-04-22T11:33:00+00:00

Filed under: Analyst reports, Apple Inc (AAPL), Dell (DELL), Hewlett-Packard (HPQ), Exxon Mobil (XOM), International Business Machines (IBM), Chevron Corp (CVX), Sun Microsystems (JAVA), Analyst initiations, Garmin Ltd (GRMN)

MOST NOTEWORTHY: Garmin, Thomson Reuters and Heritage-Crystal Clean were today's noteworthy initiations:

Garmin (NASDAQ: GRMN) was initiated with a Neutral rating at JP Morgan. The firm sees risk to 2008 Street estimates given the consumer slowdown in the U.S. and potential ASP and margin pressure as channel inventory is worked down.
Morgan Stanley assumed Thomson Reuters (NASDAQ: TRIN) with an Underweight rating and expects revenue growth in the company's financial business to slow sharply into 2009.
William Blair believes Heritage-Crystal Clean (NASDAQ: HCCI) has the opportunity to gain market share over the next several years as a result of its differentiated parts-cleaning programs, strong sales organization, and experienced management team. Shares were assumed with an Outperform rating.

OTHER INITIATIONS:

Lehman initiated Dell (NASDAQ: DELL) and Sun Microsystems (NASDAQ: JAVA) with Equal Weight ratings and targets of $20 and $17 and Apple (NASDAQ: AAPL), IBM Corp (NYSE: IBM) and Hewlett-Packard (NYSE: HPQ) with Overweight ratings and targets of $195, $144 and $59, respectively.
Pacific Growth started Spectranetics (NASDAQ: SPNC) with a Neutral rating.
Merrill reinstated Chevron (NYSE: CVX), ExxonMobil (NYSE: XOM) and Hess Corp (NYSE: HES) with Buy ratings and price targets of $110, $105 and $125, respectively.

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Early analyst calls (DELL) (AAPL)

Douglas McIntyre — 2008-04-22T08:01:00+00:00

Filed under: Before the bell, Analyst upgrades and downgrades, Apple Inc (AAPL), Dell (DELL)

Citigroup reiterated its "buy" rating on Waste Connections (NYSE:WCN) after the company posted strong quarterly numbers, according to the AP.

Lehman initiated Dell (NASDAQ:DELL) at "equal-weight" and set a $20 price target according to Briefing.com. The news service also writes that Lehman initiate Apple (NASDAQ:AAPL) at "overweight" with a $195 price target.

Douglas A. McIntyre is an editor at 247wallst.com.

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PC sales in the U.S. slow last quarter while European sales climb

Brian White — 2008-04-17T10:55:00+00:00

Filed under: Industry, Dell (DELL), Hewlett-Packard (HPQ)

Although the PC industry keeps churning out growth quarter after quarter, the American market is slipping as a larger influence on all that growth, according to the market research firm IDC. In the latest quarter of tracking data, the U.S. saw just a 3.5% growth rate in shipped PCs, about half of IDC's projection. The reason? According to IDC, the "recession scare" kept PC sales at bay for many corporations as belt-tightening meant less information technology spending.

Global PC sales, though, were above expectations for the most recent quarter, which saw growth come in at over 14% -- a few percentage points above expectations. The European region saw much of this growth, where consumers increasingly opted for inexpensive portable PCs like the Asus Eee PC, similar to the trend the U.S. is seeing. However, these cheaper and smaller portable PCs still make up only a small fraction of overall PC sales.

Although the top spot in quarterly shipments still belonged to Hewlett-Packard Corp. (NYSE: HPQ) -- which grew shipments 17.4% -- Dell, Inc. (NYSE: DELL) saw shipments rise as impressive 21.6% for the quarter as the PC maker continued its comeback after a nasty 2007. Dell's retail presence and emphasis on laptop PCs was heralded as being responsible for its growth as the Texas company remained in the #2 spot in overall sales. In the #3 spot was again Taiwan's Acer, which grew its shipments a staggering 66%. Acer folded in the recent acquisitions of both Europe's Packard Bell and Gateway from the U.S. to hit those numbers, but both acquisitions closed a few quarters ago, so they're not new. In fact, Acer's total shipments were down 20% from the year-ago quarter even though they were highest among the top-five PC makers.

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Crocs' warning was in its chart, see what others fit the pattern

Timothy Sykes — 2008-04-15T08:26:00+00:00

Filed under: Major movement, Bad news, Dell (DELL), Intel (INTC), Technical Analysis, Crocs Inc (CROX), Stocks to Sell, Garmin Ltd (GRMN)

Damn, it feels good to be right! Back in mid-February, when I warned investors not to buy Crocs Inc (Nasdaq: CROX) after its "big" drop, I had no idea they were going to warn and get crushed again so soon (see, Steven Mallas' post from last night). But the stock's chart pattern told me the odds favored the bear case.

So, you know what? I'm not particularly surprised. Because I play the odds based on what the charts tell me. Sure you're probably sick of hearing that from me, but for better or worse -- and considering my 21% return in the first quarter of 2008 by staying true to the charts, it's been mostly better -- this is my my experienced-based belief.

No matter the stock -- whether you're talking Google Inc (Nasdaq: GOOG) or Wachovia Corp (NYSE: WB), the oil, technology or retail industries, the time of year when it pays to be bullish, analyst expectations (they only get it right 30% of the time) or the market cheerleaders promoting crazy price targets like this one on Apple Inc (Nasdaq: AAPL) --if the chart is too steep, I'm wary. If the chart is downtrending, I'm short-biased.

A lot of fundamental investors disagree, saying the stock market isn't that simple. But lately, the people who believe in valuation over charting are going down with the ship -- no matter that they're CNBC regulars!

But patting myself on the back doesn't help you all, so I focused on some stocks that have similar chart patterns to Crocs -- before this latest drop -- to see what other stocks to avoid. Here is my list:

Dell Inc (Nasdaq: DELL)

Garmin Ltd (Nasdaq: GRMN)

Synaptics Inc (Nasdaq: SYNA)

E*Trade Financial Corp (Nasdaq: ETFC)

Intel Corp (Nasdaq: INTC)

Six Flags Inc (NYSE: SIX)

And, those are just from some quick analysis! There are tons more, and I'll detail them in a future post. But for Crocs-sake, don't be caught dead holding any of those stocks going into earnings. Sure, they could surprise and their stocks surge, but the charts show that the odds are against that happening.

Timothy Sykes writes the blog timothysykes.com, is a former hedge fund manager, star of the TV show Wall Street Warriors and author of the book, An American Hedge Fund: How I Made $2 Million as a Stock Operator & Created a Hedge Fund

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Earnings highlights: GE, Alcoa, Circuit City, UPS, Dell, DuPont, AMD and others

Trey Thoelcke — 2008-04-12T17:40:00+00:00

Filed under: Earnings reports, Dell (DELL), General Electric (GE), Target Corp. (TGT), Advanced Micro Dev (AMD), Alcoa Inc (AA), Circuit City Stores (CC), duPont(E.I.)deNemours (DD), United Parcel'B' (UPS), Genentech Inc (DNA), Progressive Corp,Ohio (PGR), Rite Aid Corp (RAD)

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

Acuity Brands Inc. (NYSE: AYI) beat second-quarter estimates on increased productivity and new products.
Advanced Micro Devices (NYSE: AMD) cut its outlook and announced job cuts.
Alcoa Inc. (NYSE: AA) missed first-quarter earnings estimates but beat revenue expectations.
Circuit City Stores Inc. (NYSE: CC) surprised Wall Street by posting a second-quarter profit.
Dell Inc.'s (NASDAQ: DELL) rosy 2008 forecast is based on cost cuts, overseas growth, share buybacks.
DuPont & Co. (NYSE: DD) raised its first-quarter outlook on strength in agriculture and emerging markets.
Eastman Chemical Co. (NYSE: EMN) raised its first-quarter guidance on strong sales and higher prices.
EXFO Electro-Optical Engineering (NASDAQ: EXFO) beat estimates and announced an acquisition.
Foundry Networks Inc. (NASDAQ: FDRY) slashed its first-quarter outlook, blaming the weak economy.
Genentech Inc. (NYSE: DNA) beat first-quarter earnings estimates, but not revenue expectations.
General Electric Co. (NYSE: GE) missed earnings expectations and lowered its guidance.
Novellus Systems Inc. (NASDAQ: NVLS) trimmed its first-quarter earnings and revenue forecasts.
Progressive Corp. (NYSE: PGR) beat estimates though first-quarter profits fell due to lower premiums.
Rite Aid Corp. (NYSE: RAD) swung to a loss in the fourth quarter on acquisition costs and a tax charge.

Schawk Inc. (NYSE: SGK) posted mixed results due in part to the Hollywood writers strike.
Sealy Corp. (NYSE: ZZ) posted better-than-expected first-quarter results on international sales.
SonoSite Inc. (NASDAQ: SONO) forecast swinging to a first-quarter profit on international growth.
United Parcel Service (NYSE: UPS) lowered its first-quarter forecast due to weakness in the U.S. economy.
WD-40 Co. (NASDAQ: WDFC) missed second-quarter estimates and lowered its outlook.

Also, Jim Cramer takes GE's disappointing results as a reminder that earnings matter. Weak financial performance at Target Corp. (NYSE: TGT) hits the CEO in the pocketbook, and analysts don't like the prospects for MGM Mirage (NYSE: MGM) and other casinos. Jonathan Berr looks back at analysts' earnings forecasts in the previous quarter. And here's a look at big banks reporting results next week.

Upcoming results to watch for include Intel (NASDAQ: INTC), Johnson & Johnson (NYSE: JNJ), eBay (NASDAQ: EBAY), IBM (NYSE: IBM), JPMorgan (NYSE: JPM), Coca-Cola (NYSE: KO), Capital One (NYSE: COF), E*Trade (NASDAQ: ETFC), Google (NASDAQ: GOOG), Harley Davidson (NYSE: HOG), Merrill Lynch (NYSE: MER), Southwest Airlines (NYSE: LUV), Caterpillar (NYSE: CAT), Schlumbeger (NYSE: SLB), Wachovia (NYSE: WB), and Xerox (NYSE: XRX).

Visit AOL Money & Finance for more earnings coverage.

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Dell's corporate headquarters now powered by green energy

Brian White — 2008-04-09T17:35:00+00:00

Filed under: Good news, Competitive strategy, Google (GOOG), Dell (DELL), Wal-Mart (WMT)

Dell, Inc. (NASDAQ: DELL) has announced that its entire corporate headquarters is now running on "green energy," as the computer maker continues to become one of the most ecologically-conscious companies on the planet. It has competition in the retail sector, though, from Wal-Mart Stores, Inc. (NYSE: WMT) and internet search king Google, Inc. (NASDAQ: GOOG).

All 2.1 million square feet of Dell's Round Rock, Texas headquarters facility is now powered by renewable energy sources -- no fossil fuel burning is present. To get there, Dell has about 40% of its headquarters power needs supplied by a gas-to-energy plan from leading waste disposal company Waste Management, located in nearby Austin. The other 60% of its power needs comes from wind energy supplied by TXU Energy.

Paul Bell, President of Dell Americas, said "Powering an entire campus with green power, in partnership with these two leading companies, is an important step in becoming the greenest technology company on the planet and the right thing to do for our shared earth." He's right, and Dell is expected to save about $2 million per year on energy costs alone with the green conversion of its Texas-based facilities -- along with cutting carbon dioxide emissions at the same time. That's what being green is all about.

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Closing Bell: Oil and warnings take wind away from the bulls

Douglas McIntyre — 2008-04-09T16:20:00+00:00

Filed under: After the bell, Dell (DELL), Citigroup Inc. (C), Bed Bath and Beyond (BBBY), United Parcel'B' (UPS), S and P 500, DJIA, NASDAQ

Stocks started out in slightly positive territory on what appeared to be more good news out of a major institution. Then oil inventories showed an unexpected decline, sending oil up up over $2.00 per barrel to $110.56 and later even above $112. Throw in a couple of weak earnings reports and the fears that earnings season is going to be tough, and the bears got to rule today.

Below are today's unofficial closing levels for major US index levels:

Dow: 12,328.49, down 0.38%; Nasdaq 2,322.12, down 1.13%; S&P 1354.56, down 0.8%

Full 52-Week Lows.

Bed Bath & Beyond, Inc. (NASDAQ: BBBY) saw a sharp drop today, and that was before the earnings news was out after the close. A Piper Jaffray downgrade led to the sharp drop today.

Citigroup, Inc. (NYSE: C) proved to be a typical example of what is becoming redundant. The company lined up a sale of $12 billion of dollars worth of leveraged loans for some 90 cents on the dollar.

Dell, Inc. (NASDAQ: DELL) saw another drop, this one taking it to a new 52-week low and post-Mikey return. The prior low had been $18.87. Maybe unveiling that low-priced laptop wasn't such a good idea. This just continues what has been an ongoing onslaught.

Nektar Therapeutics (NASDAQ: NKTR) and MannKind Corp. (NASDAQ: MNKD) were today's "daily uglies" on news that Pfizer Inc. (NYSE: PFE) has warned of lung cancer risks in diabetes patients in the inhaled insulin program. Nektar is now marking the end of its Exubera treatment.

TheStreet.com (NASDAQ: TSCM) saw shares fall today despite signing a three-year renewal contract with co-founder Jim Cramer.

United Parcel Service, Inc. (NYSE: UPS) gave an earnings warning this morning, although shares held up remarkably well for a market that has trouble pricing in events currently. This was one of the larger blames on the market drop today, although in a weakening economy you'd think that eventually gets factored in.

Douglas A. McIntyre is an editor at 247wallst.com.

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Dell (DELL) may take sovereign fund investment

Douglas McIntyre — 2008-04-09T11:12:00+00:00

Filed under: International markets, Deals, Live coverage, Competitive strategy, Dell (DELL), Hewlett-Packard (HPQ), Russia, Middle East

Usually, when sovereign funds put money into a company it is simply a financial investment. Dell (NASDAQ: DELL) may have unlocked something more. According to The Wall Street Journal: "Dell said it is in talks with a government-owned entity in Dubai about establishing a joint venture to further increase the personal-computer maker's sales in the Middle East." In other words, the computer company will get value well beyond cash.

For Dell, it is a brilliant move that shows government funds can do more than just write checks. The PC market in the Middle East is large and growing very rapidly.

The US company may have found a template for improving its market share around the world through forming joint ventures with local pools of capital. Dell's growth in many markets has been hurt by the improvement of share by Hewlett-Packard (NYSE: HPQ), and the rise of big computer companies Lenovo and Acer out of China. All of these companies need to improve their business in growing markets, like the Middle East and Asia, if they want their earnings to move up.

If the Dell venture in Dubai works, it would be wise to look to sovereign funds in Russia, China, and Singapore for similar deals. Dell's market share in many of these regions is in trouble. Who better than the locals to help them?

Douglas A. McIntyre is an editor at 24wallst.com.

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Newspaper wrap-up: Citigroup closing in on deal to sell $12B of its leveraged loans

Laurie Pasternack — 2008-04-09T08:00:00+00:00

Filed under: Newspapers, Magazines, Dell (DELL), Citigroup Inc. (C), JPMorgan Chase (JPM), Boeing Co (BA), Washington Mutual (WM), Blackstone Group L.P (BX)

MAJOR PAPERS:

In an effort to increase sales in the Middle East, the Wall Street Journal reported that Dell Inc (NASDAQ: DELL) is in talks with a government-owned vehicle in Dubai called Tecom about establishing a joint venture.
The Wall Street Journal also reported that Washington Mutual Incorporated (NYSE: WM), which obtained a $7B capital infusion from TPG and other investors, had reportedly been working on the TPG deal while negotiating with JP Morgan Chase & Co (NYSE: JPM), which made a preliminary takeover bid of about $7B, people familiar with the deal said.
Citigroup Incorporated (NYSE: C) is close to reaching a deal to sell $12B in leveraged loans at a discount to a group of leading private equity firms, the Financial Times reported. Although details of the deal were still being worked out, inside sources said Apollo Management, The Blackstone Group LP (NYSE: BX) and TPG would buy the loan portfolio at a discount that could come in at about 90 cents on the dollar.

OTHER PAPERS:

The UK Times reported that The Boeing Company (NYSE: BA) is today expected to announce that its 787 Dreamliner has been delayed by 18 months, a setback which will affect all airlines that have ordered the 787, including British Airways Plc (OTC: BAIRY) and Virgin Atlantic.

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Dell CEO expects a profitable 2008

Eliza Popescu — 2008-04-08T11:11:00+00:00

Filed under: Forecasts, Good news, Consumer experience, Competitive strategy, Dell (DELL), Hewlett-Packard (HPQ)

After announcing last week that it plans to save $3 billion over the next three years by slashing production costs in all areas, Dell Inc. (NASDAQ: DELL)'s Chief Executive Michael Dell announced today that he expects a profitable 2008 year for the company. Dell's goal to improve profits for the year will be a result of its strategy to move its resources to growing emerging market countries.

Dell also restated the company's target to buy back $1 billion of its own shares during this quarter. The move follows another repurchase of $4 billion in the fourth quarter. Over the long term, Dell aims an earnings per share growth each year and is confident it has "the right plans in place" to get it, Dell said.

Michael Dell predicted that 2008 would be a prosperous year as sales numbers are already looking great. For example, in Israel, the company last year saw an increase of 67% for its sold products, and it has been seeing even faster growth during the first three months of this year.

Even in the teeth of an economic slowdown, Dell expects "pretty healthy" growth in 2008 as the second largest computer maker focuses its resources on growth areas such as China and the Middle East. The company plans to launch new products that could efficiently compete against its rivals. Dell aims to release to the market this year a new computer able to compete with the $500 mini-notebook of sector leader Hewlett Packard Co. (NYSE: HPQ).

Looking ahead to the company's opportunities to grow, Dell is predicting that devices in the future will "blur the line" between smartphones and computers. However, for the moment, the company will continue to rely on more traditional computers as its main profit business.

Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.

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Cramer on BloggingStocks: Tech stocks face real trouble

Jim Cramer — 2008-04-08T07:55:00+00:00

Filed under: Google (GOOG), Microsoft (MSFT), Apple Inc (AAPL), Cisco Systems (CSCO), Dell (DELL), Hewlett-Packard (HPQ), Intel (INTC), Motorola (MOT), Market matters, International Business Machines (IBM), Advanced Micro Dev (AMD), Research in Motion (RIMM), Washington Mutual (WM), Texas Instruments (TXN), EMC Corp (EMC), salesforce.com inc (CRM), Stocks to Buy, Stocks to Sell, Cramer on BloggingStocks, Technology

TheStreet.com's Jim Cramer says that absent any catalyst beyond "cheap," the sector looks set to disappoint.

When people say "tech" on TV, it is almost always followed with "cheap," or "low valuation." To which I say, "So what?" AMD (NYSE: AMD) (Cramer's Take) looked cheap until last night. Motorola (NYSE: MOT) (Cramer's Take) looked cheap and there turned out to be no there there. Cisco (NASDAQ: CSCO) (Cramer's Take) looks cheap but all I hear are earnings cuts. Dell (NASDAQ: DELL) (Cramer's Take) looks cheap, but who cares?

Lots of cheap out there.

Here's my question: where's the catalyst?

Shorts? Stronger growth in the second half? No, the only catalysts I look for in tech are product cycles, and other than Salesforce.com (NYSE: CRM) (Cramer's Take) (nice move there), Research in Motion (NASDAQ: RIMM) (Cramer's Take) and maybe Apple (NASDAQ: AAPL) (Cramer's Take), because we need a new phone there already, there are no new product cycles to speak of.

Layer on the fact that RIMM has a product cycle and had a great quarter and is below where it traded at its high after the quarter -- can you imagine where that would be if the market were to turn down -- and you can see that tech may be cheap for nobody knows how long.

When that happens, you get a chain reaction when the market turns bad. Suddenly you have Microsoft (NASDAQ: MSFT) (Cramer's Take) thinking about overpaying, at least that will be the scuttlebutt. You have Hewlett-Packard (NYSE: HPQ) (Cramer's Take) going down because AMD says things are weaker. You have Intel (NASDAQ: INTC) (Cramer's Take) going down because AMD's not going bankrupt. You have Freescale on the cover of Business Week making it clear that there won't be any deals from this sector any time soon. Next you will have Google (NASDAQ: GOOG) (Cramer's Take) head down on a slowing ad story from some other company.

That's what happens when you are in it only for valuation and there aren't any product cycles to stem the tide.

I have heard tech praised endlessly this year, and yet it has done nothing. I think it is about to do less than nothing right now. I think it is going down.

Sure, IBM (NYSE: IBM) (Cramer's Take) will keep hyping its stock, and I don't think HPQ is doing badly. How low can Texas Instruments (NYSE: TXN) (Cramer's Take) go, it is so long-term cheap. Nokia's (NYSE: NOK) (Cramer's Take) having a decent quarter. EMC's (NYSE: EMC) (Cramer's Take) quarter is OK, but it does have VMware (NYSE: VMW) (Cramer's Take), which, unfortunately, is not doing that well despite the hype.

But they can't exist in a vacuum. There's not enough here to warrant further rallying.

I want to be careful of this group. The negative pin action could be swift and there is no great secular trend, like food shortage or oil or ethanol or Chinese building to keep things rolling along.

Random musings: If Kerry Killinger stays on when TPG does the recap of Washington Mutual (NYSE: WM) (Cramer's Take), I would short the stock.

RELATED LINKS:

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer was long EMC.

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Closing Bell: Bulls ran too hard early on, had to snooze

Jon Ogg — 2008-04-07T16:45:00+00:00

Filed under: Apple Inc (AAPL), Dell (DELL), Ford Motor (F), Novartis AG ADS (NVS), Washington Mutual (WM)

Traders came in this morning wanting to carry on from last week's stability on word that Washington Mutual, Inc. (NYSE: WM) was perhaps going to get a private equity bailout. At least a lifeline was the hope. But throughout the day shares slid from a 100 point gain to close mostly flat on the day as the market decided it had better get ready to go into earnings season yet again for Q1 2008 earnings reports from major companies. Below are the unofficial closes for US index levels:

DJIA 12,612.43 (+3.01; +0.02%)
NASDAQ 2,364.83 (-6.15; -0.26%)
S&P500 1,372.53 (+2.13; +0.16%)
10YR-TBond 3.556% (+0.075)
Full 52-Week Lows
Top 10 Pre-Market Analyst Calls

Apple, Inc. (NASDAQ: AAPL) up today after a price target upgrade by Thomas Weisel Partners today. Shares closed up almost 2% at $155.89.

Dell, Inc. (NASDAQ: DELL) continued its slide from last week as Wall Street is losing its patience. Shares closed down another 1.5% at $19.23.

Ford Motor Company (NYSE: F) closed up 3.7% at $6.78 today after Barron's noted that shares of the US auto maker could double over the next year.

Novartis AG (ADR) (NYSE: NVS) was down on news they are to spend $39 billion for a majority stake in Alcon, a U.S. eye-care company from food and beverage company, Nestle. Shares closed down 4% at $50.00.

NVIDIA Corporation (NASDAQ: NVDA) was up on an upgrade by AmTech Research. After the slide this one has seen, any up day will be a welcome sign for investors. Shares are up over 2% to $19.23.

Washington Mutual, Inc. (NYSE: WM) was up on speculation that private-equity TPG could give them a $5 billion liquidity boost. Shares closed up 29% at $13.15 today.

Westlake Chemical Corporation (NYSE: WLK) was up on a UBS upgrade to Buy from Neutral. Shares are up 11% at $17.67 on the upgrade.

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Dell is NOT Apple!

Georges Yared — 2008-04-07T11:55:00+00:00

Filed under: Management, Consumer experience, Apple Inc (AAPL), Dell (DELL), Stocks to Buy, Stocks to Sell

I do a weekly radio show titled Good Day Wealth with Doug Stephan and Georges Yared every Saturday morning coast-to-coast. It's a fun and hopefully informative show about the economy, stock market, etc. We take listeners calls both in email and live on the air. I got an email from one listener, William, who is thinking about putting 60% or so of his portfolio into Dell (NASDAQ: DELL) because "if Steve Jobs can do it with Apple (NASDAQ:AAPL), Michael Dell can do it with Dell."

My response to William is no way -- don't even think about it. Dell is NOT Apple.

Apple is a growth story with multiple legs to it. From the iPod to the iPhone, the new Mac and its attendant software, to, of course, the incredible retail store system that numbers more than 200 strong, globally, Apple is a true growth story for the next several years. Apple has another thing going for it: terrific and expanding margins.

Dell, on the other hand, is competing in a commodity business whereby the only major advantage is competing on price. With lower prices come depressed margins and compressed P/E ratios; not a good formula for a growth company. Sure, Michael Dell's return brought some near-term enthusiasm, but the numbers are the numbers. He can clean up the expense side of the equation, and that certainly is worth some share value, but at the end of the day -- it's a commodity story.

Personal computers and servers, once the trail blazers of the technology world, have been reduced to easily replaced, interchangeable commodity products. The good news for consumers and businesses is that price points have dropped significantly while functionality and power have gone up. The bad news for major manufacturer Dell is operating margins have been struggling to hold onto the 5-7% level.

So William, I am impressed with your determination to improve your current portfolio -- but please, not Dell. Apple is the buy while Dell is the sell.

Georges Yareds' new Report "7 Reasons Apple Will Double" is available free at GameOn.com. He is CIO of Yared Investment Research.

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Closing Bell: Relief after jobs bomb

Jon Ogg — 2008-04-04T16:31:00+00:00

Filed under: Dell (DELL), Washington Mutual (WM)

The Labor Department released that unemployment was running at 5.1% and that the non-farm payrolls lost 80,000 jobs in March, and the unemployment rate fell from 4.8% to 5.1%. Economists were expecting a loss of 50,000 and an unemployment rate of 5.0%. If you were just looking at the headlines, you would have said "Uh-oh, recession." But traders are trying to glimmer good news in the bad news right now. Bad news that isn't disastrous will lead traders to feel the nightmare scenario is only going to be a garden variety recession rather than an implosion. This will still allow for additional rate cuts from the Fed. Below are the unofficial closing prices for key US index levels:

DJIA 12,609.42 (-16.61; -0.13%)
S&P500 1,370.40 (+1.09; +0.08%)
NASDAQ 2,370.98 (+7.68; +0.32%)
10YR-TBond 3.481% (-0.11%)
52-week lows here

Dell Inc. (NASDAQ: DELL) shares were hit by nearly 3% after Goldman Sachs downgraded the stock, and WR Hambrecht also joined in on the downgrades today. Shares closed at $19.53 today.

First Solar, Inc. (NASDAQ: FSLR) showed a sharp gain of 10% to $278.00 after it was featured by none other than Jim Cramer as the great play in the solar sector on Thursday night's MAD MONEY on CNBC.

The Mosaic Company (NYSE: MOS) was one of the few earnings today. It blew earnings away even much higher than whisper numbers, and shares rose a sharp 10.5% to $115.07 today.

Washington Mutual, Inc. (NYSE: WM) was one of the harder hit financial stocks today. You can guess part of the reason: market talk and financial sensitivity to the future. Its shares fell over 11% to %10.17.

WuXi PharmaTech (NYSE: WX) was under pressure after the Chinese outsourcing medical, biotech and drug outsourced R&D company filed for a secondary offering to sell over 10 million shares to the public.

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