But when the time came, there was nothing very sly about it at all: Murdoch just did exactly what he wanted, turfing out managing editor Marcus Brauchli in a way that, arguably, represented a concrete and blatant violation of the independence pact.
Jeff Bercovici submits:
Only the very naive didn't expect Rupert Murdoch to find some sly way around the agreement he made to respect The Wall Street Journal's editorial independence once it was his.
But when the time came, there was nothing very sly about it at all: Murdoch just did exactly what he wanted, turfing out managing editor Marcus Brauchli in a way that, arguably, represented a concrete and blatant violation of the independence pact.
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Moody's: Homebuilders at the Mercy of Their Banks
read moreSeveral lower-rated homebuilders survived 2007 merely because of the leniency of their lending groups. As 2008 unfolds, these same homebuilding companies will once again find themselves at the mercy of their banks, according to Moody’s.
But now the banks are facing increasing pressure to 1) take a harder line on covenants, 2) reduce their homebuilding exposure, which has not provided them with the same level of fees as in the past, and 3) deal with their own balance sheet issues. As a result, Moody’s expects to see a rising number of defaults amid this confluence of negative factors.
Research Recap submits:
Several lower-rated homebuilders survived 2007 merely because of the leniency of their lending groups. As 2008 unfolds, these same homebuilding companies will once again find themselves at the mercy of their banks, according to Moody’s.
But now the banks are facing increasing pressure to 1) take a harder line on covenants, 2) reduce their homebuilding exposure, which has not provided them with the same level of fees as in the past, and 3) deal with their own balance sheet issues. As a result, Moody’s expects to see a rising number of defaults amid this confluence of negative factors.
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Opportunities in Natural Gas: Baker Hughes, Halliburton, Schlumberger
read moreThe Energy sector has outperformed the S&P 500 for several years. An earlier article examined the key issues driving opportunities in natural gas in the U.S. Natural gas is the cleanest burning fuel and is now trading at a lower cost relative to oil. Demand for natural gas should continue to expand, driven by substitution for coal to generate electricity and for heating. Natural gas is also being used by government and corporate fleets, as it is a lower cost and cleaner fuel.
To take advantage of the potential in natural gas, many investors are buying the exploration and development companies. However, the oil and gas field service firms also offer significant investment opportunities. Much like the companies that provided the picks, shovels and other implements to the early gold rush miners, these firms provide the equipment, fluids and services to help the exploration and production companies to find and extract oil and gas.
The Energy sector has outperformed the S&P 500 for several years. An earlier article examined the key issues driving opportunities in natural gas in the U.S. Natural gas is the cleanest burning fuel and is now trading at a lower cost relative to oil. Demand for natural gas should continue to expand, driven by substitution for coal to generate electricity and for heating. Natural gas is also being used by government and corporate fleets, as it is a lower cost and cleaner fuel.
To take advantage of the potential in natural gas, many investors are buying the exploration and development companies. However, the oil and gas field service firms also offer significant investment opportunities. Much like the companies that provided the picks, shovels and other implements to the early gold rush miners, these firms provide the equipment, fluids and services to help the exploration and production companies to find and extract oil and gas.
Complete Story »
Challenge to Cellular Industry: More Judicious Use of Statistics
read moreThe cellular industry is very fond of big numbers - 1 billion phones shipped, 3 billion subscribers, 3 trillion SMSs - I'm sure you recognize them. Obviously, these are all important and impressive achievements and should be applauded.
However, the industry is also very fond of quoting these numbers in contexts in which their relevance is marginal. A typical examples compares 3-4 billion mobile subscriptions with around a tenth of that figure for fixed broadband connections. Another is "Pah, WiMAX will never get the scale economies - there's a billion phones sold a year, how can a measly 50 million or fewer units possibly compete?". Similar examples are used to demonstrate relative importance against TVs, PCs, SMS vs IM or email and so on.
Dean Bubley submits:
The cellular industry is very fond of big numbers - 1 billion phones shipped, 3 billion subscribers, 3 trillion SMSs - I'm sure you recognize them. Obviously, these are all important and impressive achievements and should be applauded.
However, the industry is also very fond of quoting these numbers in contexts in which their relevance is marginal. A typical examples compares 3-4 billion mobile subscriptions with around a tenth of that figure for fixed broadband connections. Another is "Pah, WiMAX will never get the scale economies - there's a billion phones sold a year, how can a measly 50 million or fewer units possibly compete?". Similar examples are used to demonstrate relative importance against TVs, PCs, SMS vs IM or email and so on.
Complete Story »
EnCana Corporation Q1 2008 Earnings Call Transcript
read moreID: 73416
EnCana Corporation (ECA)
ID: 73416
EnCana Corporation (ECA)
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Freeport-McMoRan Is Overvalued
read moreFreeport-McMoRan (FCX), the largest publicly traded copper company, reported 1st quarter earnings Wednesday morning, before the open. The numbers were good: revenues up 24%, operating income up 62% and net income up 81%. That’s no surprise as copper prices are sky high, and their average realized price per pound was $3.69 (FCX Earnings Release (pdf file)).
However, at this point in time, I think this stock is overvalued. At $118, Freeport has a market cap of $53 billion. It earned about $3.5 billion over the last four quarters, and forecasts $3.5 billion free cash flow for 2008, which gives it a multiple around 15.
Greg Feirman submits:
Freeport-McMoRan (FCX), the largest publicly traded copper company, reported 1st quarter earnings Wednesday morning, before the open. The numbers were good: revenues up 24%, operating income up 62% and net income up 81%. That’s no surprise as copper prices are sky high, and their average realized price per pound was $3.69 (FCX Earnings Release (pdf file)).
However, at this point in time, I think this stock is overvalued. At $118, Freeport has a market cap of $53 billion. It earned about $3.5 billion over the last four quarters, and forecasts $3.5 billion free cash flow for 2008, which gives it a multiple around 15.
Complete Story »
4 Short-Squeeze Prospects to Watch this Week
read moreTheStreet.com has published its Short-Squeeze stocks of the week, and among them is LIN TV (TVL), the television and digital media company.
Jessica Johnson submits:
TheStreet.com has published its Short-Squeeze stocks of the week, and among them is LIN TV (TVL), the television and digital media company.
Complete Story »
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