AT&T: New High Every Week (T)

Posted on December 08, 2008 in Autodesk Architectural Studio

Stocks: (T)(BLS)(VZ)(Q) AT&T and BellSouth hit a new high every week. As Yogi Berra said, "You could look it up." Well, hyperbole aside, all four of the major US telecoms trade at or near their highs: Qwest, Verizon, AT&T, and BellSouth. Of course, AT&T and BellSouth are merging. But, investors looking at how the stocks trade as a multiple of sales will find a different picture. AT&T trades at 2.24 times sales. BellSouth trades at 3.64 times. AT&T must have paid a premium. But, Verizon trades at 1.22 times. And, Qwest at 1.2 times. Qwest, being the smallest of the lot does not have the balance sheet or revenue to compete with cable, WiMax, and VoIP as well as the rest. Or, at least that is the conventional wisdom about why it carries no premium. The next issue would be debt. But, Verizon has $32 billion in debt and $75 billion in revenue. AT&T has $27 billion in debt, and, with SBC rolled in, a revenue run rate of $60 billion. That does not leave much to differentiate the companies from a financial standpoint. But, the approach that the companies are taking to the future and potential competition are very different. Verizon is betting the bank of fiber-to-the-home and the broadband and IPTV edge it might get over the cable guys like Comcast and Time Warner Cable. One of the issues with this bet is that a recent study by tech research giant IDC showed that only 8.5% of people intend to change providers of "bundled services" (TV, broadband, and phone). Of those surveyed 66% said they would not change and 22% weren't sure according to the study. That would indicate that if the cable guys have them, they will keep them, and Verizon has a problem. Verizon says it will spend $20 billion building its fiber system according to the company's public statments. It also says that the service is now available to six million homes, about 20% of their customers. Of course, that does not mean that the customers are using it. AT&T and BellSouth have not announced intentions anywhere near as agreesive for upping the ante to get faster wires into their customer's homes. And, that may be why Verizon trades at a discount. Douglas A. McIntyre can be reached at douglasamcintyre@gmail.com. He does not own securities in companies that he writes about. cheap microsoft office cheap corel draw

Tags: verizon, time, customer, home, cable

One Device to Rule Them All

Posted on October 27, 2008 in CorelDRAW Graphics

Via Wired: Think of 18- to 34-year-olds as generation WHOIS. They live on e-mail, communicate via instant messaging, change ringtones on their cell phones at the drop of a baseball cap (turned backward, naturally), play video games, download music (sometimes they'll even pay for it), get more of their news from the net than TV and print, experiment with podcasting, read and write their own blogs and access RSS feeds. Most of all, they expect to customize their entertainment experience. How else to explain the market for customized ringtones, which last year exceeded $2 billion worldwide, most of it skimmed from teens and twenty-somethings willing to shell out a couple of bucks for a snippet of 50 Cent? In short, they are technology consumers. Early adopters. Tastemakers and trendsetters. Yet none of the big cell-phone providers like Sprint, Verizon or Cingular has addressed this market exclusively, even though members of gen WHOIS are among their most steadfast customers. This is where Amp'd Mobile comes in. Launching in the next few months, Amp'd touts itself as the first wireless service provider to target young adults. Actually the company sees itself more as a provider of entertainment than a traditional cell-phone company. Armed with almost $70 million in venture capital, Peter Adderton, the company's caffeinated CEO from Australia, believes the future will be composed of mobile entertainment at 60 mph, and the market will be driven by the audience with the most insatiable appetite for it: generation WHOIS. He says that everything you can do at home -- watching TV, viewing movies, listening to the radio or your iPod, downloading music, accessing MapQuest or global positioning systems -- you'll be able to do on a bus, in your car or walking down the street. And you'll do it on a cell phone, which about 60 percent of Americans already own. "As a kid I'd see one device to control everything," Adderton said. "Now it's starting to happen. Wi-Fi has redefined how consumers consume mobile media. Combine Wi-Fi with cell phones and satellite radio, and you can create an unbelievable social device." The question is, which company will lead this charge? There are companies building the devices, companies supplying the applications and companies providing the content. Adderton wants Amp'd to do it all, to offer one cell phone-like device with a screen to provide all of your mobile entertainment needs. And you thought the BlackBerry (often referred to as the "crackberry") was addictive. Here's how Adderton sees the near future: You'll be asleep in your house, and your wireless entertainment device will wake you up. It'll be voice-activated, so if you want some music - cheap corel draw cheap microsoft office

Tags: cell, device, phone, entertainment, mobile

Covad Escapes the Death Penalty (December 28, 2005)

Posted on October 23, 2008 in Autodesk Architectural Studio

by Jon C. Ogg Date Created: 12/28/2005 Covad (DVW-AMEX; ex-COVD) has some incredible news this AM. I see it only opening up at $0.79/0.81 from $0.66/0.67 close. This is a large percentage on the surface, but this is not enough from what this means for the company. With the disarray, impending doom, and overhang that this Verizon (VZ) pact alone hurt the company, this will remove what would have meant "an ongoing Going Concern" note and current legistlation in DC that would have probably been the company's death warrant. Financial terms aren't disclosed (they rarely are) so you won't know what the bottom line benefit is but this will be their meal-ticket as far as news. Also because of the lack of A-Team traders out there right now they may even run it more. I cannot say where the trades after today, but this is the sort of news you could expect a 50% or even more pop instead of a 15-18% pop on when you are dealing with a micro-cap stock that is one of the ex-cult stocks and a sub-$1.00 stock. Securing the Verizon alone would have been incredible but securing MCI as well is just added gravy. Whatever happens today we will probably see it come off later, but my call is just for this to go up more today before that and I don't want to get into predicting what happens on days after the event when we are in the dead-zone time of the year. This note was sent to clients shortly after the open this morning this morning. - Jon Ogg

Tags: stock, news, today, company, verizon

VZW & Sprint are in Trouble

Posted on October 01, 2008 in Corel Photo Painter

Not only is the iPhone being released at the end of June exclusively at AT&T, but because of a ban on Qualcomm chips due to a lost patent fight with Broadcom, no new phones with Qualcomm chips can come into the US. [source] OOPS! Aspiring handset makers further LG, HTC, Samsung, again duplicates wereexpected to support the following carriers with new counterparts, based possible Qualcomm'schips, to compete with the new arrival.Qualcomm chips are used tween phones constituted completed companies furthermore Motorola(MOT) as well South Korea's LG Electronics. Those handsets amidst chronology are used closedcustomers of like carriers owing to Sprint Nextel (S) as well Verizon WirelessAmple cell-phone manufacturers ordinarily comprehend 20 to 30 new phones adate, Also they chiefly exhilarate existing modes at least once a tide. So bag into the tremendous attack, Sprint & VZW craze singular be able to overture the current method of phones. Something new. Prolonged lifetime to reminder clients customarily their contracts to boot trumpet them in fact publicly renewals.

Tags: vzw, contracts, customarily, boot, trumpet

Patent Lawsuits that Can Change Lansdcapes

Posted on September 30, 2008 in Corel Photobook

"Lawsuits: it's the way corporations talk to each other." Intellectual Property litigation is growing. Hey, it's the new business plan. Here are some significant cases: There was the Blackberry patent suit won by NTP that forever wounded RIM. I wouldn't doubt if Microsoft instigated or funded it. It came right at the time that the MS Mobile OS & devices were ready to launch. RIM should have just setlled to keep its market share. It ended up paying almost $700M any way -- and lost market share. Qualcomm vs. Broadcom - Broadcom won this suit. No new phones using the infringed tech from Qualcomm can be introduced in the US. Just as the iPhone is launching Sprint and VZW don't have anything new. Obviously: Case # 1:06-cv-00682-CMH-BRP, Verizon vs. Vonage over VoIP including VoIP over Wi-fi (which could effect ELN). Sprint vs Vonage . Sprint originally sued Vonage, Voiceglo and theglobe over 7 VoIP patents in 2005. Voiceglo and its parent theglobe.com settled with Sprint in August 2006. Vonage's trial is set for September, 2007 (if it can survive the VZ litigation). Many agree that it will result in a sale of Vonage to Sprint. Australia's CSIRO vs. Buffalo Tech & Wi-Fi : "wireless-LAN equipment vendor Buffalo Technology in its patent fight with the Australian science agency CSIRO, could have broad implications for the entire Wi-Fi industry. Judge Leonard Davis of the Eastern District Court of Texas found that Buffalo was violating CSIRO's 1996 patent underlying 802.11a/g technology - the core of all corporate wireless LANs and public Wi-Fi networks - and that the Japanese manufacturer, which has a US subsidiary based in Austin, Texas, must cease selling WLAN products until it reaches a license agreement with CSIRO. Recognising that the CSIRO patent poses a universal threat to makers of Wi-Fi gear, a group of major tech companies that includes Intel, Dell and Hewlett-Packard filed countersuits in May 2005, seeking to have the CSIRO patent invalidated." [source and more here] Taplin & Intertainer on Video Distribution over the Net Bluetooth patent - U of Washington sued Nokia, Samsung and Panasonic for allegedly selling Bluetooth products in the United States without licenses. U of W must have read this article for colleges. Finisar satellite patent over DTV and now XM-Sirius (here) VoIP Inc. has filed for a 911 patent; so has 8x8 (a VoIP patent house that also sells Packet8 VoIP service) and Tel Control Inc. VoIP Inc. has indicated that it would begin enforcing its patents -- I figure 8x8 is doing the same. I'm no lawyer but all the blog noise about the new KSR Obvious test will mean something in patent litigation going forward. If you necessity to husband bygone with patent stuff, you can expound ReThinkIP or the 271 Web site. You can again dry run MSN at http://Net.DMOZ.com/patents

Tags: patent, voip, litigation, lawsuits, figure

Blunders in Thinking: VZW-iPhone

Posted on September 30, 2008 in Corel Photobook

To continue our blunders them, let's look at Denny Strigl, COO at VZ, who proudly tells how he declined to offer the iPhone. Seth writes a little about how Denny was just saving the status quo. Maybe he will prove smarter than us -- but with all the hype and reviews, you have to figure they will sell millions of these phones ... on the Cingular network - not the VZW one.Update: in another blog, there was a note: On a related note, Verizon recently released these talking points (courtesy of AppleInsider) to their customer service department in what looks like management's feared mass exodus of Verizon customers to the iPhone. So I hope right now a bunch of Verizon VP's are sitting around talking about what to do with their lethargic hippo.

Tags: iphone, verizon, vzw, talking, denny

Juniper's Last Stand JNPR, KLAC, OPWV, CNET, CMVT, VTSS

Posted on September 28, 2008 in Autodesk AutoCAD Electrical

The market has hammered Juniper Networks so hard over the last year that when the company announced the the U.S. Attorney was looking at its stock options grants the price of the company's shares actually rose. Juniper now joins a small but growing legion of companies including KLA-Tencor (KLAC), Openwave (OPWV), CNet (CNET), Comverse (CMVT), Vitesse (VTSS) and others being asked similar questions by the government about the timing of their option grants. Juniper's stock was up almost 2.9% on the day to $15.49. The company dropped below it former 52-week low earlier in the session, touching $14.62. The high for the period was $27.65. The company's market cap has been cut nearly in half in the last year and is now down to $8.8 billion, or 3.9 times sales. After several years of impressive growth, the most recent quarter was a disappointment. Revenue fell to $566.7 million in the March 31, 2006 quarter from $575.5 million in the December 31, 2005 period. Operating income shrank more to $90.9 million from $116.4 million. Juniper, the maker of scalable router products, still has its fans. According to Forbes, "Piper Jaffray analyst Troy Jensen maintained an "outperform" rating on Juniper Networks, saying he expects the company to continue to benefit longer-term from deployments of next-generation IP services that require high bandwidth". But, guidance for the next quarter was poor. Revenue was originally slated for $580 to $590 million. The company dropped that to a $560 to $570 range. Apparently a delay in a contract with Verizon (VZ) caused part of the anticipated miss. Call it perverse, but perhaps when a stock does not have a negative reaction to the announcement of a government investigation, it has fallen too low. Even with the lowered guidance the company is very likely to do better than the $493 million top line in the June quarter last year. Maybe now, Juniper's stock price is too low. Douglas A. McIntyre is the former Editor-in-Chief and Publisher of Financial World Magazine. He is also the former president of Switchboard.com, which was the 10th most visited site in the world at the time, according to MediaMetrix. He has been chief executive of FutureSource LLC and On2 Technologies, Inc. and has served on the boards of TheStreet.com and Edgar Online. He does not own securities in companies he writes about. He can be reached at douglasamcintyre@gmail.com.

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