Filed under: Products and services, Sony Corp ADR (SNE)

Sony Electronics (NYSE: SNE) said today that it would be discontinuing the manufacture of rear-projection television sets after decades of making them for global markets. In the end of a television era, Sony will concentrate its efforts on flat-panel LCD and OLED TV sets from now on.

The dropping of rear-projection products was expected from the Japanese electronics manufacturer as the division has consistently been losing money in current times. In fact, it’s widely expected that tube-style TVs and more massive, rear-projection TVs will be gone from global store shelves within a few years. LCD, Plasma and OLED television display technology will absolutely take over.

With projected sales of rear-projection televisions in Sony’s current fiscal year having been guided down from 700,000 to 400,000 recently, that number pales in comparison to the expected 10 million LCD TVs the company is expected to sell in its current fiscal year, up from the previous year’s mark of 6.3 million sets.

Hastening the discontinuing of Sony’s rear-projection business is the fact that 85% of those sets were sold in the U.S., which is rapidly adopting flat-panel technologies for almost each new television sold. Then again, Sony is going to run up into fierce competition in the flat-panel TV space and has already accused competitor Vizio of hurting industry profits this year.

Share This

Share This

Filed under: Bad news, Products and services, Wal-Mart (WMT)

If you were lucky enough to receive a Wal-Mart (NYSE: WMT) gift card for Christmas this year, you may want to wait a few days before attempting to use it at your local location. The world’s largest retailer is having a problem processing gift cards this year, according to Wal-Mart officials.

Wal-Mart is laying the blame on a third party processing verification service that was producing errors when gift cards were used as payments at nationwide Wal-Mart locations. The result was delays in gift card verifications, which naturally caused some gift card users not to be able and use their cards.

Even though Wal-Mart is known for its state-of-the-art IT systems that run its global logistics and replenishment systems, this one falls in the lap of a partner, which apparently was not closely monitoring quality in the post-holiday rush when it came to gift card usage.

Wal-Mart stated that it is “working with the supplier to resolve the issue as swiftly as possible and we apologize for the inconvenience to our customers.” Mistakes happen, although the retailer said it could not provide any additional details on the matter.

Share This

Share This

Filed under: Newsletters, Mutual funds, Stocks to Buy, Housing, Ideal Stocks for 2008

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

“My favorite ‘home run’ speculation for 2008 is playing a rebound in the beaten-down US housing sector,” says Mike Burnick, editor of Global Market Investor.

“Specifically, I like the iShares Dow Jones US Home Construction ETF (ASE: ITB). This exchange-traded fund is a pure contrarian play not based on valuation, since fundamentals continue to deteriorate in the US housing market.

“The US housing market is still a mess, home prices are plunging, sales continue to slump, and inventories of unsold homes are at record highs. There’s very tiny we have the ability to see to enjoy in this sector.

“But, in fact, that’s often the key to earning large returns in the stock market: Make well-timed contrarian bets on the most unloved stocks and sectors.

“However, I believe that negative sentiment in the sector has reached an extreme. Put/call volume on homebuilder stocks is at an extreme, and short interest is near record highs. I believe the turning point for this sector is close at hand.

“Although housing prices should continue to deteriorate for several months going forward, I see the major homebuilders beginning to clear out inventories of unsold homes.

“Many builders have already taken substantial write-downs on the value of completed homes and land. Two catalysts to watch for to confirm a rebound rally in builders are: #1 consolidation activity in the sector, #2 unsold home inventories begin to decline from record levels. Either catalyst could easily trigger 50%-plus price appreciation in ITB.”

Share This

Share This

Filed under: Other issues, Economic data, Housing

Population growth has slowed in the prior housing boom says of Arizona, Florida and Nevada, The Wall Street Journal reported Thursday [subscription required], citing U.S. Census Bureau data for the 12 months ended July 1, 2007.

Further, the U.S. Census Bureau’s report continued to confirm a decades-long trend of U.S. population shift from the Northeast and Midwest to the West and South.

Florida, arguably the state that’s been hardest hit by the housing slump, experienced the largest decline in population growth, The Journal reported. Florida’s population increased by 35,301, or 1%, during the 12-month period, compared to an increase of 134,798 during the previous 12-month period.

Decelerating growth

“It advocates a slowing growth pattern in says hard hit by the housing slump, but I would caution that this is early data regarding the housing slowdown and that there are many other factors in a person’s decision to move, including job availability, overall cost of living and quality of life,” economist Steve Affinito told BloggingStocks Thursday. “But one thing we have the ability to take away from this report is that population growth in the former housing boom says isn’t accelerating. Those states can’t be called booming right now.”

Still, Florida, Arizona and Nevada remain among the fastest-growing says in the U.S., in percentage growth terms. Arizona’s population grew 2.8% during the period, compared to 3.6% a year ago. Nevada’s population grew 2.9%, compared to 3.5% a year ago, The Journal reported.

Meanwhile, Midwest say Michigan continued to lose residents, with a decline of 0.3% or 30,500 residents during the period.

Economic Analysis: As The Journal noted, the U.S. Census Bureau’s annual estimate of say population through July 1, 2007 represents the first data point regarding the impact of the housing market slowdown on migration, but readers/investors should keep in mind that the report includes data only through July 1, 2007, during the initial stage of the housing slowdown. Subsequent research, by the U.S. Census Agency and other research organizations, covering population movement through January 1, 2008 and July 1, 2008 will provide a more-complete view of the housing slowdown’s effect on national migration patterns. They’ll contain information on 12 months of housing correction era data, including the sluggish Q3/Q4 2007 housing quarters and any changes in Q1/Q2 2008, should they occur.

Share This

Share This

Filed under: Newsletters, Mutual funds, Stocks to Purchase, Housing, Best Stocks for 2008

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Best Stocks for 2008 report.

“My favorite ‘home run’ speculation for 2008 is playing a rebound in the beaten-down US housing sector,” says Mike Burnick, editor of Global Market Investor.

“Specifically, I like the iShares Dow Jones US Home Construction ETF (ASE: ITB). This exchange-traded fund is a pure contrarian play not based on valuation, since fundamentals continue to deteriorate in the US housing market.

“The US housing market is still a mess, home prices are plunging, sales continue to slump, and inventories of unsold homes are at record highs. There’s very tiny we can see to like in this sector.

“But, in fact, that’s often the key to earning huge returns in the stock market: Make well-timed contrarian bets on the most unloved stocks and sectors.

“However, I believe that negative sentiment in the sector has reached an extreme. Put/call volume on homebuilder stocks is at an extreme, and short interest is near record highs. I believe the turning point for this sector is close at hand.

“Although housing prices should continue to deteriorate for several months going forward, I see the major homebuilders beginning to clear out inventories of unsold homes.

“Many builders have already taken substantial write-downs on the value of completed homes and land. Two catalysts to watch for to confirm a rebound rally in builders are: #1 consolidation activity in the sector, #2 unsold home inventories start to decline from record levels. Either catalyst could easily trigger 50%-plus price appreciation in ITB.”

Share This

Share This

Filed under: Major movement, Indices, Newsletters, Mutual funds, Stocks to Purchase, Housing, Ideal Stocks for 2008

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Ideal Stocks for 2008 report.

“My top pick for 2008 is the PowerShares U.S. Dollar Index Bullish (ASE: UUP),” states seasonal timing expert Sy Harding in his Street Smart Investor.

“The US dollar has been in a frightful decline against most global currencies for six years now. Its decline has served the US economy well. Among other positives, the weaker dollar made US exports less high-priced for foreign consumers, while making imports more pricey for US consumers.

“That has been a win-win situation for US manufacturers in a period when US manufacturing has been a struggling sector of the economy.

“The weaker dollar has made travel to the US, and shopping here, a happy experience for foreign travelers. Without purchases of second homes by foreign buyers, the plunge in the housing market would have been even more severe.

“Throughout its decline Washington has claimed that a strong dollar would be in the ideal interests of the US. But of course it would not have been, so Washington did nothing about the dollar’s decline.

“However, at this point the decline has gone too far. Its negatives have begun to offset its positives. Foreign countries have been holding much of their capital reserves in US dollars for decades, but have been making noises, even threats, to shift some of those reserves to other currencies.

“Oil is priced in US dollars, and the relentless decline in the value of the dollar has oil-producing countries threatening to switch oil pricing to euros or some other currency. Such events are the last thing the US needs at this point in its struggles to maintain its influence in global economics.

“Technically, the dollar is very oversold on the charts, and investor sentiment for the dollar is at rock bottom. Those are conditions that are usually in place at important lows in any market.

“I expect the dollar to rally substantially in 2008, boosted by positive actions by Washington and global central banks, accelerated by dramatic reversals of short-selling and other bets against the dollar by hedge funds and international currency traders.”

Share This

Share This

Filed under: Other issues, Economic data, Housing

Population growth has slowed in the prior housing boom states of Arizona, Florida and Nevada, The Wall Street Journal reported Thursday [subscription required], citing U.S. Census Bureau data for the 12 months ended July 1, 2007.

Further, the U.S. Census Bureau’s report continued to confirm a decades-long trend of U.S. population shift from the Northeast and Midwest to the West and South.

Florida, arguably the say that’s been hardest hit by the housing slump, experienced the largest decline in population growth, The Journal reported. Florida’s population increased by 35,301, or 1%, during the 12-month period, compared to an increase of 134,798 during the previous 12-month period.

Decelerating growth

“It advocates a slowing growth pattern in says hard hit by the housing slump, but I would caution that this is early data regarding the housing slowdown and that there are lots of other factors in a person’s decision to move, including job availability, overall cost of living and quality of life,” economist Steve Affinito told BloggingStocks Thursday. “But one thing we have the ability to take away from this report is that population growth in the former housing boom states isn’t accelerating. Those says can’t be called booming right now.”

Still, Florida, Arizona and Nevada remain among the fastest-growing says in the U.S., in percentage growth terms. Arizona’s population grew 2.8% during the period, compared to 3.6% a year ago. Nevada’s population grew 2.9%, compared to 3.5% a year ago, The Journal reported.

Meanwhile, Midwest state Michigan continued to lose residents, with a decline of 0.3% or 30,500 residents during the period.

Economic Analysis: As The Journal noted, the U.S. Census Bureau’s annual estimate of say population through July 1, 2007 represents the first data point regarding the impact of the housing market slowdown on migration, but readers/investors should keep in mind that the report includes data only through July 1, 2007, during the initial stage of the housing slowdown. Subsequent research, by the U.S. Census Bureau and other research organizations, covering population movement through January 1, 2008 and July 1, 2008 will provide a more-complete view of the housing slowdown’s effect on national migration patterns. They’ll contain information on 12 months of housing correction era data, including the sluggish Q3/Q4 2007 housing quarters and any changes in Q1/Q2 2008, should they occur.

Share This

Share This

Filed under: Bad news, Economic data, Housing

Mortgage applications fell 7.6% for the week ended Dec. 21, the Mortgage Bankers Association announced Thursday, with its Market Composite Index, a measure of mortgage loan application volume, falling to 603.8 from 653.8. Refinance volume declined 8.5%, while purchase volume dropped 6.6% for the week.

Fixed interest rates slowed a slight decline, dropping 0.08 percentage points, or 8 basis points, to 6.10% from 6.18% for a 30-year, fixed-rate mortgage; and dropping 0.12 percentage points, to 5.66% from 5.78% for a 15-year, fixed-rate mortgage.

The mortgage survey covers approximately 50% of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990, the MBA stated. Respondents include mortgage bankers, commercial banks and thrifts.

Economic Analysis: The weekly mortgage application stat continues to indicate a softening housing sector with few signs of stabilizing. Conventional, 30-year fixed mortgage rates remain at tolerable levels, but applications continue to decline, which points to tighter lending standards, and perhaps more caution on the part of potential borrowers, given concerns about a weakening U.S. economy.

Share This

Share This

Filed under: Major movement, Indices, Newsletters, Mutual funds, Stocks to Purchase, Housing, Best Stocks for 2008

For 25 years, Steven Halpern, editor of TheStockAdvisors.com, has surveyed the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is one of 100+ ideas in the Ideal Stocks for 2008 report.

“My top pick for 2008 is the PowerShares U.S. Dollar Index Bullish (ASE: UUP),” states seasonal timing expert Sy Harding in his Street Smart Investor.

“The US dollar has been in a frightful decline against most global currencies for six years now. Its decline has served the US economy well. Among other positives, the weaker dollar made US exports less expensive for foreign consumers, while making imports more costly for US consumers.

“That has been a win-win situation for US manufacturers in a period when US manufacturing has been a struggling sector of the economy.

“The weaker dollar has made travel to the US, and shopping here, a happy experience for foreign travelers. Without purchases of second homes by foreign buyers, the plunge in the housing market would have been even more severe.

“Throughout its decline Washington has claimed that a strong dollar would be in the best interests of the US. But of course it wouldn’t have been, so Washington did nothing about the dollar’s decline.

“However, at this point the decline has gone too far. Its negatives have begun to offset its positives. Foreign countries have been holding much of their capital reserves in US dollars for decades, but have been making noises, even threats, to shift some of those reserves to other currencies.

“Oil is priced in US dollars, and the relentless decline in the value of the dollar has oil-producing countries threatening to switch oil pricing to euros or some other currency. Such events are the last thing the US needs at this point in its struggles to maintain its influence in global economics.

“Technically, the dollar is very oversold on the charts, and investor sentiment for the dollar is at rock bottom. Those are conditions that are usually in place at important lows in any market.

“I anticipate the dollar to rally substantially in 2008, boosted by positive actions by Washington and global central banks, accelerated by dramatic reversals of short-selling and other bets against the dollar by hedge funds and international currency traders.”

Share This

Share This

Filed under: Bad news, Economic data, Housing

Mortgage applications fell 7.6% for the week ended Dec. 21, the Mortgage Bankers Association announced Thursday, with its Market Composite Index, a measure of mortgage loan application volume, falling to 603.8 from 653.8. Refinance volume declined 8.5%, while purchase volume dropped 6.6% for the week.

Fixed interest rates slowed a slight decline, dropping 0.08 percentage points, or 8 basis points, to 6.10% from 6.18% for a 30-year, fixed-rate mortgage; and dropping 0.12 percentage points, to 5.66% from 5.78% for a 15-year, fixed-rate mortgage.

The mortgage survey covers approximately 50% of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990, the MBA stated. Respondents include mortgage bankers, commercial banks and thrifts.

Economic Analysis: The weekly mortgage application stat continues to indicate a softening housing sector with few signs of stabilizing. Conventional, 30-year fixed mortgage rates remain at tolerable levels, but applications continue to decline, which points to tighter lending standards, and perhaps more caution on the part of potential borrowers, given concerns about a weakening U.S. economy.

Share This

Share This