Archive for January 8th, 2008
Filed under: Products and services, Launches, Management, Competitive strategy, Intel (INTC), Technology
 In an effort to keep bottom-line growth alive, Intel is trying (again) to move into the mobile phone market. Speaking from the Consumer Electronics Show in Las Vegas, the Pentium parent’s CEO, Paul Otellini, told Bloomberg that Intel is focused on “where we think phones are going, not where they are today.”
Last year, Otellini put to rest his predecessor’s $5 billion, six-year effort to produce mobile-phone chips designed to run the communications features of cellular phones. Now, the Intel CEO is taking a different approach to the new marketplace, designing chips for phones that can surf the internet and master mobile video and music. The goal for the new chip is to provide increased processing power while exerting less electricity.
In the first half of 2008, Intel will be unveiling its package of mobile chips. A successful shift toward this technology could be a boon for the company, as mobile handsets currently outsell PCs by a 4-to-1 margin.
Intel is in need of a new project, as Computer sales have been slowing, curbing the company’s revenue growth. A Bloomberg survey estimates that Intel revenue growth will pull back to 6.1% in 2009, down from an average growth rate of 13% from 2003 through 2006, as the Centrino chip dominated the laptop market.
The stock could use a pick-me-up as well; INTC has dropped more than 18% in the last 30 days and has given back 2.4% today. Will the second time be the charm for Intel’s attempt to crack the mobile-phone market? Or will it be a case that the marketplace fooled Intel once (shame on it); fooled Intel twice (shame on Intel!)? Either way, it will take months if not years for any positive repercussions from these new chips to trickle down to the bottom line. Patience could be a virtue for long-term Intel investors, but be careful in case Otellini’s new chips swiftly become old news.
Beth Gaston Moon is an analyst at Schaeffer’s Investment Research.
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Filed under: Good news, Products and services, Ford Motor (F)
 Ford Motor Co. (NYSE: F) continues to sit in the pit of lagging sales and mountains of losses, even as some of its cars continue racking up awards and industry praise. In the 2007 Strategic Vision report on “most delightful” automobiles, the Detroit automaker won or tied for first in six categories — the most of any automaker. So, why aren’t Ford’s sales reflecting all this jubilation? Hard to tell, but you might want to ask Toyota Motor Co. (NYSE: TM) about it.
Here are Ford’s results from the six categories it won or tied for first in: Ford’s Mazda3 (small car); Ford’s Volvo V50 Wagon (medium multifunction); Ford ’s Expedition EL (large SUV); Ford’s Lincoln MKX (tied for near-luxury SUV); Ford’s Land Rover Range Rover Sport (luxury SUV); and finally, the Ford F-250/350 (heavy-duty pickup).
So, it really wasn’t all Ford’s nameplate, but a bevy of its brands that helped it achieve record success here. Although rival automaker General Motors Corp. (NYSE: GM) garnered a decent awards showing as well, Ford took top honors across the board. But then again, 2008 automobile sales in the U.S. are expected to slow down to lead to a flat year of sales growth, so Ford won’t be the only one seeing middling success this year in the U.S. new automobile market. At least it will have some awards to plaster on those showroom marketing plaques.
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Filed under: Products and services, Marketing and advertising, Taser Intl Inc (TASR), Stocks to Purchase
 News out of TASER International Inc. (NASDAQ: TASR) has been … how shall I put it … somewhat odd as of late.
First, a few days ago, we heard of Taser Parties. Indeed, like Tupperware Celebrations, Taser Parties have women gather in someone’s home. They get a demo of the recent TASER C2 and even try it out for themselves (on targets, not each other). While this isn’t exactly a TASER official marketing strategy, rather a saleswoman’s vision, it may not be a stretch to see the stun gun maker endorsing this as one sales tactic out of many.
In fact, TASER has already adopted the concept for its booth at this year’s Consumer Electronics Show, where Taser Celebrations were held. TASER didn’t just throw “parties” at CES, but brought Playboy Playmates to … ahem … sign autographs.
But wait, that’s not all in the odd tidbits realm. At CES, TASER also showcased designer colors for the TASER C2 in addition to the classic black model: fire-engine red, blue, silver or pink. Pink, by the way, in some sort of a “girl power” thing is actually the company’s biggest seller. The company also unveiled a new Taser holster in leopard print with a built-in 1 GB MP3 player (preloaded with songs from AC/DC, Shock G, Lightning Bolt and S.T.U.N. … not really). The reason for the MP3 player, you may ask? “You’re more prone to carry it, and it will be there when you need it,” VP of communications Steve Tuttle said. How’s that for marketing?
The latest moves aren’t surprising. As Taser’s sales across police and law enforcement agencies around the world — 43 countries and more than 12,500 police agencies in North America — increase, the company is trying to shift some focus to the civilian sector for future growth.
I have such ambivalent feelings about the company; it’s hard not to with all the bad publicity and current events such as the incident at the Vancouver International Airport. Having stated that, there’s still much room to grow in the non-civilian market and as for the C2, which is legal in most U.S. states, the civilian market is in its early stages. I therefore do like the stock and the story even more this day.
The stock has increased in value over 63% in the past 52-weeks and was gaining over 4% earlier today. However, the shares gains have narrowed with the market’s slump and TASR closed up 1.3% to $13.28 and
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Filed under: Deals, Products and services, Wal-Mart (WMT)
 Retailer Wal-Mart Stores, Inc. (NYSE: WMT) will be adding the Olevia brand of consumer electronics to its shelves in the near future, as Taiwanese company Kolin announced today. Olevia, a brand commonly seen in the electronics departments of rival retailer Target Corp. (NYSE: TGT), will help parent company Kolin try to increase shipments 50% in 2008, according to the company.
Does Wal-Mart really need another generic brand of flat-panel TVs on its shelves? The argument could be either way, although the TV display areas of all Wal-Mart Supercenters I’ve seen are packed full. It’s not like the Olevia brand carries weight like the Sony or Panasonic brand. Count the sales surge in flat-panel maker Vizio into the lineup and where will Olevia fit? In terms of pricing, at the very low end with bargain-basement brand names like Westinghouse, most likely.
Olevia’s 42-inch flat-panel televisions have reportedly been hot sellers in China as of the end of last year, which led to Wal-Mart asking for a supply of the brand’s flat-panel products. It’s unknown what size TVs will see daylight on the shelves of Wal-Mart and Sam’s Club stores in 2008, although Kolin president Frank Li has stated his company has secured a contracted supply of 62-inch high-definition LCD panels from Sharp, one of its handful of vendors for flat-panel screens. Wal-Mart better make room for those huge flat-panels if indeed it intends to stock 62-inch sizes on those display walls. Maybe Sam’s can just suspend the displays from those high warehouse ceilings? Just a suggestion.
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Posted by: admin in Today News
Mother thanks Ulster for helping to save the life of toddler sent … - Belfast Telegraph
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Posted by: in Housing
Filed under: Before the bell, International markets, Earnings reports, Deals, Management, Microsoft (MSFT), Starbucks (SBUX), Market matters, KB HOME (KBH), Economic data, Commodities, Oil, Bear Stearns Cos (BSC), Housing
 It seems that bulls are going to try it again this morning. Stock futures are higher this morning, indicating U.S. stocks could start the session on a positive note. However, as oil prices rebounded and housing data on the docket, stocks could feel pinched again as recession fears continue.
Yesterday, futures were also indicating a positive begin on Wall Street, but from there stocks swiftly went nowhere as worries about the economy kept depressing stocks while bargain hunters gave them a push higher. Despite the Dow industrials finishing 27 points, or 0.21% higher, and the S&P 500 adding 4 points, or 0.32%, the Nasdaq Composite lost ground for the seventh session in a row, declining 5 points or 0.21%.
Today, November pending home sales is to be released at 10:00 a.m. EST. The battered housing market still haven’t found the trough and each data point has its effects on the market. Analysts indeed expect the pending home sales index to decline 0.8% — the second worst performance on record for the seven-year old index.
Also today, Philadelphia Fed President Charles Plosser and Boston Fed president Eric Rosengren are scheduled to talk about the economic outlook.
Oil rebounded from Monday’s decline caused by recession fears and is back above $96 a barrel. The higher crude prices and weaker dollar contributed to yet another rise in gold to a record level in London and New York, as usually demand for gold is used as a hedge against inflation.
Overseas, Asian markets ended blended. European stocks were rising by midday Tuesday.
Several stories are making headlines in corporate news:
The Wall Street Journal reported Monday that Bear Stearns Cos. (NYSE: BSC) Chief Executive James Cayne will step down as the firm’s CEO, though he plans to remain as chairman. Bear Stearns has been hit hard by the subprime mortgage crisis and ongoing credit crunch. BSC shares have been gaining over 2% in after-hours trading.
Another large management change comes from coffee brewer Starbucks (NASDAQ: SBUX) as it announced Monday afternoon that CEO Jim Donald is being replaced by Chairman and visionary Howard Schultz, who will lead a major restructuring of the company. SBUX shares are up over 9% in premarket trading (7:13 a.m.).
Microsoft Corp. (NASDAQ: MSFT) said Tuesday it will an offer to purchase Norwegian enterprise search firm Fast Search & Transfer in a deal that values the Oslo-based company at about $1.2 billion.
Reporting earnings for its fiscal fourth quarter this day and thus giving investors another look at the housing market is KB Homes (NYSE: KBH). Analysts expect a loss of $1.08 per share, and a loss of $8.60 for the full year.
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Filed under: Products and services, Management, Starbucks (SBUX), Marketing and advertising, McDonald’s (MCD)
 Starbucks Corp. (NASDAQ: SBUX) shares have left a taste in the mouth of shareholders almost as bitter as some of its brews as investors fretted about looming competition with McDonald’s Corp. (NYSE: MCD) for the caffeinated consumer. Finally, the coffee chain, whose shares have plunged 48% over the past year, has woken up and smelled the over-priced Java.
The Seattle-based company ousted Chief Executive Jim Donald and replaced him with Chairman Howard Schultz, really the company’s heart and soul.
In a letter released by the company, Schultz uses business school buzzwords such as “customer-facing” “customer-focused” and my favorite “re-igniting our emotional attachment with our customers” to discuss the mess in which Starbucks has found itself.
Let me simplify it some: McDonald’s sells really good coffee for 69 cents without an attitude. Dunkin’ Donuts sells good coffee and food that’s far more edible than anything at Starbucks. The company has serious problems.
Sure, Starbucks made its name creating an atmosphere where trendy people can look smart, sipping a grande moccahino as they pretend to work on their laptops. The world has changed and now Starbucks had to change with it. Schultz has acknowledged that people might be getting sick of Starbucks. The company is going to slow the pace of U.S. store openings and shut underperforming locations, a move that’s long overdue.
Starbucks is smart to make a huge push overseas though McDonald’s will be nipping at its heels there as well. In a moment of candor, Schutlz admitted that many of Starbucks’s problems were self-inflicted. The question is whether Schultz will be able to bring Starbucks back to its glory days.
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