Filed under: Products and services, Stocks to Buy, Housing

Every portfolio needs a few oddball microcaps just for sport, and Advanced Environmental Recycling Technologies Inc. (NASDAQ: AERT) fits the bill.

Advanced Environmental is “green.” It uses proprietary processes to recycle polyethytlene plastic and other types of scrap plastic to make construction materials including a composite plastic outdoor decking material. Previously the company had used recycled plastic in the construction of window sills, but is now moving away from that product.

Considered on its own, the company currently does not look that attractive. 4Q2007 sales plunged 54% and FY2007 sales were down by 16% to $82 million. FY 2007 net loss (unaudited) stands at $9.5 million. Nonetheless, the company has several things going for it.

For one thing, the downward plunge seems to be over and the company is on the rebound. 1Q2008 sales increased 30% to $29.9 million. More importantly, the company is constructing a state-of-the-art plastic recycling facility in Oklahoma that’s attracting a lot of favorable attention in sustainable building and technology circles. It will not be that long before more massive companies, seeking to market themselves as green, will start looking for suitable companies to acquire. Advanced Environmental Recycling Technologies certainly has green credentials to offer.

The stock currently trades well under $1 per share. Just think how many shares you can purchase with your $300 economic stimulus check.

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Filed under: Products and services, World wide web, Time Warner (TWX), CBS Corp ‘B’ (CBS), Media World

With everything from call centers to web site design being outsourced, the clear trend in the business world is to outsource almost any task that can be done cheaper and quicker somewhere else. Reports that CBS (NYSE: CBS) and cable news pioneer CNN, owned by Time Warner (NYSE: TWX) are in talks about outsourcing the news, should come as no surprise.

According to a story in The New York Times, “Broadly speaking, the executives described conversations about reducing CBS’s news-gathering capacity while keeping its frontline personalities, like Katie Couric, the CBS Evening News anchor, and paying a fee to CNN to purchase the cable network’s news feeds. “

With CBS stuck in third place among major networks for years, and general viewership of the evening news falling due to substitute news outlets such as cable news, blogs and world wide web sites, this tie-up would make economic sense. CBS would be able to keep its brand name and substantially cut costs, as they would be able to take CNN news feeds from around the country.

While this deal is far from being consummated and all kinds of hurdles remain, this would be a perfect case of the benefits of outsourcing.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer’s fund has no position in any stock mentioned, as of 4/8/08.

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Filed under: Products and services, Apple Inc (AAPL), Wal-Mart (WMT)

Wal-Mart Stores, Inc. (NYSE: WMT) recently lost its crown as the top seller of music to Apple, Inc.’s (NASDAQ: AAPL) iTunes digital music store. But now Wal-Mart is fighting back.

America’s largest retailer is abandoning “digital rights management” (DRM) on its digitally-downloaded music files. That means that any device capable of playing an MP3 file (the universal, non-protected digital music file format) can now play music purchased digitally from Wal-Mart.

As urged by Apple CEO Steve Jobs in 2007, music industry heavyweights are finally starting to drop the insistence on protecting digital music files. Wal-Mart’s change of stance here should go a long way in swaying other big on the internet digital music stores from dropping cumbersome and intrusive DRM from on the web music offerings. And there’s another big reason Wal-Mart is changing its mind, most likely: its entire music collection — if switched to the MP3 format — now becomes playable on all of Apple’s iPods (and the iPhone).

If Wal-Mart wants to remain relevant in the digital download world, this is the way to do it. It’s incredible to think that Apple’s digital-only music sales surpassed Wal-Mart’s physical CD and digital download sales, but it did. And it’s a testament to how customers want their music delivered these days. The $15 CD? It’s already toast, even though there are still hundreds of millions bought, even in 2007. Digital music files are taking over and killing the CD business slowly but surely. Although Wal-Mart’s entire on the internet music collection offering isn’t yet available in MP3 format, it has made the first step in that direction. And that first step is a doozy.

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Filed under: Forecasts, Bad news, Products and services, Consumer experience, Advanced Micro Dev (AMD)

Most technology stocks are being dragged down again today after a gloomy statement from Advanced Micro Devices Inc. (NYSE: AMD) stirred new worries over the tumbling economy. Novellus Systems Inc. (NASDAQ: NVLS) is joining the market anxiety after issuing a warning related to its earnings numbers. The company slashed its first-quarter earnings outlook, and stated it anticipates revenues at the low end of the earlier expected range.

The semiconductor equipment maker now expects first-quarter earnings in a range between 15 cents and 17 cents per share, down from its previous range of 21 to 24 cents. Quarterly revenues are expected to be at the low end of the previously communicated range of $315 million and $325 million. Analysts were waiting for Novellus Systems show quarterly earnings of 23 cents a share on sales of $319.4 million, according to Reuters Estimates.

The company blamed difficult market conditions which put a curb on consumer spending for memory chips. Novellus also cited higher manufacturing spending and a bigger-than-expected tax rate. A company executive stated that the bad situation the microchip manufacturing equipment maker has to face is “a combination both of what’s happening in the market place and a self inflicted wound.”

The company’s warning came as a sign of another negative effect of the current economic uncertainty. Wall Street has reacted by pushing the stock down 7.01% to $22.14 in today’s trading.

Eliza Popescu is a financial writer for the on the web investment advisory service Investor’s Observer.

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Filed under: Products and services, Launches, Industry, Apple Inc (AAPL), Intel (INTC), Research in Motion (RIMM)

The rage in the Personal computer manufacturing market is the ultra-small, super-portable PC. The devices won’t do much beyond surfing the web and using e-mail applications. But as the huge, high-priced Personal computer market has become crowded and more competitive, almost any new set of products looks attractive. According to The Wall Street Journal, “Intel (NASDAQ: INTC), which calls the new devices “netbooks,” states 10 computer makers have committed to designing 20 machines.”

The new products cost as little as $300 but they have limited storage space. They’re set up to connect to the internet over wireless systems so they’re portable and extremely light.

The new “PC light” program has one tremendous drawback. While the market seems uncrowded, it is already the major target for smartphones including Apple (NYSE: AAPL)’s iPhone and RIM (NASDAQ: RIMM)’s BlackBerry. Nearly every massive handset company has phones that can access the web and be used for e-mail already in the market.

The new PC product might look good on paper, but its target market is already crowded.

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

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Filed under: International markets, Other issues, Products and services, Consumer experience, Competitive strategy, Marketing and advertising, China, NIKE, Inc’B’ (NKE), Politics

With this year’s summer Olympics just around the corner, athletic outfitter Nike Inc. (NYSE: NKE) unveiled its new Olympic products yesterday.

While Nike has never really embraced the concept of being a sponsor for the Olympics, it prides itself on being an outfitter for the competing athletes. This year there will be thousands of Olympic hopefuls from over a hundred companies that’ll be sporting the famous “Nike Swoosh” on themselves for millions of watchers to see.

Nike will definitely leave its own footprint all over this summer’s Olympic games. For the first time ever, BMX will be an Olympic medal sport, and the new Nike gear for the sport is being heralded by Nike’s global director for action sports, John Martin, as the “illest BMX product ever.” I honestly thought the word “illest” vanished from the vocabulary around the same time as Run-DMC; guess I was wrong. But I will definitely look forward to seeing the “illest” BMX gear ever, Nike definitely got my attention on that one!

The Olympics this year are definitely going to be one of interest for many around the world, and controversy over it being held in China has already led to protests, riots and deaths over China’s record on human rights. It’s a touchy subject for Nike, taking into account that roughly 33% of all Nike shoes in the world are made in Chinese factories.

One thing is for sure, it’s going to be a colorful summer for sports. Will any athletes outdo former Olympic superstar Michael Johnson’s gold Nike’s from the ‘96 Olympics? I doubt it, but then again, you never know what some of these athletes have up their sleeves.

Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor’s Observer.

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Filed under: Products and services, Consumer experience, McDonald’s (MCD), Wendy’s Intl (WEN), Burger King Hldgs (BKC)

I was in a fast-food frame of mind last night, so I thought I’d check out Wendy’s (NYSE: WEN) same-store sales report from last week. For the first quarter, Wendy’s average same-store sales at franchise locations in the United Says were essentially flat, declining by a mere 0.1%. However, in the year-ago period, the performance was a lot better, as comps increased 3.7%. Average same-store sales at company locations declined 1.6%; this compares to an increase of 3.8% in last year’s quarter.

The early Easter holiday and inclement weather were sourced as reasons for the poor performance. Hmmm…not so sure about that. Wendy’s might have just dropped the ball this time around. Hey, it’s not simple competing with Burger King (NYSE: BKC) and McDonald’s (NYSE: MCD). As a matter of fact, in the case of Burger King, you have to admit that it does have a pretty edgy marketing campaign currently supporting its brand equity (I love the company’s humorous commercials).

Comps aren’t everything to a fast-food chain’s story, but this lackluster performance doesn’t compel me to open the URL to my broker and place an order for shares of the company. Complicating things is the fact that Wendy’s has expressed its desire to sell itself to a buyer. This makes the situation speculative, to me at least. For now, I’ll stay away from Wendy’s as a potential investment idea, but I do continue to watch McDonald’s — I’ve been perpetually interested in owning that one, but haven’t pulled the trigger yet. I will admit, however, that Wendy’s burgers are pretty cool…

Disclosure: I don’t own shares in any of the companies mentioned; positions can change at any time.

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Filed under: International markets, Products and services, Industry, Competitive strategy, Ford Motor (F), General Motors (GM)

US car companies have been deviled for years by imports from companies in Japan. Economic circumstances might allow companies including Ford (NYSE:F) and GM (NYSE:GM) to turn the tables. A weak dollar and new UAW contract should make it feasible for US vehicle companies to export their products to other countries.

According to The Wall Street Journal: “General Motors Corp is looking to export U.S.-made cars to Europe as well as to China and Latin American markets such as Brazil.” One problem with the plan is that some foreign countries add tariffs to US vehicle products. But, if the plan can work, even on a limited basis, it might add much-need revenue to the operations of the large vehicle companies.

If the export program does take hold, a race will begin. The automobile market in the US may support sales of less than 15 million vehicles this year, down from 16.1 billion last year. The domestic auto firms may be able to offset some of that by shipping cars to other markets. But, can that make up for faltering sales in their home market?

As always, the most significant challenge to US vehicle manufacturers is that any program they develop is likely to be matched by automobile companies in Japan and South Korea. This divides the pie into smaller piece and might undercut the viability of the export plans.

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

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Filed under: Products and services, Launches, Competitive strategy, Google (GOOG), Microsoft (MSFT)

Google (NASDAQ:GOOG) has come up with a new plan to make friends with developers. Software engineers who use the Google Apps Engine to build products will get free access to run their application developments in Google data centers. According to The Wall Street Journal :”Google will provide limited data storage, computing and network capacity as part of the App Engine test and eventually make available additional storage and network bandwidth to developers for a fee.”

It is another clever move by the huge search company. It encourages developers to align themselves with Google products and services and grants the company the opportunity to make money down the road. It also makes Google seem “progressive” in its relationships with outside software coders, a reputation that rival Microsoft (NASDAQ:MSFT) does not share. Redmond still charges for most developers to use its services even though its does provide some code to companies who want to build applications for Windows.

Google is also taking advantage of the fact that it has one of the largest , if not the largest, collections of servers in the world. Not all of the data and storage capacity on these machines is being used all of the time. What Google will eventually charge developers for is running on hardware the company has already paid for. That makes the project a very profitable business and helps the company diversify away from search revenue.

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

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Filed under: Products and services, Google (GOOG)

A couple in Pennsylvania who values their privacy is suing Google, Inc. (NASDAQ: GOOG) because its Street View product is making images of their house available for free to anyone with an internet connection. The couple argues that by Google Street View archiving views of their home, it’s being devalued.

The Boring couple (yes, that is their last name) is seeking at least $25,000 in damages from the world’s largest internet search company in what could be a big precedent. How many other “private” areas has Google Street View been able to present for free on the internet that many don’t even know about? Google is all about giving anyone information access at any time on any device — but at the cost of privacy loss for those that value it? Where is the line drawn? Right now, there doesn’t seem to be one.

This case is unique because the images of the Boring’s home seem to have been taken from the couple’s driveway, which is clearly labeled “Private Road” — it’s what the couple was seeking in 2006 when it brought the property. The publicizing of their case, however, is anything but private. Google made it clear in the response to the suit that they’ve made it quite simple to request image removal from its Street View product. The question remains — what rulebook does the company use when photographing areas for display anyway?

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