HTC tumbles again; growth potential in doubt

HTC tumbles again; growth potential in doubt

Stock Market Predictions

TAIPEI (Global Markets) - Unnerved by a second profit warning in a month, investors sent HTC Corp shares tumbling for a second straight day on Friday on concern the world's No.4 smartphone maker may be running out of ideas in an increasingly competitive market.

The popularity of Apple iPhones and Samsung Electronics' Galaxy line-up, coupled with recession-weary shoppers and long-running lawsuits, have taken the gloss off what was one of the industry's biggest success stories.

With Nokia's fall from market dominance still fresh in the memory, and BlackBerry maker Research in Motion losing ground, HTC needs to recapture its innovative drive to make sure it maintains its position.

"It won't be easy for HTC to get out of the mess it's in right now," said Simon Liu, deputy investment officer at Polaris Group's fund unit.

"Still, it's not the end of HTC. It's certainly not another Nokia. Nokia missed out on the smartphone market from the very beginning, and didn't develop applications as well as Apple."

A SMARTPHONE NAMED DESIRE

For a decade, Taiwan's HTC quietly made phones for others to sell, but then decided to push its own brand in late 2006. In the year to April, its shares more than tripled after its innovative designs played well with shoppers.

Sales at HTC -- whose models include Desire, Sensation, Wildfire, Rhyme and ChaCha -- grew four-fold in a year and a half, and in the third quarter of this year it sold more smartphones in the United States than any of its rivals.

But its cracking performance is sputtering as it fails to bring out new products to rival the iPhone and Galaxy in the high-end smartphone market.

And, closer to home, China's ZTE Corp and Huawei Technologies Co Ltd are turning out smartphones that sell for as little as $100 in a fast-growth, low-cost market that HTC so far has largely avoided.

"It lacks a star smartphone," said CK Lu, an analyst with research firm Gartner in Taipei. "If you put HTC phones all in a line, you won't be able to differentiate the products too clearly, unlike Samsung's Galaxy 2 or the iPhone."

"In China, for example, consumers won't be able to differentiate HTC phones from a slew of others, such as the China-made ones, and that's where HTC is facing some problems."

REVENUE SLIDING

HTC, valued at around $14 billion, saw a bigger build-up of unsold inventory than rivals in the third quarter, a portent of weak sales in the crucial year-end holiday season.

Late last month, the company warned that revenue would fall by up to 8 percent in October-December from the third quarter, and on Thursday it flagged a much bigger drop, citing tougher competition and the global downturn.

"Aside from rising competition from Apple and Samsung in the high-end market, aggressive price competition from Huawei and ZTE at the lower-end could put further pressure on HTC's margin," said Laura Chen, analyst at BNP Paribas.

"We believe HTC is reviewing its product roadmap to regain market share in 2012. However ... most of its new products are to be launched only late in the first quarter."

HTC is also re-evaluating its $300 million acquisition of S3 Graphics after the graphics technology firm lost a U.S. legal battle against Apple, raising the specter that HTC products could be banned from the United States -- where it earns half its revenue. HTC had planned to buy S3 to beef up its defenses in its own separate lawsuit battle with Apple.

"Winning the lawsuit has made it possible for Apple to squeeze HTC by the neck in future," said Liu at Polaris.

HEADWINDS

These headwinds have pushed HTC shares down more than 60 percent in six months, making it the worst performer among major handset firms, along with RIM. Shares in LG Electronics Inc are down 36 percent and Nokia 29 percent. Samsung and Apple both rose around 9 percent in that period.

Five analysts now have 'sell' ratings on HTC, up from two just a month ago. The number of 'buy' recommendations has dropped to nine from 13, Thomson Global Markets StarMine data showed.

HTC shares fell by the most allowed in one day on Friday, dropping nearly 7 percent for a second consecutive session. The stock has fallen 30 percent in 8 straight trading days.

The company, which had 10.8 percent global market share in the third quarter, sold only 1 million more phones than RIM, and its market share gap with bigger rivals is set to widen as Nokia fights back with its first Windows-based models. [ID:nL5E7MG45M]

"HTC hasn't offered enough new models, and hasn't been aggressive in its pricing strategy," Barclays analyst Dale Gai wrote in a client note. "We believe Samsung leads HTC in most high-end models, including LTE phones, where HTC has failed to compete on form factor."

Gartner's Lu, however, sees little risk of HTC going the way of Nokia.

"Basically, HTC is on the right track, but it will take time for its brand- and retail-building. It's in way better shape than LG, RIM and Motorola. But it's true it's not as competitive as Apple or Samsung."

Annie Lu, a spokeswoman for HTC, said the company remained confident about driving new technologies. "HTC has a strong and complete portfolio in both high-end/premium and mass market high quality products," she told Global Markets.

"With our U.S. operator partners, we have launched premium products such as HTC Rezound (with Verizon Wireless) and HTC Vivid (with AT&T), with high customer satisfaction ratings.

"In the mass market sector, HTC Wildfire has been a big hit this year, and we expect strong sales with the HTC Explorer launch," she added.

(Additional reporting by Lee Chyen Yee in Hong Kong; Writing by Miyoung Kim and Jonathan Standing; Editing by Ian Geoghegan)

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RIM may warn on BlackBerry shipments, analyst says

RIM may warn on BlackBerry shipments, analyst says

Stock Market Predictions

(Global Markets) - Shares of Research In Motion dropped nearly 5 percent on Thursday after an influential analyst said RIM would likely warn that it came up short on BlackBerry shipments this quarter and offer an even bleaker outlook for its flagship smartphone.

The latest version of the smartphone - using the legacy BlackBerry 7 operating system that RIM will replace later this year - has failed to impress demanding U.S. consumers, Jefferies analyst Peter Misek wrote in a note to clients.

Tepid shipments are likely to translate into weaker-than-expected results for the company's fourth quarter ending March 3, he said. That could lead RIM to tip its hand before the formal release of its results on March 29.

Perhaps just as worrying, Misek said, consumer acceptance for RIM's smartphones is starting to erode in Latin America and Europe, where sales of cheaper devices have provided a cushion for the Canadian company as it falls behind the pace in the United States.

"There is a greater than 50 percent chance that RIM will negatively pre-announce the February quarter," said Misek, who is rated five stars by Thomson Global Markets StarMine for the accuracy of his earnings estimates on RIM.

FIVE QUARTERS OF DECLINE IN U.S.

It would not be the first time that the Waterloo, Ontario-based company has decided to come clean before releasing its results. It issued a sharp profit warning ahead of third-quarter results in December, sending its shares into a tailspin. It also revised its forecasts last April before the end of the quarter.

RIM's U.S. sales have fallen for five straight quarters, as consumers embrace Apple's iPhone and high-end devices running Google's Android software. The company has typically offset the decline with rising sales elsewhere.

"We believe Street numbers will likely be revised down given the lack of major new products in the near term and continued sales challenges due to competitive pressure from both low-end and high-end devices," said Misek, who rates the stock "underperform".

RIM's shares have slumped 80 percent from a peak in February last year as it misjudged the shifting landscape and botched the launch of the PlayBook, a poor-selling alternative to Apple's iPad tablet.

It has delayed the planned launch of new BlackBerry smartphones running on the same QNX system as the PlayBook until late 2012. Analysts view the launch of what RIM has dubbed the BlackBerry 10 as a "make or break" event.

Misek said RIM likely shipped fewer than 11 million legacy phones in the December-February quarter, a sharp drop from the previous three months as well as from the year-earlier Christmas season, traditionally the strongest period of the year for smartphone sales.

In December, RIM said it expected to ship between 11 million and 12 million handsets in the Christmas quarter ending March 3.

APPLE'S IPHONE 5 ON THE HORIZON

He lowered his quarterly earnings estimates to 69 cents a share on revenue of $4.2 billion, down from his earlier expectation of 82 cents a share on revenue of $4.6 billion.

At least for now, the average analyst forecast is for 83 cents a share on revenue of $4.58 billion, according to Thomson Global Markets I/B/E/S. RIM is aiming for between 80 and 95 cents a share and revenue of between $4.6 billion and $4.9 billion.

Misek is not alone in seeing lackluster BlackBerry shipments. Morgan Stanley analyst Ehud Gelblum dropped his estimate to 9.6 million from 11.5 million earlier this month.

Adding to RIM's woes, Apple is expected to launch an iPhone 5 before RIM puts out a QNX-based BlackBerry 10 device. Misek, who expects the new RIM device in September, said the debut of the new iPhone was particularly troubling for RIM, and he cut his price target on RIM's U.S.-listed shares to $12 from $15.

The shares slipped 4.6 percent to $13.51 by mid-morning on the Nasdaq. RIM's Toronto-listed shares are down 5 percent at C$13.33.

(Additional reporting by Sruthi Ramakrishnan in Bangalore; Editing by Frank McGurty)

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Newell profit tops estimates; raises dividend

Newell profit tops estimates; raises dividend

Stock Market Predictions

NEW YORK (Global Markets) - Newell Rubbermaid Inc's (NWL.N) quarterly profit beat Wall Street expectations on strength in emerging markets and price increases.

The maker of Sharpie pens and Rubbermaid storage containers said it was on track to meet its full-year outlook and will raise its quarterly dividend by 60 percent to 8 cents a share. Its shares were up 1.3 percent at $19.99 in premarket trading on Friday.

Newell has raised prices of some products to offset rising oil and resin costs. Makers of everything from soap to diapers have said they will pass on some costs to shoppers. Procter & Gamble (PG.N) sees its costs soaring about three times as much at it had anticipated earlier.

Newell's first-quarter net profit rose to $75.7 million, or 25 cents a share, from $58.4 million, or 19 cents a share, a year earlier.

Excluding items, it earned 30 cents a share, beating the analysts' average estimate of 28 cents, according to Thomson Global Markets I/B/E/S.

Sales fell 0.3 percent to $1.30 billion, while analysts expected $1.33 billion. Sales in developing markets, where the company has substantially increased its investment, rose double digits in the first quarter. U.S. sales fell 4 percent as bargain-hungry shoppers traded down and the company cut back on discounts.

"While sales were a bit light, we think Newell will be able to adjust its offering relatively quickly," BMO Capital markets analyst Connie Maneaty said, highlighting Newell's plans to launch more "value-priced" options and step up promotions.

Newell repeated its 2011 profit forecast of $1.67 to $1.70 a share, excluding items. It also backed its core sales growth outlook of 4 to 5 percent and gross margin forecast calling for an improvement of 0.5 to 0.75 percentage point.

(Reporting by Dhanya Skariachan; Editing by Lisa Von Ahn, Derek Caney, Dave Zimmerman)

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Accuray shares plunge on weak quarter

Accuray shares plunge on weak quarter

Stock Market Predictions

BANGALORE (Global Markets) - Shares of Accuray Inc (ARAY.O) sank 13 percent on Friday morning, a day after the CyberKnife system maker posted a quarterly loss that missed expectations.

The CyberKnife system, used to treat cancer, applies high doses of radiation to destroy the tumors.

"The reason for the shares slide is that the market thinks this is a distracted company," Soleil Securities' senior medical technology analyst Junaid Husain told Global Markets.

The company is in the middle of integrating rival TomoTherapy Inc (TOMO.O) which it had acquired for about $277 million in March to expand its operations in the radiation oncology field.

Analysts said the Tomotherapy deal should add to Accuray's earnings in fiscal 2012, a year earlier than previously anticipated.

"We view the TomoTherapy deal favorably as its service margins are trending in the proper direction and believe it will add significant scale to Accuray," Stephens analyst Drew Jones, who maintained his 'overweight' rating on Accuray stock, wrote in a note.

However, while providing scale and some technical and financial synergies, the combined company will still be smaller than the other three players in the space: Varian (VAR.N), Siemens (SIEGn.DE) and Elekta (EKTAb.ST), and will still face formidable competition, J.P.Morgan analyst Tycho Peterson said in a note.

Shares of California-based Accuray were down 10 percent at $8.04 on Friday afternoon on Nasdaq after falling to a low of $7.72.

(Reporting by Rajarshi Basu in Bangalore; Editing by Sriraj Kalluvila)

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Gulf airline expansion to roll on despite European turbulence

Gulf airline expansion to roll on despite European turbulence

Stock Market Predictions

Dubai (Global Markets) - Gulf airlines and lessors could splash out more than $20 billion on Airbus (EAD.PA) and Boeing (BA.N) jets at next week's Dubai air show, underscoring the region's role as the industry's chief paymaster amid Europe's worsening sovereign debt crisis.

Emirates is in talks for a hefty order of at least 30 and possibly as many as 50 Boeing 777 long-range aircraft worth $8.5 billion to $14.5 billion and Qatar Airways is expected to place a $6.5-billion order for 50 fuel-saving A320neo jets and five A380s from Airbus, industry sources said.

Heightened worry about Iran's nuclear intent after a U.N. agency said it had worked to design nuclear bombs could spur defense orders at the show. Arms makers from the United States, Europe and Russia will be displaying their latest weapons.

The last air show two years ago was muted by Dubai's own crisis, but the city state is recovering after a bailout from neighboring Abu Dhabi. Burned by its reliance on property and the financial sector, Dubai is now focusing on becoming a transport and logistics hub.

"We absolutely expect the Gulf airlines to continue on the expansion trail -- they are very into having a young fleet and are determined to be superconnectors who try and hoover up traffic flows on a global basis," said Stephen Furlong, transport analyst at Davy Research in Dublin.

"While in other parts of the world you have things like the EU emission scheme and night-time flying bans, in the Gulf, the governments and the airlines are joined at the hip -- the governments are totally in line with the growth plans."

Orders are likely to include dozens of new sales for Airbus's revamped A320neo short-haul jet, which has enabled the European planemaker to pass Boeing in the order race this year.

But the EADS subsidiary will also be under pressure to explain delays in the A350 passenger jet directly to Gulf customers whose support is crucial for Europe's answer to Boeing's carbon-composite 787 Dreamliner to succeed.

Chief among those is Qatar Airways Chief Executive Akbar Al Baker who regularly blasts Airbus and Boeing over design decisions and delays and has abruptly canceled air show deals.

EURO ZONE THREAT?

Emirates and Qatar Airways have some 370 planes on order to be delivered over the next few years but the euro zone debt crisis could mean some orders being canceled or put on hold.

Financing is increasingly an issue as the industry's traditional backers -- European lenders and particularly French banks -- have become more risk averse and are shying away from new deals. Emirates CEO Tim Clark told Global Markets recently the airline was looking at the Islamic finance market to fund aircraft deliveries.

That said, the shake-out in Europe may bring advantages of cost for Gulf carriers.

Daniel Broby, chief investment officer at Silk Invest, said Gulf airlines could snap up bargain deals as the world waits for Europe to resolve its debt crisis and ease doubts over growth.

"The advantage of buying at the air show at this stage in the cycle is that they are bound to secure good prices, because there will be little demand from Europe or the United States."

Airlines placed around $14 billion in orders at the last biennial show in 2009, sharply down from $155 billion in 2007.

IRAN TENSIONS

The show, its tarmac bristling with the latest warplanes, missiles and defences, will also serve as a pressure gauge for regional tensions as the European Union considers new sanctions against Iran following an IAEA report which suggested Iran is seeking nuclear weapons.

The United States and Israel have refused to rule out any option to prevent Iran from acquiring a nuclear arsenal.

Iran denies trying to build atom bombs and its Supreme Leader Ayatollah Ali Khamenei said any U.S. or Israeli attack on its sites would be met with "iron fists.

"The fear of Iran is the main driver of armament in the region," said Riad Kahwaji, analyst at Institute for Near East and Gulf Military Analysis.

Although U.S. fighter jets are traditionally an important part of the show and its aerial displays, the business end of the show is likely to feature a publicity battle between the Eurofighter Typhoon (EAD.PA) and the Rafale (AVMD.PA) as they face off in a $11 billion contest for 127 aircraft in India.

The show is the first industry gathering since the Libyan conflict ended and both manufacturers will be keen to play up the performance of their combat jets in the NATO operation.

Analysts will be also be listening for any news about talks between the UAE and France over the purchase of 60 Rafale jets, estimated at $10 billion.

Others to watch are UAE early warning system orders -- with Boeing, Northrop Grumman (NOC.N) and Swedish aerospace group Saab (SAABb.ST) likely to be in competition -- and purchases by Qatar, which is modernizing its air force.

(Additional reporting by Tim Hepher in Paris, Mahmoud Habboush in Dubai and Kyle Peterson; Editing by Sophie Walker)

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No merit to report of Akamai-Google deal: source

No merit to report of Akamai-Google deal: source

Stock Market Predictions

SAN FRANCISCO (Global Markets) - A report on Wednesday that Akamai Technologies Inc was close to being acquired by Google Inc is without merit, according to a person familiar with the matter.

Shares of Akamai jumped more than 11 percent at one point in after hours trading on Wednesday, following the report by technology blog Business Insider citing "multiple ad tech sources" who were not identified.

A source familiar with the matter told Global Markets that the report of a deal was baseless.

Representatives from Google and Akamai said the companies do not comment on rumors.

Shares of Akamai, which are off more than 50 percent from their 52-week high of $54.65, gave up most of their after-hours gains later on Wednesday, and were trading up 2.9 percent at

$24.04.

Akamai, whose service improves the performance of websites, is a long-running subject of takeover rumors. Last week, there were reports that the company could be acquired by Verizon Communications or International Business Machines Corp, said Mark Kelleher, an analyst with Dougherty & Co.

"Ever since I can remember there's been theories of who could come in" and acquire Akamai, he said.

(Reporting by Alexei Oreskovic; Editing by Richard Chang and Carol Bishopric)

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Buffett believes reputation after Sokol still intact

Buffett believes reputation after Sokol still intact

Stock Market Predictions

OMAHA, Nebraska (Global Markets) - Warren Buffett believes his reputation is intact, the U.S. economy needs more jobs and that Donald Trump is not going to be the next president.

He offered those and dozens of other opinions in a wide-ranging news conference on Sunday that capped off the annual meeting weekend for Berkshire Hathaway, his ice-cream-to-insurance conglomerate.

Buffett also told Global Markets Insider in an interview that none of the people on Berkshire's secret CEO succession list know they are on the list -- but the top candidate for the job will not need any convincing to take it.

The succession issue was bound to be the front-and-center topic this weekend given the scandal surrounding David Sokol, the former head of two Berkshire businesses who was once seen as Buffett's heir apparent. He resigned in March and is now being probed by the U.S. Securities and Exchange Commission for his purchases of stock in a company he pushed Buffett to buy.

Buffett is known for his honest dealings and folksy manner, an image he has cultivated and one he believes is untarnished despite defending Sokol and then referring him to the SEC.

"Everything I do is out there for the people to judge," Buffett said. "I don't hold myself to a standard of perfection or I'd have committed suicide a long time ago."

Buffett headed into this year's annual meeting faced with tough questions from the global media and shareholders looking for his thoughts on the Sokol affair, a succession plan and the economy at large. He did not disappoint.

Considering the tone before the meeting, Buffett seem to emerge relatively unscathed. Most questions sought his opinion rather than press him on misdeeds perceived or alleged.

And after the meeting, many of the reporters swarmed Buffett like a rock star, hankering for pictures and autographs on their dollar bills.

OUTSIDER 'IMPOSSIBLE'

With Sokol out of the picture, Buffett has a preferred successor in mind, one who will not need convincing in his estimation. Many shareholders assume it will be Berkshire reinsurance boss Ajit Jain.

Buffett said "it would be almost impossible" to consider a CEO from outside Berkshire.

One man who seemingly will not be under consideration -- or on a Berkshire Christmas card list any time soon -- is businessman and reality TV star Donald Trump, who is very publicly mulling a run for president.

The biggest laughs of the day came from a question on Trump's prospects for the White House.

"Obviously, I think he's a jerk," Berkshire's Vice Chairman Charlie Munger said, with Buffett adding in a more diplomatic way that he did not expect Trump to win the presidency.

INTERNATIONAL FAVORITES

With a largely international audience, Buffett took questions on a range of countries and their business prospects.

Buffett said Brazil was on Berkshire's radar, and that the company was actively making and looking at smaller bolt-on deals in Canada. Munger spoke admiringly of the Korean business community and praised the way the Chinese government has managed its currency.

But there was criticism too. Munger saved some of his harshest words for poverty and corruption in India, and Buffett questioned whether the Eurozone could survive the strain of the sovereign debt crisis.

As he has been of late, Buffett remained solidly in the corner of the United States, saying the Obama administration was rightly focusing on jobs and that the dynamics of the economy would change when excess housing inventory was depleted.

A reporter from China asked Buffett what he would do if he was running that country's giant sovereign wealth fund.

His answer was no surprise: he'd buy stocks -- especially American ones.

(Reporting by Ben Berkowitz in Omaha, writing by Ben Berkowitz and by Jennifer Saba in New York; Editing by Bernard Orr)

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Nvidia shares dip as investors eye mobile chips

Nvidia shares dip as investors eye mobile chips

Stock Market Predictions

SAN FRANCISCO (Global Markets) - Investors focused on slower-than-expected growth in chipmaker Nvidia Corp's (NVDA.O) mobile business following strong quarterly earnings and sent its stock lower.

Nvidia's shares were up 11 percent on Friday after the Santa Clara, California company's forecast beat expectations late the day before, but the stock later lost its gain and was down 5 percent.

Many investors have turned to Nvidia because of its Tegra mobile processors for tablets and smartphones unveiled this year. But the Tegra business will be "steady as she goes" while Nvidia's other business segments will grow in the current quarter, Chief Executive Jen-Hsun Huang told analysts on a conference call on Thursday.

Some expected Huang to be more upbeat about Tegra's pace of revenue growth. Tegra sales are small now, but are expected to become a big chunk of Nvidia's business.

"Investors just assumed the product was going to ramp of its own accord. In fact, Nvidia is really beholden to its (manufacturing) customers," said MKM Partners analyst Daniel Berenbaum. "Management has not been particularly helpful in providing realistic revenue ramp plans."

Nvidia, whose name is well known to a community of gamers, graphic designers and other high-end users, this year made a splash at the Consumer Electronics Show in Las Vegas, where it unveiled a series of "design wins" -- electronics manufacturers agreeing to use its mobile chips in phones and tablets.

On Wednesday, Nvidia said Samsung Electronics (005930.KS) is using the Tegra in the new Galaxy R smartphone, the first time Asia's biggest electronics firm has used that chip in one of its phones.

Nvidia expects third-quarter revenue to rise 4 to 6 percent from the second quarter, equivalent to $1.06 billion to $1.08 billion.

But Wall Street analysts responded to the quarterly results and outlook with notes with titles like "Show me the Tegra," "Show me the money" and "As many questions as answers."

"We wonder when Tegra finally catches a wave and delivers the robust growth investors had been waiting for -- particularly as the competitive environment intensifies," Evercore analyst Patrick Wang said in note to clients, cutting his price target on Nvidia's stock to $11 from $12.

The stock was at $12.75 on Friday afternoon.

Stifel Nicolaus cut its price target to $25 from $29, citing research and development spending that was higher than its estimates.

Stifel said it continues to view Nvidia as providing disruptive technology in both mobile computing and data centers, and maintained its "buy" rating on the stock.

(Reporting by Siddharth Cavale in Bangalore and Noel Randewich in San Francisco. Editing by Robert MacMillan)

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MF Global stock, bonds fall again as clouds darken

MF Global stock, bonds fall again as clouds darken

Stock Market Predictions

(Global Markets) - Shares of MF Global Holdings Ltd hit another all-time low and bonds were in freefall on Friday as troubles intensified for the U.S. futures brokerage that is looking to sell off units in order to retain customers, and to survive.

The company run by former Goldman executive Jon Corzine has shed 62 percent of its market capitalization this week, after it posted a quarterly loss, and after two ratings agencies cut its debt rating to junk.

MF Global stock dropped as much as 27 percent in early trading to $1.04, its lowest ever, but later rebounded to $1.29 on the New York Stock Exchange.

The company's bonds were trading at distressed levels in the mid-40s, after touching a morning low of 38 cents on the dollar. That was down from Thursday when the bonds, maturing in 2016 with a 6.25 percent coupon, were at 70.

MF Global had offered the notes at par in August.

Some customers are diverting money from the New York-based brokerage, according to hedge funds, rivals and analysts, though the extent of the outflows remained unclear. (Graphic of MF Global's market share among futures commodity merchants: link.reuters.com/syz64s )

MF Global tapped Evercore to advise it on strategic options including a possible sale, said a source familiar with the situation.

A second source, who was briefed on the matter, said the company is "focused on doing a smart deal, a fair deal," and that it did not enter the talks with "specific targets and objectives."

"We believe MF could generate proceeds from sale of its customer asset portfolio or Futures Commission Merchant which frees up capital," Keefe Bruyette & Woods analyst Niamh Alexander wrote to clients.

"However, we cannot quantify the cost of wind down or exiting broker positions that could offset those proceeds and wipe out equity," she wrote.

MF Global has declined to comment on its troubles.

Corzine, who became CEO in March last year after a term as New Jersey's governor, has been trying to transform MF Global from a brokerage that mainly places customers' trades on exchanges into an investment bank that bets with its own capital.

But its bets on bonds from euro zone countries, including those issued by Italy, Spain, Portugal and Ireland, have gone bad, prompting regulators to press it to boost capital and ratings agencies to issue their warnings.

The loss of its investment grade rating could hasten the exodus of customers away from MF Global.

"Given the uncertainty around timing of the agencies' next move, management needs to move quickly in order to avoid client defections and either work on strategic options or work with the agencies to get back to stable status," Deutsche Bank analyst Michael Carrier wrote to clients.

European Union leaders stuck a deal this week to relieve the continent's sovereign debt crisis -- potentially good news for MF Global -- but many details of the EU deal still need ironing out.

In Asia, the Singapore Exchange said MF Global's unit in the city state is meeting its financial obligations as a clearing member. That echoes assurances Thursday by U.S. clearers CME Group Inc, IntercontinentalExchange Inc and options clearinghouse OCC.

(Reporting by Jonathan Spicer, John Balassi, Philip Scipio and Paritosh Bansal in New York, and Charmian Kok in Singapore; Editing by Phil Berlowitz and Matthew Lewis)

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Prediction's came true about Sensex will touch 12000

As per Vedic Astrology after 15th April 2009 Sun, which is lord of the 5th house of Stock Market as per Kalpurusha Kundali (Horoscope), will enter in his exalted sign i.e. Aries. On the date of Sun ingress transit Moon will be in trine aspect with transit Sun. Venus, significator of wealth and luxury, will be occupying in its exalted sing i.e. Pisces and depositor of Venus will be in sextile aspect, all these planetary position indicates that BSE Sensex will touch 12,000 benchmark between 21st April 2009 and 15th May 2009. in our post - http://stockmarketprediction.blogspot.com/2009/02/bulls-will-back-bse-sensex-will-touch.html

We Astrology18 Group thanking all of our visitor and suporters. We Astrology18 Group has once again given mile stone prediction on 26th February 2009 that BSE Sensex will touch 12,000 benchmark between 21st April 2009 and 15th May 2009. and Prediction's came true on 4th May 2009, Today The BSE Sensex closed at 12,134 (up 731 points) while the NSE Nifty closed at 3,654 (up 180 points).

By the Grace of God we Astrology18 Group has predicted all correct prediction in past about Indian Stock Market both BSE Sensex and NSE Nifty. We are trying more to sharpen our knowledge in Stock Market Astrology and Vedic Astrology as well as Western Astrology. For Astrology18 Group Stock Market Astrology is a naughty but interesting subject and we have achieved nearer accuracy of 95%. We Astrology18 Group promises our visitor that we will give Astro Alert and Prediction like "Sensex will touch 12000" so that investor can Minimize their Loss and Maximize profit. KEEP SURFING.

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Low prices help McDonald's beat profit expectations

Low prices help McDonald's beat profit expectations

Stock Market Predictions

LOS ANGELES (Global Markets) - McDonald's Corp (MCD.N) reported a higher-than-expected quarterly profit on Friday as low prices brought in strong sales in Europe and the United States. The company's share price rose 3.1 percent.

June sales at restaurants open at least 13 months were far stronger than analysts expected. During the month, same-restaurant sales were up 6.9 percent in the United States, 9.1 percent in Europe and 4.8 percent in the Asia/Pacific, Middle East and Africa unit.

Analysts were expecting June same-restaurant sales to rise 2 percent in the United States, 3 percent in Europe and 2 percent in the Asia/Pacific, Middle East and Africa unit.

Europe is McDonald's largest market for sales, contributing about 40 percent of revenue. The United States is a close second.

"It's the consistency of the everyday value message that has helped them a lot," said Lazard Capital Markets analyst Matthew DiFrisco, who added that McDonald's is good at adjusting its marketing to keep customers coming in.

McDonald's has been taking market share from its fast food peers for many months. It has benefited from improving food quality, adding Dollar Menu items and introducing high-margin beverages such as coffee and fruit smoothies to broaden its appeal beyond the young men who account for the biggest share of sales at most other fast-food chains.

It is also renovating restaurants in Europe and the United States.

Europe's top performers were France, Britain and Russia.

"Broadly speaking, there was just a little bit of a lift in people's willingness to spend in Europe," said Bernstein Research analyst Sara Senatore.

McDonald's global same-restaurant sales rose 5.6 percent in the second quarter. It forecast July results that are up 4 percent to 5 percent overall.

Janney Capital Markets analyst Mark Kalinowski, who correctly signaled that the June U.S. result would be significantly above what many analysts were targeting, said some key competitors are floundering.

In particular, he said, Carrols Restaurant Group (TAST.O) -- one of privately held Burger King's biggest franchisees -- saw same-restaurant sales at its Burger King BKCBK.UL restaurants fell 3.6 percent in the second quarter.

Rival Yum Brands Inc (YUM.N) recently reported another quarter of strong earnings based on growth in China, but its U.S. Taco Bell business is hurting from a dismissed lawsuit over the quality of its ground beef.

Shares in Yum, also the parent of the KFC and Pizza Hut chains, were up 0.4 percent. Stock in burger chain Wendy's (WEN.N) was up 1.3 percent.

Shares of McDonald's, which has 32,000 restaurants, were up $2.69 to $89.22 on the New York Stock Exchange in the middle of the trading day. The shares closed at an all-time high of $86.54 on Thursday.

HOLDING THE LINE ON PRICES?

Second-quarter net income rose 15 percent to $1.41 billion, or $1.35 per share, topping the average analyst forecast of $1.28 per share, according to Thomson Global Markets I/B/E/S.

Foreign currency translation boosted earnings by 10 cents per share in the second quarter.

Revenue rose to $6.91 billion from $5.95 billion.

Analysts said the strong results showed that McDonald's has pricing power.

"We will continue to consider future price increases," McDonald's Chief Financial Officer Peter Bensen said on a conference call with analysts.

McDonald's has raised prices on some premium products to help offset higher food costs. The company still expects those costs to rise 4 percent to 4.5 percent in the United States and Europe this year.

McDonald's wants customers to keep coming through its doors, so Bensen said it would be "judicious" with additional price hikes.

"You can bet their competitors wish they would take pricing," said Victory Capital Management analyst Dave Kolpak. "You can't do it if McDonald's doesn't. They're putting the heat on the competition."

(Editing by Gerald E. McCormick and Lisa Von Ahn and Matthew Lewis)

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P&G results top views; quarter outlook falls short

P&G results top views; quarter outlook falls short

Stock Market Predictions

CHICAGO (Global Markets) - Procter & Gamble Co is likely to miss Wall Street earnings estimates this quarter as it has not yet pushed through all its price increases that are meant to help deal with higher commodity costs.

Sluggish economies in major markets such as the United States also weighed on the company.

The world's largest household products maker posted a bigger-than-expected rise in fourth-quarter profit on Friday, aided by cost cuts, some early price increases and, analysts said, a better-than-anticipated tax rate.

P&G's initial wide forecast for fiscal 2012 suggests this year's profit could meet expectations, though the company sees commodity costs weighing on results this quarter.

Shares of P&G, whose lineup includes Gillette razors and Olay skin creams, were up slightly at $60.12 after the results and data from the U.S. Labor Department showed that private employers stepped up hiring in July.

Analysts said parts of the quarterly report were of poor quality, such as gross margin down 1.2 percentage points.

"Overall, we find the result disappointing, albeit unsurprising," said Stifel Nicolaus analyst Mark Astrachan, "given macro uncertainty and continued weak consumer spending in developed markets."

Consumers are still buying the company's products, although sales are better in developing markets, where P&G sells more of its lower-priced items.

That is likely to continue to be the case in the near term.

"We've not seen dramatic changes in consumer behavior over the last few months," said Chief Executive Officer Bob McDonald.

Shares of P&G and other major consumer products companies are often seen as safe havens. Lately, however, the stock has underperformed the market. P&G shares fell 7.3 percent from the beginning of the year through Thursday's broad market sell-off. The Standard & Poor's 500 index was down just 4.6 percent over the same period.

MORE PRICE INCREASES TO COME

P&G has been raising prices to help offset the increase in costs for oil-based materials and other goods. It already announced or implemented price increases on brands that account for about 60 percent of its U.S. sales so far this calendar year, said McDonald.

P&G has also pulled back on some promotional spending as other household products makers have been doing, he added. That also has the effect of raising prices for consumers.

P&G, the world's largest advertiser, will keep spending on marketing and research and development as it tries to entice shoppers to buy higher-priced products such as Crest 3D White toothpaste and Fusion ProGlide razors.

P&G spent $9.3 billion, or 11.3 percent of sales, on advertising in fiscal 2011. That is more than the annual revenue of competitors such as Church & Dwight Co Inc, Clorox Co or Estee Lauder Cos Inc.

FIRST-QUARTER PROFIT VIEW BELOW STREET

While P&G is seeing growth in emerging markets such as China, they are still smaller markets for the company, which got just 24 percent of 2010 sales from Asia and Latin America.

The United States is by far the company's largest market, accounting for 38 percent of total sales in 2010, the latest year for which such geographic data is available.

The average customer in China spends less than $3 a year on P&G's products, while in the United States the average is nearly $100, McDonald said.

On Thursday, P&G rival Unilever registered strong sales helped by price increases and growth in emerging markets.

P&G expects sales and earnings to be stronger in the second half of the year than the first half. Overall, the company expects to spend roughly $1.8 billion to $2 billion more on commodities this year, on top of the $1.8 billion increase it saw in fiscal 2011, said Chief Financial Officer Jon Moeller.

For the first quarter ending in September, P&G forecast earnings per share of $1.00 to $1.04 from continuing operations, with organic sales up 2 percent to 4 percent.

For the fiscal year, P&G said it expected earnings per share of $4.17 to $4.33 from continuing operations, with organic sales up 3 percent to 6 percent.

Analysts were expecting earnings of $1.14 this quarter and $4.26 this year, according to Thomson Global Markets I/B/E/S.

P&G earned $2.51 billion, or 84 cents per share, in the fourth quarter ended in June, compared with $2.19 billion, or 71 cents per share, a year earlier.

Analysts expected earnings of 82 cents per share.

Sales rose 10 percent to $20.86 billion, while analysts had forecast $20.63 billion.

Organic sales, which strip out the impact of acquisitions, divestitures and foreign exchange fluctuations, rose 5 percent. About 1 percentage point of that growth probably came from retailers buying products ahead of price increases, Moeller said. The volume of goods sold rose 3 percent.

(Reporting by Jessica Wohl; Editing by Lisa Von Ahn, Phil Berlowitz)

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Mattel 2nd-quarter profit tops Wall Street estimates

Mattel 2nd-quarter profit tops Wall Street estimates

Stock Market Predictions

NEW YORK (Global Markets) - Mattel Inc (MAT.O), the world's largest toy company, reported a higher-than-expected quarterly profit on strong sales of its Barbie dolls and toys based on the "Cars 2" movie.

The sales increase shows the growing global reach of Mattel. International sales increased 12 percent, excluding currency fluctuations.

"They're looking to have a great year," said Wedbush Securities analyst Edward Woo. "They've gained market share and they're likely to continue to maintain that momentum into the holiday season."

The shares had been up more than five percent, but they gave back some of their gains because they are getting close to their fair value, said MKM Partners analyst Eric Handler, whose price target is $28.

Now the question is whether the shares will keep rising in the run-up to the holidays.

Woo thinks that could happen and his price target is under review. The company is in a position to grow earnings by at least 10 percent on a revenue increase in the mid to high single digits, he said.

"Barbie is getting big internationally," said Handler. "The whole company has become more internationally focused."

The maker of Hot Wheels cars and Fisher-Price toys said second-quarter net profit rose to $80.5 million, or 23 cents per share, from with $51.6 million, 14 cents per share, last year.

U.S. toy companies, which make most of their toys in China, are grappling with rising costs of plastics, packaging paper, freight and labor. Mattel's gross margins fell 20 basis points.

"Costs have been rising, but it's manageable for them," Woo said.

Sales at the company, which counts Wal-Mart Stores Inc (WMT.N), Toys R Us (TOYS.N) TOY.UL and Target Corp (TGT.N) as its biggest customers, rose 14 percent to $1.16 billion.

Analysts on average expected earnings of 16 cents a share, on sales $1.11 billion, according to Thomson Global Markets I/B/E/S.

The company's shares were up nearly 2 percent at $27.29 in midday trading. They have risen 6.3 percent so far in 2011. They trade at about 13.1 times forward earnings, well above the sector average of 7.9. Rival Hasbro Inc's (HAS.O) shares trade at a multiple of about 13.9.

(Additional reporting by Dhanya Skariachan and Nivedita Bhattacharjee in Bangalore; editing by Maju Samuel, Steve Orlofsky and Andre Grenon)

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TiVo approves shares buyback

TiVo approves shares buyback

Stock Market Predictions

NEW YORK (Global Markets) - TiVo Inc (TIVO.O), the digital recorder maker, said it would buy back $100 million of its a stock, which boosted shares by 5 percent on Friday.

The company plans to repurchase shares over the next two years with its existing cash.

In May, TiVo settled a long and costly patent infringement lawsuit involving its video recording technology with Dish Network (DISH.O) and EchoStar Corp (SATS.O).

As part of the settlement, Dish and EchoStar paid Tivo $300 million, and will pay $200 million over six equal annual installments between 2012 and 2017.

Shares were up 40 cents, or 5 percent, at $8.05 in premarket trading on Friday.

(Reporting by Liana Baker; Editing by Derek Caney)

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Stock Market and Astrological Planets

SUN--The Sun rules gold, gilt-edged stock and Government Securities, and the general tone of the Market. It does not materially affect the Market itself, except as it forms aspects to other planets, and its influence is exerted thru the sign in which it is placed. Favorable aspects increase the value of Government securities of the country ruled by the sign, and bad aspects depress it.

MOON--The Moon is not a particular significator of anything. Its passage thru a sign stimulates the commodities ruled by the sign, and often those of the opposite sign as well. Aspects to the Moon do not always act in accordance with their natures, but seem rather to mark turning points, and to denote the times of highest rise and lowest fall. The position of the Moon in its orbit, however, has a general influence on fluctuations, especially in regard to changes from an upward to a downward movement, and vica-versa. This is very marked in the case of the Moon's passage over its apogee and perigee.

MERCURY--This planet rules with others wheat, corn and grain (partly), silver and quick-silver, as well as bonds, returns and publications, news, rumors, and public confidence. Its effect upon the Market is to cause nervousness, activity, instability, quick buying and selling, and rapid fluctuations. If afflicted it brings false or adverse news and rumors, and indicates lack of public confidence. Thus Jupiter afflicted by Mercury would cause quick fluctuations and selling of affairs ruled by Jupiter and the sign containing it, due to adverse rumors.

VENUS--Venus rules copper, silk, textiles, sugar, cotton, furnishing, money, corn, and the wheat market. It affects the market thru money, and its general influence is to cause a peaceful condition in the country in whose sign it is, with steady development, good crops, and a generally settled state. Its good aspects bring a steady, tho often not very lasting, rise in values, but with few fluctuations, while its bad aspects tend to cause dull periods.

MARS--Mars rules iron and steel, railways, motors, and machinery. Its effect is to cause great activity and enterprise, with brisk buying and new flotations. It causes very sharp, but often unsustained, rises and falls according to its aspects.

JUPITER--Jupiter rules tin, zinc, rubber. It brings expansion, new industries, prosperity, and its good aspects bring very high rises. Its bad aspects show selling for profit taking, and a fall in values. It may also indicate over-capitalization and over-production. Jupiter indicates the direction of speculative interest according to the sign it is in.

SATURN--Saturn rules lead, coal, mines, building, and conditions of labor. Its effect is to cause famines, failure of crops, political troubles, want, and unemployment. Its bad aspects produce great depression in prices, while its good ones steady the market.

URANUS--Uranus rules electrical concerns, aviation, telegraphs, and wireless. Its effect is to cause strikes, revolutions, and political upheavals, its aspects affect the Market thru political conditions. It causes sudden sharp fluctuations in accordance with its aspects.

NEPTUNE--Neptune rules drugs, narcotics, tea, tobacco, oil, and institutions such as hospitals, asylums, and prisons, as well as large syndicates and combines. Its affect is to produce socialistic, democratic, and anarchistic activity, and a condition of confusion or chaos in the affairs signified. In good aspect it inflates prices, often thru the action of rings and combines, and in bad aspects it depresses them thru the same agency.

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GSV Capital offers shares at deep discount

GSV Capital offers shares at deep discount

Stock Market Predictions

(Global Markets) - GSV Capital Corp (GSVC.O) priced its offering of 6 million shares at a deep discount to boost its stake in Facebook Inc and fund its investments in other internet companies such as Twitter and Dropbox.

The company said its common stock offering was priced at $15 apiece, a discount of 23 percent to its Thursday close.

In June, the company said it had bought 225,000 shares in Facebook at an average price of $29.28 each and that the $6.6 million investment in Facebook represents about 15 percent of GSV's total portfolio.

Citigroup Global Markets Inc is acting as sole book-running manager for the offering.

Shares of the Woodside, California-based company were trading down 20 percent at $15.48 in late morning trade on the Nasdaq.

(Reporting by Tanya Agrawal in Bangalore; Editing by Anil D'Silva)

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E*Trade shares tumble 11 percent after soft results

E*Trade shares tumble 11 percent after soft results

Stock Market Predictions

(Global Markets) - Shares of E*Trade Financial (ETFC.O) tumbled 10.7 percent after the company reported a surprising loss late on Wednesday, due to higher-than-expected loan provisions in its troubled banking unit and a slowdown in trading levels.

The online brokerage and financial services company's shares tumbled 11.6 percent, or $1.09, to $8.25 in morning trading

E*Trade reported a net loss of $6.3 million, or 2 cents a share in the fourth quarter, compared with a loss of $24 million, or 11 cents, a year earlier.

Analysts on average expected the company to earn 20 cents a share, according to Thomson Global Markets I/B/E/S.

The company said it has been transitioning since the second half of 2011 to a new banking regulator, and to bring its programs in line, it took a $15 million writedown to adjust for loans that were currently in foreclosure, and it added $67 million to its reserves.

In total, E*Trade said it set aside $123 million for loan losses in the quarter, compared with $194 million a year earlier.

David Chiaverini, an analyst at BMO Capital Markets, said he had been expecting the company to record $48 million in loan loss provisions.

E*Trade took billions of dollars in losses on risky loans in the mortgage portfolio of its banking unit following the collapse of the U.S. housing market. It has made progress with its debt and credit issues, chalking up its first full-year profit since 2006, but the loan book continues to drag on earnings.

Separately, the company paid about $11 million in the quarter to settle a class-action lawsuit as a result of losses in its mortgage and home equity loans portfolio in 2007.

Minus the one-time charges, E*Trade would have likely earned just under 17 cents a share, Richard Repetto, an analyst at Sandler O'Neill Research, said in a note to clients.

Daily client trades at the brokerage were down 7 percent from a year ago as investors pulled back from choppy markets. E*Trade also said its net interest margins would fall below its earlier forecasts in 2012 due to the ongoing soft interest rate environment.

While Repetto said he believes E*Trade management "is doing all the right things," he downgraded the stock to "hold" from "buy" due to the difficult trading environment and net interest margin compression.

Goldman Sachs cut E*Trade to "neutral" from "buy," while Macquarie cut its price target for the firm to $8 from $10, and BMO Capital Market cut its price target to $8 from $9.

(Reporting By John McCrank in New York; Editing by Derek Caney and Maureen Bavdek)

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Radian writes more business as housing recovers

Radian writes more business as housing recovers

Stock Market Predictions

(Global Markets) - Radian Group Inc (RDN.N) said its unit Radian Guaranty wrote new business worth $6.5 billion in the fourth quarter, as the housing market shows signs of recovery and the mortgage insurer benefits from fewer players in the market.

The U.S. housing downturn caused mortgage insurers PMI Group PPMIQ.PK and Triad Guaranty (TGIC.OB) to go bust and led others like Old Republic (ORI.N) to stop writing new insurance.

However, better capitalized insurers like Radian, MGIC Investment Corp (MTG.N) and Genworth Financial (GNW.N) could expand their underwriting.

As of December 31, Radian Guaranty is expected to maintain its risk-to-capital ratio below the allowed limit of 25 to 1, with about $500 million of holding company liquidity, the company said in a statement.

"The increase (in writing more business) is driven by the fact that we have invested steadily in expanding sales force," Chief Executive S.A. Ibrahim told Global Markets. "We have also benefited from gaining market share from a couple of players who are no longer writing business."

The $6.5 billion in new insurance tops the company's previous estimate of more than $5 billion in new underwriting in the fourth quarter. It wrote $4.1 billion in new mortgages in the third quarter.

Radian's robust capital position and low risk ratios are helping it be more aggressive in its quest for new business.

"Radian's capital position is strong entering into 2012, where we expect losses to be significantly lower than a year ago," Macquarie analyst Matthew Howlett told Global Markets.

At end-September, the company was able to keep its risk-to-capital ratio at 21.4 to 1, below the maximum level.

"I feel pretty good that the company can maintain risk-to-capital ratio at or below the limit. They are on page to turn profitable," Howlett said.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Starmine dataset: r.reuters.com/dap95s

Graphic on U.S. Housing market: r.reuters.com/gyq93s

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

SEEKING WAIVERS

Mortgage insurers have been struggling to meet capital adequacy benchmarks and have time and again sought waivers to continue writing business in many states in the United States.

Of the 16 states that impose risk-based capital requirements in the United States, Radian has received waivers to write new business from Arizona, Illinois, Kentucky and Wisconsin, and has applications pending in 10 other states.

Kansas has declined to grant waivers to mortgage insurers at present, the company said in a statement.

Radian has also applied to Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) for approval of a separate mortgage insurance unit, Radian Mortgage Assurance Inc, to write insurance in the states where waivers are not available or approved, the company said.

U.S. mortgage insurers have been creating new units to write more business and find a way around soaring risk ratios.

"We believe, given our financial position, our case should be equally compelling for waivers as those of our peers who have successfully shown that they can get waivers," Ibrahim said.

(Reporting by Satyanarayan Iyer and Aman Shah in Bangalore; Editing by Roshni Menon, Supriya Kurane)

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Dillard's margins fall short, shares slump

Dillard's margins fall short, shares slump

Stock Market Predictions

(Global Markets) - Dillard's Inc's (DDS.N) quarterly net income rose 85 percent, but its shares fell 11 percent as the department store chain reported a lower retail gross margin than analysts had expected.

Key Points

- Sales at stores open at least a year, or same-store sales, rose 5 percent, besting larger rivals Macy's Inc (M.N), J.C. Penney Co Inc (JCP.N) and Kohl's Corp (KSS.N).

- Dillard's, based in Little Rock, Arkansas, had 288 stores as of October 29, down from 296 a year earlier.

MARKET REACTION

JPMorgan analyst Matthew Boss said in a note that concerns about gross margin would be a "primary" cause of investor pushback.

Dillard's shares were down 11.3 percent to $48.94 in afternoon trading.

LINKS

- Kohl's on Thursday reported higher gross margins for the quarter.

- Last week, Dillard's reported an 8 percent rise in October same-store sales.

NOTES

* Estimate based on two brokerage forecasts.

(Reporting by Phil Wahba in New York; editing by John Wallace)

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Verizon ditches $2 fee after customer uproar

Verizon ditches $2 fee after customer uproar

Stock Market Predictions

NEW YORK (Global Markets) - Verizon Wireless has reversed its decision to charge a $2 fee for telephone and online bill payments, bowing to a storm of criticism from consumers and the U.S. communications regulator.

The biggest U.S. wireless operator retracted its decision on Friday, just a day after it announced the fee for one-time payments, which was to have begun January 15.

The consumer victory comes after Bank of America recently decided against a new $5 monthly fee for debit card users after consumers and lawmakers protested the charge.

"There is power in numbers and in the end, the customer is always right," one person said on the Verizon Wireless online forum. "How can any corporation expect to keep business by doing that? It's pure greed just like with Bank of America."

Verizon said it listened to its customers and made the decision based on customer input after many complained and some threatened to leave the service if the fee was instituted.

A spokesman said that the company had just wanted to encourage consumers to pay their bills via different methods such as autopay, where they give Verizon permission to charge their credit card or bank account automatically each month.

Verizon Wireless is a venture of Verizon Communications Inc and Vodafone Group Plc.

The quick turn-around came after little more than a day of complaints, but not before the U.S. Federal Communications Commission said it was "concerned" about the fee and that it was looking into it.

"On behalf of American consumers, we're concerned about Verizon's actions and are looking into the matter," an official for the FCC said earlier on Friday.

The prospect of a $2 fee created a flurry of online activity and one consumer organization, Change.org, said 95,000 people joined a campaign on its website urging Verizon to drop the fee.

"The era of corporations walking roughshod over consumers without consequence is officially over," Ben Rattray, chief executive of Change.org, said in a statement.

Verizon Wireless customers told the company, often in colorful language, that they would not put up with the fee.

"If this fee goes through, I will be taking my business elsewhere!!!" one person said on the Verizon Wireless website.

Another said "Victory is ours!" after the about-face.

The turnaround comes after another high-profile reversal of course earlier this year by video rental service Netflix Inc in the face of customer disgust.

In October it canceled plans to split its DVD rental service from its online streaming service. The move would have forced customers of both streaming and DVD options to visit different websites and maintain different accounts for each subscription.

The Verizon Wireless incident served to highlight fee practices elsewhere in the communications industry. Rivals AT&T Inc and Sprint Nextel said on Friday that they charge some customers $5 for bill payments, revising their comments from the day before.

AT&T and Comcast Corp say that they charge some customers who look for personal assistance in paying their bills but that they do not charge for online payments. Sprint said it charges customers with bad credit if they refuse to enroll for auto pay.

The Sprint and AT&T fees are even higher than Verizon's proposed levy at $5 per transaction. Comcast's payment fee, which is only levied in some states, is $5.99.

The FCC did not comment on whether it would look into other companies' fee policies for bill payment.

(Reporting By Sinead Carew; Additional reporting by Lisa Richwine in Los Angeles; Editing by Tim Dobbyn)

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Satyam has loose Rs 10,000 Cr in Market Capitalization

Beleaguered software services major Satyam Computers on Wednesday bit the dust on the bourses and lost as much as Rs10,000 crore in market capitalisation (m-cap) in a single trading session, after the scrip dipped to hit an all-time low level.

It saw a massive value erosion and fell nearly 80%, after the management revealed malpractices in accounting methods. The company had a market capitalisation of Rs12,067.98 crore on Tuesday and by the end of Wednesday’s trading session its m-cap stood at Rs2,691.88 crore.

The scrip, which fell by as much as 83% to witness an intra-day low of Rs30.70, managed to close with a fall of 77.69% at Rs39.95 on the BSE index.

“In the long run the scrip can witness levels down to as much as Rs20. The company was operating at a margin of 3%, the lowest by any firm. It was doing business on cost basis and the books were kept inflated,” Arun Kejriwal of Kejriwal Reserach and Investment Services said.

On the National Stock Exchange (NSE), the scrip plunged to a low of Rs41.05, down 77.06% from its previous close. The scrip had witnessed the day’s low of Rs30.80, down 82.78% over last closing.
The counter saw frantic selling after the news broke out, and over 48 crore shares had changed hands on both the bourses.

Satyam stock holds a 1.56% weight in the 30-share bluechip index - Sensex. Following the same, the Sensex also plunged over 749 points or over 7% to settle at 9,586 points on the BSE.

Ramalinga Raju, on Wednesday resigned as Satyam’s chairman after admitting to financial wrong doings in the company’s balance sheet. He was under attack over the $1.6 billion acquisition fiasco of firms promoted by his family.

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RIM caps dismal year with another profit warning

RIM caps dismal year with another profit warning

Stock Market Predictions

TORONTO (Global Markets) - Research in Motion booked a huge charge to write down inventories of its unloved PlayBook tablet on Friday, capping a dismal year with a steep profit warning that sent its shares tumbling almost 10 percent.

Waterloo, Ontario-based RIM, the company whose now ubiquitous BlackBerry created the concept of on-the-go email, said it no longer expects to meet its full-year earnings forecast due to weak sales, the PlayBook writedown and a charge related to a damaging service outage in October.

"This is a classic falling knife stock," said Eric Jackson of Ironfire Capital, who has previously bet on RIM's share price dropping but does not currently have a position in the stock.

"Although people keep wanting to buy into the belief that RIM has found a bottom, I see at least six more months of pain as they keep transitioning their business."

RIM, which Canada's industry minister on Friday described as a "Canadian jewel," has fallen out of favor with investors as it struggled to keep pace in a fast-changing smartphone market. In recent years, Apple's iPhone and Google Android devices have gobbled up RIM's once mighty market share.

RIM badly needs the PlayBook, launched to scathing reviews in April, to be a success as it plans next year to launch new smartphones based on the same QNX-based operating system used in the tablet.

PlayBook is a half-baked latecomer to a market segment where Apple's iPad has established an overwhelming dominance. Yet the poor reception it has received is just one of a string of problems facing the one-time technology darling.

The company has infuriated investors with several product missteps and profit warnings and RIM faced an embarrassing global outage in October, when customers were left without email and the popular BlackBerry messaging service for several days.

And if RIM cannot convince developers to build apps for the languishing PlayBook, its new smartphones will struggle to gain traction against the iPhone and Android devices that already boast huge libraries of applications.

Bernstein Research analyst Pierre Ferragu said RIM's latest warning was not a surprise itself. But he was alarmed that management apparently fails to see the writing on the wall for its products and for its corporate structure.

"What is more worrying, of course, is the profound denial the tone of the release reflects. Although it appears obvious to us that RIM's current strategy is bound to fail rapidly, the company continues to support it vehemently," he said.

"We can only hope that this increasing dissonance will accelerate necessary changes at the top of the company."

An activist shareholder said in October that some 8 percent of RIM investors back his call for RIM's board to replace its co-chief executives and consider a break-up or sale.

PLAYBOOK PRICE CUTS

Seeking to boost anemic PlayBook sales, RIM recently slashed prices on the device and plans to expand the promotion. It sold only about 150,000 tablets in the quarter to November 26, down from 200,000 in the previous quarter - a tiny fraction of the 11 million iPads that Apple sold in its latest quarter.

"RIM is continuing to suffer from its Playbook endeavors," said CCS Insight analyst Geoff Blaber. "It hurt RIM initially by diverting focus, but muted demand is now becoming clearly visible in the financials."

RIM's Nasdaq-listed shares fell 9.7 percent to $16.77 by the close. In Canada the shares fell 9.2 percent to C$17.08.

The shares have shed some three-quarters of their value since a February peak, a meltdown that has actually prompted some analysts to raise their ratings on RIM. Goldman Sachs said last month that the current valuation already fairly captures the fundamental concerns.

Speculation has also been rife that RIM could be the target of a strategic buyout.

Canada's Industry Minister Christian Paradis declined to comment on that speculation in an interview with Global Markets in New York, but he said Canada had to support RIM. Any takeover of a Canadian company of RIM's size can be blocked by the government if it decides the deal would not bring a "net benefit" to the country.

"RIM is a Canadian jewel," Paradis said in the interview, which was conducted in his native French. "First of all what I hope for is that RIM be able to be on a path of prosperity. As for speculation (about a takeover), we'd have to see what happened and consider if the law would apply."

FULL YEAR EARNINGS

In its warning, RIM said it no longer expects to meet its full-year earnings forecast of $5.25 to $6 per share because of weaker than expected smartphone shipments, a $360 million after-tax writedown on PlayBook inventories and a $50 million charge related to the October outage.

Excluding the two charges, RIM now expects adjusted earnings in the third-quarter to be at the low to mid-point of its previously forecast $1.20 to $1.40 per share range.

Revenue, excluding the outage charge, is expected to be slightly below the previously forecast range of $5.3 billion to $5.6 billion, in part because of the PlayBook discounting.

RIM, which reports third quarter results on December 15, said it shipped about 14.1 million BlackBerry phones in the quarter, in line with its earlier forecast of between 13.5 and 14.5 million.

It said it was confident the PlayBook promotion will help boost sales and reduce its inventories.

"Early results from recent PlayBook promotions indicate a significant increase in demand across most channels," Co-Chief Executive Mike Lazaridis said in a statement.

But RIM also said it expects to ship fewer smartphones in the current quarter than in the recently-ended third quarter, despite having a lineup of updated devices on offer in the traditionally busy Christmas period.

"We do not see any sign that RIM's downward spiral is about to bottom out," Nomura analyst Stuart Jeffrey said in a note for clients. "The company has a number of new phones on the market, yet guidance for Q4 suggests that their momentum is already starting to stall."

(Additional reporting by Phil Wahba in New York and Tarmo Virki in Helsinki; Editing by Janet Guttsman and Frank McGurty)

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Commercial Metals shifts stance and to review Icahn's offer

Commercial Metals shifts stance and to review Icahn's offer

Stock Market Predictions

(Global Markets) - Commercial Metals (CMC.N) said it will review billionaire investor Carl Icahn's $1.73 billion buyout offer, just days after dismissing it as "substantially undervalued" and "opportunistic."

"Consistent with its fiduciary duties, Commercial Metals' board, in consultation with its independent financial and legal advisers, will review the offer," the company said in a statement.

The company said the board intends to advise stockholders of its formal position regarding the tender offer within ten business days.

Earlier, in the day Icahn kicked off the tender offer and added he could seek a court order to compel Commercial Metals' board to remove a shareholders' rights plan that prevents him from raising his near-10 percent stake in the company.

Icahn, who controls about 10 percent of the company, is aiming to get the support of another 40 percent of shareholders to repeal the poison pill.

Commercial Metals shares were trading up 2 percent at $14.37 on Friday on the New York Stock Exchange. They are yet to touch the $15 offer price.

(Reporting by Swetha Gopinath in Bangalore; Editing by Supriya Kurane)

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Mixed fortunes for new entrants at the markets

Mixed fortunes for new entrants at the markets

Stock Market Predictions

(Global Markets) - Investors warmed up to two of the three companies making their debut on Friday, flocking to shares of specialty retailer Mattress Firm Holding (MFRM.O), while shunning those of Intermolecular (IMI.O), which fell below the offer price.

The other entrant, Manning & Napier (MN.N), which offers investment management services, was trading up 4 percent at $12.42 on the New York Stock Exchange, having priced the offer below its expected range.

The companies made their debut during the small window of opportunity between the November 4 debut of Groupon Inc (GRPN.O) and the Thanksgiving weekend.

"The Groupon debut turned a lot of attention to the IPO market and these companies were ready to go if they could, but time is running short for companies that want to list before the end of the year," said IPOdesktop.com analyst Francis Gaskins.

Intermolecular, which develops proprietary technology for the semiconductor and clean energy industries, fell as much as 8 percent in early trading and was down 5 percent at $9.50 on Nasdaq, below its offer price of $10.

The San Jose, California-based company had initially planned a $200 million IPO, but cut the offering size and was expecting to sell its shares between $12 and $14.

Poor market conditions and shares that were perceived as expensive worked against Intermolecular, said David Menlow, President of IPOfinancial.com.

Manning & Napier, which was founded in 1970 and has $42.2 billion assets under management as of October31, sold 12.5 million shares at $12 per share.

Specialty bedding retailer Mattress Firm Holding Corp (MFRM.O), however, attracted strong investor interest and rose as much as 20 percent on Nasdaq, after pricing its IPO at the high end of its range.

"They (Mattress Firm) have a track record of success and increase in sales and earnings, and their after tax margins are consistently 6 or 7 percent which is very good in the specialty retail area," IPOdesktop.com analyst Gaskins said.

Shares of Mattress Firm Holding closed about 16 pct up at $22, while Intermolecular's shares fell 5 percent to close at $9.50 on Friday on Nasdaq.

Shares of New York Stock Exchange listed Manning & Napier closed flat at $12 on Friday.

(Reporting by Aman Shah and Tanya Agrawal in Bangalore; Editing by Supriya Kurane and Sriraj Kalluvila)

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GE ups dividend for fourth time in 18 months

GE ups dividend for fourth time in 18 months

Stock Market Predictions

(Global Markets) - General Electric Co (GE.N) said on Friday it is raising its quarterly dividend by 13 percent, marking the fourth time the largest U.S. conglomerate has increased the payout since July 2010 and sending its shares up 3.6 percent.

The series of increases -- totaling 70 percent -- were intended to signal that the world's largest maker of jet engines and electric turbines had recovered from the 2008-2009 financial crisis, when it slashed its payout to conserve cash.

But Chief Executive Jeff Immelt has cautioned investors that the Fairfield, Connecticut-based company aims to return to its historic practice of raising the dividend once per year, in line with earnings growth. GE aims to pay out 45 percent of earnings to shareholders through the dividend.

"Our balanced and disciplined capital allocation plan has enabled us to achieve important goals including increasing dividends, redeeming the preferred stock held by Berkshire Hathaway, redeploying our (NBC Universal) capital to high growth energy acquisitions and investing in organic growth platforms," Immelt said in a statement.

GE's board voted to raise the quarterly dividend by 2 cents per share, to a rate of 17 cents, payable on January 25. It remains below the 31 percent pre-financial-crisis rate.

GE shares were up 3.6 percent to $16.89 in midday trading on the New York Stock Exchange.

When the company reported third-quarter results, it told investors it expects to grow profit at a double-digit rate next year. While Immelt is likely to offer more detail on the company's expectations in a meeting with investors on Tuesday, GE no longer provides shareholders with specific per-share profit targets, a practice it abandoned during the financial crisis.

GE in October bought back the preferred stake it had sold to Warren Buffett's Berkshire Hathaway Inc (BRKa.N) for $3.3 billion plus unpaid dividends.

(Reporting by Scott Malone in Boston; Editing by Derek Caney, Dave Zimmerman)

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GE to open technology center in New Orleans

GE to open technology center in New Orleans

Stock Market Predictions

(Global Markets) - General Electric Co's (GE.N) financial services arm will open a new technology center in New Orleans, creating 300 jobs over three years, the largest U.S. conglomerate said on Friday.

The center, which will open in mid-2012, will focus on creating new software and processes for the GE Capital business, the company said.

GE chief executive Jeff Immelt said this week wage differences between the United States and other countries were narrowing and it saw an opportunity to bring jobs back to the United States. The company said it plans to hire some 5,000 military veterans over the next five years.

(Reporting By Nick Zieminski in New York; Editing by Gerald E. McCormick)

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VOC Energy Trust up in NYSE debut

VOC Energy Trust up in NYSE debut

Stock Market Predictions

NEW YORK (Global Markets) - Shares of VOC Energy Trust (VOC.N), which invests in oil and natural gas production in Kansas and Texas, rose in their debut on the New York Stock Exchange on Thursday after the initial public offering priced at the top of the proposed range.

Shares were at $22, or 4.8 percent above their IPO price in early trade on the New York Stock Exchange.

VOC Energy Trust raised $232.8 million in the IPO on Wednesday, selling 11.09 million trust units for $21 each. It had planned to sell the units for $19 to $21 each.

The trust was formed by VOC Sponsor, a privately held limited partnership. The Delaware statutory trust is expected to own a term net profit interest in the limited partnership's exposure to the oil and gas production in the two states, receiving 80 percent of the net proceeds.

Net proceeds will be used to repay debt, buy back some outstanding equity interests and pay cash distributions. The trust also plans to pay cash distributions to unitholders, expected to start on August 15.

Raymond James and Morgan Stanley led underwriters on the IPO.

(Reporting by Alina Selyukh, editing by Gerald E. McCormick)

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Argonaut Gold Q2 production up 73 percent

Argonaut Gold Q2 production up 73 percent

Stock Market Predictions

Bangalore (Global Markets) - Canada's Argonaut Gold Inc (AR.TO) said quarterly gold production at its El Castillo Mine in Mexico rose 73 percent, and said it was on track to meet its full-year production forecast.

Argonaut Gold said quarterly gold production at its El Castillo Mine -- the company's biggest mine -- was 17,453 ounces, compared with 10,066 ounces last year.

The company, which also operates the San Antonio and the La Colorada project in Mexico, said gold produced at the El Castillo mine in the first half of the year was 35,467 ounces

In January, Argonaut had forecast 70-75,000 ounces of gold output for the year.

Argonaut's shares were trading up slightly at C$6.06 on Friday morning on the Toronto Stock Exchange.

(Reporting by Amruta Sabnis in Bangalore; Editing by Sriraj Kalluvila)

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Oracle miss sparks Wall St fears of spending cuts

Oracle miss sparks Wall St fears of spending cuts

Stock Market Predictions

(Global Markets) - Oracle Corp's dismal quarterly results sent shock waves across the technology sector as investors feared they may have overestimated the resilience of corporate tech spending in a deteriorating global economy.

The first earnings miss in a decade from Oracle, whose fiscal second quarter ended on November 30, drove its shares down more than 11 percent on Wednesday, destroying about $20 billion of market value. The shortfall from the No. 3 software maker also hit shares of many other technology companies, with VMware Inc, NetSuite Inc, and SAP among those suffering the biggest losses.

"Is this a preliminary example of what we could expect in January from Microsoft and other players? It raises an eyebrow that things may not be as hunky dory as we've been led to believe in terms of IT spending," said Daniel Morgan, a portfolio manager at Synovus Securities in Atlanta.

The troubles at Oracle follow ominous reports from big tech names including Hewlett-Packard Co, Intel Corp and Texas Instruments Inc.

The disconcerting news on Tuesday was not limited to Silicon Valley, with U.S. industrial conglomerate Emerson Electric Co reporting a drop in orders for equipment used in big data centers. Emerson shares fell 5.4 percent to $46.97.

"Overall, we have seen in the last 60 days ... a significant weakness in this whole electronics space," said Emerson Chief Executive David Farr. "I don't see that changing for the time being."

The fourth quarter is the crucial period of the year for many technology companies because corporations tend to spend most heavily on information technology during that time in what is known as a year-end "budget flush."

Oracle's disappointing results could signal that companies won't spend all the money that they still have budgeted for 2011 technology projects, said Howard Anderson, a lecturer at MIT's Sloan School of Business, who regularly talks to CEOs of top-tier corporations.

"Confidence is not there," he said. "We have a kind of rolling recession."

Oracle's quarter ended in November, but investors worried that the decline in business confidence could signal more troubles for peers whose quarters end in December. That includes arch rival SAP AG.

"The majority of deals in the fourth quarter are traditionally closed in the last two weeks of the quarter, so the delay of Oracle's deals is a negative cross read for SAP," said Silvia Quandt analyst Michael Busse.

SAP CEO Bill McDermott declined to comment on his business, saying the company was in a quiet period.

A slowing in tech spending would be troubling for the U.S. economy, which has had few bright spots in recent years.

"Since the technical end of the recession (in June 2009) we've been seeing double-digit growth in investment in technology. If Oracle is the canary in the coalmine, that would be something to worry about," said Michael Goodman, director of economic and public policy research at the University of Massachusetts at Dartmouth.

"There's a lot of concern about what the immediate future holds, so this may just be customers putting off investments they want to make until they feel like they have a better handle on what the future looks like," Goodman said.

MIXED SIGNALS

U.S. companies have been sending mixed signals about their spending plans for 2012. A survey released last week by the Business Roundtable found that 16 percent of CEOs of large U.S. companies planned to cut their capital spending over the next six months, up from 13 percent who had planned cuts in the third quarter.

But other data released on Wednesday by the Equipment Leasing and Finance Association showed U.S. businesses signed up for $6.2 billion in loans, leases and lines of credit to fund capital expenditures in November, a 38 percent increase from the month a year ago.

Oracle's stock fell $3.40 to $25.77, its lowest close since August, making it the biggest loser in the Standard & Poor's 500 index. It was the biggest one-day percentage drop in the stock since March 4, 2002, when Oracle last surprised investors with an earnings warning.

CEO and co-founder Larry Ellison, the company's biggest shareholder, lost more than $3.8 billion on Wednesday as the stock plunged, based on his holdings published in Oracle's annual proxy filing.

The declines accounted for about 16 points of the 27.6 point drop in the S&P 1500 Software index, which suffered a 4.5 percent drop in market cap to about $511 billion. The drop in Oracle shares represents 68 percent of the decline in total market cap for the index.

(Reporting by Sayantani Ghosh in Bangalore, Maria Sheahan, Christoph Steitz and Marilyn Gerlach in Frankfurt and Nicola Leske, David Gaffen, Ryan Vlastelica and Nick Zieminski in New York; Editing by Richard Chang)

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Viterra profit jumps 80 percent on big Australia crop

Viterra profit jumps 80 percent on big Australia crop

Stock Market Predictions

WINNIPEG, Manitoba (Global Markets) - Viterra Inc (VT.TO) reported an 80 percent rise in quarterly net profit on Thursday, bolstered by brisk South Australian crop shipments.

Canada's biggest grain handler said record-high crop shipments from South Australia boosted earnings even as wet weather delayed planting in Western Canada and hurt sales of farm products like seed and chemicals.

Viterra's Australia crop-handling network of elevators and port terminals has given the company a geographic hedge against weather-related crop problems in Canada since it acquired the former ABB Grain in 2009.

"From a strategic perspective, our geographic diversification has delivered to expectations," said CEO Mayo Schmidt.

Regina, Saskatchewan-based Viterra said it had achieved its forecast C$30 million ($30.6 million) in synergies from the takeover six months ahead of schedule.

The company reported a net profit of C$33.1 million ($33.8 million), or 9 Canadian cents a share, for the second quarter ended on April 30, up from C$18.4 million, or 5 Canadian cents a share, a year earlier.

Revenue rose 33 percent to C$2.70 billion.

Analysts had expected earnings of 17 Canadian cents a share and revenue of C$2.3 billion, according to Thomson Global Markets I/B/E/S.

Viterra also declared a semiannual cash dividend of 5 Canadian cents per share, payable July 28. The company's dividend rate is currently 10 Canadian cents per year.

(Reporting by Rod Nickel in Winnipeg and Aftab Ahmed in Bangalore; Editing by Savio D'Souza and Lisa Von Ahn)

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