Cisco to Exit Flip Video-Cam Business

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CiscoCisco Systems Inc., (CSCO) the world's largest maker of computer networking gear, on Tuesday said it's killing its Flip camcorder business as part of a reversal of years of efforts at diversifying into consumer products.

The about-face comes after several quarters of disappointing results and challenges in its core businesses. Analysts say the company has been trying to do too many different things.

A week ago, CEO John Chambers acknowledged the criticism, sending employees a memo vowing to take "bold steps" to narrow the company's focus.

The San Jose, Calif., company said Tuesday that it expects its consumer business shakeup will result in the loss of 550 jobs, or less than 1 percent of its work force of about 73,000.

It also expects to take restructuring charges of no more than $300 million spread out over the current quarter, which ends April 25, and the following one.

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Cisco to Exit Flip Video-Cam Business originally appeared on BloggingStocks on Tue, 12 Apr 2011 09:21:00 EST. Please see our terms for use of feeds.

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Alcoa Kicks Off Earnings Season With Improved Sales

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AlcoaAlcoa Inc. (AA) said Monday it turned a first-quarter profit on stronger sales at higher prices that were offset by a weaker dollar and higher costs for energy and raw materials.

Alcoa said business improved from a range of customers, including aerospace, automotive, commercial transportation and packaging industries. It marked the fourth consecutive quarterly profit for Alcoa as it pulled out of two difficult years hit by the recession.

The Pittsburgh aluminum manufacturer also expects business to continue to improve, reaffirming its forecast of a 12 percent increase in global aluminum demand this year.

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Alcoa Kicks Off Earnings Season With Improved Sales originally appeared on BloggingStocks on Mon, 11 Apr 2011 16:45:00 EST. Please see our terms for use of feeds.

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Level 3 to Acquire Global Crossing for $2 Billion

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Level 3 Communications Inc. said Monday that it is buying Global Crossing Ltd. for $2 billion, joining two major long-distance telecommunications networks that carry massive amounts of Internet and other data traffic in the U.S. and internationally.

Both Level 3 and Global Crossing operate vast networks of optical fiber used by other telecom carriers, corporations and government agencies. The combined company's reach would extend to 70 countries on three continents. Despite steadily increasing data traffic, the prices Level 3 and companies like it can charge for carrying that traffic have been driven down by competition, said Erik Kreifeldt, a senior analyst with the research firm TeleGeography. Meanwhile, the carriers have high fixed costs, including the cost to lay fiber-optic cables on the bottom of the ocean.

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Level 3 to Acquire Global Crossing for $2 Billion originally appeared on BloggingStocks on Mon, 11 Apr 2011 16:36:00 EST. Please see our terms for use of feeds.

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NYSE Rejects Nasdaq-ICE Takeover Bid

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Nasdaq and IntercontinentalExchange said their $11.3 billion bid for NYSE Euronext was rejected without any talks with the exchanges.

Nasdaq OMX Group Inc. CEO Robert Greifeld said in a statement late Sunday that feedback from NYSE Euronext shareholders was positive, and that the companies had expected NYSE Euronext would meet with them to discuss the merits of their proposal.

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NYSE Rejects Nasdaq-ICE Takeover Bid originally appeared on BloggingStocks on Mon, 11 Apr 2011 09:06:00 EST. Please see our terms for use of feeds.

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Viacom Pulls Channels from iPad App Raising Stakes in the Streaming Standoff

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ViacomViacom was one of the content owners that pulled its channels from Time Warner Cable's iPad app recently. This combined with its changing stance regarding Hulu points to the growing friction between content owners and those companies involved in distribution through new streaming platforms like Netflix, Hulu and now tablets. As the landscape changes for delivering content, we expect to see Viacom along with competitors like News Corp, Time Warner CBS and Disney position for a greater share of the revenues and benefit from providing content to through these new channels.

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Viacom Pulls Channels from iPad App Raising Stakes in the Streaming Standoff originally appeared on BloggingStocks on Mon, 11 Apr 2011 08:00:00 EST. Please see our terms for use of feeds.

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Endo Pharma Buying American Medical for $2.6 Billion

Endo Pharmaceuticals Holdings Inc. said Monday it is buying urology and pelvic health company American Medical Systems Inc. for about $2.6 billion.

Endo is offering $30 a share - a premium of 34 percent to the most recent closing price of American Medical Systems shares. Endo will also assume $312 million in American Medical's debt.

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Endo Pharma Buying American Medical for $2.6 Billion originally appeared on BloggingStocks on Mon, 11 Apr 2011 07:24:00 EST. Please see our terms for use of feeds.

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First Solar & Renewables Industry Plead to Save DoE Loan Program

First SolarFirst Solar has joined forces with 33 other clean power companies including rivals like SunPower and Nanosolar to appeal against the Republican proposal to axe the funding for the Department of Energy's loan-guarantee program. The proposal was included in a budget bill passed in early February and was a shock to many in the renewables community as it could potentially derail the high growth in solar and wind energy adoption.

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First Solar & Renewables Industry Plead to Save DoE Loan Program originally appeared on BloggingStocks on Sun, 10 Apr 2011 08:00:00 EST. Please see our terms for use of feeds.

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Asia Pacific & Africa’s Contribution to Ford’s Stock Price

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FordFord Motor Co. recently reported its highest net income in more than 10 years. We currently estimate Ford's International operations contribute 35% to its stock price - similar to its North American operations that contribute 35.6% if we include both cars and trucks together. In 2010, with $7.4 billion of automotive sales, Ford's Asia Pacific & Africa operations contributed 6.2% to its total automotive sales of $119 billion (up 0.9% from its contribution in 2009). We expect that international operations will become increasingly more valuable for Ford. Ford competes globally with automakers like BMW, GM, Daimler, Audi, Honda, Toyota and others.

We have a price estimate of $20.59, which is around 37% above the current market price.

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Asia Pacific & Africa's Contribution to Ford's Stock Price originally appeared on BloggingStocks on Sat, 09 Apr 2011 10:00:00 EST. Please see our terms for use of feeds.

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Local Marketing: Growth Trend to Watch Out for at Yahoo!

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YahooAlthough Yahoo has not been able to catch up with the overall online advertising growth, this has not deterred the company from experimenting with growth areas. In the online advertising market, local marketing is one of the upcoming trends and has attracted players like Google, AOL and Facebook in addition to Yahoo. Here we will analyze the growth prospects of this trend and how it could benefit Yahoo in particular. We currently maintain $17.88 price estimate for Yahoo stock, which is about 6% above market price.

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Local Marketing: Growth Trend to Watch Out for at Yahoo! originally appeared on BloggingStocks on Sat, 09 Apr 2011 08:00:00 EST. Please see our terms for use of feeds.

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Facebook Value Could Rise on Mobile Usage

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FacebookFacebook Mobile has been rapidly expanding its reach, growing from 100 million users per month in February 2010 to 250 million users per month in March 2011. Should this type of growth continue, there could be upside to our intrinsic value estimate for Facebook, which we currently peg at $45.1 billion. Facebook competes with Google, Yahoo, Microsoft, AOL in the text and display advertising market as well as the search advertising market.

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Facebook Value Could Rise on Mobile Usage originally appeared on BloggingStocks on Fri, 08 Apr 2011 16:00:00 EST. Please see our terms for use of feeds.

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Corn Reserves Expected to Fall to 15-Year Low

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cornRising demand for corn from ethanol producers is pushing U.S. reserves to the lowest point in 15 years, a trend that could lead to higher grain and food prices this year.

The Agriculture Department on Friday left its estimate for corn reserves unchanged from the previous month. The reserves are projected to fall to 675 million bushels in late August, when the harvest begins, or roughly 5 percent of all corn consumed in the United States. That would be the lowest surplus level since 1996.

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Corn Reserves Expected to Fall to 15-Year Low originally appeared on BloggingStocks on Fri, 08 Apr 2011 15:00:00 EST. Please see our terms for use of feeds.

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Johnson & Johnson Settles Bribery Case With Feds

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Johnson & JohnsonPharmaceutical giant Johnson & Johnson (JNJ) has agreed to pay $70 million to settle civil and criminal charges of bribing doctors in Europe and paying kickbacks to the Iraqi government to illegally obtain business.

The Securities and Exchange Commission said Friday that the company settled the charges with the agency and the Justice Department without admitting or denying guilt.

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Johnson & Johnson Settles Bribery Case With Feds originally appeared on BloggingStocks on Fri, 08 Apr 2011 14:28:00 EST. Please see our terms for use of feeds.

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Apple’s Move to Absorb Higher Component Costs Will Help iPad 2

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iPad 2The recent Japanese earthquake led to supply constraints and consequently higher prices for many of Apple's component suppliers. However, Apple has agreed to absorb the additional costs related to components in exchange for smooth shipments. Although Apple's profitability could be slightly impacted due to higher costs, we believe it's still a market share game for Apple's hit products like the new iPad 2 and so ensuring on time deliveries will put more pressure on the likes of Motorola Mobility and Research in Motion that are trying to work their way into the tablet market. We maintain $420 price estimate for Apple stock, which is about 20% above market price.

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Apple's Move to Absorb Higher Component Costs Will Help iPad 2 originally appeared on BloggingStocks on Thu, 07 Apr 2011 11:00:00 EST. Please see our terms for use of feeds.

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Technology Services Now Nearly 30% of IBM’s Value

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IBMIBM sells middleware software and technology services such as outsourcing and integration to large and medium sized businesses worldwide and competes with firms like Oracle and Red Hat. The firm is also among the global leaders in business systems and competes with hardware vendors like HP and Dell in the server market as well as EMC and NetApp in the storage market.

We have a $185 Trefis price estimate for IBM's stock and estimate that the firm derives the bulk of its value from its middleware software and technology businesses which make up nearly 46% and 28% of the firm's equity value respectively.

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Technology Services Now Nearly 30% of IBM's Value originally appeared on BloggingStocks on Thu, 07 Apr 2011 10:00:00 EST. Please see our terms for use of feeds.

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DISH Networks Wins Blockbuster Auction

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DISH buys Blockbuster VideoTroubled movie renter Blockbuster has been looking for a buyer, and we learn today that DISH Network (DISH) has won the auction for the company, with a deal valued at $228 million in cash.

Blockbuster was once the biggest name in video rentals, but it has been unable to keep up with changes in the market created by companies such as Netflix (NFLX) and Redbox.

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DISH Networks Wins Blockbuster Auction originally appeared on BloggingStocks on Wed, 06 Apr 2011 12:40:00 EST. Please see our terms for use of feeds.

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DISH Networks Wins Blockbuster Auction

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DISH buys Blockbuster VideoTroubled movie renter Blockbuster has been looking for a buyer, and we learn today that DISH Network (DISH) has won the auction for the company, with a deal valued at $228 million in cash.

Blockbuster was once the biggest name in video rentals, but it has been unable to keep up with changes in the market created by companies such as Netflix (NFLX) and Redbox.

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DISH Networks Wins Blockbuster Auction originally appeared on BloggingStocks on Wed, 06 Apr 2011 12:40:00 EST. Please see our terms for use of feeds.

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DISH Networks Wins Blockbuster Auction

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DISH buys Blockbuster VideoTroubled movie renter Blockbuster has been looking for a buyer, and we learn today that DISH Network (DISH) has won the auction for the company, with a deal valued at $228 million in cash.

Blockbuster was once the biggest name in video rentals, but it has been unable to keep up with changes in the market created by companies such as Netflix (NFLX) and Redbox.

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DISH Networks Wins Blockbuster Auction originally appeared on BloggingStocks on Wed, 06 Apr 2011 12:40:00 EST. Please see our terms for use of feeds.

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DISH Networks Wins Blockbuster Auction

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DISH buys Blockbuster VideoTroubled movie renter Blockbuster has been looking for a buyer, and we learn today that DISH Network (DISH) has won the auction for the company, with a deal valued at $228 million in cash.

Blockbuster was once the biggest name in video rentals, but it has been unable to keep up with changes in the market created by companies such as Netflix (NFLX) and Redbox.

Continue reading DISH Networks Wins Blockbuster Auction

DISH Networks Wins Blockbuster Auction originally appeared on BloggingStocks on Wed, 06 Apr 2011 12:40:00 EST. Please see our terms for use of feeds.

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Is Now a Good Time to Consider Windstream?

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Windstream (WIN) logoShares of rural broadband and telecom provider Windstream Corp. (WIN), which I first discussed here on January 18, 2010, at a price of $10.92, have recently pulled back about 10% to $12.70. But just view that retreat as an investment opportunity, if you can tolerate the risk.

Underscoring -- WIN's shares are not for the squeamish. If you can tolerate the volatility and you're patient, though, you're likely to be rewarded with WIN.

Continue reading Is Now a Good Time to Consider Windstream?

Is Now a Good Time to Consider Windstream? originally appeared on BloggingStocks on Wed, 06 Apr 2011 12:00:00 EST. Please see our terms for use of feeds.

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