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Seeking Alpha
Investing & Finance - Max G Publishing

Instant Video Not Enough for Netflix, Amazon

24/08/12 14:50
Netflix (NASDAQ: NFLX) is still experiencing problems. They have had slower subscriber growth and a sharp drop in their second quarter earnings. The streaming video company is also facing threats from companies such as Verizon Communications (NYSE: VZ) and Coinstar (NASDAQ: CSTR), which are launching their own streaming video services. Content costs are rising. At the same time pricing moves by internet service providers could lead to lowered bandwidth use.

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Teekays See Mixed Q2 Results

16/08/12 10:27
Teekay Corporation's (TK) second quarter loss narrowed as the tanker-ship company saw revenue rise and voyage expenses decline. The company also recorded a foreign exchange gain. Teekay has posted mixed results in recent quarters as derivatives affect its bottom line and a glut of tanker space pressures sport market rates. Last month Moody's lowered its outlook on Teekay to negative from stable. They are concerned about management's plan to use more equity capital when funding investments or possible asset sales to one of several publicly listed subsidiaries. Teekay reported a loss of $47.3 million, smaller than its loss the year prior of $96.5 million.

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Lions Gate Swings Low

16/08/12 10:24
Lions Gate (NYSE: LGF) recently reported a second quarter net loss of $44.2 million compared with a gain of $10.3 million the year prior. Revenue increased 81% fueled by the release of "The Hunger Games." This revenue was not enough to offset the higher marketing costs to release the movie. Lions Gate released 5 movies in theaters in the second quarter, an increase from just one the year prior. The company has yet to see the benefits from home video sales of these releases, which is set for the third quarter. Lions Gate also cited the expense of integrating Summit Entertainment as a cause of profit loss. Lions Gate acquired Summit Entertainment, which made such films as "Twilight," for $412.5 million in January.

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Prices Rise in Brazil as Country Develops Steadily

13/08/12 05:30
Brazil's Energy Minister Edison Lobao reportedly stated recently that the country needs to raise fuel prices, although a formal decision has yet to be made. In June the state-run fuel company Petrobas (NYSE: PBR) raised prices for diesel and gasoline. In July it raised prices for diesel again. These raises were in an effort to fund its $237 billion investment plan that runs through 2016. Higher costs of imported fuel and the weakness in Brazil's currency led to Petrobas' first quarterly loss in 13 years for the second quarter. Analysts were expecting a profit as opposed to the $667 billion loss. Domestic output fell 2.4% year over year as Petrobas conducted maintenance work and closed some wells. The price increases are expected to bring Petrobas back into profitability.

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NRG Purchases GenOn

26/07/12 09:30
NRG Energy, Inc. (NRG) recently announced a $1.7 billion stock purchase of GenOn Energy, Inc. (GEN), making NRG the largest U.S. Independent electricity generator. In the deal, GenOn shareholders will receive 0.1216 share of NRG common stock for every one of their GenOn shares. This represents a 21% premium over GenOn's previous closing price. The combined companies will operate under the NRG name and bring together an enterprise value of $18 billion. The deal is scheduled to close by the first quarter of 2013.

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Hershey Plans for Growth

23/07/12 13:53
The Hershey Company (NYSE: HSY) recently announced its 5-year growth plan with some very optimistic expectations. The company is targeting $10 billion in net sales by the end of 2017. As part of a new strategy the company will be focusing on five core brands: Hershey's, Reese's, Hershey's Kisses, Jolly Rancher, and Ice Breakers. CEO John Bilbrey said in a statement, "Our marketplace and financial results over the last few years validate our consumer-driven approach to core brand investment in both U.S. And key international markets." The Hershey Company is a leading manufacturer of quality chocolate and non-chocolate confectionery and chocolate-related grocery products. The company is also a leader in the gum and mint category. Hershey operates worldwide with revenue of more than $5 billion.

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The Case for Russia and Poland

18/07/12 08:32
Russia is the world's largest country in terms of territory. Its consumer market consists of over 140 million people. It has vast resources, a highly educated workforce, and technologically advanced research and production capabilities. Still, Russia's economic potential remains largely untapped. Many investors shy of Russia amid growing concerns that the political system in the country is breeding dissent among the population.

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Spanish Companies at a Discount

21/06/12 08:07
Europe is facing a lot of doom and gloom in the press lately, especially with regards to Spain and Greece. This mentality is pushing stock prices of some fundamentally good companies down, making the current fiasco a buyer's market. Spain especially has a lot of value to offer investors at a steep discount. For all of the country's mounting economic problems, there are still companies within this country that are far from crisis status. They have a good solid foundation, global business models, and are far from nearing the end of their reign.

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FXCM Leads the Way in Forex

20/06/12 14:44
Forex refers to the market in which currencies are traded. The forex market is the largest, most liquid market in the world with an average traded value that exceeds $1.9 trillion per day and includes all of the currencies in the world. The market is open 24 hours a day and currencies are traded worldwide. When forex trading first started popping up, the markets were very risky. It was new and so the rules and regulations were a bit confusing and a bit slim. The high volatility of the currency markets was, and for the most part still is, a factor that most investors have trouble stomaching. The internet is flooded with trading systems promising to make you rich. Everyone claims to be an expert. However, as more and more reputable sources are touting the successes of forex trading, the market is slowly growing.

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HomeAway Leads the Travel Industry

20/06/12 10:26
According to David Huether, senior vice president of economics and research at the U.S. Travel Association, "The U.S. travel industry continues to be one of the prime drivers of our nation's economic recovery, adding 7,000 new American jobs in April, bringing total direct employment to 7,581,000. Travel job growth was driven by the restaurants, lodging and airline sectors, offsetting declines in amusements, gambling and recreation." Huether provided this analysis in response to employment numbers from April 2012. In addition to job growth the travel industry is also seeing a higher number of travelers this year, responding to lower gas prices and higher job stability. The U.S. Travel Association forecasts a national 3% gain in travel this summer season, May through October.

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Spanish ETFs That Provide Good Value on Discounted Spanish Companies

19/06/12 14:05
Europe is facing a lot of doom and gloom in the press lately, especially with regard to Spain and Greece. This mentality is pushing stock prices of some fundamentally good companies down, making the current fiasco a buyer's market. Spain especially has a lot of value to offer investors at a steep discount. For all of the country's mounting economic problems, there are still companies within this country that are far from crisis status. They have a good solid foundation, global business models, and are far from nearing the end of their reign. If one is looking for a low-risk investment alternative, there are many ETFs that provide exposure to these Spanish companies.

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Macau's Gambling Vice

18/06/12 14:29
Steve Wynn, chairman of Wynn Resorts' (NASDAQ: WYNN) Wynn Macau, told reporters earlier this month of plans to spend $4 billion on a second casino in Macau. A brave plan to announce at a time when Macau's casinos are beginning to feel the China slowdown. In 2008-2009 when China experienced an economic crisis the government responded with a $585 billion stimulus. A portion of that money made its way to the casinos in Macau. The same type of economic stimulus package is not in the cards this time around, though. And Macau's casinos are beginning to feel it. The recent growth rates are minimal compared with the growth rates the casinos have experienced in the past.

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EverBank Offers Good Products and Good Value

15/06/12 07:29
EverBank Financial Corporation (NYSE: EVER) has been on my radar for quite some time. The product that originally drew me to this bank was their CDs. Most banks offer CDs, but with the recent recession the rates have continually slid downhill. What makes EverBank so special is that they offer foreign currency CDs. Depending on the currency this allows them to offer much better rates than most U.S.-denominated CDs. For example, their Brazilian real CD currently provides an APY of 4%, while the Indian rupee and South African rand each come in at 3.5%. One would be hard-pressed to find a better rate than those in U.S. Currency CDs. This is what sets EverBank apart from the rest.

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Hong Kong and Singapore

13/06/12 14:30
Asia holds one of the greatest growth opportunities in terms of emerging markets. The area is ripe with resources and is one of the few places in the world where underdeveloped countries neighbor developed countries. The time to invest in this region just keeps getting better. China is continually facing pressure from the U.S. Along with other trading partners and developed nations as it pertains to its currency. The Chinese currency has long been a gripe of most investors. It is not pegged to anything and floats rather freely on the moods of China's fiscal policy makers. Instead of giving in and pegging its yuan to a more suitable fixed currency, China is looking to partner with other countries to lessen the currency divide. The two places that China is looking to for help in the globalization its currency are Hong Kong and Singapore.

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4 of the Newest iShares Emerging Market ETFs

13/06/12 10:18
Emerging markets are a favored investment arena. One of the draws is that the players are always changing. ETFs are abundant in this area as the barriers to investing in emerging markets for individual investors are difficult to overcome. This is why ETFs in emerging markets are increasingly popular and growing. Each year there are more and more ETFs providing exposure to emerging markets. Here are four ETFs that are not even one year old.

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Seeking Alpha "Will Tokyo Take The Gold?"

31/05/12 16:04
Tokyo, Japan, will be competing against Istanbul, Turkey, and Madrid, Spain, to host the 2020 Olympic Games. The winner will be selected by the International Olympic Committee (IOC) on September, 20, 2013. These three short-listed candidates have 15 months to lobby for votes and impress the committee. This is Tokyo's second bid to host the Olympic Games and they are already a favorite. Tokyo has put aside 400 billion yen to ensure funding and would build 20 new venues to accommodate the event. Doha, Qatar, and Baku, Azerbaijan, were recently dropped from the list of applicants. The IOC determined that Baku's infrastructure and experience were not sufficiently developed at this point in the process.

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Seeking Alpha "Buy Low, Buy Brazil"

31/05/12 16:03
Brazilian stocks took a tumble this past Thursday and equities pushed toward their third consecutive loss. The Ibovespa Index (BVSP) fell 1.8%, bringing it to a loss of 14% this month. It is not at its lowest level since October. In addition, Vale S.A. (NYSE: VALE), Petrobas (NYSE: PBR), and Banco Santander Brasil S.A. (NYSE: BSBR) experienced declines. Vale fell by 1.1%, Petrobas fell by 2.2%, and Banco Santander fell by 7%. This was Banco Santander's first loss in five sessions. In addition to stocks declining, the Real pared losses against the U.S. dollar.

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Seeking Alpha "Guess Cash May Lure Buyers"

28/05/12 05:22
On Tuesday Guess (NYSE: GES) slumped to nearly a three-year low. The designer/retailer was valued at almost 3.5 times earnings before interest, taxes, depreciation, and amortization. That is the lowest of any apparel retailer in the U.S. and less than half of the median. This is Guess' first consecutive drop in profit in eight years. The global economic slump has done little to help in this area. Also, stiff competition is eroding the profit margins. Guess has sank 41% in the past year as the eurozone crisis undercut consumer demand and lower-priced brands pushed its operating margins to a six year low. This does not bode well for the company.

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Seeking Alpha "Big Lots Reports Earnings Miss"

28/05/12 05:20
Big Lots (BIG) posted some disturbing numbers for Q1 2012 when it reported earlier this week. The closeout retailer posted a net income decline of 22% on 5.5% higher sales. Earnings per share and adjusted earnings from continuing operations were both down. For Q2 2012, Big Lots expects to earn a mere 37 cents to 42 cents per share from continuing operations. Same-store sales are expected to range from slightly positive to slightly negative. This is a bit disconcerting, given that consumer spending is up and other retailers fared much better in the first quarter of this year.

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Seeking Alpha "MetLife To Increase Emerging Markets Sales"

28/05/12 05:18
MetLife (NYSE: MET) is planning, among other things, to increase sales in emerging markets. The New York-based insurer is looking to increase sales in emerging markets to approximately 20%. It has stated that the opportunity to earn higher returns is greater in emerging markets. It expects this plan to leverage its global footprint and capitalize on trends and opportunities in key markets. This is a great plan for MetLife. It wishes to continue this growth pattern until 2015, increasing sales in emerging markets 20% each year. That is a sensible plan. Not too fast, but not slow enough to miss out on the opportunities either.

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Seeking Alpha "Motel 6 Has Been Sold"

25/05/12 08:11
French hotel company Accor announced Tuesday that it has plans to sell its low-cost chain Motel 6 to Blackstone Group (BX) for $1.9 billion. This sale is an effort for Accor to cut debt and shift their efforts away from the U.S. toward high-growth emerging markets. They plan to use a portion of the proceeds from the sale to cut the company's debt by approximately EUR330 million. Other proceeds will be used to expand into growing markets such as the Asia-Pacific region and Latin America. Accor is also seeking to shift to a franchise model similar to that of competitor InterContinental Hotels Group (IHG). They expect this move to result in fewer revenue swings by partnering with the owners of the hotels as opposed to owning them directly.

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Seeking Alpha "Best Buy Gets Mixed Reviews"

25/05/12 08:10
Best Buy (BBY) posted its Q1 2012 financial figures Tuesday morning. Its Q1 2012 profit fell to $158 million from $212 million in the same quarter the year prior. However, revenue saw a slight increase to $11.61 billion from $11.37 billion in the same quarter the prior year. This could be a double-edged sword for the company. Profit slipped, but revenue topped estimates. One could interpret this to mean several things.

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Seeking Alpha "Paulson Recommends AngloGold Ashanti"

24/05/12 13:59
AngloGold Ashanti (AU) has gained some attention lately as one of John Paulson's top picks. He notes that gold stocks have badly trailed metal prices and AngloGold Ashanti is at its lowest valuation in 10 years. Paulson is a big name in American hedge funds and has a multitude of followers in the investing world. His picks are widely watched and accepted.

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Seeking Alpha "Regal Entertainment, Carmike, and AMC Should Have a Great Summer"

24/05/12 13:56
The movie theater business has been around for more than 100 years and continues to increase in popularity and technological innovation. Today's theaters offer a variety of options catering to different tastes. Most theaters today also have additional revenue sources, such as concessions, arcade style video games, or a full dining experience while you enjoy the movie of your choice.
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Seeking Alpha "Japan's Market is Looking Up"

09/05/12 07:18
Japan's market took a nose dive following last year's earthquake and nuclear disaster. But Japanese stocks may already be poised for a comeback. Consumer spending is already improving and corporate earnings are expected to rise 69% this year. Currently, Japan's equities are the most expensive among the world's 60 biggest markets. The Nikkei 225 is up 35% since March 2009. Policy makers in Japan have committed to spend 20 trillion yen to rebuild and spur economic growth. Also, the Bank of Japan pledged in April to continue adding monetary stimulus.

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Seeking Alpha "Slovenia Credit Rating Downgrade Prompts New Austerity Measures"

19/01/12 09:25
On January 12, 2012, Standard and Poor’s downgraded the credit rating of nine eurozone nations. Slovenia was one of them. S&P downgraded the Eastern European nation to A+. Slovenia adopted the euro in 2007. The nation’s public debt has increased from 38.8% of GDP in 2010 to an expected 50.1% of GDP in 2012. At the same time, the public deficit as it pertains to GDP has remained constant.

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Seeking Alpha "Invest In Turkey's Oil Future Through ETFs"

19/01/12 09:23
Europe might be feeling a bit slighted by Turkey in reference to their proposed Nabucco pipeline that will transport natural gas from Asia into Europe. The benefits and viability of Nabucco for the countries involved have been difficult to pinpoint. Turkey has shown support for the pipeline in the past. Recently, however, Turkey’s energy minister, Taner Yildiz, signed an agreement with Azerbaijan to construct an estimated $5 billion Trans-Anatolian natural gas pipeline.

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Seeking Alpha "Manufacturing Optimism Results In Gains For Emerging Markets"

09/01/12 13:13
Global manufacturing optimism turned into gains for emerging market economies this past week. From this perspective it would seem that the global economy is weathering the eurozone crisis without too much wear and tear. Expectations are so low for the markets coming into 2012 that any good or not-so-bad news is having an immediate positive impact.

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Seeking Alpha "Japan and China: New Currency Pact Lifts Chinese Yuan Status"

09/01/12 11:07
China and Japan reached an agreement on what is being referred to as a currency pact in December. As part of the agreement Japan will hold Chinese bonds as part of its foreign exchange reserves. Tokyo will purchase about $500 million worth of Chinese government bonds this year. Japan will likely add yuan slowly to its forex reserve, building its yuan holdings to around $10 billion over the next five years. The small size of the Chinese bond market will limit the pace of accumulation. Currently the US dollar makes up 80% - 90% of Japan’s forex holdings. By adding yuan-denominated bonds to its reserve holdings Japan will join the ranks of Nigeria, Malaysia, Thailand, and Chile.

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Seeking Alpha "How To Buy Into Turkey's Record Export Growth"

04/01/12 21:57
Turkey hit export growth records for 2011. The country now has one of the highest growth rates in the world. Exports increased a record 18.2 percent reaching $134.6 billion. Still, the government expects output to be half next year as the eurozone crisis continues to take hold. Turkey is currently the world’s 17th largest economy. Still, with record trade and an ever-growing economy, Turkey’s lira is poised for investment. There is no ETF directly tied to Turkey’s currency. However, the WisdomTree Dreyfus Emerging Currency ETF (CEW) does provide exposure to the lira. The iShares MSCI Turkey Invest Market Index ETF (TUR) provides direct exposure to Turkey mainly through financial services holdings.

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Seeking Alpha "It's TIme To Invest In Brazil And The Real"

04/01/12 21:55
Brazil has been spending a lot of money on infrastructure in recent years. It has also been busy cleaning up the slums in Rio de Janeiro. Police and military personnel have been moving in to take control while the cartels have been slipping away in the middle of the night. They are also working diligently to bring electricity and sewer systems into these neighborhoods, elevating the living situation for the hundreds of thousands that call the favelas home. Brazil is also rich in land, resources, and labor. It has a great advantage in trade as well.

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Seeking Alpha "Argentina Combines Rosario Exchanges, Appealing to Long-Term Investors"

04/01/12 21:54
Argentina’s Rosario Stock Exchange and Rosario Futures Exchange (ROFEX) are planning a merger that would boost competition with the Buenos Aires Stock Exchange in equity derivatives products. The combined exchanges would have the power to produce indices of its own. ROFEX has been looking for ways to increase its international visibility and plans to introduce a multi-asset class trading platform in the first quarter of 2012.

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Seeking Alpha "Qatar Must Practice Energy Innovation To Grow Its Economy"

04/01/12 21:51
According to the International Monetary Fund, Qatar’s economic growth will slow next year as well as face an increased risk of lower oil and gas pricing. All this comes as a result of weaker global demand. Still, most agree the outlook is positive for this Middle Eastern nation rich in resources and land. Qatar is the world’s top liquified natural gas exporting economy, and as such, expanded at double-digit rates in 2011. Qatar also has plans to spend quite a bit on infrastructure in preparation for the 2022 World Cup. Still, the country cannot overlook external risks that reach as far as the euro zone crisis -- specifically, lower oil and gas prices and increased geopolitical tensions.

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Seeking Alpha "Istanbul Takes Measures to Attract Foreign Investors"

04/01/12 21:49
Since 1998, the Istanbul Stock Exchange has spent $1 billion building 400 schools across Turkey. Now the Turkish administration is moving to assert greater regulatory control over the exchange. The government passed a decree last month aiming to consolidate the Istanbul Stock Exchange with TurkDex, the country’s derivatives exchange.

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Guru Focus "Croatia and Serbia in a New iShares ETF"

04/01/12 21:47
Croatia is going through the motions to become the 28th member of the European Union. Many see this as a step in the right direction for Croatia’s political and economic future. However, with the euro zone crisis looming, it might be some time before the nation sees a payoff. The EU cannot solve a country’s problems. Just the process of applying for EU membership has brought about important changes for Croatia, but there is more work to be done. EU membership would not only provide economic benefits, but also stability for Croatia. Croatia will officially join the European Union in July 2013. EU membership could equal greater foreign investment and export growth. That might not be soon enough. The Balkan state was hit hard by the global financial crisis and analysts expect it to slip back into recession in 2012. Croatia’s unemployment rate is currently one of the highest in Europe at around 17.4%.

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Seeking Alpha "Thailand's New Banking Policies"

03/01/12 14:29
Thailand is currently experiencing the socioeconomic problem of a missing middle class. There is a great divide between the country’s highest earning and lowest earning groups. The country’s highest earning group is benefiting from increased connectivity through technology. Some members of the middle class have just emerged from poverty and are earning the majority of their income through labor. The lowest bracket in this group is feeling the most pressure about their future. In Thailand, the richest 20% make almost 60% of the income. The poorest 20% made only 4% of the income. This disparity has Thailand ranked last place amongst its neighbors. The disparity between the rich and the poor is similar to what was seen in Russia after the collapse of the Soviet Union. Slowly, Russia’s middle class is gaining in members. Economic policy reform has been painstakingly slow in Russia, but progress has been made. Analysts feel that policy reform in Thailand should focus largely on limiting monopolies and deterring corruption.

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Seeking Alpha "The Rupee's Continued Decline"

23/12/11 08:58
The devaluation of the rupee has been all over the international news this past week. It is of great concern to the global economy. The decline in the Rupee is a major source of distress for India. The only BRIC country in 2010 to see a decline in foreign direct investment, India is facing desperate times. The rupee is the worst performing currency in Asia, having fallen more than 17% this year against the dollar. The decline is creating financial stress for Indian companies that have traded in dollars. The rupee is increasingly vulnerable.

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Seeking Alpha "Investing in the Argentina Shale Boom"

20/12/11 08:56
Argentina energy company YPF’s (YPF) potential 1 billion barrel discovery could lead Argentina in to a shale oil and gas boom similar to the one that transformed the U.S. energy industry. The reserves adjacent to a Patagonian field were over six times larger than originally anticipated. The former state monopoly hopes to have more production details on a third well by the beginning of the year. YPF owns interest in proven reserves that hold more than 5.4 billion barrels of oil equivalent and produces more than a million barrels of hydrocarbon oil equivalent per day. The company has processing plants in Argentina and Spain. It is the largest private energy company in Latin America. YPF pays a steady dividend to its shareholders and the share price remains relatively stable.

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Seeking Alpha "Australia's Mining Woes"

23/11/11 08:50
Though Australia’s Prime Minister keeps saying that she doesn’t see cause for any concern, the rest of the world certainly sees it looming. Australian mining has been the example of success in recent years, but all signs now point to that slowing. The major problem with the mining community down under is that distribution is singular. China remains their main customer. China is facing problems of its own at the moment. Its population control policy has been effective and as the workforce population declines it is facing strategic shifts in its manufacturing industry. With the population slowing and China moving to compensate, its demand for minerals from Australia will also slow. This will greatly slow down Australia’s mining industry, which happens to be its most profitable industry at the moment. Australia needs to start a major marketing campaign for this industry. Yet with its own Prime Minister not seeing the concern it might be too little, too late.

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Seeking Alpha "The Potential in Eastern Europe"

21/11/11 08:49
The eyes of the world's financial markets and economies are fixed on Europe. Some predict that a failure by Germany to bail out Greece will result in the collapse of the eurozone. Others predict it will happen anyway. Right now the world is not in favor of betting on European markets staying in tact. But how is this affecting Eastern Europe? And what effect will this have on Europe's Eastern counterparts in the long run?

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Seeking Alpha "3 ETFs to play China's Population Decline and Shift in Manufacturing"

17/11/11 08:45
Once upon a time, China was the low-cost manufacturing giant. Times have changed as China's population control policies have been effective, draining their once dense workforce. There aren’t as many people to fill jobs, or those willing to be paid a low wage for unskilled labor.

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Seeking Alpha "Investing In Brazil's Upcoming Infrastructure"

15/11/11 11:18
The announcement to bring the 2016 Olympics to Rio de Janeiro, Brazil, has brought about big changes in the area’s slums, or favelas. The police have been working with special forces commandos to regain control of these heavy trafficking areas. The commandos move in to clear it out and the police come in and set up base. They are also bringing in health care and electricity to these areas. The residents are happy to see these changes and the traffickers are on the run. Positive things are happening in Brazil. Just this past week they took over one of Rio’s largest slums and also arrested one of the most wanted drug traffickers in the process. Perhaps the most surprising part of this story was a policeman turning down a 6 figure bribe. Now that is progress. Everything appears to be on the way up for Brazil. They are making all of the changes necessary to be taken seriously by the outside world. With electricity being brought into the slums that were once untouched, this would be a wonderful time to invest in Brazil’s infrastructure.

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