Changing the world, one word at a time…

Instant Video Not Enough for Netflix, Amazon

24/08/12 14:50 Filed in: Seeking Alpha | Media
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 Filed in: Seeking Alpha | Industrial
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 Filed in: Seeking Alpha | Media
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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Morning Coffee Changes It Up

16/08/12 07:57 Filed in: Motley Fool Blog Network | Food
Dunkin' Brands Group (NASDAQ: DNKN) recently announced that certain stockholders will sell about 21 million shares in a secondary offering, with those investors receiving the proceeds. The chain also stated that it plans to buy back 15 million shares from certain stockholders. That is not the only good news tied to this company. The company's second quarter earnings rose 7.6%. Sales rose much faster than expected leading the company to raise its profit expectations for the year. Since the company went public in July 2011, Dunkin' Brands has been busy opening new doughnut shops and improving its U.S. Baskin Robbins business. The company has also been expanding internationally and paying down its debt. This year Dunkin' will be expanding its business both in the U.S. and abroad, making this a high growth stock.

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PepsiCo Changing the Lineup

15/08/12 17:07 Filed in: Motley Fool Blog Network | Food
Pepsico (NYSE: PEP) recently announced that it will be pulling its low-calorie “G Series Fit” line of Gatorade products from shelves after they failed to catch on with hardcore fitness buffs and athletes.  The line, which launched in April, included a pre-workout protein bar, protein drink, and low-calorie version of the sports drink.  The company hopes to redesign the products and packaging in 2013, hoping to have the line back on the shelves in 2014.  The line was pricey and did not perform to the company’s expectations.
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Brokerages Lose Volume

14/08/12 16:06 Filed in: Motley Fool Blog Network | Financial Services
E*TRADE (NASDAQ: ETFC) recently announced that CEO Steven Freiberg is on his way out and chairman Frank Petrilli will be taking over as interim chief executive.  The board has formed a committee to oversee the process of searching for a long-term chief executive.  Raymond James analysts “believe this was a decision based on finding a different skill set at the CEO position.”  The company is searching for a new CEO to focus on strengthening its financial position as it adjusts its business strategy.  As individual consumers pull money out of the stock market, this online brokerage has been struggling.  E*TRADE’s net income dropped 16% in the second quarter year over year as there was lower trading activity.  The company is now trying to focus on managing costs and decreasing risk to strengthen earnings.
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The Effect of Slowing PC Sales

14/08/12 16:05 Filed in: Motley Fool Blog Network | Tech
Nvidia (NASDAQ: NVDA) recently reported that its second quarter profit fell 21% as the chip maker logged higher operating costs, masking revenue growth.  The company actually reported revenue at the top end of its guidance for the quarter and earnings beat analysts’ expectations.  For the current quarter, the company expects revenue of $1.15 to $1.25 billion, topping average analyst estimates that predicted $1.09 billion.
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Organic Foods Take Hold

13/08/12 05:37 Filed in: Motley Fool Blog Network | Food
Recent reports from Dean Foods (NYSE: DF) showed the dairy giant swinging to a profit in the second quarter.  The company also said that it would spin off a fast-growing unit that sells organic dairy products and soy milk.  Dean Foods is planning to launch an IPO for 20% of its White Wave-Alpro unit, which makes popular brands including Horizon organic milk, Silk soy almond milks, and Alpro soy foods and drinks.  Dean Foods will retain the remaining 80% of the unit.  This news gave Dean Foods one of the largest percentage gains that day.  This move is smart as White Wave-Alpro and Dean Foods offer different products aimed at different customers.  The spin off will allow the units to be managed separately following different philosophies.
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Online Travel Falls Short

13/08/12 05:31 Filed in: Motley Fool Blog Network | Travel
Priceline (NASDAQ: PCLN) recently reported a disappointing third quarter profit outlook, expecting earnings per share of between $11.10 and $12.10.  An earlier forecast had the estimate set at $12.82 per share.  The company stated that economic conditions in Europe were the main reason for its forecast.  Stifel Nicolaus analyst George Askew cut his rating on Priceline to a hold from a buy, stating the company “is transitioning from a momentum stock to a growth stock.”  The results for Priceline are certainly not good, but this company is not being singled out.  It seems the larger online travel industry is slowing down, not only losing momentum, but losing a bit of their growth as well.
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Prices Rise in Brazil as Country Develops Steadily

13/08/12 05:30 Filed in: Seeking Alpha | Brazil
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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