Friday, July 22, 2005

Morning Update

"When I hear somebody say 'Life is hard', I am always tempted to ask, compared to what?" - Sydney J. Harris

Morning News of Note:
  • MSFT: Conference Call Summary (26.44 +0.25)L -Update- Co states they are happy with the progress made on the share buyback during the quarter... continue to see that as a significant part of cash return to shareholders... also achieved one-time dividend and regular dividend last year.... not anticipating any changes in current philosophy.... 'We continue to have very strong cash flows and very well positioned from a cash perspective... will continue the programs we've got in place'... co states they are encouraging people to look at the results after stock-based compensation... states that in general think the economy remains stable with N. America in a little better shape than Asia Pacific and Europe.... saw corporate profits improve slightly and expect some of that to carry into Y06; 'IT spending looks reasonably'... remain optimistic about the role that technology will continue to play in the global economy.
  • SNE: Sony Does More To Court Creators For PlayStation 3 Sony Corp. stepped up its efforts to woo game creators to the next generation PlayStation videogame console, unveiling measures to help developers work with the games' increasingly sophisticated graphics. Sony Computer Entertainment Inc., Sony's videogame unit, said it has tied up with three specialized makers of software to simulate realistic physical effects -- such as crashes and explosions -- and will make the software available to PlayStation 3 game creators. (Full Story) WSJ
  • NOK: Hoping to Dial Into Cell Phones' Future Nokia, Finland's Biggest Company, Betting on Music, TV, Games and Internet Nokia Corp., the world's largest producer of mobile telephones, could make good use of a time machine. For Nokia, seeing the future is a life-and-death matter. Few industries change faster than the cell phone business, as Nokia was reminded several years ago when it missed the "clamshell" wave. (Full Story) Washington Post
  • DVD Sales: Heard on the Street... Media Companies Can't Rely on DVD Sales In the past five years, DVD sales of films have been a safety net for several big media conglomerates, providing steady profit growth as other parts of the business fell off. But the net may be fraying. Last week, DreamWorks Animation SKG created a stir on Wall Street and in Hollywood when it disclosed that lower-than-expected DVD sales of "Shrek 2" meant it would likely post a second-quarter loss and report lower-than-anticipated full-year earnings. (Full Story) WSJ
  • CSCO: Co announces it will acquire privately-held KiSS Technology A/S of Horsholm, Denmark. This represents Cisco's second acquisition for its Linksys division. KiSS is a provider for networked entertainment devices and has a product portfolio that includes home video products such as networked DVD players and networked DVD recorders. Under the terms of the agreement, Cisco will pay approx $61 mln in cash and stock in exchange for all shares of KiSS Technology.


Market Comments: The market is up on the open today, after strong earnings last night from BRCM, MSFT, and GOOG. BRCM results were much better than expected, with raised guidance, and the stock is up nearly 15% this am. MSFT and GOOG also reported solid numbers, but guidance was relatively cautious, and the stocks are down in early trading.

A little consolidation here would not be a bad thing. I would like to see the market work off this overbought condition, as well as bring some more bears out of hiding. Oil stocks are also very strong today, after SLB reported great earnings.

long BRCM, MSFT

1 Comments:

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