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Archive for the ‘Industry News’ Category

Newspapers Beat Local TV

Posted by rantaboutit on February 16, 2007

Newspapers Beat Local TV

According to a media research firm, the newspapers are making more money from online video advertising than local TV stations, $81 million to $32 million. TV stations have a mass audience compared to targeted audience on the internet. Newspapers have been selling customized solutions, with particular success in converting help wanted and automotive classified advertisers. Time Warner Cable TWX in North Carolina is producing original video advertisements for local merchants.

This is pretty intuitive. If you know your target audience it is much more easier to sell. It is estimated that local online video advertising will surpass $5 billion, representing more than one-third of all local online advertising.

U.S Trade deficit
The U.S. trade deficit stands at $763.6 billion compared with $716.7 billion in 2005. In the month of Decemeber the trade deficit widened to $61.2 billion exceeding analyst estimates of $59.5 billion. Trade deficit was reduced in the month of September, October and November due to lower oil prices. However with increase in oil prices that scenerio has changed. December imports rose 2.1% to $186.7 billion, while exports were up 0.6% to $125.5 billion. With the increasing trade deficit, the US dollar will become weaker and weaker. This would eventually mean that investors would have more faith in basic materials (Gold and Silver) over the currency.

Pfizer over the counter

Three of the Boots pharmacies in London, will allow men to buy the impotence drug Viagra, manufactured by Pfizer Inc. PFE, without a doctor’s prescription.The cost of the drug will be $97 for four pills. I believe this is a good marketing move. This will definitely boost sales.


IBM soon to challenge Intel
IBM IBM plans to announce breakthrough in the production of DRAM (dynamic random access memory) chip technology used in PCs. This will be a challenge to Intel INTC. The new technology will act as a temporary storage unit, holding data inside a microprocessor while it is being processed. IBM claims the new technology will speed up the performance 10 times the current speed. This will definitely be something to look out for and will directly affect the stock prices in the longer run.

Southwest gets greedy
Southwest Airlines LUV is famous for air-tickets at discounted rate. Southwest is the only carrier to report profits in every quarter since the Sept. 11 attacks. You can state that in the competitive world of airline industry, Southwest has been the clear winner. However in 2006, SouthWest has raised its fares 6 times. Again recently they raised it by another $10. Other airlines are expected to follow. So why is Southwest raising fares ? This one is a no-brainer. Increasing oil prices, high maintenance cost and pressure to raise revenue says it all.

Indian stocks take a dive

Country’s central bank decided to increase the amount cash lenders must set aside to cover deposits. Inflation is the culprit that has accelerated to the fastest pace in more than two years. Wholesale price inflation increased to an annual rate of 6.58%. Indian index mutual funds and ETFs are off sharply this week and the financial sector has been particularly hard hit. The India Fund ETF IFN has been shaky all week.

For more information, here is an article from Brad Hessel

Are Photoblogs potential threat to photography stock market
Dan Heller quotes

The internet has brought down the barriers that have kept consumers out of the photo business in the first place. Now that they’re here, they have fundamentally altered the photo industry, whether intentional or not, and whether other photographers like it or not.

Alot of people look at Flickr as a medium to share/view brillaint photographs. Bloggers look at it as a photo repository where they can tag their photos and make it available to the world. However there is a potential that photoblogs can grow into a market of its own and give traditional stocks a run. Watch out Getty Images GYI and Jupitermedia JUPM.

(Source: SeekingAlpha)

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Posted in Airline, Asia, Health Care, Industry News, Technology | Leave a Comment »

Economic Indicators: Few interesting numbers…

Posted by rantaboutit on February 1, 2007

Stock market investors are always closely looking at the economics indicators to decide between buying or selling a stock. Yesterday the Feds decided to keep the interest rate at 5.25%. Had there been any change in the numbers, the stock market would have crashed, the obvious reason being that most of the company’s earnings would go down if the interest rate increased. However that was not the case and Feds came out saying they wont increase the interest rate and the inflation is under control. This news resulted in a bull market. Lets look into some numbers which might give us some clue as to where the stock market is going.
  1. The U.S. economy surged forward with a surprising 3.5% growth rate in Q4 2006. GDP growth was 2% in Q3, and analyst had estimated 3% Q4 growth. That means the growth rate was more than anticipated. Good for stock market !!
  2. Consumer prices fell 0.8% in Q4 which makes it their first drop in 45 years.
  3. Disposable income was up 5.4%, and personal savings were up to -1% from -1.2%. That means Americans had more money to spend !! Again good for stock market !!
  4. Consumer spending was up from 2.8% to 4.4%. Again good for stock market.
  5. Residential investments were down 19.2%. This is bad for the housing market and housing stocks.
  6. Exports were up 10%, and imports were down 3.2%. This is excellent news. That means we are producing more and catering to world markets.
  7. Government spending was up 3.7% including a 11.9% rise in defense spending, the biggest jump since the war began. This is not good for the economy as a whole, though its good for defense stocks.

Conclusion: Some numbers were positive and some were negative. However overall the economic indicators look good and we are looking at a good year ahead. Keep a close watch at the interest rates and inflation to understand where the U.S. economy and stock markets is heading.

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MySpace rules the web…

Posted by rantaboutit on January 29, 2007

An article i was reading listed the 20 most popular websites where people spend time. I should admit i was pretty much surprized after going through the list. I was expecting Google to top the list but turns out that isnt true.

So, the big question is, where do we spend all our time online? Which websites are more successful in capturing our attention compared to others?

Lets go over some facts

  1. The Top 20 Websites add up to 39% of all our time spent online.
  2. MySpace, a social networking site owned by News Corp tops the list by a big margin.
  3. Surprizing Yahoo YHOO is ranked #2, thanks to Yahoo Finance, Flickr and Yahoo portal.
  4. Google GOOG is ranked #5 well below msn.com owned by Microsoft MSFT ranked #3 and eBay EBAY ranked #4. People spend 4 times less time on Google than Yahoo.
  5. YouTube a popular video sharing website makes it to the list at rank #12
  6. Adultfriendfinder.com also finds a place in the list suggesting need for a friend or two for the lonely Americans.
  7. Some of the expected sites were Amazon AMZN, Craigslist.com and Wikipedia.org
Conclusion: Only 2.1% of our time is spend on Google. This stands out to surprize everyone. However if you think clearly you will realize that we end up using Google services like Gmail, Google Maps, Google search as quick read or look up. But we end up spending more time on social networking sites and portals with loads of contents.

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