Baidu.com sees Q3 revs $611-626 mln vs $561.01 mln
Comments »Monthly Archives: July 2011
Flash: Netflix sees Q3 $0.72-1.07 vs $1.08 Capital IQ Consensus Estimate
NFLX sees Q3 Total subscribers of 24.6-25.4 mln
Netflix beats by $0.14, reports revs in-line; guides Q3 EPS below consensus, revs below consensus (281.53 +4.95)
Reports Q2 (Jun) earnings of $1.26 per share, $0.14 better than the Capital IQ Consensus Estimate of $1.12; revenues rose 51.7% year/year to $788.6 mln vs the $791.2 mln consensus. NFLX sees Q3 Total subscribers of 24.6-25.4 mln . Co issues downside guidance for Q3, sees EPS of 0.72-1.07 vs. $1.08 Capital IQ Consensus Estimate; sees Q3 revs of $799.5-828.5 mln vs. $845.58 mln Capital IQ Consensus Estimate.
Pricing Commentary: It is expected and unfortunate that our DVD subscribers who also use streaming don’t like our price change, which can be as much as a 60% increase for them from $9.99 to $15.98, when it goes into effect for each subscriber upon their renewal date in September. Some subscribers will cancel Netflix or downgrade their Netflix plans. We expect most to stay with us because each of our $7.99 plans is an incredible value. We hate making our subscribers upset with us, but we feel like we provide a fantastic service and we’re working hard to further improve the quality and range of our streaming content in Q4 and beyond.
Pricing Changes and Effect on Subscribers: In Q3 we will see only the negative impact of the pricing change, given that the announcement was early in the quarter and that the increases won’t take effect until late in the quarter (September 15th on average). We expect domestic net additions in Q3 to be lower than the previous year Q3, and because of the timing of the price change, revenues will only grow slightly on a sequential basis. In Q4, we expect domestic net additions to return to a pattern of year-over-year growth while revenue will reflect a full quarter’s impact of the pricing changes, which could result in Q4 being our first billion dollar global revenue quarter, driven by strong U.S. performance.
Comments »Flash: Broadcom prelim $0.72 vs $0.63 Capital IQ Consensus Estimate; revs $1.8 bln vs $1.80 bln Capital IQ Consensus Estimate
Broadcom beats by $0.09, reports revs in-line (34.91 -0.56)
Reports Q2 (Jun) earnings of $0.72 per share, $0.09 better than the Capital IQ Consensus Estimate of $0.63; revenues rose 12.5% year/year to $1.8 bln vs the $1.8 bln consensus. Product gross margin was 51.1%. Co states, “Looking forward, we see strong demand for our communications solutions, reinforcing that innovation is driving customer demand. We expect solid growth in revenue and profitability in Q3.”
House unveils new debt bill
Comments »WASHINGTON (AP) — In a blunt challenge to President Barack Obama, House Republicans drafted legislation Monday to avert a potentially devastating Aug. 2 government default — but along lines the White House has already dismissed. U.S. and world financial markets shrugged off the uncertainty.
“This is a city where compromise is becoming a dirty word,” Obama lamented as congressional leaders groped for a way out of a looming crisis.
In stinging remarks a short while later on the Senate floor, the Republican leader, Mitch McConnell of Kentucky, urged the president to reconsider his position rather “than veto the country into default.”
According to a GOP aide familiar with the emerging House bill, it would provide for an immediate $1 trillion increase in the government’s $14.3 trillion debt limit in exchange for $1.2 trillion in cuts in federal spending.
The measure also envisions Congress approving a second round of spending cuts of $1.8 trillion or more in 2012, passage of which would trigger an additional $1.6 trillion in increased borrowing authority.
White House communications director Dan Pfeiffer called the proposal “not a serious attempt to avert default because it has no chance of passing the Senate.”
While the bill marked a retreat from legislation that conservatives muscled through the House last week, the two-step approach runs afoul of Obama’s insistence that lawmakers solve the current crisis in a way that avoids a politically charged rerun next year in the middle of the 2012 election campaign.
Without signed legislation by day’s end on Aug. 2, the Treasury will be unable to pay all its bills, possibly triggering an unprecedented default that officials warn could harm an economy struggling to recover from the worst recession in decades.
That deadline has set off an epic clash between the two parties, each side maneuvering for public approval and political leverage in advance of next year’s elections with the White House and control of Congress at stake.
House conservatives, many of them backed by tea party organizations, have provided the political muscle for the Republican drive to cut spending deeply in return for raising the debt limit.
But two rank-and-file Republicans said their constituents were voicing concerns other than the rising federal debt.
Rep. Tom Rooney, R-Fla., said his office is getting calls from constituents saying, “If I don’t get my Social Security check, it’s your fault.”
Reid and Schumer Place All Debt Talk Failures on the Republicans
Senators Reid and Schumer say they have a plan that meets all of the republicans requests. If this proposal is blocked then Reid and Schumer say it is because the republicans want failure.
Comments »Top Performing ETF’s
With The PPT technical scores (1-weakest, 5-strongest)
No. Ticker % Change Technical Score
1 TVIX 5.73 1.35
2 SOXS 3.13 1.55
3 FAN 3.11 3.44
4 VXX 2.99 1.35
5 TMV 2.94 2.70
6 VIXY 2.81 1.35
7 VIIX 2.70 1.35
8 TZA 2.63 1.95
9 SRTY 2.45 1.60
10 PWND 2.39 3.38
11 DRV 2.22 1.20
12 BXDC 2.10 1.15
13 FAZ 2.08 1.71
14 COWL 2.02 2.88
15 TBT 2.02 2.80
16 SRS 1.76 1.15
17 SJF 1.72 1.50
18 TWM 1.70 1.80
19 INDL 1.65 3.49
20 FXF 1.50 3.96
21 VXZ 1.47 1.15
22 DTO 1.36 1.40
23 GAZ 1.35 1.37
24 SKF 1.34 1.55
25 BGZ 1.33 1.20
Joey Bag of Doughnuts Rumor Mill: U.S. Will Not Default Even if Deadline is Missed
According to Gasparino the White house is secretly telling banks there will be no default even if the dead line is missed.
Comments »Greece is Burnt Toast
Natty Gas Analysis
Crude Analysis
Bridgepoint, BPI, Tanks After Dilution Announcement
Krugman and Austrians: the Depression Will Get Worse
I thought it was a great recession. Depression seems a bit much, but if things do not change then I can see the term being applied to upcoming conditions.
Comments »Will Washington D.C. Hurt The Jobs Market ?
Expansionary fiscal policy is needed when consumers and employers are afraid to buy and spend. Will the debt ceiling debate and deficit cutting proposals exacerbate current employment problems ?
Comments »Hedge Fund Manager Howard Marks: US Standard of Living to Plunge
“In addition to balancing the budget and growing the economy, I think we have to accept that the coming decades are likely to see U.S. standards of living decline relative to the rest of the world,” Marks writes in a letter to investors.
“Unless our goods offer a better cost/benefit bargain, there’s no reason why American workers should continue to enjoy the same lifestyle advantage over workers in other countries.”
Comments »El-Erian: U.S. May Lose AAA Rating Despite Reaching a Debt Ceiling Solution
Upgrades and Downgrades This Morning
Upgrades
FSLR – First Solar initiated with a Buy at Auriga
WFR – MEMC Elec initiated with a Buy at Auriga
MCD – McDonald’s target raised to $100 at RBC Capital Markets
OC – Owens Corning upgraded to Top Pick from Outperform at RBC Capital
CF – CF Industries upgraded to Buy at Dahlman Rose
TRI – Thomson Reuters downgraded to Sector Perform at RBC Capital Markets
BAS – Basic Energy Services upgraded to Outperform from Market Perform at BMO Capital
TYY – Tortoise Energy upgraded to Buy at Stifel Nicolaus
P – Pandora Media initiated with an Overweight at JP Morgan
DUK – Duke Energy upgraded to Neutral from Sell at Goldman
MSI – Motorola Solutions upgraded to Buy from Hold at Jefferies
MR – Mindray Medical upgraded to Outperform from Neutral at Credit Suisse
FBNK – First Connecticut Bancorp initiated with an Outperform at Keefe Bruyette
MLNX – Mellanox Tech initiated with a Buy at Needham
INTU -Intuit upgraded to Buy from Neutral at UBS
RBA – Ritchie Bros. initiated with a Buy at Canaccord Genuity
HP – Helmerich & Payne downgraded to Reduce from Buy at Duncan Willaims
HOT – Starwood Hotels upgraded to Outperform from Market Perform at JMP Securities
Downgrades
PEP – PepsiCo downgraded to Neutral from Buy at Goldman
SOLR – GT Solar downgraded to Underperform from Outperform at Credit Agricole
SO – Southern Co downgraded to Sell from Neutral at Goldman
CSC – Computer Sciences downgraded to Neutral from Buy at Goldman
SF – Safeway downgraded to Sell from Neutral at Goldman
CE – Celanese downgraded to Neutral from Outperform at Macquarie
KR – Kroger downgraded to Sell from Neutral at Goldman
MRCY – Mercury Computer downgraded to Neutral from Buy at Merriman
SPWRA – Sunpower initiated with a Sell at Auriga
ACO – Amcol target lowered to $31 at Wedbush
Comments »Gapping Up and Down
Gapping Up
RPTP +5.5%, ,GLD +0.9%, NVS +1.7%, GSK +1.7%,ETFC +3.6%, SNY +1.1%, AZN +0.8%, IRE +12.9%NVS +1.7%, ELN +1.6%, EC +1.3%, AIB +12.2%, ROP +6.3%, AG +2.6%, SLW +2%, EXK +1.6%, GFI +1.6%, SLV +1.5%, AVII +9.4%, BDSI +2.3%, SYT +1.3%, GOLD +1.4%,
Gapping Down
BCS -3.4%, QGEN -1.6%, POT -1%, CCI -1.4%, CS-0.9%, HBC -0.8%, PEP -1.1%, STD -2.1%, CALM -2.7%, KMB -1.2%,CX -2%, CSC -2.9%, BPI -6.2%, SO-1.7%, RIMM -1.1%, NBG -4.7%, BCS -3.4%, STD -2.1%, REV -2.5%, CS -1.5%, HBC -0.8%,
In Play and On the Wires
Reid, McConnell Bring Bi-Partisan Debt Deal to Obama. Obama Says NO!
“A Republican aide e-mails me: “The Speaker, Sen. Reid and Sen. McConnell all agreed on the general framework of a two-part plan. A short-term increase (with cuts greater than the increase), combined with a committee to find long-term savings before the rest of the increase would be considered. Sen. Reid took the bipartisan plan to the White House and the President said no.”
Read the rest here.
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