Home / 2011 / July (page 12)

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.”

Comments »

House unveils new debt bill

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.”

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

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 ?

Full article

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.”

Full article

Comments »

El-Erian: U.S. May Lose AAA Rating Despite Reaching a Debt Ceiling Solution

“In most likelihood, a last-minute political compromise will avoid a default but will leave the AAA rating extremely vulnerable,” El-Erian, the Newport Beach, California-based chief executive officer and co-chief investment officer at Pimco, wrote in an e-mail. “Stock markets around the globe will look to price in a greater uncertainty premium on account of political squabbles in the world’s largest economy and the increasing risk that it may lose its sacred AAA rating.”

Full article

Comments »

Upgrades and Downgrades This Morning


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


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%, 

Comments »

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.

Comments »