Investors who realize this fact early could cash in on a brand new tech boom that could produce a new generation of high-tech millionaires not seen since the 1990s.

Comcast, Verizon and other government-protected duopolies won’t be around for your grandchildren to enjoy — at least not in their current forms. You see, companies like these are selling outdated services. And they’re more than reluctant to change their business models.

First, consider the home telephone. This beast is becoming scarcer by the day. In fact, mobile phone-only households are becoming the norm. Yet despite huge increases in wireless sales by traditional telecoms, it’s the wireline segment that keeps these blue chips in the black. More than half of Verizon and (NYSE:T) AT&T’s revenue comes directly from wireline sales.

For the old-school telecom giants, it’s all about infrastructure. They want to milk the cable and phone lines for all they’re worth. After all, it took decades — and millions upon millions of dollars—to create these vast systems that pump TV and telephone service into our homes.

But the communications landscape has changed. We don’t need separate wires to connect our homes to world. Now, it all comes back to bandwidth.

The technology is ready. Wireless dominates the landscape, and the old-fashioned telecoms and cable providers can only desperately hang on to their antiquated services. Even the government—which normally favors any out-of-date and/or irrational business model — is coming around.

We’ve said before that the Federal Communication Commission’s stranglehold on our nation’s airwaves is not only hopelessly out of date — it’s downright counterproductive to the agency’s goals.

However, the FCC is slowly stumbling toward opening up the airwaves once and for all.

Earlier this year, the president dedicated billions of dollars toward rural broadband development in the economic stimulus package. There’s also a mandate that requires the FCC to create a national plan to bring broadband to everyone in the country.

The FCC has also approved proposals to use white space devices to provide broadband access. These devices would utilize analogue television frequencies recently freed up during the digital television conversion.

Of course, telecom giants aren’t going down without a fight. The National Association of Broadcasters has already filed suit in federal court regarding the white space decision, claiming it could interfere with television signals.

It’s a desperate move to save its empire. But in the end, it won’t work. Technology will win, and media convergence will open the door to new data service packages for customers that will provide phone, television, gaming and internet service through lightening-fast, reliable wireless connections.

It will be the beginning of a new tech boom. Companies such as Limelight Networks Inc. (NASDAQ: LLNW), a content delivery network (CDN) provider provides a variety of services, including live Internet video feeds for major events such as the U.S. Open, Oprah’s book tour and the Beijing Olympics, will thrive.  In fact, Limelight’s lucrative contracts with heavy hitters like MSNBC have helped the company grow its revenue more than 500% over the past three years.

More small companies like Limelight will surely emerge in the near future, providing ample opportunities for early investors to cash in on a new age of content convergence.

Best,
Greg Guenthner

Source: How the Death of Big Telecom Will Reignite the Tech Boom

Here are listed sales in the filing, courtesy of 24/7WallStreet.com:

· 7/20/09… 1,817,000 at $28.7269 average in open market sale.

· 7/21/09… 3,915,100 at $26.9188 average in open market sale.

· 7/22/09… 2,254,200 at $26.6425 average in open market sale.

What took Buffett so long to start selling Moody’s? We have no idea. Moody’s runs one of the biggest scams on Wall Street. It charges the companies whose securities it rates (just like Standard & Poor’s and Fitch also do).

So what do you think these ratings agencies did when presented with a whole load of junk mortgage-backed securities to rate? They assigned them investment grade status and pocketed the cash.

If these ratings agencies had instead acted honestly and responsibly (rather than pimping themselves out to the highest bidder) the whole subprime debacle and the ensuing credit crisis could have been avoided.

Buffett isn’t the only investment whizz who thinks Moody’s is heading for trouble. Hedge-fund legend David Einhorn of Greenlight Capital is selling Moody’s short.

Yesterday, Moody’s shares tumbled almost 4% on the news that the Buffett had began to unwind his position in the company. We’d like to see Moody’s go out of business. But that’s maybe wishful thinking. Make sure you don’t own any shares in Moody’s. And if you’re feeling speculative, consider going short Moody’s along with Einhorn.

One of the easiest ways of deciding what stocks you should own is by “standing on the shoulders of giants.” We’re no geniuses here at Notes. But at least we are smart enough to recognize it. And that’s why we track what people far smarter than us are doing with their money.

As of the end of the first quarter this year, this is how Warren Buffett’s holdings (via Berkshire Hathaway, his investment vehicle) looked like:

1. American Express Co. (NYSE:AXP) over 151.6 million shares, same as before.

2. Bank of America Corp. (NYSE:BAC) 5 million shares; same as last quarter.

3. Burlington Northern Santa Fe (NYSE:BNI) 76.77 million shares; HIGHER than 70.089 million shares of last quarter.

4. Carmax Inc. (NYSE:KMX) 12 million shares; LOWER than the 17.63 million and that is two straight quarters of declines.

5. Coca Cola (NYSE:KO) right at 200 million shares, still same as before.

6. Comcast (NASDAQ:CMCSA) 12 million shares, same as before.

7. Comdisco Holdings (NASDAQ:CDCO) roughly 1.5 million shares, same as before.

8. ConocoPhillips (NYSE:COP) is really lower than the 71.228 million shares reported as this has been used for cutting taxes, and we already know that the number is lower than what the filing says.

9. Constellation Energy Group (NYSE:CEG) was just updated this week so the number is actually about 12.4 million rather than what the filing shows as being 14.828 million shares.

10. Costco Wholesale (NASDAQ:COST) 5.254 million shares, same as before.

11. Eaton Corp. (NYSE:ETN) 3.2 million shares; looks like new holding but may have been missed before.

There’s a lot of talk these days about how Buffett has lost his touch. This may be so. But the guy remains the world’s most successful investor. If you have a medium- to long-term investment horizon, you could do a lot worse than consider following Buffett into some of these long positions. If you think you can outsmart the guy, go ahead. But we know who our money would be with…

Call me a tightwad. Call me un-hip. Just don’t call me a cable subscriber. I am fed up with the programming being forced into my house through that innocent-looking wire.

It is ironic my colleagues and I were discussing our issues with Comcast (NASDA:CMCSA) and its various products this morning. While not all views were negative, I revealed the seemingly anti-American news that I would no longer be a cable subscriber after tomorrow.

I am using the switch to digital TV as an opportunity to scribble out yet another monthly bill and strap up a pair of rabbit ears.

According to the company’s latest financial results, I am in the majority. A surprising number of folks are using the “DTV Transition” as an excuse to plug their TVs into Comcast’s media network.

The unemployed need something to do

After adding 247,000 digital cable customers in the fourth quarter of 2008, Comcast boosted its subscriber base by another 288,000 households during the past three months. The additional revenue stream helped the company record a 5% boost in its bottom line, a net of $778 million.

Comcast’s news comes just a day after Time Warner Cable (NYSE:TWC) revealed a surge of 121,000 customers, almost three times as many as the previous quarter.

The news gives evidence the recent downturn in subscription growth has come to an end. It is a trend that will likely last for at least the next few quarters as competition levels off and the market regains some footing.

Whether you and I believe it is right, this nation views cable as a necessity. Comcast and its competitors are selling a fairly inelastic product. As long as they can offer a product that is comparatively priced with its replacements, subscribers will be knocking on their doors.

The way I see it, the higher the nation’s unemployment rate, the higher Comcast’s subscriber roles.

Sad but true.

Source: Comcast’s Profits: Sad But True

Microsoft posted a profit of $4.17 billion, or 47 cents a share, for its fiscal second quarter ended December 31, compared with $4.71 billion, or 50 cents a share, a year earlier.

Microsoft said it would cut up to 5,000 jobs in research and development, marketing, sales, finance, legal, human resources, and information technology in next 18 months, with 1,400 of those job cuts coming immediately.

The goal is to cut operating expenses by $1.5 billion in its 2009 fiscal year and slash capital expenditures by $700 million, Microsoft said in a news release.

The announcement comes nearly a week after Microsoft sold its 7.26% (more than 150 million shares) in Comcast Corp. (CMCSA), which netted them about $3.4 billion. Microsoft initially invested $1 billion in the then upstart Comcast in 1997, Thomson Financial News reported.

“People aren’t buying PCs,” Kimberly Caughey, senior equity analyst at Fort Pitt Capital Group Inc., which owns 361,685 Microsoft shares, told Bloomberg. “They’re taking quick action to right-size their company. This is really only 22 days after the close of the quarter, and they must see deteriorating conditions.”

Meanwhile, Intel said it would close manufacturing plants in the Philippines, Malaysia and the Silicon Valley, a broad swipe that will cut up to 6,000 jobs.

The announcement came a week after Intel posted grim fourth-quarter earnings – revenue down 23% and profit tumbling 90%. It comes two days after Intel announced it was lowering prices by up to 40% on its premium quad-core chips.

“It’s not a surprise given that their first quarter is probably going to be challenging, and they’re trying to do what they can to cut costs in places that make sense,” Taunya Sell, an analyst at Ragen Mackenzie, a division of Wells Fargo, told Reuters.

Meanwhile, with the global economy sinking and the health of chief executive Steve Jobs in question, Apple Inc. (AAPL) posted profit growth. Net profit for its fiscal first quarter ended December 27 rose to $1.61 billion, or $1.78 a share, up from $1.58 billion, or $1.76, a year ago.

“I’d say in the face of one of the worst holidays in recent memory, Apple was able to pull a rabbit out of the hat,” Edward Jones analyst Bill Kreher, told Reuters. “It’s amazing that Apple was able to record its best revenue and earnings in an environment like this.”

Source: Microsoft, Intel to Cut up to 11,000 Jobs

My day did not get off to a good start. After rolling out of bed, my first stop is always the coffee pot. Then, I grab the newspaper and flick on the TV.

As usual, my newspaper (at least I hoped it was my newspaper) was tossed on my neighbor’s driveway, but when I tried to tune into the local news, the screen was black. Instead of waking up to my favorite weather girl, I was forced to listen to the pre-dawn silence.

While my troubles were trivial and caused by an overnight ice storm, the problems throughout the cable that provides my morning media fix industry continue to brew. For proof, just look at the nation’s largest media conglomerate, Time Warner (NYSE:TWX). Its share price is down by over 6% today.

Thanks in part to a $15 billion write-down of its cable spin-off, Time Warner Cable (NYSE:TWC), the company is expected to post a loss for all of 2008. It is just the first of what is sure to be many signs of an ugly earnings season for the industry.

One of the company’s larger competitors took the opportunity to leak some of its own bad news in the hopes investors would be distracted by the news from Time Warner.

A Comcast (NYSE:CMCSA) insider said the company would have to cut its balance sheet to reflect the losses in its Clearwire stake, which is down by as much as 60% over the past 12 months. Fortunately, losing out on the wireless Internet venture is far from a surprise. But the information reinforces the notion the upcoming earnings season is going to hurt.

Trouble ahead

Of course, the media industry is not alone. Intel (NASDAQ:INTC) is also dragging on the equities market today as it tells investors to expect worse-than-expected fourth-quarter results. The chipmaker now expects revenues to show a 23% drop from this time last year, to about $8.2 billion.

The news from economic-bellwether Alcoa (NYSE:AA) is just as bleak, especially if you are one of the 15,000 employees about to get a pink slip. By cutting its capital spending in half, the company’s problems are certain to spread across the broad economy.

So why I am writing about this collection of bad news? I do it in hopes that you realize the switching of our calendar did not suddenly fix the nation’s dire economic situation.

The last few trading sessions have been filled with exuberant trades. Stocks that investors dumped like mad only two weeks ago were surging in value. The turnaround allowed smart traders to bag some sizeable gains, but I caution you to do your homework before entering new positions with the Dow above 9,000.

No stimulus big enough

Even when Obama dumps a trillion dollars of taxpayer money into the economy, all will not be grand. Hundreds of thousands of consumers have recently been fired from their jobs. Consumer spending will not rebound to its historic level anytime soon. Obama may be able to stabilize the system, but a rapid rebound is nothing but a pipe dream.

The equities market will remain range bound through the next earnings season. There will be opportunities to buy on dips and sell on surges, but miss the timing and you could be hurt.

As earnings season unravels, continue to look towards the safer, consumer favorites like McDonalds (NYSE:MCD) and Wal-Mart (NYSE:WMT). Remember, one of the few bright spots today was Family Dollar (NYSE:FDO).

The discounter reported a 14% jump in quarterly earnings and boosted its fiscal-year forecast. Best of all, its shares rose by more than 10%. It is proof that there is still plenty of money to be made if you pay attention.

The next few weeks are going to be critical. Volatility will rise and earnings surprises are going to rule the market. Be prepared for the action and you will survive unscathed.

Source: Be prepared for horrid quarterly reports

* Oil prices rallied off a 17-month low yesterday (Wednesday), soaring $5.12, or 8.16% to settle at $67.85 a barrel. Earlier in the day, crude jumped 9% to a session high $68.91 a barrel. Part of the reason for the oil’s rebound was the Energy Information Administration’s weekly report, which showed inventories rose 500,000 barrels last week, less than many analysts expected. Oil prices have fallen by 55% since peaking at $147 a barrel in mid-July.

* Hungary yesterday (Wednesday) secured a $25 billion aid package from the International Monetary Fund, the European Union and the World Bank, The Associated Press reported. According to the terms of the deal The IMF will provide a 17-month standby loan of $15.7 billion, the European Union will make $8.1 billion available, and World Bank will give $1.3 billion in an effort to keep Hungary’s economy from collapsing under the weight of the global financial crisis.

* Procter & Gamble Co. (PG) yesterday (Wednesday) announced a 9% increase in its fiscal first quarter sales. Net income rose to $3.3 billion, or $1.03 per share, up from $3.1 billion, or 92 cents a share, a year earlier, after double digit growth in emerging markets boosted total revenue to $22 billion.

* Qwest Communications International Inc. (Q) yesterday (Wednesday) that it would cut 1,200 jobs or 3% of its work force after third-quarter revenue fell 2% to $3.38 billion. The cuts will come before the end of the year and leave the company with 33,500 employees. Qwest earned $151 million, or 9 cents per share, in the quarter, down 93% from $2.06 billion, or $1.08 per share, a year ago. Though, the 2007 results were bolstered by a $2.1 billion tax benefit.

* The merger between Delta Air Lines Inc. (DAL) and Northwest Airlines Corp. (NWA) received antitrust clearance yesterday (Wednesday) from the U.S. Department of Justice. The approval paves the way for the merger, which will create the largest airline based on traffic, The Wall Street Journal reported.

* Average airfare for U.S. domestic flights increased 8.1% in the second quarter, the Bureau of Transportation Statistics announced yesterday (Wednesday). The average fare price of $352 is the highest in the 13-years the agency has been tracking the data, surpassing the previous record of $348 set in the first quarter of 2001, Bloomberg News reported.

* Shares of Comcast Corp. (CMCSA) slumped almost 9% yesterday (Wednesday) as the company announced it lost 147,000 cable subscribers in the third quarter due to weak economic conditions, Reuters reported. Comcast shares lost $1.68 each to close at $15.28.

* Shares of biotech firm Biogen Idec Inc. (BIIB) plunged more than 11% in after hours trading yesterday (Wednesday) after the company announced a participant in a drug trial for its multiple sclerosis drug Tysabri had been diagnosed with a life-threatening brain illness. The patient had received 14 infusions of the MS drug and was diagnosed with progressive multifocal leukoencephalopathy, or PML, Biogen said today in a regulatory filing, Bloomberg News reported.

Source: Global Investing Roundups Thursday, October 30th, 2008

This would make investors in Clearwire (NASDAQ:CLWR) a lot of money, says Andrew Snyder. The company is in partnership with Sprint Nextel (NYSE:S) to develop the project, which has financial backing from several major internet companies.

Andrew says investors should be ready for CLWR to soar if the Baltimore experiment is a success.

This from Today’s Financial News:

It is hard to get back to fundamental investing after all of this psychological turmoil has disrupted the markets. But with all major American indices virtually flat today, it is apparent the markets are worn out and ready to get back to some semblance of normalcy.

We must get back to basics. That means uncovering news stories, following earnings reports, and searching for undervalued treasures. It looks as though I may have found one in Clearwire Corporation (NASDAQ:CLWR).

The company is making news with its partnership with Sprint Nextel (NYSE:S) that focuses on creating a WiMax blanket across the country. Thanks to funding from industry heavy-hitters like Intel (NASDAQ:INTC), Google (NASDAQ:GOOG), Comcast (NASDAQ:CMCSA) and Time Warner (NYSE:TWX), the firms’ vision of a nationwide wireless Internet connection, or at least the very first step, is about to come true.

When folks from right here in Baltimore wake up tomorrow, there will be something new in the air. They will not be able to feel it. They won’t be able to smell it. And they won’t be able to hear it. But it will be there and it will allow them to wirelessly connect to the Web from nearly anywhere in the quickly growing city.

It is about time

Clearwire and Sprint have had an on-again-off-again partnership relating to the WiMax role out, but thanks to the industry funding I mentioned above, the revolutionary technology is finally making its way onto the market. Tomorrow’s role out in Baltimore will be the first of its kind in the country.

If it is successful, cities like Chicago and Washington D.C. will be the next to go online and eventually the entire country will have access to the signal. More importantly, if the new wireless network is successful, Clearwire (which is expected to purchase Sprint’s share of the program later this year) will do quite well.

Right now, the company is valued at $1.3 billion. If it can monopolize the nation’s wireless Internet market, that valuation will increase multi-fold. Thanks to the country’s economic turmoil, investors have a shot at Clearwire at a discount. Right now, shares are trading for just under $10. Last week, they were worth $12.50.

If the introduction of WiMax in Baltimore is a success, Clearwire could be catapulted to the top of its industry. There are few competitors moving in the same direction and huge possibilities for the company if it decides to grow.

Clearwire could provide everything that is great about the Internet on an entirely mobile network. Information, phone service, email, movies, news, and so on would be available anywhere under the WiMax blanket.

It is easy to see why investors need to keep a close eye on this company and its stock over the next few days. Tomorrow’s unveiling will turn out to be a make-or-break situation for the young company.

While the rest of the world is trying to guess at the Fed’s next gesture or figure out which way the markets will move next, you have a shot at traditional profit potential. Start studying Clearwire and keep a close eye on the company’s action over the days and weeks ahead.

Source: Investing in Technology: Clearwire (CLWR) Has Big Potential

• Crude oil for September delivery gained $4.58 yesterday (Wednesday) to close at $126.77 a barrel on the New York Mercantile Exchange, MarketWatch reported, after the Energy Information Administration announced crude supplies fell 100,000 barrels to 295.2 million barrels for the week ended July 25.

• Comcast Corp. (CMCSA), the largest U.S. cable television provider, announced yesterday (Wednesday) that net profit in the second quarter rose to $632 million, or 21 cents a share, from $588 million, or 19 cents a share, in the prior year, Reuters reported. Comcast stock gained 89 cents, a 4.64% increase, to close at $20.07 on the news.

• Navigation system maker Garmin Ltd. (GRMN) lowed its full-year outlook to $4.13 per share from an earlier estimate of $4.40 per share in light of the weakening U.S. economic conditions, Forbes reported. Yesterday (Wednesday), the firm missed earnings expectations for the quarter ended June 28, causing shares to plunge over 20%.

• UAL Corp. (UAUA), parent of United Air Lines Inc., filed suit yesterday (Wednesday) against the Air Line Pilots Association union, The Wall Street Journal reported. UAL is seeking an injunction against an unlawful sickout, which caused United to cancel an abnormal number of flights.

• Private employers added 9,000 jobs in July, a private report by ADP Employer Services said yesterday (Wednesday). In June, the private sector slashed 77,000, according to revised data. June was originally reported as 79,000 jobs lost.

• Nisssan Motor Co. Ltd. (ADR: NSANY) said yesterday (Wednesday) that it plans to offer buyouts to about 6,000 workers at its two Tennessee plants and eliminate a night shift at one of them, Reuters reported. Citing lower demand for pickup trucks and sport utility vehicles the company said it would offer technicians and salaried employees a lump sum of $100,000 or $125,000, depending on tenure, as well as medical and car purchase benefits.

• ArcelorMittal (ADR: MT) had a second-quarter surge in earnings, as high steel prices offset soaring mineral costs. Net income rose to $5.84 billion from $2.72 billion a year earlier. Revenue was $37.84 billion, from $27.2 billion a year earlier.

• Nintendo Co. Ltd.’s (OTC ADR: NTDOY) quarterly profit rose 31.5% on the runaway success of its Wii game console. The Wii outsold Sony Corp.’s (SNE) PlayStation 3 and Microsoft Corp.’s (MSFT) Xbox 360, putting Nintendo in the leading position in the three-way game console battle, Reuters reported. April-June net profit rose 33.7% to $1 billion (¥107.27 billion) on sales of $3.9 billion (¥423.38 billion), up 24.4%.

Source: Global Investing Roundups Thursday, July 31st, 2008