Once you get past the hype, there's little chance for long-term gain with this stock.
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At $114, the e-reader costs much less than an iPad. But will the strategy work?
By Anthony John Agnello, InvestorPlace tech writer
Early indications show that Apple sold 2.5 million iPad 2s in March. To put that into perspective, Apple sold one $499-plus tablet for nearly every citizen in the state of Utah! So who's going to buy an e-reader now that tablets have taken over?
Anyone with $114, if Amazon (AMZN) and its newest Kindle have anything to say about it. That's the new rock-bottom price point for the entry-level version of the Kindle.
But there's a catch. In between pages of "The Old Man and the Sea," you'll have to suffer through ad spots from Old Navy. That's because Amazon announced the lower price point will be subsidized by advertisers on the Kindle.
Months ago, stock market pros were saying the run in Chinese stocks was over. They were wrong.
By Gary Gordon, TheStreet
Months ago, equity market "pros" pounded China mercilessly. China real estate was the next bubble to burst. Inflation was spiraling out of control. And commodity stockpiling was proof positive that China was dead in the dry-bulk shipping water.
Well, some folks had a far different perception. For instance, I spoke at the 4th annual Inside ETF Conference on Accessing Asia and China." And on Feb. 7, live from the venue in Florida, I wrote the following:
"The MSCI China Index trades at 11.5 times forward earnings, the lowest forward multiple since 2004. With Hong Kong trading at nearly 18 times forward earnings, the disparity is at or near a record . . . There are plenty of reasons to keep an eye on the SPDR S&P China Fund (GXC). I expect it to drop a bit further, possibly testing its 200-day moving average. A pullback of 12%-14% from GXC's November peak is my anticipated entry point."
GXC shares hit $84.48 in November, but savvy investors were able to acquire shares at or near $74 in the third week of February. Since that time, it's been a fairly brisk ride back towards the November highs.
Just wait until stocks fall to more attractive prices.
So we would go in to the office at the old hedge fund today, and I would start our 6 a.m. meeting with a simple view: "Why aren't we 100% short?" Why should we own anything?"
That's how I feel as I log on to the PC today. Why own anything? Why not be 100% short? The economy is getting weak; the debt ceiling is irreconcilable; Japan will never get its act together; taxes are going up; earnings are missing estimates; President Barack Obama is about to speak, which will be dreadful for stocks; Elizabeth Warren is about to be banking czar; China is slowing; and if oil goes up, it causes demand destruction, but if oil goes down, we've had demand destruction -- just like 2008.
What is the point? Sell everything?
China's leading search engine is not a bad play, if you can put up with intense short-term volatility.
Smaller airports are making all kinds of concessions to get permission to receive the new 747-8. With video.
The 747-8 is the largest commercial aircraft Boeing has ever made. Its wingspan is 11 feet wider and body 18 feet longer than the 747-400, the Associated Press reports.
The enormous plane is the same size category as the giant Airbus 380, which is exclusively for passengers. Boeing's plane, however, is a cargo aircraft.
Boeing will deliver the first 747-8s to customers later this year, and airports are clamoring to receive them. Even smaller airports in Toledo, Ohio, and Huntsville, Ala., are trying to get permission from the Federal Aviation Administration to accept the planes.
Post continues after this video about the 747-8:
The Apple CEO is working with an author on 'iSteve: The Book of Jobs,' due out next year. With video.
The chief executive of Apple (AAPL), who tightly controls all aspects of his private and professional life, has decided to publish his life story next year. The book is all but guaranteed to be a best seller, lifting a well-kept veil over Jobs' thoughts, philosophy and history.
Jobs is working with Walter Isaacson, a former Time magazine editor who previously wrote about the lives of Einstein and Franklin. And Isaacson apparently sees Jobs as being in the same league.
"Just as he did with Einstein and Benjamin Franklin, Walter Isaacson is telling a unique story of revolutionary genius," the book's publisher, Simon & Schuster, said in a statement. I think we know where this story is going.
Post continues after this video report about Jobs' book:
Google and Apple will dominate tablet sales, but RIM could have a good shot at grabbing 10% of the market by 2015.
By Scott Moritz, TheStreet
The development of the tablet market will follow a path similar to the one smartphones have taken, according to Gartner's report issued Monday. The two camps have largely become a semireligious divide between Apple and Google, but if there's any surprises to Gartner's 2015 prediction, it might be the inclusion of RIM.
The BlackBerry maker has not exactly been the most reliable would-be tablet player. Last year, RIM scratched the BlackPad, its first tablet. And this year, after countless sneak peeks and a few delays, RIM's upcoming PlayBook tablet is so far only a concept that industry observers have had to run with.
But barring another delay, the PlayBook is expected to launch next week. And with its Android compatibility and the security of its BlackBerry service, outfits like Gartner say the new tablet has a fighting chance.
A combination of foreign unrest, Arab recalcitrance and a plunging dollar is pushing energy prices into the danger zone.
Last week, crude oil launched like an artillery rocket over the $113 handle to close at a high of $113.48. Aside from Moammar Gadhafi's attacks on Libya's oilfields, there are also concerns about upcoming elections in Nigeria -- another important oil exporter in Africa.
As I discussed in a recent MSN Money column, the oil supply situation is extremely tight. Any disruption of the more than 2 million barrels per day coming out of the Niger River delta will have a huge impact on prices. For more, review my column here.
The trouble is OPEC -- the cartel that holds the world's spare production capacity -- doesn't seem worried as soaring crude oil pushes the economy to the brink. Consumer confidence is already plunging fast. Instead of reassuring statements and a proactive policy stance, we're getting just the opposite.
The networking giant sees the explosion of online video as a chance to get a much-needed boost.
By James Rogers, TheStreet
The networking giant sees the explosion of online video as a chance to get a much-needed boost for sales of its gear into service providers. Cisco told TheStreet that its CRS-3 router is leading this charge.
"With video becoming such a key driver of traffic, we're introducing a new feature within CRS-3 that will reduce costs dramatically," said Suraj Shetty, Cisco's vice president of worldwide service provider marketing.
These tax-managed funds boost returns by paying less in capital-gains taxes.
By Frank Byrt, TheStreet
For investors who haven't sold fund shares, it's particularly galling when their fund kicks out a taxable capital gain after booking a profit on stock sales.
That jolt often gets investors interested in tax-advantaged or tax-managed mutual funds, which strive to minimize the tax hit to shareholders by matching capital gains on stock sales with previous investment losses.
Keep an eye on funds that track banking, retail and natural gas.
By Don Dion, TheStreet
This week's earnings season kicks off with Alcoa (AA) reporting on Monday. In the following days a number of notable U.S. firms will follow suit, providing investors with insight into various sectors. Financial goliaths JPMorgan (JPM) and Bank of America (BAC) will be in the spotlight on Wednesday and Friday respectively.
ETF investors looking for an attractive way to track these two companies and other banking industry players during the earnings season should turn to the KBE, which also sets aside a heavy portion of its portfolio to smaller, regional players.
Strong earnings should push stocks higher, at least in the short term.
Stocks took a pause last week as investors waited for earnings season to begin in earnest. This week begins the period when publicly traded companies release operating performance for the previous quarter.
Expect the numbers to be better than Wall Street estimates. The positive results will be the fuel the market needs for the next leg higher.
The economy is on more solid footing. More jobs are being created, and growth for the first quarter is all but assured. In such an atmosphere, profits should be robust.
About the only overhang is inflation, but inflation is a lagging indicator and should have minimal impact on first-quarter numbers.
I want to be bullish with my 5 ETF picks this week. The one fund investors should key on is the SPDR S&P 500 (SPY).
The animosity in Washington and oil's relentless rally are intractable problems that will weigh on US stocks until July. Look for companies that are barely American to escape the morass.
We are stuck with Washington until July. That's when the money runs out for the debt ceiling. I suspect the hatred and mistrust among the Republicans for President Barack Obama this close to next year's election will make the issue as threatening to the markets as the price of oil. And who knows what will happen in earnings season.
Oil and Washington are two intractable problems that could make the morning macro picture as difficult -- and perhaps as bleak -- as we have seen it in a very long time.
Think of it like this: If you thought it was easy to be negative and raise cash for every dollar that oil increases, you can only imagine how difficult it will be with Tea Party people, an unsophisticated lot, basically calling for a Grecian-style budget crisis. Let's see, Democrats unwilling to cut substantially and to raise the tax for rich people versus Republicans who allegedly want draconian cuts and Tea Partyers who want a default, or at least would drive us to that.
Put that mix together and you have the front page of the paper from now until July. The only thing that would make this go away is a compromise, and it is too close to the election for compromise.
I gave a presentation on China/Japan at the “Rethinking Seminar” at Johns Hopkins University Applied Physics Lab. It was a slightly surreal experience, because the presentation was right across the street from the Pentagon.
I gave a presentation on China/Japan at the “Rethinking Seminar” at Johns Hopkins University Applied Physics Lab. My presentation was videotaped; video (both streaming and download), audio, and even cliff notes may be found here (by the way, make sure to take a look at other presentations on their website). Also, I updated my slides on China/Japan; you can download them here.
It was a slightly surreal experience, because the presentation was right across the street from the Pentagon. So the Russian immigrant who until 1987 believed Americans were horrible people (read the story of how my family emigrated from Russia) was lecturing Americans on the virtues of capitalism at the doorstep of the Pentagon!
Here are some random thoughts on subjects unrelated to investing.
The airline moved on its own to ground flights after a 5-foot-hole appeared in one plane. Could this be a model for other airlines? With video.
The airline moved quickly to ground dozens of planes, irritating customers and making the fiasco even bigger. Was that a little much? No, experts say. Southwest is now getting praised for the way it handled the incident, and some observers say the airline's actions could set a new standard for the way the industry responds.
Usually when something like this happens, airlines wait to hear from regulators and airplane makers before grounding flights, The Wall Street Journal reports. But Southwest didn't wait for advice from Boeing (BA) -- a good move, since Boeing wasn't sure what was going on -- or the government.
Post continues after this video discussing the way Southwest handled the crisis:
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The cosmetics company's disappointing earnings report is yet another illustration of how difficult the retail sector has become.
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[BRIEFING.COM] Precious metals bounced around in volatile trade during early morning pit action following better-than-anticipated economic data. Payroll and Michigan Sentiment data topped expectations while the unemployment rate dropped to 7%.
Both Feb gold and Mar silver fell to their respective session lows of $1210.10 and $19.17 per ounce and quickly rebounded into positive territory and to respective session highs of $1245.00 and $19.78 per ounce. The metals then consolidated near ... More
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