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Meow! We're seeing a hissing match of epic proportions this week as tech executives blast each other in the smart-phone wars. Let's see what's being said and pick the winners.

Kicking things off, of course, was Apple (AAPL) chief executive Steve Jobs, who went on a remarkable rant against competitors in his earnings call Monday. He unloaded on Google (GOOG) and Research In Motion (RIMM) in particular, and those companies are responding in kind. Or not so kind.

 

By Jason Notte, TheStreet

 

If a Verizon (VZ) iPhone comes to pass, its shelf space won't be padded by the same pushovers that surround it at AT&T (T).

 

If speculation holds and Verizon brings Apple's (AAPL) iPhone into the fold in the first quarter of next year, its 14.1 million in sales last quarter -- a 91% improvement over the same period last year -- could be easily eclipsed. JP Morgan (JPM) estimates that the iPhone will boost Verizon profits by 11%. Unlike AT&T, though, where 13 million iPhone subscribers at the end of the first quarter of this year accounted for 15% of the wireless subscriber base and 25% of wireless revenues, Verizon has a few more toys in the box.

 

Verizon's Motorola (MOT) Droid X, Droid Incredible and Droid 2 Google (GOOG) Android phones, for example, accounted for about 27% of total Android sales in the second quarter of this year. Also, roughly 4% of Verizon's smart-phone users use 2 gigabytes of data per month, compared with only about 2.5% of AT&T's iPhone customers.

 

Here's a look at the iPhone and how it stacks up against five smart-phone alternatives.

 

By Jim Cramer, TheStreet

 

If you think Bank of America (BAC) is going to buy back those bonds, even if the Fed's involved, then you might as well forget the rule of law. Lots of bonds were issued, bought and sold by everyone during this period, and, believe me, the ones that BAC or its Countrywide unit packaged were no worse and most likely better than others.

 

I think that it is a way to get a little something back and that maybe, down the line, BAC will settle for some dollar amount that is probably not yet reserved but will be.

 

What bothers me about this is that, once again, it is the flipside of this administration and this era.

 

China caught global financial markets flatfooted Tuesday by raising its benchmark interest rates for the first time since 2007.

The People's Bank of China raised its one-year lending rate to 5.56% from 5.31% and its deposit rate by 0.25 percentage points to 2.5%.

The move sent markets lower around the world. The Dow Jones industrials were down 2% at 3:30 ET. In Europe, the FTSE 100 was down 0.7%, and Brazil's Bovespa was down 1.6%.

 

For-profit education stocks like Apollo Group (APOL) were hot as the recession hit. Laid-off workers will return to school to sharpen their skills, right?

But those stocks have fallen hard. Their business models are lousy, with big profits ultimately funded by taxpayer dollars. They have come under fire by lawmakers and stockholders and are now having to change the policies that made them profitable in the first place.

For a glimpse at just how shoddy those policies are, consider this report issued three weeks ago by Sen. Tom Harkin. Here's how some schools rake in profits at taxpayer expense: 

By Jason Schwarz, TheStreet

 

Steve Jobs couldn't help himself. He just had to sit in on Apple's (AAPL) first $20 billion quarterly conference call. His presence certainly added to the depth of insight coming from Apple management.

 

In fact, Jobs revealed four insider opinions on the future of tech that, if true, will cause Apple's stock to continue its run to overtake ExxonMobil (XOM) as the world's largest stock by market cap.

 

As a rare jack-of-all-trades innovator, Apple is blazing a trail that no company has ever traversed. Consider the following four insights from the brain of Steve Jobs:

 

By Andrea Tse, TheStreet

 

Coca-Cola (KO) reported an increase in third-quarter earnings amid solid volume growth.

 

The company said net income attributable to shareholders of the Coca-Cola Co. increased by 8% to $2.055 billion, or 88 cents a share, from $1.896 billion, or 81 cents, a year earlier.

 

Shares of Coca-Cola were rising 0.5% to $60.32 in midday trading.

 

By Jamie Dlugosch

Exchange-traded funds have been successful for us as of late, but it appears that a pause may be around the corner.

One of the biggest mistakes investors can make is to project their own personal situation to the market or stocks in general.

If times are tough, the assumption is that times are tough everywhere and that stocks will likely falter. All sorts of emotions, including envy and jealousy, can come out of the woodwork when things aren’t going well personally. 

 

 

By Jim Cramer, TheStreet

 

The other day, while I was speaking and signing books at the 92nd Street Y, someone asked me what I thought of the "perfect market theory," that everything is pretty much known about stocks simultaneously and no one can get an edge.

 

I laughed. I said give me a break. It's wrong EVERY DAY.

 

Monday was no different. Consider the biggest gainer, Allergan (AGN), which rose 5.5% on its approval of Botox for migraines. When the approval news came out after the bell on Friday, I was confident of two things: (1) The "in the know" people would know this is no surprise and (2) the "out of the know" people would think it was revelatory and take the stock up much higher.

 

A civet is a cat-like animal that produces musk used in perfumes. But to investors, CIVETS may be the new BRIC.

BRIC, the countries of Brazil, Russia, India and China, have long been recognized as an investment goldmine. Economists at Goldman Sachs (GS) have suggested that BRIC could become huge forces in the world economy by 2050.

Now some are suggesting investors update their international focus to CIVETS: Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa. The bank HSBC reportedly first coined the term, with the chief executive saying he liked the countries for the following reasons: 

Warren Buffett and Berkshire Hathaway (BRK.A). You can't think of one without the other.

But that's not what Buffett would have preferred. In fact, he told CNBC that Berkshire is the dumbest stock he's ever bought. Buying the company was a $200 billion blunder, he said.

How did Buffett get saddled with one of the biggest mistakes of his life? The story has lessons for any investor -- not just the world's richest. Here's what happened.

 
Back in 1962, Buffett was running a hedge fund worth about $7 million, he told CNBC. He found a small textile company that was going downhill -- closing mills and buying stock with the proceeds.

He bought the stock and decided to tender it to the company for a small profit, eventually agreeing to a sell price of $11.50 a share. But a few weeks later, the company sent documents showing a sell price of $11.375.

That enraged Buffett, who thought the company was trying to pull a fast one on him. Fueled by revenge, he bought enough shares to control the company and fired the manager who had set the price. 

"The truth is I had now committed a major amount of money to a terrible business," he said. "And Berkshire Hathaway became the base for everything pretty much that I've done since."

So Buffett was stuck with a run-down textile company, which he slowly molded into the Berkshire Hathaway that he is known for. But if he had just started out with a regular insurance business, he told CNBC, it would be worth another $200 billion -- twice as much as Berkshire is now.

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By Jim Cramer, TheStreet

 

Which way does it cut? Which way? That's what I found myself muttering when the newsstand kid asked me whether he should buy Bank of America (BAC) and Citigroup (C).

 

Normally, I would tell you no bottom is in sight, right? Kid over his head? Except the past three times he has told me what he was doing, he was buying Riverbed (RVBD) about 50% ago, Visa (V) in the 30s and Chipotle (CMG), all down hard on something he thought was ridiculous.

 

Those were tremendous buys, and I remember he told me he was going to buy them; this wasn't some sort of "Hey, Jim, I bought Chipotle last week" kind of thing.

 

By Don Dion, TheStreet

 

Here are some exchange-traded funds to play the diverse collection of companies stepping up to the earnings plate this week.

 

1. iShares Dow Jones U.S. Telecommunications Sector Index Fund (IYZ)

 

Cell phone companies and wireless services providers have been some of the most exciting areas of the market to watch recently as consumers become more reliant on their smart phones.

 

There's been some movement this week in simplifying the complicated balance sheet of Fortescue Metals Group (FSUMY), the third-largest iron ore mining company in Australia.

The company's stock climbed 7.8% Monday after Fortescue announced it had signed a $2.04 billion loan agreement to expand its mining operations. The loan from JPMorgan Chase (JPM) and Royal Bank of Scotland Group (RBS) matures in 2015 with an initial interest rate of 7.5% linked to LIBOR (London Interbank Offered Rate).

The bank loan replaces senior notes issued in August 2006 to fund Fortescue's initial mine and the construction of a port and railroad. Those notes will be paid off at a $605 million premium.

 

Stocks have continued to rebound from the correction that began in late April, with the S&P 500 and Nasdaq up about 12% and 15%, respectively, over the past seven weeks. And, according to several top market gurus I keep an eye on, there's still more room for stocks to run.

A big reason: Despite the recent gains, sentiment remains muted. In his latest MarketWatch column, for example, Mark Hulbert says that while the market is trading at almost the same level it was back in late April, sentiment levels are much lower today -- a bullish sign.