10/21/05:
Investors Go Ga-Ga For Google Again
PAUL KANGAS: Google stole the spotlight on Wall
Street today. The stock rocketed more than 12 percent to a new all time
high of $339.90. Investors snapped up shares in the Internet company today
after a stellar earnings report yesterday. Now Wall Street pro`s are
asking whether Google can continue to gain altitude. Erika Miller reports.
ERIKA MILLER, NIGHTLY BUSINESS REPORT CORRESPONDENT: It`s hard to
imagine a stock that has done better than Google. The shares are up 300
percent from the company`s initial public offering price 14 months ago.
What may be even harder to believe is that many analysts are betting Google
will continue its meteoric rise. About a dozen Wall Street analysts raised
their earnings estimates and price targets for Google today, based on
yesterday`s blow out earnings report.
BENJAMIN SCHACHTER, INTERNET ANALYST, UBS: I really do think the
sky`s the limit. I think that they can execute on the business as it is
today, that can fund all the other interesting things that they are working
on for the future.
MILLER: Google has been an investment banking client of UBS. The
bulls also argue Google is finding ways to distinguish itself from other
search engines, thereby boosting its market share.
PAUL KEUNG, INTERNET ANALYST, CIBC WORLD MARKETS: I think what makes
Google very unique is that this isn`t just a media company. I think they
sit in the content, aggregated content distributor space and they set a
platform where we could potentially watch TV one day and do a lot of things
on Google.
MILLER: Google has been an investment banking client of CIBC World
Markets. Analysts also say Google has also been more successful than its
peers at turning web site traffic into advertising dollars. But they warn
there are risks to investing in the company. One is a possible slowdown in
the growth in the advertising market both online and offline. Another is
the likelihood of increaSing competition from Microsoft`s MSN and other
search engines.
KEUNG: Anytime you have a very profitable business that is growing at
these kind of rates, at these kind of margins, everyone is going to want to
jump in. And especially anyone of sort of the - if anyone has the ability
to deal, sell the right software and people in place and the right
properties, that`s Microsoft. I wouldn`t rule them out as being a big
competitor at some point.
MILLER: But one thing that Microsoft does not have right now is
Google`s reputation as the premier search engine. As long as that
continues, experts say Google will keep its competitive edge. Erika
Miller, NIGHTLY BUSINESS REPORT, New York.
Nightly
Business Report transcripts are available on-line post broadcast.
The program is transcribed by eMediaMillWorks. Updates may
be posted at a later date. The views of our guests and commentators
are their own and do not necessarily represent the views of
Community Television Foundation of South Florida, Inc. Nightly
Business Report, or WPBT. Information presented on Nightly
Business Report is not and should not be considered as investment
advice. Copyright
(c) 2005 Community Television Foundation of South Florida,
Inc. ALL RIGHTS RESERVED. Terms of use.
10/21/05:
Now Is The Time To Take Stock In Federal Flood Insurance
JEFF YASTINE: Hurricane Wilma pounded Mexico`s Yucatan Peninsula today
with 140 mile-an-hour sustained winds and this is what it looked like as
the storm approached the beach resort of Cancun. It and the neighboring
island of Cozumel are expected to see catastrophic damage from that
hurricane. After the Yucatan, Wilma is expected to head to the southwest
Florida coast. But emergency managers say exactly where, when and how
strongly she will hit the coast are all still uncertain. One thing is
pretty clear, though. Forecasters say the storm will steer clear of the
Gulf of Mexico`s main oil and gas production centers.
KANGAS: No matter where Wilma strikes the U.S., she`ll bring massive
rain and winds, adding to what has already been a record year for hurricane
damages. The insurance industry estimates homes and buildings in hurricane
prone areas are worth more than $7 trillion. With that much money at
stake, experts are asking whether Federal flood insurance should be
mandatory rather than voluntary. Darren Gersh reports.
DARREN GERSH, NIGHTLY BUSINESS REPORT CORRESPONDENT: With Wilma
threatening Florida`s southwest coast, the evacuation drill has begun.
This state has a long and hard history with hurricanes and doesn`t take
chances. That`s why 40 percent of the nation`s flood insurance policies are
written here. But in many other flood prone areas, relatively few flood
insurance policies are sold.
DAVID JOHN, HERITAGE FOUNDATION: We are going to have to look at ways
to expand that. It may well be that this is something that has to be paid
for at the same time one pays for property taxes. It may well be that
there has to be some form of a more mandatory coverage.
GERSH: Only the Federal government sells flood insurance. Homeowners
living in a flood zone and carrying a Federally insured mortgage are
required to buy a policy. But according to a Rand study, of the three to
four million homes in flood hazard zones, only half carry some form of
flood insurance.
REBECCA QUINN, LEGISLATIVE OFFICER, ASSN. OF STATE FLOOD PLAIN
MANAGERS: It`s not clear exactly where the gap is, but we believe that
there is a gap somewhere and people do drop their flood insurance.
GERSH: But if that happens, Federally insured mortgage lenders are
required to take out flood coverage and charge the homeowner for the
premium. But the man who helped write the legislation creating the
national flood insurance program says lenders are not following the rules.
GEORGE BERNSTEIN, FORMER FEDERAL INSURANCE ADMINISTRATOR: I think
about 75,000 policies were added between `03 and `04. That`s a
ridiculously low number and that is representative of the growth of the
program over the years. That means that someone is not enforcing the
requirement.
GERSH: Congress is considering ideas to correct the problem. Some
argue insurance companies should be required to add Federal flood insurance
to any homeowners policy sold in a flood zone. Others believe homeowners
without a mortgage should also be required to buy flood insurance since
they will most likely apply for disaster assistance after a flood.
BERNSTEIN: In theory, at least the people in the special flood hazard
areas, if they want to live there, they should pay their way.
GERSH: FEMA says it needs to borrow another $5 billion to pay the
record number of flood insurance claims just from hurricanes Rita and
Katrina. With so much money at stake, key lawmakers in Congress are
promising a broad review of the entire national flood insurance program.
Darren Gersh, NIGHTLY BUSINESS REPORT, Washington.
To
learn more about this topic, click here.
Nightly
Business Report transcripts are available on-line post broadcast.
The program is transcribed by eMediaMillWorks. Updates may
be posted at a later date. The views of our guests and commentators
are their own and do not necessarily represent the views of
Community Television Foundation of South Florida, Inc. Nightly
Business Report, or WPBT. Information presented on Nightly
Business Report is not and should not be considered as investment
advice. Copyright (c) 2005 Community Television Foundation
of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.
10/21/05:Cellphone Service Is Spreading Like Wildfire Through Indonesia
JEFF YASTINE: Indonesia ranks just behind the United States as the
world`s fourth most populous country. Communicating across its vast
territory is challenging, since only a tiny fraction of households have
fixed line phone services. That combination of big population and poor
communications, combined with rising incomes, is turning into a booming
business for the cellular phone industry. Rian Maelzer reports.
RIAN MAELZER, NIGHTLY BUSINESS REPORT CORRESPONDENT: It`s an unusual
sight in a major Asian city, so few people with cell phones pressed up
against their ears. But that`s changing rapidly. The number of cellular
users in Indonesia is expected to leap from 32 million at the end of 2004,
to at least 50 million by the end of this year.
RAYMOND KOSASIH, DEUTSCHE VERDHANA: So in terms of net adds, we`re
talking about 20 million probably this year and next year per annum,
whereas in the last couple of years, average annual growth was only three
million.
MAELZER: At roughly 14 percent, the penetration rate for cellular
service is still far lower than in neighboring countries like Malaysia and
the Philippines, let alone much more developed Singapore. But it`s that
untapped potential that has attracted regional telecom players.
KOSASIH: In their home countries they have limited growth potentials.
For instance, like in Singapore, you probably hardly see any new growth,
also in Malaysia. The only growth markets I would think is India, China
and probably Indonesia.
MAELZER: Companies linked to Singapore`s government are major
stakeholders in Indonesia`s market leaders, Telkomsel and Indosat.
Malaysian interests control Indonesia`s number three operator, XL. And
Hong Kong`s Hutchinson and Malaysia`s Maxis are also poised to enter the
field. Having partners like these has distinct advantages for Indonesia`s
telecom companies.
RUDIANTARA, INDONESIA CELLULAR OPERATORS` ASSOCIATION: Number one,
they provide the industry to access to the capital market, which is
important for the industry. Second, it will increase (INAUDIBLE) economy
of scale (INAUDIBLE) of the technology.
MAELZER: Rudiantara is with Malaysian-controlled XL.
RUDIANTARA: When we (INAUDIBLE) the new technology or the new
centerpiece, we don`t have to (INAUDIBLE)
MAELZER: Between them, Tekomsel and Indosat control around 86 percent
of the local market, leaving the other players with a lot of ground to make
up. They`ve set up thousands of base stations to cater to the 110 million
people concentrated here on the main island of Java alone. But that still
leaves some 125 million more spread out over hundreds of other islands.
And providing cellular coverage across this sprawling archipelago is a
daunting and expensive challenge. The government is pushing cellular
operators to cooperate more by sharing infrastructure such as towers.
That`s because it`s keen to see mobile penetration rates continue their
rapid rise, counting on improved communications across this vast country to
translate into faster economic growth. Rian Maelzer, NIGHTLY BUSINESS
REPORT, Jakarta.
Nightly
Business Report transcripts are available on-line post broadcast.
The program is transcribed by eMediaMillWorks. Updates may
be posted at a later date. The views of our guests and commentators
are their own and do not necessarily represent the views of
Community Television Foundation of South Florida, Inc. Nightly
Business Report, or WPBT. Information presented on Nightly
Business Report is not and should not be considered as investment
advice. Copyright (c) 2005 Community Television Foundation
of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.
10/21/05:"Market Monitor"-James Dines, Editor & Publisher of the "Dines Letter"
PAUL KANGAS: My guest market monitor this week is James Dines, editor and
publisher of the popular "Dines Letter" based in Belvedere, California.
Jim, welcome back to NIGHTLY BUSINESS REPORT.
JAMES DINES, EDITOR, "THE DINES LETTER": Hey, Paul how you doing?
KANGAS: Just fine thanks. The stock market this week has defied logic
in no small way with the Dow swinging up and down in the triple digits.
What is going on here?
DINES: Well, I`ve got some good news for you. I`m looking forward to
a very strong year-end rally. I don`t think it`s begun yet. As you know,
you read my letter. We turned bearish this summer and the market has moved
on very nicely. I`ve asked my followers to have some attack capital ready
for it and I think sometime very soon, we`ll be flashing a new buy signal.
KANGAS: What signal will we get. What will trigger that?
DINES: The market`s getting very oversold and also we`re getting the
level of pessimism we need.
KANGAS: OK, simple enough. With us -- when you were last with us in
June of 2004, you had four buy recommendations for our viewers. Let`s see
how they`ve done. Cameco, that`s the uranium stock. It`s up 175 percent.
What`s going on there?
DINES: I guess more buyers then sellers, Paul.
KANGAS: I guess so.
DINES: That`s the world`s largest uranium company and I` very bullish on
that stock.
KANGAS: And you`re very bullish on the uranium group. That`s the
group that you feel is probably the same thing as the Internet was ten
years ago.
DINES: That`s right. I sat here and you interviewed me in this very
chair ten years ago at the dawn of the Internet age and I said to you that
the Internet`s the biggest thing I`d ever seen and people got rich
following me into them and I`m telling you that uranium is going to be
bigger than the Internet, possibly by an order of magnitude.
KANGAS: OK, we`ll have some more on that in just a moment. Let`s look
at some of these other recommendations. The silver stock Apex didn`t do
too well, 9.1 percent and we`ll get into that I`m sure. We`ll have some
more comments. Sirius Satellite radio rather nicely higher, 88 percent.
Good call there. And Whole Foods market, one of your favorites is up 57.4
percent. Those were three out of four super choices and I compliment you
on them Jim.
DINES: Thank you.
KANGAS: Now do you have some new recommendations. I know, let`s talk a
little bit more about these uranium stocks.
DINES: Well, I`ve had -- there`s only one really large blue good chip
in the uraniums and that`s the one the institutions are going to swarm all
over and that`s Cameco. So I`m re-recommending that one but with my
subscribers, I`ve picked up 11 small ones also that I call Chihuahuas and
my favorite in that group right now is Laramide and the reason I like it is
because they`ve purchased all of Homestake Mining`s uranium properties from
Barak and second, they`ve got the Westmoreland property in Australia. I
think - this one`s already up 71,400 percent and I think it`s going to go
much higher.
KANGAS: So in other words, it was just pennies a while back. We
couldn`t get a chart on it, but up about $5 now and you still like it here.
DINES: I do. That one and Megauranium are two of my favorites right
now.
KANGAS: OK and so uranium is the replacement for the Internet.
DINES: Yes.
KANGAS: OK, simple enough. How about another new recommendation?
DINES: Well, I like Whole Foods. My letter was one of the pioneers.
I`m re-recommending it. I recommended it on the show a number of times
over the years. It`s gone from 5 to 130 and I think it`s going to go much
higher and we cover health a lot in my newsletter and I think this organic
foods are the wave of the future and I think this will lead the next market
rally or be a leader in that. In fact photography is another one of my
loves, along with organic food and we`ve just come out with a nice picture
book, a photography book, photocyclops.com.
KANGAS: The picture of Whole Foods chart is very nice indeed. You
have -- e have time for one more recommendation.
DINES: I like Apex Silver. They`ve got half a billion pounds - ounces
of silver and they`ve got four billion pounds of lead and eight billion
pounds of zinc. It`s a value play and I think that`s a great long-term
holding.
KANGAS: Fair enough. Do you own all these stocks or any of them?
DINES: I do. My money`s where my mouth is.
KANGAS: OK, so three out of the four that you recommended when you
were last with us you still like and Sirius I guess you`ve gotten out of.
DINES: Yes.
KANGAS: OK, we have 20 seconds lift. And final thoughts for our
viewers?
DINES: Yes, two thoughts. Number one, we`ve got a parade of
hurricanes warning of global warning and I think you should always remember
that nature bats last. And second, life is short so always have dessert
first.
KANGAS: OK. Thank you. Jim Dines, philosopher, super philosopher.
Thanks very much. My guest James Dines of the "Dines Letter."
Nightly
Business Report transcripts are available on-line post broadcast.
The program is transcribed by eMediaMillWorks. Updates may
be posted at a later date. The views of our guests and commentators
are their own and do not necessarily represent the views of
Community Television Foundation of South Florida, Inc. Nightly
Business Report, or WPBT. Information presented on Nightly
Business Report is not and should not be considered as investment
advice. Copyright (c) 2005 Community Television Foundation
of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.
10/21/05:"Last Word"-Stocks & The World Series
JEFF YASTINE: And speaking of batting last, the Houston Astros and Chicago
White Sox square off tomorrow night in game one of this year`s World
Series. If you`re rooting for the stock market to turn in a winning
performance, you should root for the Astros. Standard & Poor`s chief
investment strategist Sam Stovall says in years when the National League
team wins the series, the markets have performed better. In addition,
Stovall points out market declines are less likely, historically speaking,
in the year after an NL win. But as you might expect, Paul, Sam Stovall
says it`s not a good idea to base a financial strategy on who wins the
World Series.
KANGAS: Yeah, but if you`re striking out on all your other strategies,
why not?
YASTINE: You have a 50/50 chance
KANGAS: That`s right.
Nightly
Business Report transcripts are available on-line post broadcast.
The program is transcribed by eMediaMillWorks. Updates may
be posted at a later date. The views of our guests and commentators
are their own and do not necessarily represent the views of
Community Television Foundation of South Florida, Inc. Nightly
Business Report, or WPBT. Information presented on Nightly
Business Report is not and should not be considered as investment
advice. Copyright (c) 2005 Community Television Foundation
of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.
10/21/05:
"Paul Kangas' Stocks In The News"
PAUL KANGAS: That spurt in Google stock we told you about was a big factor
in stocks opening the day higher, as were bargain hunters and lower oil
prices. The Dow shot up 70 points at the outset of trading and the NASDAQ
jumped 20 points. Then the blue chips lost their luster after Caterpillar
posted disappointing results and cut its outlook. At noon, the Dow was
down 76 points, but NASDAQ was still up 11 points. After a choppy
afternoon, that`s just about where things ended. The Dow industrial
average came in with a loss of 65.88 at 10,215.22 today.
The week it was up twice and fell three times, had a net loss of 72.12
points. The NASDAQ Composite rose 14.10 today to 2082.21. It fell twice
and rose three times this week, gaining 17.38 points overall. The Standard
& Poor`s 500 rose 1.79 today to 1179.59. In the bond market, the 10-year
note rose 13/32 to 98 29/32 putting the yield at 4.39 percent.
Once again big board volume leader was Pfizer (PFE) today on 59.7
million shares. Stock down another $0.65. It was off over $2 yesterday on a
disappointing third quarter earnings report and a rather glum outlook and
today the SG Cowan brokerage called the stock dead money.
Caterpillar (CAT) losing $5.11. That hurt the Dow by 40 points. Cat`s
third quarter earnings 34 percent higher than last year though, $0.94 up
from $0.70, but that was about $0.12 below the Street expectation and the
company cut its 2005 overall guidance of $4.20 a share, down to $3.85 to
$4. Prudential downgraded the stock to "neutral."
ExxonMobil (XOM) up $0.11, a little upward spurt in oil late today.
SBC Communications (SBC) up $0.46.
$0.04 loss in Lucent Technology (LU).
General Electric (GE) lost $0.15.
Citigroup (C) dropping $0.03.
And Time Warner (TWX) $0.16 loss there.
Xerox (XRX) moved up $1.04. Third quarter results excluding one time
items for Xerox $0.18 a share, in line with estimates and the company will
buy back up to $500 million of its own stock.
JPMorgan Chase (JPM), tenth in volume was up $0.38 a share.
AT&T (T) up $0.43. Third quarter earnings of $0.64, $0.14 above the
Street estimate and versus a huge write down loss last year. And this is
probably the last report we`ll see from AT&T before SBC acquires it.
Schlumberger Ltd (SLB), the big oil service company, down $0.57,
despite a 65 percent jump in third quarter earnings to $0.86 a share, up
from $0.52 last year and that was a penny above the Street estimate. But as
you can see, the stock`s had quite a run.
Funny looking chart here, but don`t forget that CBOT Holdings (BOT),
Chicago Board of Trade, just went public this Wednesday at $54, traded as
high as $115.50 today and closed up $112 even, quite a move.
Robert Half Intl (RHI) up $4.94. Third quarter earnings $0.37, nicely
above $0.24 last year. Revenues up 22 percent. Standard & Poor`s repeated a
"strong buy" on the stock.
And then 7-Eleven (SE) up $1.52. 7-Eleven of Japan has sweetened its
buyout bid for all the shares not already owned by $5, now at $37.50 a
share on a takeover.
Oakley (OO) the optical products firm, down $3.20. Third quarter
earnings $0.22, up from $0.17 last year, but it cut its 2005 overall sales
growth estimate from the high end of plus 10 to 15 percent to the low end
of that range.
And then Celestica (CLS) down $1.11. Third quarter earnings just a
penny higher than last year at $0.12, revenues actually fell 8 percent and
the CEO sees only marginal fourth quarter revenue recovery.
Google (GOOG) topped the active list on NASDAQ, up $36.70, traded as
high as $346.43. A number of brokers incidentally boosted their price
target on Google to $450 a share.
Sandisk (SNDK) up just over $10. Better than expected third quarter
earnings $0.55, up from $0.29 last year. Revenues shot up 45 percent and
the company will acquire Matrix Semiconductor for $250 million.
Microsoft (MSFT) a penny loss.
Apple Computer (AAPL) down $0.48.
A similar loss in Intel (INTC) which was fifth in dollar volume.
Qualcomm (QCOM) gained $1.65.
Broadcom (BCOM) losing $1.85. Third quarter earnings sharply higher,
$0.35 versus $0.13, but Merrill Lynch downgraded the stock from "buy" to
"neutral."
Yahoo! (YHOO) $0.03 gain.
$0.10 rise in Cisco Systems (CSCO).
And Amgen (AMGN) $0.73 loss.
Captiva Software (CPTV) up $3.53. EMC will acquire the firm for $22.25
a share in cash.
And those are the stocks in the news tonight.
Nightly
Business Report transcripts are available on-line post broadcast.
The program is transcribed by eMediaMillWorks. Updates may
be posted at a later date. The views of our guests and commentators
are their own and do not necessarily represent the views of
Community Television Foundation of South Florida, Inc. Nightly
Business Report, or WPBT. Information presented on Nightly
Business Report is not and should not be considered as investment
advice. Copyright (c) 2005 Community Television Foundation
of South Florida, Inc. ALL RIGHTS RESERVED. Terms of use.
10/21/05:
Market Stats
NET PERCENT
CLOSE CHANGE CHANGE
DOW CLOSE 10215.22 -65.88 - .6
HIGH 10350.98
LOW 10193.45
NASDAQ COMP. 2082.21 +14.10 +.7
HIGH 2091.44
LOW 2074.20
VOLUME 1,862.7
PREVIOUS 2,064.4
UP VOLUME 1,117.9
DOWN VOLUME 0,734.5
DOW TRANSPORTS 3623.72 -.35 - .0
DOW UTILITIES 386.66 +5.68 + 1.5
CLOSING TICK +826
S&P 500 1179.59 +1.79 + .2
S&P 100 544.50 -.63 - .1
MIDCAP 400 682.20 +6.15 + .9
REUTERS/CRB 322.51 +.15 + .1
NYSE COMPOSITE 7254.49 +20.40 + .3
VALUE LINE 388.33 +1.84 + .5
RUSSELL 2000 632.73 +5.19 + .8
DJW 5000 11792.57 +43.63 + .4
U.S. TREASURIES
5-YEAR NOTE 4.25%
Oct. 15,2010 99 31/32 +6/32 4.26
10-YEAR NOTE 4.25%
Aug. 15,2015 98 29/32 +13/32 4.39
30-YEAR NOTE 5.375%
Feb. 15, 2031 111 15/32 +30/32 4.60
LEHMAN BROS.
LONG BOND INDEX 1762.84 +6.99
DOW CLOSE 10215.22 -65.88 - .6
ADVANCES 2191
DECLINES 1104
NEW HIGHS 28
NEW LOWS 99
NET PERCENT
NYSE MOST ACTIVES 4PM CLOSE CHANGE CHANGE
PFE Pfizer 21.25 -.65 -3.0
CAT Caterpillar 48.92 -5.11 -9.5
XOM Exxon Mobil 55.37 +.11 +.2
SBC SBC Comms 23.00 +.46 +2.0
LU Lucent Tech 3.08 -.04 -1.3
GE GE 33.73 -.15 -.4
C Citigroup 44.31 -.03 -.1
TWX Time Warner 17.22 -.16 -.9
XRX Xerox 13.45 +1.04 +8.4
JPM JPMorgan Chase 35.13 +.38 +1.1
NASDAQ CLOSE 2082.21 + 14.10 + .7
VOLUME 1,815.4
PREVIOUS 1,956.8
ADVANCES 1804
DECLINES 1158
NASDAQ ACTIVES
GOOG Google 339.90 +36.70 +12.1
SNDK Sandisk 56.45 +10.07 +21.7
MSFT Microsoft 24.78 -.01 -.0
AAPL Apple Computer 55.66 -.48 -.9
INTC Intel 23.15 -.47 -2.0
QCOM Qualcomm 45.00 +1.65 +3.8
BRCM Broadcom 42.45 -1.85 -4.2
YHOO Yahoo! 35.29 +.03 +.1
CSCO Cisco Systems 17.03 +.10 +.6
AMGN Amgen 73.37 -.73 -1.0
AMEX CLOSE 1597.99 + 21.20 + 1.3
INDEX SHARES
DIA DIAMONDS TRUST 102.12 -.56 -.6
QQQ NASDAQ 100 38.55 +.24 +.6
SPY S&P DEP.RECEIPTS 118.13 +.44 +.4
STOCKS IN THE NEWS
T AT&T Corp 19.01 +.43 +2.3
SLB Schlumberger Ltd 80.01 -.57 -.7
BOT CBOT Holdings 112.00 +21.11 +23.2
RHI Robert Half Intl 37.35 +4.94 +15.2
SE 7-Eleven Inc 37.36 +1.52 +4.2
OO Oakley Inc 14.04 -3.20 -18.6
CLS Celestica Inc 9.46 -1.11 -10.5
CPTV Captiva Software 21.83 +3.53 +19.3
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