Yahoo and Microsoft Deal

The Aftermath of the Yahoo and Microsoft Deal

By:Michael Vass

If you have looked at the stock market (U.S.) lately then you cannot have missed a couple of things. Banks are still reeling, Lehman Brothers being the latest in a string of major financials that have had to seek out financing to shore up massive losses. Oil companies are getting a lot of negative publicity due to the election year politics. Energy alternatives are sparking another round of interest, as the generally do every election year for the past roughly 20 years.

But what has garnered a lot of attention is the sector that no one has really spoken about in some time. The technology arena. In particular the latest mega-deal, Yahoo and Microsoft. Everyone has heard some aspect of it, and opinions are flying.

Now the deal officially died last week. Microsoft won’t raise their price or even offer one for Yahoo. Yahoo for its part made a deal with Google, allowing ads from the leading search engine to appear on Yahoo for $300 million. So the shake up begins.

Microsoft has had it’s price raise because it won’t be buying anything, and stockholders will be happy about not having the books burdened with Yahoo. Google is happy as they seriously increase ad revenue with the increased exposure. The likelihood of increase revenues for higher ad fees and increased numbers are on the horizon and analysts will be checking the quarterly reports to see if a new trendline confirms this speculation.

Those looking at what may happen should keep an eye out on Yahoo. After failing to be bought by Microsoft, and only securing a deal that really benefits Google the shareholders are boiling. The desire for bigger profits is going to weigh heavily on the CEO and Board. Something is going to need to be done.

I expect that a couple more deals and the takeover of a smaller technology company will be in the air for Yahoo. Plus an expanded advertising sales campaign will likely unfold within the slow summer quarter showing better numbers as fall unfolds. If I am correct opportunity may abound in the disappointment this deal failing has caused.

But that is just one outlook. What do you think?

Wireless Technology

What is a hub?

A hub?
A hub is a relatively small piece of hardware that is used in conjunction with a computer network. On the back, it includes several Ethernet ports in which the networked computers are plugged into. Installation is extremely easy in that you simply plug your existing router into the back of the hub and then proceed to plug in the remaining computers. The IP addresses of the computers that are connected to the hub are assigned by the router it is connected to, not by the hub. Hubs work by broadcasting all incoming information to every computer that is connected to it. If a PC makes a request, the hub retrieves the information and sends that information to every PC it is connected to until it is notified that the information was received by the intended PC. The one major downside to the use of hubs in any PC network is that bandwidth is split amongst the computers that are connected.  If the hub is a 10/100mbps hub and 2 computers are connected each PC would have a maximum connection speed of 50mbps. However if 4 PCs are connected the max speed would be 25mbps.

Virus Prevention

According to a study from Panda Security, 72.56% of US computers were infected in 2007 and about 31.04% of those users had taken steps to protect their computer from viruses.  Fortunately, there are some steps you can take that will help prevent your computer from becoming infected with a virus. Although there is no way to guarantee 100% computer security there are certainly things to do to greatly improve your computer safety.

  • Use an alternative browser other than Internet Explorer such as Opera or Mozilla Firefox.
  • Use a good firewall, some of which can be downloaded online for free.
  • Use an anti-virus program and keep it up-to-date.
  • Enable Windows Updates to download and install the newest updates automatically.  To configure Windows Vista to install updates automatically, click the Start button, followed by All Programs, Windows Update, and Change settings.  Now, select Install Updates Automatically.  Use the drop down menu below to select the time and date to install new updates.  Finally, click on the OK icon.
  • Never open an email attachment from someone you don’t know. Don’t even open an email attachment from someone you know, unless you know exactly what the attachment is. Those “cute little jokes” aren’t always that “cute” and can be infected with a nasty virus.

Video Technology

Video Game Technology

Top 20 2008 Sales

Top 20 1Q Sales

Top 1Q Trends

Stock Climb Continues

Stock Climb Continues

By:WC Power Tech Fund

Despite what should have been a corporate backlash against recently announced plans by President Obama to curb corporate Tax Havens and loopholes, markets brushed off worries with a shrug and kept pushing higher. This sent the Dow to the green by 200 points, while the S&P however was the big winner of the day, climbing higher by 3.3% to finish at 907.

The changing tax rules, which are estimated to bring in $210Billion in additional tax revenue over a decade, are in part a response to the growing easiness by which corporations shelter income with offshore holdings offices in countries with low to nil tax rates. By having these subsidiaries, overwhelmingly popular with Financial Institutions, which ironically are the same ones who have taken most of the $700Billion in TARP bailout money, companies can avoid paying taxes by shifting money around and through other countries. Considering a report from January pegged 83 out of the 100 biggest corporations having overseas “offices” in tax havens, the amount of money in lost tax revenue adds up.

The 2nd part of this change is driven by economics, as incentives are re-created in order to spark employment and investment in the domestic United States. Previous policies and tax incentives had been adopted to spark International Investment, however, the current unemployment situation in the US has made keeping Americans employed a top priority for the new Administration.

In other news, despite the tie up with Italian car maker Fiat, amongst other restructuring plans, Chrysler still anticipates losing nearly $5Billion in 2009, with a minute return to profitability by 2012.

Financials continued to rally again today, despite Fed Stress Test results that are likely to indicate several banks that need additional capital. Amongst those, it is being reported that Bank Of America (BAC) is looking to raise $10Billion in fresh equity capital. The stock today was up almost 20% compared to the Financial sector’s gain of nearly 6%.

The summer movie season is getting started, and that means it is the time for the popcorn blockbuster. First up is a continuation of the X-Men franchise from 20th Century Fox, a studio owned by News Corp (NWS). The X-Men comics were created by Marvel Entertainment (MVL), and the first 3 films in the franchise has grossed over $600Million in domestic box office. X-Men Origins: Wolverine tells the origin story of the most famous mutant of the group and despite the sting of a piracy leak, which put an unfinished version of the film on the Internet a whole month before release, the film managed excellent $87Million domestic and $160Million Worldwide box office tallies. The popularity of the character is surely showing among movie fans and this will likely mean a continuation of other Marvel properties that Fox has the license too. Marvel itself also stands to benefit as its license fees are typically tied to box office receipts and up front payments.

So with the March and April rallies continuing to mount, is it time to take some profits? Since March lows, the S&P is up 220 points, or 32%, and with an economic situation just barely showing some glimpses a case can be made that the markets have gotten ahead of themselves. Taking some off the table would be a prudent thing to do for Investors, however any leg down or significant down day is an opportunity as valuations are still attractive and the S&P is just broken even for the year.