Archive for February, 2008

Adding Stock quotes, charts, and news to your site

Friday, February 22nd, 2008

Since I spend time from time to time in the evening either viewing or “tinkering with” this web-site, I thought I’d add Stock information on stocks I currently find of interest (not necessarily because they are doing well, or poorly – most likely there has been a significant shock or predicted industry trend (that will shock) the stock.  This way I don’t have to go to http://finance.yahoo.com separately :-)

My stocks of current interest are:

  • Oracle.  They have made acquisitions a core competitive advantage
  • STP.  Suntech Power.  A Chinese stock that is considered one of the top four Solar companies in the world.  I find them of interest because not only are they Solar, but also International ( affected by fluctuations in the value of the dollar).  And not only International, but Chinese.  With the upcoming Olympics this year, it will be interesteing to see if there is a short term / medium term positive “shock” to Chinese companies as the Olympics approach and start getting coverage
  • EMC.  I started at IBM in 1985 as a VM Operating System product developer.  I caught the “fever” early on about how cool/productive Virtual Platforms can be.  When EMC bought VMWare, they piqued my interest in following them as a stock
  • ETFC.  E-Trade, CDO’s, Financial Industry, Risk, … I find this company of particular interest among those in the fallout of the CDO story.  They were in the mid-upper 20’s in Summer 2008.  They went down to $2 and change in January.  Cowabunga!  A 90% drop in their market capitalization (share prices x # of shares outstanding).  A statement about potential losses in the “banking arm” decimated the stock.  This will be interesting to see how they turn thing around.  I like their new advertising campaign ( “Hong Kong, that’s China” ), showcasing their ability to trade foreign stocks on foreign exchanges.  Time will tell.  Personally, I think 90% was a bit harsh.

Would you like to add Finance content to your site/blog?  Visit: Yahoo Finance .  In WordPress, paste the generated code into a “Text” element.  Instructions for that are:

 1) Log into Wordpress admin. 

  2) Click Presentation. 

  3) Then select the Widgets subcategory under presentation ( that is there because I run the Max adsense and Adman Wordpress plug-ins ).

  4) Create an extra “Text” entry if you don’t have one or used yours up.  The bottom of the page lets you allocate new ones

  5) Drag the new Text area to the order/position you want with any any existing entries

  5) Paste the code Yahoo generated into the Text area that pops up .  Click outside the text area and it will close automatically.  Apply changes.  Now visit your Blog URL again, you should see the Finance Content in your Blog sidebar.

    6) Voila!  Done.  Congratulations!

Yahoo too expensive, or a bargain?

Monday, February 11th, 2008

I was not surprised to hear of Microsoft’s offer for Yahoo.  What I am surprised by is the statements on how much ( too much ) Microsoft is paying for Yahoo.  On the day of the announced acquisition offer, and for a few days after, I heard analysts on TV (CNBC or Fox Business News) using statements like “Expensive”, “Premium”,  “Overpaid”, …  to describe the price per share and total price of the Yahoo acquisition.

Overpriced?  Expensive?  How about “Bargain” or “Cheap”?

For those that missed it, or those who need a refresher on the proposed Yahoo / Microsoft marriage, Microsoft offered $31 per share ( $44.6 Billion ) to purchase Yahoo recently.  In fact, just now as I’m typing this, I see on Yahoo Finance that it is rumored that Yahoo will reject Microsoft’s offer.  Yes, $44.6 Billion (with a B) is alot of money.  And yes, $31 a share was a 62% (!) premium over the then current price of $19.18.  62% premium – sounds like a No-Brainer, right?  Wrong!

Let’s take a look at the facts as to why Yahoo is a Bargain to Microsoft at $31 a share:

  •  The stock was higher than $31 the first week of November 2007.  How about a 62% premium on $31 per share (which is close to my $48 “magic” price mentioned below)
  • Yahoo traded at or near $32 / share during 6 of the 12 months in 2007
  • Yahoo fell from $34 to $19 during the three months prior to Microsoft’s offer.  Offering a 62% premium on a $19 stock that has rapidly fallen almost 50% and has a long history of a stock price in the 30’s is NO PREMIUM

Two fits where I really see Yahoo transforming the parent of the resulting marriage:

     – Sun Microsystems

  • Pros – they desperately need something more than “faster/cooler” MIPS (and the SeeBeyond software and MySQL acquistions are not going to get them there) 
  • Cons – Sun has  a history of destroying (I’m being kind) any software centric acquisition it has made.  IPlanet?  Kiva?
  • Why Transforming?  Well, this would be the fish swallowing the whale marketcap wise.  They need an Internet software platform and an employee base that goes beyond thinking in Solaris or thinking in E25K’s.  I’m sorry, but a try and buy program for a $4,000 server is not the innovation I expect from Sun.

     – EMC

  • Pros – adds to a list of acquisitions (documentum, RSA Security, VMWare) that would make them equally innovative in software as they are in hardware. 
  • Cons – a big fish to swallow, and more software centric than they are used too (though they could keep it as a subsidiary)
  • Why Transforming?  I would imagine a number of interesting “Virtual Appliances” could be created from Yahoo solutions / technology

Day in and day out, Yahoo gets more of this author’s keyboard clicks on a daily basis than any other site on the web.  Many others I know and work with feel the same way.  They visit (and rely on) Yahoo each day more than any other site on the web:  Mail; Maps; Movies; Finance; Collaboration (Messenger), …  .   Yup, they don’t get the search clicks from me, but they get many many others. 

What is needed to fix Yahoo:

  1. Well, one fix is always a fantastic buyout price.  For me, that is $48 or more
  2. Monetize your content.  Only recently, did advertisements appear on Yahoo email.  Very few “smart” advertisement placements elsewhere.  Great content!  Pitiful monetization strategies.  The only decent ad placements are in finance.yahoo.com.  If they can do it there – why not elsewhere?
  3. Wake up the Marketing department, along with some industry awareness and evangelism on the “Cool Stuff” they are doing.  Promote and evangelize your developer program, developer API’s, abilities to make money from Yahoo as a developer, the endlessly displayed (but not capitalized opportunity) examples of marrying just the right content to a content community participant.  If I’m looking up movies at http://movies.yahoo.com, they have my zipcode … a perfect opportunity to provide a context sensitive advertisement at a premium rate.  The best they can do is present a generic EBay advertisement on the page?   Yet another lost opportunity by not being able to monetize the combination of the most populous  user community with the best content on the web.
  4. Applications / On Demand  ( but not Office apps )

 Yahoo has an interesting and challenging ( also potentially very rewarding ) stream and set of rapids to navigate – do they have the right leadership to navigate the waters?