Media

Ryanair's Success In Keeping It Simple

Jason Cunningham — Tue, 21 May 2013 12:58:26 +0000

Michael O'Leary, Ryanair (NASDAQ: RYAAY) Chief Executive Officer, appeared on CNBC's Squawk Box to chat about the airline's record profits and continuing growth.

In regards to Ryanair competing with other European airlines, O'Leary was confident.

"It's not hard to, you know, outrun that lot," O'Leary said.

He went on to say that he couldn't compete with an American airline like Southwest, calling them a behemoth in the states. It's simply a market he wouldn't consider getting into. According to O'Leary, there's no need to even try, since there's so much potential for growth in Europe.

Ryanair is expanding from 80 million to 100 million passengers a year over the next five years through the purchase of new planes. While they expand, O'Leary said that many other European airlines are loosing money at heroic scales.

O'Leary said that Ryanair got their strategy one that Southwest originally came up with: Keep it simple, keep it all the same.

"It's all Toyota Corollas," O'Leary joked.

He said that the issues with European airlines mirrors ...

The Top 10 Notable Quotes from Apple's Senate Statement

Tim Parker — Tue, 21 May 2013 12:35:53 +0000

On Tuesday, Apple (NASDAQ: AAPL) CEO Tim Cook will testify before a Senate subcommittee.

According to Reuters, on Monday, the subcommittee released a 40 page memorandum that claims to have identified three Irish subsidiaries that have no tax residency in Ireland and have paid no corporate income taxes in the last five years.

In it’s prepared statement that will be read at the hearing on Tuesday, Apple CEO Tim Cook will address this and other accusations and make the case that Apple follows US tax laws, has created more than a half of a million jobs, and would pay more in US corporate taxes if US corporate tax law was simplified and updated.

Here are some of the notable quotes that you will hear in Cook’s testimony.

“Apple complies fully with both the laws and spirit of the laws. And Apple pays all its required taxes, both in this country and abroad.”
“Apple welcomes an objective examination of the US corporate tax system, which has not kept pace with the advent of the digital age and the rapidly changing global economy.”
“Apple is ...

Benzinga Market Primer: Tuesday, May 21

Tim Parker — Tue, 21 May 2013 10:35:00 +0000

Although far from anything resembling a correction, the markets ended Monday’s trading session barely in the red on the back of a weak dollar and gold that started the day sharply lower but rebounded.

Tuesday, traders will watch for signs of follow-thru of yesterday’s pullback. Here’s what happened overnight:

Morning News

S&P 500 futures are down slightly to 1,661.75.
The EUR/USD was unchanged at 1.2881.
German 10-year government bond yields rose 1 basis point to 1.3 percent.
Italian 10-year government bond yields rose 2 basis points to 3.89 percent.
Gold fell 0.48 percent to $1,377.40 per ounce.
JPMorgan Chase (NYSE: JPM) will hold its shareholder meeting in Tampa, Florida today. All eyes will be on the proposal to split the chairman and CEO roles. Chairman and CEO Jamie Dimon had said previously that he may leave the bank if the proposal is approved.
Apple (NASDAQ: AAPL) CEO Tim Cook will testify before Congress today. On Monday, Reuters reported that Apple has held billions in profits in Irish subsidiaries paying little or no taxes to any government, according to a Senate report.

Asian Markets

The Nikkei began the trading session sharply lower but rose to another high, up 20.21 points or 0.20 percent to 15381.02—catching its breath after a strong Monday.

Other markets were mostly down. The Kopsi is flat, the Shanghai composite was up 0.22 percent, and the ASX 200, the Australian index, ...

John Williams of San Francisco Fed Bullish on Outlook of US Economy

Ari Crane — Mon, 20 May 2013 19:28:23 +0000

It has been the talk of this spring and continues to make headlines leading into the summer. When will the Fed end its QE3 acquisition phase? How will the economy react?

In an article written by Ann Saphir of Reuters s, John Williams, president of the Federal Reserve Bank of San Francisco, gives a positive outlook on the economy. Williams stated that, “We could reduce somewhat the pace of our securities purchases, perhaps as early as this summer. Then, if all goes as hoped we could end the purchase program sometime late this year.”

According to CNBC the central bank currently buys $85 billion of Treasuries and mortgage-backed securities each ...

JP Morgan Chase's Thomas Lee On Undervalued Markets

Jason Cunningham — Mon, 20 May 2013 15:52:51 +0000

Thomas Lee, JPMorgan Chase (NYSE: JPM) Chief U.S. Equity Strategist, spoke on CNBC's Squawk Box on Monday morning, where he discussed where investors should put their money to work and why, as well as the place of the Fed in today's and tomorrow's market.

"I think investors who have't put money to work should really seriously consider putting money to work, even at current levels. Our target earlier in late December, we established a target for 2013 of 1580, but just last week we actually raised it to 1715, and I think one of the ways people just need to think about it, you know, what should I be buying," said Lee.

"And I think one of the areas, or the several areas that are still really undervalued are technology, healthcare, and financials."

These areas are dependent on the underlying economy, and according to Lee, they're encouraged by the labor markets showing improvement, the increase in consumer spending, and housing, where there is a slowly growing revival.

"The markets discounting, and I think that the improvement is supporting higher prices. And again, you know, it's hard to say, you know, if I had to liquidate the entire U.S. economy today, ...

Here Come Hollywood's Wannabe Summer Blockbusters

Jim Probasco — Mon, 20 May 2013 15:47:35 +0000

With The New York Times reporting Friday that “a record number of big-budget action-and special effect-laden blockbusters” are set to open between May and the end of August, Hollywood’s tactic this summer appears to be “shock and awe” versus a more measured approach.

It’s all about that financially lucrative “young males” demographic and their insatiable appetite for action and adventure, not to mention overpriced soft drinks and popcorn at multiplex cinemas all over the world.

Filmmaker Steven Soderbergh sees the whole thing as a disaster in the making. In a critique at the San Francisco International Film Festival a few weeks ago, Soderbergh complained about lack of imagination on the part of studio executives. As Soderbergh sees it, the fixation on big-budget franchise films is like “Detroit before the bailout.”

Doug Creutz, senior media and entertainment analyst for Cowen & Company said “We’ve never had a summer where more than nine [blockbusters] did well, and often it’s fewer. This summer you’ve got 17 blockbusters coming out between May and July, 19 if you add August.”

There are two possibilities. Either this will be the biggest summer box office in history – or ...

appssavvy's Chris Cunningham on Yahoo's Tumblr Purchase

Jason Cunningham — Mon, 20 May 2013 15:03:48 +0000

Chris Cunningham, co-founder and Chief Executive Officer of appssavvy, took time to speak with the folks on CNBC's Squawk Box Monday morning about Yahoo's (NASDAQ: YHOO) purchase of the popular blogging service Tumblr for $1.1 billion.

"Yahoo and any large media company hasn't proven that they can effectively monazite pages. I think there's a greater opportunity to monazite beyond ad pages and impressions. As we know, Tumblr has a lot. I do believe it's a smart acquisition form a Tumblr perspective.You could imagine the investors, board, they're overjoyed, especially in ...

Yahoo Jumping on the Startup Acquisition Bandwagon

Jim Probasco — Mon, 20 May 2013 14:40:09 +0000

AOL Inc.(NYSE: AOL) has Huffington Post. Google Inc. (NASDAQ: GOOG) has YouTube. Facebook Inc. (NASDAQ: FB) has Instagram.

And now, Yahoo Inc. (NASDAQ: YHOO) is getting a startup of its own as well. The Wall Street Journal reported Sunday that Yahoo’s board approved $1.1 billion to acquire Tumblr.

Acquisition of the popular blogging and social networking site is Yahoo CEO, Marissa Mayer’s biggest deal since taking over at Yahoo in 2012. It is seen as an image upgrade for an Internet company that has lost some luster in recent years.

Tumblr, founded in 2007, is popular with teens and has 175 employees, according to comScore Inc. (NASDAQ: SCOR),The Wall Street Journal said. The site hosts 108 million blogs sporting 50.7 billion posts, and had 117 million unique users worldwide in March – heady numbers for the advertisers Yahoo hopes to attract.

Tumblr’s model, like Facebook’s, allows users to follow updates by ...

Barron's Recap: Cues from Cooperman

Nelson Hem — Sun, 19 May 2013 15:19:45 +0000

This weekend in Barron's online: a profile of a Wall Street titan, a tribute to a former Barron's editor and columnist, and the prospects for Ryder System, Tencent and ING U.S.

Cover Story

"Cues from Cooperman" by Lawrence C. Strauss.

This article says that Leon Cooperman, chairman and CEO of Omega Advisors, takes pride in being a demanding boss. "You have to be on the balls of your feet at all times," he is quoted as saying. And it has paid off for investors.

His Omega Overseas Partners hedge fund has seen average annual returns of 14.3 percent since 1992, compared to 8.6 percent for the S&P 500. The returns have averaged 15.6 percent over the past three years, and the fund was up a remarkable 30 percent last year.

The article tells how Cooperman stays on top in investing and philanthropy. See how he came back from a "drubbing" in the financial crisis of 2008, and why the fund has an eye on Sprint Nextel (NYSE: S). See how he has clashed with the White House and how he plays his part in the Giving Pledge, an initiative of Warren Buffett and Bill and Melinda Gates.

And see how this son of a plumber went from Bronx kid to Wall Street titan. Though he may have mellowed a bit with age, "He doesn't like people who lack conviction in their ideas," says a long-time friend. For investors in his fund, says the article "that's all for the best."

Feature Stories

"A Remarkable Writer and ...

Get on Disney World Rides Faster - Hire the Handicapped

Jim Probasco — Fri, 17 May 2013 17:41:39 +0000

Some stuff you just can’t make up.

The New York Post ran a story Tuesday about wealthy Manhattan moms who are escaping the long lines at The Walt Disney Co.’s (NASDAQ: DIS) Disney World by hiring disabled people to pose as family members.

The Post story said rich moms with impatient kids hire disabled tour guides for $130 an hour, or $1040 a day.

Although, Disney Tours offers a VIP guide and fast passes for $310 to $380 per hour, those “in the know” seem to prefer the black-market version for about one-third the cost.

Said one mom, who booked a guide through Dream Tours Florida, “My daughter waited one minute to get on ‘It’s a Small World’ — the other kids had to wait 2 1/2 hours,” adding, “This is how the 1 percent does Disney.”

It almost seems like the stuff of urban legend. Not so, said Dr. Wednesday Martin, social anthropologist who discovered the scheme while conducting research for her upcoming book “Primates of Park Avenue.”

“It’s insider knowledge that very few have and share carefully,” Dr. Martin said.

“Who wants a speed pass when you can use your black-market handicapped guide to circumvent the lines all together?” she told the New York Post.

Ryan Clement ...

Are Farmers Next to be Hit by Debt?

Jim Probasco — Fri, 17 May 2013 17:37:00 +0000

Currently the agriculture industry is in a boom cycle. A report by the Federal Reserve Bank of Kansas City, according to CNBC, says the boom may end soon, leaving farmers shouldering massive debt.

Farming is a business that involves constant investment. Investment in land, in equipment, storage, seed, fertilizer, you name it. The money farmers invest in their business comes from one of two places – profits and savings or borrowing based on accumulated wealth (value of land and equipment).

The Federal Reserve Bank report suggests that if farmers choose the latter (collateral-based borrowing), to finance operations, they could end up in debt, risk bankruptcy, and even risk losing their farms.

"The big concern is for 2014 and 2015,” said Nathan Kaufman, economist at the Kansas City Federal Reserve Bank and a co-author of the report.

According to Kaufman, the Department of Agriculture believes there will be a 25 percent drop in farm income in 2014 due to lower commodity prices. If income falls, farmers tend to borrow after exhausting savings and that could ...

The Boku Boom, With Chief Business Officer Jon Prideaux

Jason Cunningham — Fri, 17 May 2013 14:50:03 +0000

Boku is transforming telecom and financial services with their innovative method of paying for things electronically. Boku uses your mobile number to make online purchases instantly. Those purchases are then put on your phone bill, not your credit card.

The company's Chief Business Officer, Jon Prideaux, appeared on CNBC's Squawk Box and discussed the workings of Boku and their rising success.

"We're basically hooked up to something like 260 different phone companies around the world, in 68 different countries, and through those, we can actually put charges on the bills of 3.7 billion people. You know, that's half the people on the face of the planet. That's more than Visa (NYSE: V), that's more than Mastercard (NYSE: MA), hell, it's kind of more than Mastercard and Visa combined," said ...

Morningstar's Paul Swinand on J.C. Penney's Future

Jason Cunningham — Fri, 17 May 2013 14:41:18 +0000

It's no secret that J.C. Penney (NYSE: JCP) is having a hard time, but with former Chief Executive Officer Ron Johnson gone and predecessor turned successor Mike Ullman back in the driver seat, the struggling retailer might prove to have some extra fuel in the tank.

Paul Swinand, Equity Analyst at Morningstar (NASDAQ: MORN), appeared on CNBC's Squawk Box to talk about his predictions for the company's near future, starting withe the company's summer outlook.

"I think the summer is a weak retail period in general, but you know there was a lot of this discussion of how much better things have gone since the promotions have come back. And they said 'We can't really say anything because we're in a bond tender and securing a loan from Goldman Sachs (NYSE: GS),' but I think their, if the traffic and the actual sales can pick up, I think people will extrapolate that this thing will work," said Swinand.

J.C. Penney is getting a $1.75 billion loan from Goldman Sachs in order to help revitalize the company, a nice upside to their abysmal last quarter.

"I ...

Familiar Face Climbs Back to the Top of Billionaires List

Tim Parker — Fri, 17 May 2013 14:39:01 +0000

Apparently, the world has a new richest man.

Actually, reclaiming the top spot is more accurate. According to Bloomberg, Microsoft (NASDAQ: MSFT) founder Bill Gates is, once again, the world’s richest man. He moved ahead of Mexican telecom mogul Carlos Slim in rankings released on May 16 by Bloomberg.

Gates, who topped the list with a net worth of $72.7 billion, has seen his fortune gain 16 percent in value year-to-date.

Of course, after a 28 percent rise to all five year highs this year, that was responsible for a considerable amount of price appreciation but maybe not as much as one would think. Less than a quarter of Gates’ fortune is in Microsoft.

Most of Gates’ money is held by Cascade Investment LLC, a holding entity that invests in a dozen or more publically traded companies.

But Slim’s loss was Gates’ gain. Carlos Slim, who’s America Movil (NYSE: AMX) was the largest mobile phone operator ...

Nordic American Tanker CEO Says Market Turnaround Will Bring 'Loads of Money'

Luke Jacobi — Thu, 16 May 2013 21:38:18 +0000

Nordic American Tanker (NYSE: NAT) CEO Herbjorn Hansson gave an exclusive interview Thursday morning to Benzinga.

Hansson opened the interview by mentioning his upcoming visit with oil giant Exxon Mobil (NYSE: XOM), commenting Nordic American Tanker has “done a lot of business with them”, along with Shell (NYSE: RDS.A) and BP (NYSE: BP).

Shares spiked six percent Wednesday after it was rumored Hansson would be on Jim Cramer's show Mad Money, a rumor that was first confirmed by Benzinga. Cramer went on to comment that Nordic American Tanker is the “best run company in the industry” and that Hansson is “the most disciplined guy in the industry.”

Despite operating in ...