http://www.straightstocks.com Leading Stock Market News, Opinions and Commentary Tue, 24 Nov 2009 18:56:56 +0000 http://wordpress.org/?v=2.8.5 en hourly 1 http://www.straightstocks.com/stock-watch/monster-in-line-on-lower-revenues-analyst-blog/ http://www.straightstocks.com/stock-watch/monster-in-line-on-lower-revenues-analyst-blog/#comments Fri, 30 Oct 2009 18:33:31 +0000 Zacks Market Commentaries http://www.zacks.com/stock/news/26699/Monster+In+Line+on+Lower+Revenues+-+Analyst+Blog Monster Worldwide, Inc. (MWW) yesterday reported revenues of $215 million in the third quarter of 2009, down 35% year over year and down 3.7% sequentially.

The company operates in three business segments: Careers North America, Careers International and Advertising & Communications. The revenue continues to be impacted by lower global demand for recruiting advertising services. Approximately 42% of revenues were generated from international operations and total revenue was negatively impacted by $7.4 million from unfavorable foreign exchange rates.

Careers North America generated revenue of $95 million, down 39% year over year. Careers International revenue came in at $85 million, down 40% year over year. Internet Advertising & Fees generated revenue of $35 million, essentially flat over the $35 million reported in last year’s third quarter.

Management stated that revenue and new business activity might have hit a bottom, but revenue continues to be challenged by the global economy and job market and by a reduction in deferred revenue coming into the quarter.

Operating expenses declined 19% from a year ago due to cost-cutting activities undertaken by management. However, this did not help margins due to a much lower revenue base. Operating margin came in at 1.8% -- significantly down from 21.1% in the year-ago quarter. Net income came in at $1.7 million compared to $48.0 million in the year-ago quarter. Earnings per share (EPS) came in at one cent, in line with the Zacks Consensus Estimate.

During the quarter, the company generated $12 million of cash from operations and used $12 million in capital expenditures. As of September 30, 2009, the company had approximately $207.9 million of cash and equivalents and total debt of $50 million. Deferred revenue was $266 million compared to $290 million in the previous quarter.

This worldwide economic slowdown has caused companies to reduce headcount, freeze hiring and delay recruitment related decisions. This has adversely affected the company’s business. The primary source of revenue for the company is recruitment advertising. Management stated that the global recruitment market remains challenging but the company remains excited about the upcoming launch of next-generation search-and-match products.

Monster is well positioned to capitalize on the eventual improvement in economic conditions across the world. With signs of a recovering economy, we expect companies to increase their recruitment via online vehicles such as Monster.com. However, the road to recovery will be a long one though.

Headquartered in New York, Monster Worldwide, Inc. is an online recruitment firm of the parent company Monster.com, the leading career website in the world. The company is also the largest advertising agency network for worldwide recruitment, and provides direct marketing services.
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]]> http://www.straightstocks.com/stock-watch/monster-in-line-on-lower-revenues-analyst-blog/feed/ 0 http://www.straightstocks.com/stock-watch/ftc-oks-adobe-omniture-combine-analyst-blog/ http://www.straightstocks.com/stock-watch/ftc-oks-adobe-omniture-combine-analyst-blog/#comments Wed, 07 Oct 2009 17:40:40 +0000 Zacks Market Commentaries http://www.zacks.com/stock/news/25607/FTC+OKs+Adobe-Omniture+Combine+-+Analyst+Blog
Adobe Systems (ADBE) yesterday announced the termination of the legal waiting period mandatory under the amended Hart-Scott-Rodino Antitrust Improvements Act of 1976. The expiry of the waiting period was announced by the FTC in one of its customary listings of approved deals.
 
The approval is with respect to Adobe’s proposed acquisition of Omniture Inc. (OMTR) announced on Sept 15. On Sept 24, Adobe formally offered to buy Omniture through its wholly owned subsidiary, Snowbird Acquisition Corp. for $1.8 billion in cash.
 
Adobe’s financial advisor is Goldman Sachs Group (GS) while Omniture’s is Morgan Stanley (MS).
 
The grant of regulatory approval means that the two companies may now go ahead with the procedures necessary to close the deal. Omniture shareholders have until Oct 22 to approve the takeover, unless Adobe decides to extend the period.
 
Post acquisition, Omniture will operate as a separate business unit. The acquisition is expected to add Omniture’s scalable software as service (SAS) platform to Adobe’s portfolio, improving its growth potential and enabling it to diversify its business into the Internet advertising, e-commerce and digital media markets. It will also strengthen its competitive position versus rivals such as Microsoft Corp. (MSFT) and Apple Inc. (AAPL).
 
The Omniture software enables analysis of consumers’ website usage habits, thus facilitating the targeting of advertisements. Omniture is a leader in this space, competing with the likes of Google (GOOG) as well as several other smaller players.
 
For Omniture, it’s a question of scale, as Adobe’s operations are across broader geographies and markets.
Read the full analyst report on "ADBE"
Read the full analyst report on "OMTR"
Read the full analyst report on "GS"
Read the full analyst report on "MS"
Read the full analyst report on "MSFT"
Read the full analyst report on "AAPL"
Read the full analyst report on "GOOG"
Zacks Investment Research
]]> http://www.straightstocks.com/stock-watch/ftc-oks-adobe-omniture-combine-analyst-blog/feed/ 0 http://www.straightstocks.com/stock-watch/sina-nixes-focus-media-takeover-analyst-blog/ http://www.straightstocks.com/stock-watch/sina-nixes-focus-media-takeover-analyst-blog/#comments Tue, 29 Sep 2009 19:41:54 +0000 Zacks Market Commentaries http://www.zacks.com/stock/news/25316/SINA+Nixes+Focus+Media+Takeover+-+Analyst+Blog
SINA Corporation (SINA) said that it has dropped plans for acquiring Focus Media Holding Limited (FMCN) due to the delay in approval from China's Ministry of Commerce regarding antitrust issues. The companies have decided not to extend the deadline of the agreement.

In order to provide more effective and integrated marketing solutions, SINA entered into a definitive agreement with Focus Media Holding Ltd. in 2008 to acquire substantially all of the assets of Focus Media's digital out-of-home advertising networks, including LCD display network, poster frame network and in-store network.
 
SINA had said that the $1.4 billion transaction was undergoing antitrust review by the Department of Commerce in China. The companies said that the delay in receiving the approval from the antitrust authorities negatively impacted its business operations. Thus, after due consideration the decision to terminate the contract was taken jointly by both the companies. The agreement was set to expire if approval from the Chinese Ministry of Commerce was not received by September 30, 2009 -- tomorrow.

The acquisition of Focus' out-of-home advertising networks would have provided strong synergistic benefit to SINA's online advertising platform and enhance its leading position in the media space. This merger would have been the most important merger in the media sector enabling SINA to compete against other media giants such as Beijing-based China Central Television and Shanghai Media Group. The failure to close the deal poses further risks to the company.

However, we also believe that the removal of the uncertainty regarding the closure of the Focus Media acquisition may be good news for SINA. Focus Media reported a second-quarter loss due to a fall in its Internet advertising business. Thus SINA will not have to face the risk of integrating a loss-making company.

SINA also announced that it has entered into an agreement for  private equity placement with New-Wave Investment Holding Company Limited established and controlled by SINA's CEO, Charles Chao and other senior management. SINA will issue 5.6 million ordinary shares and raise gross proceeds of $180 million. The new shares would be subject to a 6-month lock-up period.

SINA’s management group would be buying its shares for about $32.14 per share or about 10.9% discount to its yesterday’s close price of $36.07.

Competition in the online brand advertising field in China is fierce, crowded by big players such as Sohu.com Inc. (SOHU), Shanda Interactive (SNDA), NetEase.com (NTES) and Baidu, Inc. (BIDU). We maintain a Neutral rating on SINA.
Read the full analyst report on "SINA"
Read the full analyst report on "FMCN"
Read the full analyst report on "SOHU"
Read the full analyst report on "NTES"
Read the full analyst report on "SNDA"
Read the full analyst report on "BIDU"
Zacks Investment Research
]]> http://www.straightstocks.com/stock-watch/sina-nixes-focus-media-takeover-analyst-blog/feed/ 0 http://www.straightstocks.com/stock-watch/drstockpick-com-stock-report-82709-ofg-xrx-auxl-aryc-eysm-iilg/ http://www.straightstocks.com/stock-watch/drstockpick-com-stock-report-82709-ofg-xrx-auxl-aryc-eysm-iilg/#comments Thu, 27 Aug 2009 11:55:50 +0000 Dr. Stock Pick http://drstockpick.com/?p=3031 http://www.straightstocks.com/stock-watch/drstockpick-com-stock-report-82709-ofg-xrx-auxl-aryc-eysm-iilg/feed/ 0 http://www.straightstocks.com/market-commentary/great-company-but-what-about-the-stock/ http://www.straightstocks.com/market-commentary/great-company-but-what-about-the-stock/#comments Tue, 10 Mar 2009 05:48:55 +0000 Daniel Hung http://thecuriousinvestor.com/?p=532 http://www.straightstocks.com/market-commentary/great-company-but-what-about-the-stock/feed/ 0 http://www.straightstocks.com/current-market-news/small-business-company-sbcoob-signs-with-greenwood-hall-to-implement-internet-campaign/ http://www.straightstocks.com/current-market-news/small-business-company-sbcoob-signs-with-greenwood-hall-to-implement-internet-campaign/#comments Thu, 12 Jun 2008 17:05:02 +0000 QualityStocks http://Blog.QualityStocks.net/?p=10596 http://www.straightstocks.com/current-market-news/small-business-company-sbcoob-signs-with-greenwood-hall-to-implement-internet-campaign/feed/ 0