Filed under: Business, Finance, World wide web, Web services

Got $10 burning a hole in your pocket, but don’t know what to spend it on? No problem. Just visit SomethingStore, place an order, and within 7 days the company will ship something to your door. You won’t know what it is, and you may hate it. But hey, shipping is free.

The concept reminds us a lot of the random bag of crap that often concludes Woot-Offs. For some reason, that random bag of goodies is one of the most popular items you can purchase, even if you don’t know what’s in it. We chalk it up to the hope that you could get something worth far more than the price you paid. But the element of surprise also makes the whole thing a little more exciting.

If you’d rather know exactly what you’re getting for your money, make sure to check out Wants for Sale tomorrow. Artists Justin Gignac and Christine Santora use the site to sell paintings of things they want - for the price of the actual items. Buy a picture of a piece of pizza or a Nintendo Wii and Gignac and Santora will use the money to purchase the item. They’ll have a fresh batch of paintings available Friday. And this time they’re going with a theme - Vegas. You’ll be able to help them fund a trip to Vegas by purchasing art.

Or you could just save your money for retirement, your kids’ college fund, or to buy things you actually want for yourself. But what’s the fun in that?

Read | Permalink | Email this | Comments

Share This

Share This

Filed under: Business, News

While Amazon plans to fight New York’s recent decision to begin collecting, the company has updated its tax collection page to let NY customers know that it will begin collecting tax on June 1st.

The say of New York recently passed legislation which requires any company with affiliates in the say to collect taxes on any items sold in New York. That covers companies like Amazon which grant individual bloggers and web site operators to add links to Amazon products on their web sites. Amazon doesn’t actually have any warehouses or business offices in New York. But thousands of New Yorkers who blog who run part time businesses from their home are considered representatives of the company under the state law, which means Amazon has to collect taxes.

Yesterday, Overstock.com decided that the easiest way to avoid paying taxes was to temporarily suspend its relationships with New York-based affiliates. But Amazon, which has already vowed to fight the new law in court, must be making a fair amount of money from New York based affiliates, because the company will instead collect taxes until the issue is resolved, even if that discourages some New Yorkers from buying products through Amazon.

[via CNET]

Read

Share This

Share This

Filed under: Before the bell, Deals, Microsoft (MSFT), Yahoo! (YHOO), IAC/InterActiveCorp (IACI), Merrill Lynch (MER), Goodyear Tire and Rubber (GT)

IAC/InterActiveCorp (NASDAQ: IACI) needs to build up its little Ask.com franchise before it is spun out in a breakup of the parent company. Ask.com is an “also ran” in the search engine fight which includes Google (NASDAQ: GOOG), Microsoft (NASDAQ: MSFT) and Yahoo! (NASDAQ: YHOO).

In an attempt to turn a loser into a contender, IACI is buying Lexico, which owns Dictionary.com, Thesaurus.com and Reference.com. According to The Wall Street Journal, “Lexico sites drew about 15.6 million one-of-a-kind U.S. visitors in March, according to comScore Inc., compared with 55.4 million for Ask and an array of affiliated sites.”

Even if the price of the new addition is low, the Lexico sites are not apt to do much good for the Ask.com franchise. It has already fallen so far behind the three search leaders that it nearly certainly can’t catch up. Internet users have already set their preference in this part of the on the web market. Owning a dictionary site isn’t going to help that.

IACI’s Ask.com can’t come from behind and buying additional reference sites is not going to change that.

Douglas A. McIntyre is an editor at 247wallst.com and the author of the Ten Stocks Under $10 newsletter.

Read | Permalink | Email this | Linking Blogs | Comments

Share This

Share This

Filed under: Deals, CBS Corp ‘B’ (CBS)

The Associated Press reports that CBS Corp. (NYSE: CBS) is buying CNet Networks Inc. (NASDAQ: CNET) for $1.75 billion. This $11.50 a share deal is a 45% premium over Wednesday’s closing price

CNet’s Web sites include News.com, TV.com, Mp3.com, MySimon and GameSpot. And CBS anticipates to use CNet to tap into the World wide web advertising market. This deal raises the question of whether any CBS competitors will decide to get into the game of buying World wide web content companies.

Here are three possible targets:

• TheStreet.com (NASDAQ: TSCM) - This provider of business, investment and ratings content has $65 million in sales and a market cap of $236 million.
• TechTarget (NASDAQ: TTGT) - This provider of on the internet content for buyers and sellers of corporate information technology (IT) products has $95 million in sales and a $531 million market cap.
• WebMD Health Corp (NASDAQ: WBMD) - This provider health information services to consumers, doctors and other healthcare professionals, employers and health plans has $332 million in sales and it’s market capitalization is $1.7 billion

I think traditional media companies buying Internet ones could become a trend. It would only take two more such deals to make it one.

Peter Cohan is President of Peter S. Cohan & Associates. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned.

Permalink | Email this | Linking Blogs | Comments

Share This

Share This

Filed under: Deals, CBS Corp ‘B’ (CBS)

CBS (NYSE: CBS), a TV network, is buying CNET (NASDAQ: CNET), a collection of technology websites. Other than the fact that the deal makes no sense, it is perfect.

CBS is even paying a premium for the privilege of owning a company that no one else seemed to want. Jana Partners and other activist investors have been pushing for a sale or break-up of CNET, but the news must be beyond the wildest dreams. CNET is up nearly 50% on word that CBS will pay $11.50 for a stock which was trading at under $8.

Management’s case for the buy-out is that “The acquisition will make CBS one of the 10 most popular World wide web companies in the United Says, with a combined 54 million unique users per month, and approximately 200 million users worldwide,” according to the company.

However, CNET has had trouble making money on its big audience of world wide web users, to some extent because those readers are spending time with on the web tech blogs. The firm does have a huge software download business, but quarterly statements do not indicate that it is a massive or profitable business.

Perhaps no one will ever understand the CBS motives. The company is controlled by Sumner Redstone, who has done odd things before.

Douglas A. McIntyre is an editor at 247wallst.com.

Read | Permalink | Email this | Linking Blogs | Comments

Share This

Share This

Filed under: Before the bell, Earnings reports, Deals, Microsoft (MSFT), Yahoo! (YHOO), General Electric (GE), Market matters, Penney (J.C.) (JCP), Blockbuster Inc ‘A’ (BBI), Kohl’s Corp (KSS), Economic data, Nordstrom, Inc (JWN), Blackstone Group L.P (BX)

U.S. stock futures were marginally higher early Thursday morning as once again investors await data on the economy to give them direction. Several deals and earnings are also in the spot light this morning.

U.S. stocks received a boost Wednesday from lower-than expected inflation numbers, given extra credence by the fall in crude-oil prices. While most companies reporting earnings Wednesday didn’t proved good news, a smaller-than-forecast loss for Freddie Mac helped lift sentiment. The Dow industrials rose 66 points, or 0.52%, the S&P 500 rose 6 points, or 0.40%, and the Nasdaq Composite edged up more than a point, or 0.06%.

This morning, more inflation data is due out. Consumer level inflation reported Wednesday managed to surprise the Street, but can the economic releases this day do the same?
At 8:30 a.m., weekly initial jobless claims will be released, as well as Might NY Empire Say Index.
At 9:00 a.m., March Net Foreign Purchases will be reported to be followed some time later with April capacity utilization and industrial production.
At 10:00 a.m., after the market opens, the Philadelphia Fed index is due and is expected to show another decline.
Finally, a housing index is also due this day.

Meanwhile, despite current signs of a global slowdown, in Europe, economic growth accelerated more than forecast in the first quarter thanks to the strongest German expansion in 12 years. This data would seem to support the European Central Bank more hawkish stance and its decision to keep rates unchanged in an attempt to stall inflation, which Trichet, the ECB president, more than once mentioned as a global risk.

On the corporate side, The Wall Street Journal reported late Wednesday that General Electric (NYSE: GE) plans to sell its appliance division for between $5 billion and $8 billion

Meanwhile, billionaire activist investor Carl Icahn decided to try and overtake Yahoo Inc. (NASDAQ: YHOO)’s board, to at least scare it into action and revive negotiations with Microsoft Corp. (NASDAQ: MSFT). Icahn has lined up a slate of 10 directors to nominate as replacements.

Among companies reporting today are Blackstone Group (NYSE: BX), Blockbuster (NYSE: BBI) and several retailers: Nordstrom (NYSE: JWN), Kohl’s Corp. (NYSE: KSS) and J.C. Penney (NYSE: JCP).

Permalink | Email this | Linking Blogs | Comments

Share This

Share This

Filed under: Deals, Insiders, Microsoft (MSFT), Yahoo! (YHOO)

Well, maybe Icahn can save them from themselves. Who? Yahoo!’s board of course.

Seems Carl Icahn, whom earlier reports had considering moving in on Yahoo! Inc. (NASDAQ: YHOO)’s board, has made a decision. The billionaire activist investor, who has amassed some 50 million shares of the web portal company to a 3.6% stake, is planning “to move ahead with plans to run a dissident board slate at Yahoo,” according to Reuters.

A Reuters source said that already he has lined up at least 12 potential board candidates and could announce the slate as early as tonight, ahead of Thursday’s deadline.

It’s not just that Yahoo! has so offhandedly rejected Microsoft Corp. (NASDAQ: MSFT)’s attempts to buy it, but it’s also — and probably mainly — the way the company has been managed for some time now. It’s not just Jerry Yang, the current CEO, but his predecessor Terry Semel as well. Yahoo! has been behind the curve in technology and trend, not only losing market share in search, but mainly failing to capitalize on its assets and the traffic they generate.

Already following the early reports today, Yahoo shares completed the day up 2.18%. Now, in after-hours it’s gaining another 1.5%. Yahoo! investors seem to put their trust in Icahn.

Read | Permalink | Email this | Linking Blogs | Comments

Share This

Share This

Filed under: Before the bell, Earnings reports, Deals, Apple Inc (AAPL), Pfizer (PFE), Applied Materials (AMAT), Whole Foods Market (WFMI), Electronic Arts (ERTS), Deere and Co (DE), BHP Billiton Ltd ADR (BHP), Rio Tinto plc ADS (RTP)

Before the bell: Futures lower ahead of CPI

Macy’s (NYSE: M), which was forecast to report a loss of a penny a share in the first quarter, said the difficult retail environment hurt sales and it incurred costs from a restructuring. The loss came to $59 million, or 14 cents a share, compared with a profit of $36 million, or 8 cents a share, a year earlier. (As the numbers are quite fresh, it’s possible they include one-time item not yet sorted out and not comparable to analyst expectations.)

John Deere (NYSE: DE) said its second-quarter profit rose 22%. Deere experienced increased demand for its farm equipment, as crop prices kept rising, posting an 18% increase in sales. Profit for the quarter jumped to $763.5 million, or $1.74 per share, a penny below analyst estimates. From premarket early action, it seems shares of DE might start much lower.

Freddie Mac (NYSE: FRE) also reported this morning, saying its first quarter loss widened to $151 million as the U.S. housing market worsened. Somehow, though, the results weren’t as poor as expected and FRE’s loss of 66 cents a share beat estimates of a 92 cents a share loss. FRE’s shares are up over 6% in premarket trading.

Yes, and Applied Materials (NASDAQ: AMAT) also reported lower earnings and revenue after the close Tuesday. New orders fell in the period, AMAT said, but still managed to beat analysts estimates. Most important, though, is that the maker of equipment for chip said it sees the end of the downturn.

In deal news, speculations are mounting that Pfizer Inc. (NYSE: PFE) may bid for MediGene AG, the German developer of the Endotag cancer drug. MediGene shares shot up 16% on the rumor.

BHP Billiton (NYSE: BHP) shares are rising in premarket trading also on bid speculation that China will take a stake in the world’s largest miner. It’s not clear yet how that will affect BHP’s wish to takeover of Rio Tinto (NYSE: RTP).

The Guardian reports that chief executive of Telefónica Europe, which its O2 has a “multi-year” exclusive deal to sell the iPhone in the UK and Ireland stated Apple Inc. (NASDAQ: AAPL)’s 3G version of the iPhone will be unveiled “in the coming weeks.” Speculation is the reveal will be on June 9.

Permalink | Email this | Linking Blogs | Comments

Share This

Share This

Filed under: Before the bell, Earnings reports, Deals, Microsoft (MSFT), Yahoo! (YHOO), Market matters, Sony Corp ADR (SNE), Clear Channel Commun (CCU), Economic data, Housing, Federal Reserve

As is nearly the case ahead of some key data announcement, investors tend to be looking for direction. Indeed, stock futures were mildly lower early Wednesday morning as the Street awaits CPI reading on inflation. Also in focus this morning is housing after a reading on foreclosures surged.

Already on Tuesday investors seemed nervous as U.S. stocks completed blended on Tuesday. Retail sales, Wal-Mart results, Hewlett Packard’s acquisition of EDS and Federal Reserve Chairman Ben Bernanke’s speech on the markets affected stocks with the Dow ending 44 points, or 0.34% lower, the S&P 500 almost flat as it was down half a point, or 0.04%, and the Nasdaq Composite ending 6 points, or 0.27%, higher.

This morning, stocks will likely get a clearer direction after April’s Consumer Price Index report due out at 8:30 a.m. EDT. Economists, according to Briefing.com anticipate CPI to rise 0.3% in April, while core CPI, which excludes the volatile food and energy prices, is estimated to be up 0.2% in April. Investors want the report to grant the Fed to keep interest rates as they’re so as to bolster the dollar, and hence commodities, somewhat.

Talking of the dollar and commodities, though, oil keeps trading on its own set of “rules,” it seems. Overnight, oil set yet another record, shrugging off gains in the dollar. The record, near $127 a barrel, was due to concerns that Iran may cut production. Oil has retreated since as the reports may have been overblown. This morning, at 10:30 a.m. EDT the weekly release of U.S. fuel inventories is due. Meanwhile, congress voted Tuesday to challenge President Bush to temporarily halt the daily shipment of thousands of barrels of oil into the government’s emergency reserve.

As for housing, homes facing foreclosure increased in April by 65% year-over-year, and were up 4% since March.
Nevada, Arizona, California and Florida were among the hardest hit states.

In major corporate news, CNBC reported late Tuesday the activist investor Carl Icahn, with its current 3.6% stake in Yahoo!, is considering a proxy fight for control of the board at Yahoo (NASDAQ: YHOO) following its rejection of the takeover bid by Microsoft (NASDAQ: MSFT). Shares of Yahoo jumped in afternoon trading Tuesday, but have somewhat leveled off.

Clear Channel Communications (NYSE: CCU) has settled a legal dispute with the lenders funding its private equity buyout, in essence concurring to a lower buyout offer, and clearing the way for company to finally seal the deal almost two years after it was first announced.

Sony Corp. (NYSE: SNE), which had a loss last year, reported a $277 million profit for the January-March quarter on Wednesday.

Permalink | Email this | Linking Blogs | Comments

Share This

Share This

Filed under: Deals, Microsoft (MSFT), Yahoo! (YHOO)

By saying “no” to Microsoft (Nasdaq: MSFT)’s buyout bid, Yahoo! (NASDAQ: YHOO) thought there would be no more distractions.

Maybe not.

Yahoo! now has a new pesky shareholder — Carl Icahn, the shareholder activist — who according to CNBC has accumulated a 50 million share stake in Yahoo. And it looks like Icahn is putting together a proxy fight.

Icahn loves to battle senior managers and boards. He has been doing this for decades, and seems to get superior and superior (and the deals get larger and bigger).

He has a big war chest (his personal fortune). He also has his own hedge fund, and more importantly, he has lots of credibility with the Street.

Icahn won’t take any excuses from Yahoo!’s CEO, Jerry Yang. If anything, he’s going to make Yang’s life miserable, so as to pad his pockets.

In other words, just when it seemed things couldn’t get more interesting, the Yahoo! saga has been elevated to a new level… of excitement.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar On the web Guide to Decoding Financial Statements. He also operates MergerBook.com.

Permalink | Email this | Linking Blogs | Comments

Share This

Share This