Saturday, July 22, 2006

Google Click Fraud Controversy

Google (Nasdaq:GOOG) So how solid are Google's real revenues. The National Law Journal reports that "More than 40 online advertisers alleging that the nation's top search engines conspired to overcharge them have filed objections aimed at unraveling a $90 million settlement with Google. The class action alleges that Google and others charged two advertisers for fraudulent clicks in pay-per-click advertising programs. Objectors say the proposed settlement is unfair, in part because they will receive only 10 percent of a $60 million fund. They're also not happy about the size of the attorney fees....

Although Google agreed to settle the case, claims still are pending against other defendants, including Yahoo Inc.; Time Warner Inc.'s America Online; and Ask Jeeves, now, which is owned by IAC Search & Media, a wholly owned subsidiary of IAC/InterActiveCorp....

Under the settlement, class members who contributed 10 percent of Google's billions of dollars in revenue by paying for fraudulent clicks would receive compensation based on only 10 percent of the $60 million fund, or $6 million, the settlement also paid potential class members in advertising credits, not cash.

Nasdaq Guidance

Nasdaq (Nasdaq:NDAQ) increased their guidance to $68-78 million range. Assuming a current market cap of $2.94 Billion that equates to a 2.65% return. Not exactly take over material. Hyper competition will drive profits and margins down.

Thursday, July 20, 2006

Google International Growth Remains Flat

Google (NASDAQ: GOOG) international revenues remained at 42% of overall revenues calling into question all the hype about international expansion and world domination that many were calling for. If the business case had been more solid than the growth would have continued and international revenues would have become increasingly more important.

Microsoft Executive

Microsoft (Nasdaq:MSFT) released quarterlies all without comments attributed to the old guard. If we see the old guard making public comments does that mean the new guard has slipped. Will the new guard be listened to with the same reverence and respect and yes fear?

Callaway Shuffles Executive Deck

Callaway Golf Company (NYSE:ELY) announced the appointment of two new Senior Vice Presidents and the departure of a third. The door is revolving a little too quickly at the senior levels and gives one cause to perhaps worry.

Asensio Questions Nasdaq Allowing Pegasus Wireless Prez to Ring Opening Bell

Asensio has brought into question Nasdaq's judgement. Friday July 21 the Nasdaq opening bell will be rung by Jasper Knabb the President of Pegasus Wireless (NASDAQ: PGWC) Asensio claims to have uncovered some rather unsavoury background on Jasper Knabb. They also question Nasdaq's judgement and common sense. Check out for more details.

Tuesday, July 18, 2006

Shnitzer Investors Fly Blind

A comfortable out for Schnitzer Steel Industries (Nasdaq:SCHN) who announced they have determined the need to file an amended 10-K/A for the fiscal year ended August 31, 2005. This after almost one year has passed. The amended 10-K/A is required to restate the Consolidated Statement of Cash Flows to reclassify cash received from joint ventures from the "net cash provided by investments" section of the statement to "net cash provided by operations." The filing of the Company's quarterly report on Form 10-Q for the third quarter of fiscal 2006 will be delayed until such time as the amended form 10-K/A and amended forms 10-Q/A for the first and second quarters of fiscal 2006 are filed with the SEC. So in the mean time no one has current info that is reliable. What else needs to be restated? Where is auditor responsibility?

Citigroup Jargon Alert

Citigroup (NYSE:C)senior officers should watch the rhetoric that their public affairs people prepare for them. This kind of talk fools no one. "We are very pleased with the momentum we are building as we execute on our strategic initiatives, strengthen our franchises, and position Citigroup for continued long-term earnings growth," said Prince.

Monday, July 17, 2006

Weekend Follies (July 15-16)

Weekend follies attempts to identify companies that issue substantial press releases over the weekend and effectively may be trying to sneak news out when no one is looking. This weekend we have eight companies all on Nasdaq. They are SRSLabs (SRSL), Lumera (LMRA), Central Valley (CVCY), Outlook Group (OUTL), Mace Security (MACE), United Airlines (UAUA) Triad Guaranty (TGIC), Mother Works (MWRK)

Sunday, July 16, 2006

CN Derails Again

CN Rail (NYSE:CNI) experienced another train derailment Friday Afternoon which effectively closed down the train commuter system in Toronto Canada. CN says it is investigating why approximately six railcars without loads tipped over taking out about six adjacent tracks. No loss of life. Another major question about CN's maintenance and security procedures.