Cloud computing: Get on the ground floor
"The term 'cloud computing' is nothing particularly new or complicated; it simply means that instead of having software on your home, office or notebook computer, you run applications over the Internet," explains Gregg Early.
In Personal Finance he looks at three plays on this trend: Amazon.com (NASDAQ: AMZN); Salesforce.com (NYSE: CRM); and Rackspace Hosting (NYSE: RAX).
"It’s the way of the future as computing becomes increasingly mobile. I would point out that I’m writing this article on Google Docs. This document is stored on a Google server farm, not on my office computer.
"When I want to access this document -- from my house, office, laptop or mobile phone -- I simply go to my Google account and it shows up. This kind of computing has gone from quixotic concept to ubiquitous reality.
"From a business standpoint cloud computing is compelling because it means a business doesn’t have to buy software or licenses for each of its employees or hire additional IT staff to maintain and upgrade software packages or train staff on how to use them.
"Some cloud computing giants got there as a happenstance to their original business models. Amazon.com, for example, is known as a leading online retailer.
"But because it had to build up enormous amounts of data storage for all its records and then began to build relational databases among its customer profiles, an entire new business sprung up.
"Amazon can 'sell' its excess storage capacity and also works with businesses on their marketing and customer relationship management (CRM) protocols.
"Now Amazon-the-online-bookstore is also Amazon-the-cloud-computing-storage-vendor-and-management-consultant-to-online-businesses. It’s this kind of adaptive business acumen that we like so much about this company.
"Another pioneer in this space is Salesforce.com, a CRM and sales site that’s removed the software from your desktop and stuck it in the cloud. Sales teams can now coordinate and interact while on the road from any computer, wherever they are.
"It’s also much more cost effective for business to go with a cloud CRM provider. And in this kind of economy, you have to leverage every dime.
"A new player that’s generating a lot of buzz is Rackspace (NYSE: RAX). Two web developers were sitting around a Wendy’s in 2004 talking about the clustering, load-balancing, and virtualization.
"They analyzed what the large enterprise customers were using to stay online. They set out to bring that sort of redundancy and scalability to web applications, regardless of whether it was for an individual or business.
"By 2005 the company was off and running. Basically, it rents cloud space to businesses and individuals--and it’s the world’s leader in hosting.
"It delivers websites, web-based IT systems, and computing as a service. This is where the online world is trending and where long-term growth opportunities are huge."
Indonesia Fund (IF): ‘Hidden gem’
"Indonesia, a long time favorite, is often overlooked by even savvy global investors," says Carl Delfeld. In Chartwell ETF Advisor he calls Indonesia Fund (NYSE: IF) a "hidden gem."
"This year, Indonesia is one of the best performers in the world with a growth rate just a bit behind China. Other attributes are its rich natural resources, less reliance on exports relative to its neighbors, and its growing consumer class which fuels 65% of GDP.
"Other positives are its appreciating currency and strong banks. Jakarta’s banks are among Asia’s best-capitalized banks. Then there is political stability.
"Susilo Bambang Yudhoyono, re-elected last month as Indonesia’s president, expects faster growth next year and a narrowing of the country’s budget deficit alongside a likely increase in inflation.
"Indonesia has been less affected by the global slowdown than many thanks to relatively sturdy domestic consumption, due in part to spending associated with this year’s legislative and presidential elections, and a lower dependence on exports.
"The finance ministry has projected south-east Asia’s largest economy to grow by 4.3 per cent this year. The resilience of the economy helped Mr Yudhoyono cruise to victory with 60.8 per cent of the vote.
"In his 2010 budget announcement, the president said the government was targeting growth of 5% in 2010. Next year’s deficit is to be financed via government bonds and foreign loans from the World Bank, Asian Development Bank, International Development Bank, the president said.
"Following the announcement to parliament, finance minister Sri Mulyani Indrawati said oil production will rise further to 1.01m by 2014. She forecast economic growth would increase further to 6.2 per cent in 2011, rising steadily to 7.2 per cent in 2014.
"My only concern about the Indonesia Fund at this point is valuations that have come up sharply with the market this year. As a result, we would recommend buying on any sharp dips."
Editor's note: Global expert Carl Delfeld's new book -- Red, White & Bold -- is now available. Steve Forbes says, "Carl's perspective is truly unique and insightful in understanding the global economy."
Syniverse Is to Acquire VeriSign’s Messaging Business
Acquisition Expands Syniverse's Global Scale and Reach With Enterprise Offerings
Syniverse Is to Acquire VeriSign’s Messaging Business
Acquisition Expands Syniverse's Global Scale and Reach With Enterprise Offerings
Syniverse Is to Acquire VeriSign’s Messaging Business
Acquisition Expands Syniverse's Global Scale and Reach With Enterprise Offerings
Syniverse Is to Acquire VeriSign’s Messaging Business
Acquisition Expands Syniverse's Global Scale and Reach With Enterprise Offerings
Expedia, Inc. (EXPE)
Expedia Inc. (<a href=http://www.zacks.com/stock/quote/expe>EXPE</a>) is one of the leading online travel companies in the world. The company reported strong results in the last quarter, beating the consensus estimate. Although bookings continue to be impacted by the recession, management has taken promotional measures to improve the conversion rate. <p> We are also positive about international initiatives, which we think will be the key to future growth. Cost management, a favorable online advertising environment and solid financials are other encouraging factors. In comparison, the possibility of increased occupancy taxes and low growth in Egencia (the smallest segment) seem less significant. <p> However, the declining average daily rates could be something to watch. We are initiating coverage of EXPE shares with an OUTPERFORM rating.KeyCorp (KEY)
KeyCorp's (<a href=http://www.zacks.com/stock/quote/key>KEY</a>) second-quarter net loss came in at 69 cents per share, substantially worse than the Zacks Consensus Estimate. The downside primarily resulted from preferred dividend payment and a significant increase in the provision for loan losses. <p> Credit quality worsened significantly during the quarter. However, we are impressed by the company's steps to reduce its exposure to the commercial real estate (CRE) home builders business. <p> Though the company will benefit by exiting its risky and unprofitable businesses, we expect elevated provision requirements and a weak net interest to put significant pressure on its profitability. As such, the shares carry and Underperform recommendation from us.John Murphy: POINT & FIGURE CHARTS ARE HELPFUL IN GIVING PRECISE BUY AND SELL SIGNALS — USING BAR CHARTS TO SPOT SHORT-TERM SUPPORT AND RESISTANCE LEVELS
Once in a while, I like to review the merits of point & figure charting which can be used as an adjunct to other charting methods. As I've pointed out before, one of the most compelling virtues of...Delfeld: Red, White & Bold
Global expert Carl Delfeld's new book -- Red, White & Bold -- is now available. Steve Forbes says, "Carl's perspective is truly unique and insightful in understanding the global economy."