Linkbits 07.10.07

Technology

• Southwest Airlines is planning to develop in-flight internet connectivity. Read more via Engadget.
• Facebook continues to grow at a rapid pace. The latest numbers show an increase in traffic of 80+% when comparing last May to this May. Read more here.
• With the PS3 $100 price cut, Amazon sales have gone from #26 in Video Games to #1. Take a look here.
• Microsoft’s response to the PS3 price cut is Project Falcon, a revised version of the 360 with a 65nm chip, bringing a major cost reduction. Read more via The Mercury News.
• New York has planned to begin implementing a surveillance system similar to London’s. Read more via CNet.

ETF’s

• Vanguard has announced they will be releasing ETF’s to compete with Barclay’s current ETF offering. The main difference between the two is Vanguard’s expense ratio will be 0.15% versus 0.30%. This is long overdue competition in a rapidly growing area. Read more via WSJ.

ZipRealty inventory growth

ZipRealty has released a chart to show the change in the number of homes in the top metro areas. The highest gain is in the hot Seattle market that continues to appreciate despite weakness across the rest of the country.

Linkbits 07.05.07

Technology

• A Google mashup that highlights cell phone coverage around the country. Check it out via SignalMap.
• With a decrease of 15% for album sales and a 49% increase in digital tracks, the overall decrease for combined album sales is 9.2%. Read more via NY Times.

Housing

• A Google mashup that highlights the number of foreclosures within the Minneapolis area. An awesome site that should be repliated for the entire country. Read more via The Star Tribune.

Marketing

• Which conglomerate spent the most money on advertising in 2006? Procter & Gamble ($4.9b). Read more via Blogging Stocks.

Personal Finance

• The release of the Facebook API’s has led to a P2P lending startup named Lending Club. This is a direct competitor to Prosper. Read more via Lending Club.

IPO Profile: Kohlberg Kravis Roberts & Co. (KKR)

Company Name: Kohlberg Kravis Roberts & Co.
Ticker: KKR
Exchange: NYSE
Size: $1.25b
Timing: Q3/Q4 2007
Underwriters: Morgan Stanley, Citigroup Global Markets
Website: Kohlberg Kravis Roberts & Co.
Commentary: Kohlbert Kravis Roberts or KKR was originally started in 1976 by Henry Kravis and George Roberts in 1976. The proceeds of this offering will be used to grow its business. The firm is best known for its $25.1 billion purchase of RJR Nabisco. With over $53.4b in assets under management up from $18.3b at the end of 2002, KKR is growing quite aggressively. In 2006, KKR earned $1.1b in profit, up 12% from $941m in 2005.

Recommendation: Aside from the impressive growth rates, there are several issues to consider before purchasing shares of KKR; 1) KKR will provide no earnings guidance 2) Congress has proposed that all private equity firms should begin paying higher tax rates 3) KKR shareholders will have no control of the firm’s managing partner and will not vote in the election or removal of its directors. Private equity firms going public will most likely continue with others such as the Carlyle Group. I suggest you sit tight and hold off on picking up any shares of both Blackstone and KKR until the dust settles.

Linkbits 07.04.07

Stock Market

• A few newspapers in London are reporting that BP and Shell are discussing a friendly merger. Read more via SeekingAlpha.
• While Blackstone is busy acquiring Hilton Hotels, KKR files to go public via a $1.2b IPO. Read more via Yahoo.

Technology

• The domain name, iPhone.com has been bought by Apple for over seven figures. Read more via DomainTools Blog.
• Feedburner PRO (RSS feed provider) is now completely free via Google. Read more via Feedburner.

Real Estate

• Manhattan real estate continues to rise as the average price is now over $1.3m. Read more via CNN.
• Although this is quite old, NY is quite innovative with their policies. They have had all property / coop sales prices as public record for about a year now. Read more via NYC Blog Estate.

Linkbits 07.02.07

Entertainment

• Universal is reporting that their iTunes renewal negotiations with Apple have hit a standstill. Read more via NY Times.

Technology

• Verizon reports that their EV-DO rev A network upgrade is complete. The network now boasts download speeds of 600kbps to 1.4mbps. Read more via Engadget.

Markets

• Chinese stock market mayhem continues as Chinese stocks are now trading at 45 times reported earnings. Read more via Bloomberg.

Real Estate

• Home prices continue to rise in Britain with an impressive 1.1% rise in the average cost of a home in just one month. The average price is now £184,070 or $368,000. Read more via NY Times.

Economy

• The unemployment rate continues to improve in Germany, now down to 8.8%. Down from 14+% over the past few years. Read more via NY Times.

Build-A-Bear pursues ’strategic options’

Some of you may remember the post, Build-A-Bear Workshop gets torn down in which I stated that you might want to look into picking up some Build-A-Bear on the short-term weakness.  If you did, you would be sitting on about a 15%-17% gain. The company announced the following today:

Build-A-Bear Workshop Inc. said on Thursday it has hired Lehman Brothers to help it evaluate its options.

Regardless of the quick rise, I believe that Build-A-Bear still holds long-term value and is still well below where it dropped earlier this month.

Linkbits 06.28.07

Economy

• While the US trade deficit with China continues to rise, it drops for the rest of the world. Read more about this via NY Times.

Personal Finance

• Looking to save some money? Try out these Firefox extensions.
• Fancy a lunch with Warren Buffet? It’s going to cost you over $300k, based on the current eBay bids.

Technology

• Does Google command 65% market share of searches or 56% as reported by ComScore.

Life

• Although everyone hates the new London Olympics logo, the 1972 Munich logo was worse.

iPod = Trade Deficit Contributor

The NY Times provides a classic example of how our trade deficit with China can be artificially inflated:

The retail value of the 30-gigabyte video iPod that the authors examined was $299. The most expensive component in it was the hard drive, which was manufactured by Toshiba and costs about $73. The next most costly components were the display module (about $20), the video/multimedia processor chip ($8) and the controller chip ($5). They estimated that the final assembly, done in China, cost only about $4 a unit.

Although only $4 per unit can actually be attributed to China, each 30-gigabyte video iPod contributes $150 in exports for China. This illustrates why the trade deficit can be artificially inflated.

Source: An iPod Has Global Value, NY Times.

Fund Profile: Loomis Sayles Bond Ret (LSBRX)

Name: Loomis Sayles Bond Return
Ticker: LSBRX
Focus: Multisector Bond
Size: $5.28B
Annual Turnover: 26%
Investment Minimum: $2500
Website: Loomis Sayles & Company
Manager: Daniel Fuss (May 16, 1991)

Commentary: Although the 5 year return of ~13% is misleading due to an impressive 28% return in 2003, something needs to be said for the fund’s ability to beat benchmarks year after year. Dan Fuss runs an open fund allowing for investments across the globe. Costs are reasonable at 1.00% with the impressive track record and above average 5% yield.

Recommendation: As previously stated, LSBRX is a top performing bond fund allowing the fund manager to scour the globe for attractive bonds.