Brand-Name Stocks Uner $10: Buyer Beware
These well-known names in the bargain bin may look appealing, but experts advise laying off until their earnings picture is clear. Among the stocks to be weary of are Sprint Nextel, Motorola, Ford Motor, Qwest, Washington Mutual, Northwest Airlines, Del Monte, Rite Aid, Chico's, Crocs, United Airlines, Palm, Sealy, Blockbuster, Circuit City and Orbitz.
Brand-Name Stocks Under $10: Buyer Beware

How to Play the Market in the Second Half of 2008
Market pro Todd Harrison discusses the top 10 themes for the rest of the year.
Where we are and where we're going: 10 market themes - MarketWatch

Finding Safety in a Bear Market
Here are five ways to protect your portfolio.
Keeping Your Balance in a Scary Market - Kiplinger.com

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Here are some highlights from this past week's earnings coverage from BloggingStocks:

• American International Group Inc. (NYE: AIG) reported a loss of $7.8 billion but raised its dividend.
• Barr Pharmaceuticals Inc. (NYSE: BRL) missed earnings estimates and lowered its guidance.
• D.R. Horton Inc. (NYSE: DHI) posted a larger-than-expected Q2 loss on further write-downs.
• Fannie Mae (NYSE: FNM) posted its third straight quarterly loss on the continuing housing slump.
• Hansen Natural Corp. (NASDAQ: HANS) lower-than-estimated Q1 profit led shares to a 52-week low.
• Lazard Ltd. (NYSE: LAZ) net income dropped 71% on a fall-off of M&A activity and a write-down.
• MGM Mirage Inc. NYSE: MGM) Q1 profits were dragged down by decreased consumer spending.
• Pilgrims Pride Corp. (NYSE: PPC) widened its Q2 loss due to the rising cost of feed.
• Playboy Enterprises Inc. (NYSE: PLA) swung to a Q1 loss as revenue declined in all units.
• Qwest Communications (NYSE: Q) net income and revenue fell in the first quarter.
• Scotts Miracle Gro Co. (NYSE: SMG) blamed a slow start to spring for its Q2 profit decline.
• Teva Pharmaceutical Industries Inc. (NASDAQ: TEVA) posted a Q1 loss due to a charge.
• THQ Inc. (NASDAQ: THQI) posted a loss for its fourth quarter and revenues flat for the year.
• Toyota Motor Corp. (NYSE: TM) posted lower-than-expected Q4 results due to the U.S. economic slump.
• Warner Music Group Corp. (NYSE: WMG) Q2 loss widened and it suspended its quarterly dividend.

Also, Jim Cramer takes a look at the implications of AIG's big loss. And a lack of earnings guidance from Dr. Pepper Snapple Group Inc. (NYSE: DPS) had investors skittish as the company began trading this week.

Upcoming results to watch for include Sprint Nextel (NYSE: S), XM Satellite Radio Holdings (NASDAQ: XMSR), Sirius Satellite Radio (NASDAQ: SIRI), Electronic Arts (NASDAQ: ERTS), Whole Foods (NASDAQ: WFMI), Wal-Mart (NYSE: WMT), Deere & Co. (NYSE: DE), Toll Brothers (NYSE: TOL), Applied Materials (NASDAQ: AMAT), JC Penney (NYSE: JCP), Macy's (NYSE: M), Nordstrom (NYSE: JWN), Hewlett-Packard (NYSE: HPQ), Abercrombie & Fitch (NYSE: ANF).

Visit AOL Money & Finance for more earnings coverage.

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• DJIA 13,025.31 +55.77 +0.43%
• S&P 500 1,418.42 +10.93 +0.78%
• NASDAQ 2,483.31 +19.19 +0.78%
• 10YR-Bond 3.893% (+0.048)
• TOP 10 ANALYST CALLS.

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Qwest Communications (NYSE: Q), a company whose competitors include Verizon (NYSE: VZ), AT&T (NYSE: T) and Sprint Nextel (NYSE: S), issued its Q1 results on Tuesday, and they weren't inspiring to me at all. Revenues declined 1% to $3.4 billion. Net income took a dive to the tune of 25%, coming in at $0.09 per diluted share. Those are year-over-year declines -- the sequential-quarter comparisons also told a tale of decline. Adjusting the earnings for some tax considerations did, however, yield a net-income increase of almost 6%.

But then there's one of my favorite measures of growth -- free cash flow. Qwest didn't hit this metric. Free cash, on an adjusted basis, was $56 million this time around versus $156 million last time around (I give Qwest credit for increasing its operating cash flow, however). Qwest was able to carve out some double-digit gains in its broadband and video subscribers, but that seemed to be of little help right now.

Overall, I came away from the earnings report -- which told a complex story of adjustments, EBITDA, and such -- not wanting to add this stock to my watch list. According to Briefing.com, Qwest missed expectations by a penny, and its revenues failed to go beyond what Wall Street was looking for. Considering the low price of the shares, and the fact that the dividend yield isn't one I'd chase, I'll feel free to leave this one alone.

Disclosure: I do not own shares in any company mentioned here; positions can change at any time.

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Merck (NYSE: MRK) said Monday that it plans to cut 1,200 sales jobs, 15% of its sales workforce. The announcement comes after last week the FDA rejected Merck's experimental Cordaptive drug.

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This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

"I'm like Ma Bell, I got the ill communication." -- Beastie Boys

When considering these two particular companies, it is important to note their roots as offspring of the famous "Ma Bell" network. The Bell System, which has produced the most complex ongoing series of mergers and break-ups in the history of the United States, is the origin of the companies that are now AT&T Inc. (NYSE: T) and Verizon Communications Inc. (NYSE: VZ), as well as competitor Qwest Communications International (NYSE: Q). A lot has changed since those early times -- remember, after all, that the second "T" in AT&T stood for Telegraph. Now phones are the latest devices to be made supercomputers. AT&T has its exclusive deal with the Apple Inc. (NASDAQ: AAPL) iPhone, while Verizon slings the Research in Motion Ltd. (NASDAQ: RIMM) BlackBerry.

Since wireless is the way of the future, the wireless divisions of these companies is the most hotly contested, and the focus of this "Battle of the Brands." It is important to note that despite Verizon Wireless bearing solely Verizon's name, it is not owned by just them, it is a 55%-45% joint venture between Verizon and Vodafone Group (NYSE: VOD). It is also important to note that AT&T Mobility is the service formerly known as Cingular, which was acquired by AT&T in 2006 when it bought BellSouth for $86B.

Looking first at Verizon Wireless, its strategy is simple. It focuses on the strength of its network as its main selling point. From the company's "Can you hear me now?" ads, to the current "It's the network" ads, the point the company conveys is that if you have Verizon, you are covered by the biggest and most reliable network. AT&T's most memorable recent ads may be Martin Scorsese "We won't interrupt your phone calls, please don't interrupt our movies" ads that play at the cinema, but the company also runs television ads that focus on "more bars in more places," which echoes a very similar message to Verizon's about the strength of their network.

There are arguments that can be made that either network is superior, depending on your metrics -- coverage area, dropped calls, strength of signal -- but what matters with branding is perception, and the edge in network perception goes to Verizon Wireless, which has spent years building its image as the superior cellular service.

However, network is not the entire argument. There is also the important matter of the hardware available on each service, where AT&T took a significant lead when it signed an exclusive contract with Apple to carry its iPhone exclusively. The reason for its significance is not only that users chose AT&T over Verizon for the highly desirable device, and not just because some Verizon users switched to AT&T to get one, it is also the type of customers it got. It got the tech-savvy, 18-24 users that use more minutes, text frequently, and use data plans. These users are good for far more revenue than the older users with minimal plans that just need a good network to use their cell phone in case of an emergency.

Both companies have high-quality networks, advertise extensively, offer a ton of different cell phones, and have similar pricing models, so, like most of these "brand battles," the decision comes down to personal preference. One thing is for sure, with over 65 million users for Verizon Wireless and over 71 million users for AT&T Mobility, this is one rivalry that will not be over anytime soon.

Vote in our poll for Verizon Wireless or AT&T Mobility as your preferred brand, and let us know in the comments why you love it.

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The short interest on the NYSE hit an all-time record in the period measured on February 29. Figures by company compare with shares sold short on February 15. Investors bet that shocks would drop across most sectors.

Financial firms had significant increases in short interest. At Citigroup (NYSE:C) the number rose 25.8 million shares to 118.6 million. At Wells Fargo (NYSE:WFC) the figure moved up 12.3 million to 108.8 million. At Wachovia (NYSE:WB) short interest jumped 6.3 million shares to 103.2 million.

At Fannie Mae (NYSE:FNM) shares short rose 14.7 million to 66.5 million.At Freddie Mac (NYSE:FRE) short interest soared 13.4 million to 53.5 million.

Shares short in telecom companies AT&T NYSE:(T), Verizon (NYSE:VZ), and Qwest (NYSE:Q) also rose by a significant margin.

Data from WSJ and NYSE.

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

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Here are a few highlights of this past week's earnings coverage from BloggingStocks:

• Abercrombie & Fitch Co. (NYSE: ANF) beat estimates on strong sales and higher profit margins.
• Baidu.com Inc. (NASDAQ: BIDU) profit soared on strong revenue from online marketing.
• Coca-Cola Co. (NYSE: KO) earnings and revenue surged in the fourth quarer.
• Dean Foods Co. (NYSE: DF) missed expectations on rising commodity costs and lower profit margins.
• Deere & Co. (NYSE: DE) posted better-than-expected profits as rising grain prices spurred demand.
• Goodyear Tire & Rubber Co. (NYSE: GT) posted solid results on cost savings and debt reduction.
• Insight Enterprises Inc. (NASDAQ: NSIT) beat expectations and raised its guidance.
• LECG (NASDAQ: XPRT) posted a net loss despite a slight increase in revenue in the fourth quarter.
• Loews Corp. (NYSE: LTR) missed estimates due to profit decline in its CNA Financial (NYSE: CNA) affiliate.
• Marsh & McLennan Inc. (NYSE: MMC) missed estimates on weakness in its insurance services business.
• Playboy Enterprises Inc. (NYSE: PLA) posted disappointing results on weakness in publishing and TV.
• Qwest Communications International Inc. (NYSE: Q) fourth-quarter and full-year results met estimates.
• Sierra Wireless Inc. (NASDAQ: SWIR) beat esimates on the launch of new product s.
• Taser International Inc. (NASDAQ: TASR) profits doubled, which was in line with expectations.
• Visteon Corp. (NYSE: VC) posted a fourth-quarter loss on restructuring costs and write-downs.
• Waste Management Inc. (NYSE: WMI) beat espectations and offered 2008 guidance.
• Wyndham Worldwide Corp. (NYSE: WYN) earnings met expectations and were buoyed by lodging revenue.
• Zoltek Companies Inc. (NASDAQ: ZOLT) missed earnings estimates due to inventory buildup.

Upcoming results to watch for include Wal-Mart (NYSE: WMT), Hewlett-Packard (NYSE: HPQ), OfficeMax (NYSE: OMX), Whole Foods (NASDAQ: WFMI), MGM Mirage (NYSE: MGM), JCPenney (NYSE: JCP), and Safeway (NYSE: SWY).

Visit AOL Money & Finance for more earnings coverage.

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Tuesday's Applied Materials Inc. (NASDAQ: AMAT) first-quarter results and Qwest Communications International Inc. (NYSE: Q) fourth-quarter results have helped them lead Wednesday's tech gains and telecom gains respectively.

Semiconductor equipment maker Applied Materials said that its fiscal first-quarter profit declined as revenue fell due to the challenging global market for its products. Sales fell 8% to $2.09 billion from $2.28 billion in the same period of 2006. The company earned $262.4 million, or 19 cents per share, down 35% from $403.5 million, or 29 cents per share.

Excluding restructuring costs and other items, adjusted earnings were $345 million, or 25 cents per share. Analysts polled by Thomson Financial had expected a profit of 20 cents per share on sales of $2.01 billion.

Shares of Applied Materials rose Tuesday and Wednesday $3.10, or about 17%, to close at $19.91. Shares have been climbing from the 52-week low of $16.13 in mid January.

For the quarter, earnings were $366 million, or 20 cents per share, compared to $194 million, or ten cents per share, in 2006. Revenue of $3.4 billion declined 1.5% year over year and was flat sequentially.

For the full year, Qwest posted revenue of $13.8 billion, which after adjustments was essentially flat compared to the prior year. Normalized for income tax benefits and litigation charges, adjusted earnings were $1.1 billion or 55 cents per share.

Qwest's shares have risen about 52 cents, or less than 10%, on Tuesday and Wednesday to close at $5.67. It's still near its 52-week low of $5.00 from January.

Visit AOL Money & Finance for more earnings coverage.

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MOST NOTEWORTHY:

• Goldman upgraded shares of British Airways (OTC: BAIRY) to Buy from Neutral on valuation, and believes the company is the "jewel in the crown" in European aviation.
  
• Morgan Keegan expects ADC Telecomm (NASDAQ: ADCT) to benefit from carrier upgrade activity and views expectations as conservative. The firm raised shares to Outperform from Market Perform.
  
• Qwest (NYSE: Q) was raised to Buy from Hold at Soleil on valuation and yield support.

• VistaCare (NASDAQ: VSTA) was upgraded to Hold from Sell at Deutsche Bank.
  
• Banc of America raised Boston Scientific (NYSE: BSX) to Buy from Neutral.
• Lehman upgraded Kindred Healthcare (NYSE: KND) to Overweight from Equal Weight.

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Bear Stearns upgraded the financial sector to "market weight" from "market under weight," according to CNBC.

Qwest (NYSE: Q) was upgraded from "hold" to "buy" at Soleil and Boston Scientific (NYSE: BSX) was upgraded from "neutral" to "buy" at Bank of America, according to Briefing.com.

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

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For the first time, the amount that an average American household spends on its cellphone service is passing spending on traditional landlines.

According to The Associated Press ,""the most recent government data show that households spent $524, on average, on cell phone bills in 20qa06, compared with $542 for residential and pay-phone services. By now, though, consumers almost certainly spend more on their cell phone bills, several telecom industry analysts and officials said."

The news sets up some probable winners and losers over the next several years. AT&T (NYSE:T) and Verizon (NYSE:VZ) should both come out ahead, but not by as much as investors may think. Each of the companies has large cell phone operations, but the number of US cell customers is beginning to reach a point of saturation, just as landline customers did years ago. Cellular revenue will continue to grow, along with operating profits. But, landline revenue at these companies is likely to shrink, and that may accelerate as more people move to VoIP and cell phones.

The big loser will be Qwest (NYSE:Q). Most of its revenue come from landlines. It has no cellular business to speak of, so it is on the losing end of a trend, but does not have a play at the winner's table.

Of course, handset companies are likely to benefit. Motorola (NYSE:MOT) is still the leader in US handset sales. Nokia (NYSE:NOK), the world's largest handset company, would like to change that. And, there is always the Apple (NASDAQ:AAPL) iPhone. These days Apple always wins.

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

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The following excerpt originally appeared as part of the Israel Opportunity Investor, a monthly newsletter I publish for paid subscribers.

Gilat Satellite Networks Ltd. (Nasdaq: GILT) provides Internet Protocol [IP] based digital satellite communication and networking products and services. The Company designs, produces, and markets very small aperture terminals (VSATs), two-way satellite ground stations with dish antennae smaller than 3 meters, and related network equipment. Gilat has customers in over 85 countries. Its products are primarily sold to communication service providers and operators that use VSATs to serve enterprise, government, and residential users. The company also provides services directly to end users in various market segments in the United States and Latin America. The Company competes with Hughes Network Systems, Viasat, Inc. (NASDAQ: VSAT), iDirect, AT&T, Inc. (NYSE: T), Verizon Communications (NYSE: VZ) and Qwest Communications International Inc. (NYSE: Q).

Investment Thesis

Gilat focuses on niche markets within emerging markets and the government sector, with a lot of opportunity for new deal flow in markets like Africa, Latin America, and Eastern Europe. A recent win with the US. Postal Service could be a good springboard to more deals of the sort. In the deal, Gilat's wholly-owned subsidiary, Spacenet Inc., is working with Verizon Business to deploy a custom satellite network for the Postal Service. The satellite network will provide high performance broadbandcommunications for over 5,000 Postal Service sites in the continental United States, Hawaii, Alaska, and Puerto Rico.

The company reported very strong third quarter numbers with revenues up 12% to $71.5 million over the same period in 2006. Net income more than doubled to $5.9 million. The company sees continued strong demand for their products, and has indicated that the business will continue its growth. The company has a market cap of a bit over $400 million and a strong balance sheet with over $150 million in cash.

While Gilat makes for an intriguing investment as a stand-alone company, rumors of a potential M&A make the stock even more attractive. An Israeli investment house, Mivtach Shamir, made an offer on the company earlier this year at $10.50 per share and was rebuffed.

In late September, Gilat announced that York Capital Management converted the debt it held in the company into stock, making York the largest shareholder, owning more than 30% of the company. The conversion is important as it helps strengthen Gilat's balance sheet by reducing interest payments by $6 million a year. Commenting on York's move, Gilat Chairman and CEO Amiram Levinberg said:

York's decision to shift its position from a debt holder to a shareholder is a strong vote of confidence in Gilat and significantly strengthens Gilat's balance sheet.

Competition in the satellite industry is heating up. Media companies, along with cable and wireless companies, have declared their desire to enter the satellite communications market. Instead of building an entire division dedicated to this, some of these companies are looking to either partner with, or acquire, an existing firm with good sales distribution. Gilat, with its focus on emerging markets and strong balance sheet, could be a good acquisition candidate.

Zack Miller is the Managing Editor of IsraelNewsletter.com and a former equity analyst for a leading multinational hedge fund. Author's fund owns GILT shares as of 12/15/2007.

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• Qwest (NYSE: Q) to hold operational review conference call at 8:30am.
• International Paper (NYSE: IP) to hold conference call at 1pm to discuss North American uncoated freesheet paper market.
• Adobe (NASDAQ: ADBE) to report Q4 earnings; conference call at 5pm.

• Best Buy (NYSE: BBY) to report Q2 earnings; conference call at 10am.
• Goldman Sachs (NYSE: GS) to report Q4 earnings; conference call at 11am.
• Palm Inc. (NYSE: PALM) to report Q2 earnings; conference call at 4:30pm.

• Icon (NASDAQ: ICLR) to hold 2008 guidance conference call at 9am.
• Cyclacel Pharmaceuticals (NASDAQ: CYCC) to hold conference call at 9:30am to update Phase II trial of Sapacotabine.
• Morgan Stanley (NYSE: MS) to report Q4 earnings; conference call at 11am.
• ManTech International (NASDAQ: MANT) to hold 2008 guidance conference call at 4:30pm.
• Oracle (NASDAQ: ORCL) to report Q2 earnings; conference call at 5pm.

• Bear Stearns (NYSE: BSC) to report quarterly earnings; conference call at 10am.
• Pier 1 Imports (NYSE: PIR) to report Q3 earnings; conference call at 11am.

• Circuit City (NYSE: CC) to report Q3 earnings; conference call at 10am.
• PDUFA date for Solvay Pharmaceuticals' (OTC: SVYSY) and Jazz Pharmaceuticals' (NASDAQ: JAZZ) Luvox CR (fluvoaxmine maleate) extended-release capsules for treating obsessive compulsive disorder and social anxiety disorder.

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Cell phones and VoIP are killing the regular old home phone business. Reviewing a new study from a Citigroup analyst, Barron's said, "The telcos continue to lose residential phone subscribers to both cable VoIP and wireless subscriptions at a steady 7%-8% a year."

The number of consumers who use only a wireless phone at home is expected to hit 27% in 2010. And the penetration of cable VoIP is expected to be 25% by then.

It might seem bad news for AT&T (NYSE: T) and Verizon (NYSE: VZ), but both do have large wireless businesses that should help offset attrition among home phone users. They are also selling new fiber-to-the-home broadband, which will also supplement revenue.

The news would also appear to be good for cable firms like Comcast (NASDAQ: CMCSA). Stocks in cable companies have been beaten down by concerns about competition in TV delivery from the phone companies. But VoIP revenue is a big, new source of revenue, and one that is growing fast.

The losers in all of this would seem to be companies like Qwest (NYSE: Q). Qwest has no cellular arm nor much of a wireless operation. Its shares have dropped from a 52-week high of $10.45 to $7.15, while most phone shares have gone up. Look for the drop to continue.

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

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Stock	(Ticker)	11/15/2007	10/31/2007	%Change
Corning	(NYSE: GLW)	12,678,622	16,112,839	-21.31%
EMC 	(NYSE: EMC)	50,028,872	61,281,674	-18.36%  
VMware	(NYSE: VMW)	11,681,831	10,440,110	+11.89%

Stock		(Ticker)	11/15/2007	10/31/2007	Net Change
CVS Caremark 	(NYSE: CVS)	67,661,461	37,871,140	+29,790,321
Mirant Corp 	(NYSE: MIR)	50,241,294   	23,796,710   	+26,444,584
Qwest Comm. 	(NYSE: Q) 	66,747,528   	82,000,170   	-15,252,642
General Electric(NYSE: GE) 	61,608,091   	66,708,279   	-5,100,188

• Financial and general
• Key decreases in NYSE short interest
• Key increases on NYSE short interest

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