A Fool Looks Back

It was a week of layoffs and buyouts.

Google (Nasdaq: GOOG  ) and Hewlett-Packard (NYSE: HPQ  ) each made sizable purchases. Electronic Arts (Nasdaq: ERTS  ) and Adobe (Nasdaq: ADBE  ) were busy with the pink slips.

Toss it all into a blender and you'll get a prickly smoothie that tugs your taste buds in different directions. If the economy is bouncing back, why are so many companies slashing their workforces? If the economy is about to dip back into a deeper recession, why are companies going on a shopping spree?

The reality rests somewhere in the middle. When an upbeat economic report is followed by a negative reading, the more likely explanation is that they represent extremes. We're seeing that with companies, too. Electronic Arts and Adobe management see weakness in their video game and desktop publishing software industries, so they're hunkering down. Google and HP have the means and ambition to snap back quickly out of the recession, so management doesn't want to bank everything on organic growth.

The mixed messages are here to stay, and we may as well learn to take the good with the bad.

Briefly in the news
And now let's take a quick look at some of the other stories that shaped our week.

  • Sirius XM Radio (Nasdaq: SIRI  ) continues to get good news. Standard & Poor's revised its outlook on the company's debt from "stable" to "positive" as the satellite radio giant's finances and prospects improve.
  • Microsoft (Nasdaq: MSFT  ) is rolling out a beefed-up Bing Video platform. It isn't taking on YouTube, necessarily, because it's simply an aggregator of video clips from other sites.  

Until next week, I remain,

Rick Munarriz

Google is a Motley Fool Rule Breakers recommendation. Adobe and Electronic Arts are Stock Advisor selections. Microsoft is an Inside Value selection. Motley Fool Options has recommended a diagonal call on Microsoft. Try any of our Foolish newsletter services free for 30 days.

Longtime Fool contributor Rick Munarriz recommends windshield-wiper fluid when trying to look back. He does not own shares in any of the stocks in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.


Read/Post Comments (12) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 14, 2009, at 9:43 AM, southernbeachguy wrote:

    Congratulation, "The Fool", you guys used to wrongly Bash Sirus unmericifully. You have seen that Sirus is a valuable viable growing company and the Future of Radio. As a result, I see that you articles are more fair and provide the Investor considerable value. Keep up your honest truthful articles that will make money for your Investors. As you may have noticed, your competitor, The Street, is still Bashing and writing slanted and outright Stupid articles about Sirus, that are losing money for people that listen to them. This is a Great opportunity for The Fool to be objective and take all of the Streets customers. Good Job!

  • Report this Comment On November 14, 2009, at 10:33 AM, RAF22 wrote:

    I agree with the comments above, Rick. Much more balanced views now and you are sure to be seen as much more credible than TheStreet.com by all your readers.

    On an unrelated note about Sirius XM - just a personal view, but something I believe will gain recognition over time: For those who think playlists and iPods, etc. are really a strong competitive venue to Sirius XM over time - I would disagree. I think the real value of satellite radio is the superb variety of content - unmatched by any other venue. I find I no longer listen to CD's and assembled playlists, because they simply are not as interesting and varied as the selected streams of audio found on Sirius XM. Once people begin to see there is no longer a need to do all the selecting and assembling themselves - and leave this to the great programmers on satellite radio - they will appreciate being freed from the need to do this programming themselves. Listening to repetitive CD's and playlists is really dull compared to the great variety of radio and I believe this will become a recognized reality in years to come. Sirius XM is in the early stages of dominance in the radio industry - and this is also likely to cause a decreasing dependence upon CD's and playlists over time.

  • Report this Comment On November 14, 2009, at 12:41 PM, esteemxxxx wrote:

    Rick could care less about what you guys think. He's simply passifying you. Bad news is more likely to attract a casual reader’s eye than good news. It’s a secret journalists have known for years. Bad news gets more attention than good news, meaning more people are likely to read a story if the headline implies something rotten rather than something wonderful. Doesn't mean that SIRI is going down, of course -- just means that the FOOLS get more hits. More hits means more advertisement $$$.

    You don't FOOL me Rick.

  • Report this Comment On November 14, 2009, at 11:46 PM, ItAintCool wrote:

    I'll give MF credit for one thing. They at least mentioned that S & P raised the credit rating on SIRI. The Street completely and deliberately ignored it after they did their 10 article hatchet job on Tuesday. Unfortunately for The Street their attempt to manipulate the stock price this week failed and backfired. Cramer & Co have to try another time to make back their money from shorting this stock.

    MF has been unfairly negative on Siri for quite a while, but their tone has changed in recent days. Whether this is to counter The Street's manipulatively negative tone, or for other reasons, we'll just have to wait and see.

  • Report this Comment On November 15, 2009, at 8:53 AM, RAF22 wrote:

    There is increasing speculation - with good reason - that Sirius XM will ultimately be a major building block in a merger/acquisiton scenario - partnering with one of the many possible interested suitors within the media field. This certainly makes sense, given Sirius XM's superb array of unique, proprietary content and effective monopoly position in terms of dominating the best delivery performance in the field. Also - given the rapidly evolving developments and competition within the wireless/internet arena - new and emerging smartphones and devices, evolutions within the computer industry, etc. - Sirius XM is simply to valuable a property for these competitors to overlook. The addition of Sirius to any one of these portfolios - Apple, Microsoft, Google, Dell, Liberty, - just to name a few - would certainly strengthen their competitive appeal and position. Obviously, this is now just speculation but - you can certainly see the possibilities. For all these reasons, you would have to expect Sirius XM to be in play sometime in the not too distant future. For the time being, however, the company is well on the way to demonstrating performance on all fronts and gaining strength on its own with each passing day. This is showing up in the performance of SIRI, which is trading from technical strength and continuing to test further upside potential.

  • Report this Comment On November 16, 2009, at 10:02 AM, SIRIDoom wrote:

    Suckers

    Why not give your money to the Poor. Mel CarmaCrook and Goldman have SIRI under control. Buy SIRI and get milked.

    I guess every generation must learn it’s own lessons…

    SIRI Rev-Split soon…

  • Report this Comment On November 16, 2009, at 10:41 AM, hotkarlito wrote:

    SIRIDoom missed the boat and wants all of us to sell so he can get back in for less. Too late!!

    It is rather refreshing to see MF bash SIRI for so long, but now come to the realization that the company IS starting to turn things around and give them their fair dues. Too bad some haters on this board still live in the past...

  • Report this Comment On November 16, 2009, at 10:46 AM, Fool wrote:

    Real-Time: 0.6477

    I love watching SIRI stock. Go down... It is the Golsman Sachs High Speed Computer Pump and dump.

    Just ask the SEC, they know about it. They say it is complicated... So, you will get milked because it is complicated... LOL

    Suckers...

  • Report this Comment On November 16, 2009, at 11:12 AM, hotkarlito wrote:

    2/11/09 Close - $0.055

    11/13/09 Close - $0.669

    Total Gain in only 9 months - $0.614 or 1,116%

    Numbers don't lie, only bitter media outlets and haters who missed a golden opportunity do that.

    Who's sucking now? Bring on that reverse split! All that means is more profit to spread around to fewer shares outstanding.

  • Report this Comment On November 16, 2009, at 11:56 AM, ItAintCool wrote:

    Uh-oh. Looks like we found SirDoom's other alias, "Fool". And with such a name, one can only think that he's on the payroll for MF to bash this stock. Nice AstroTurf-ing job MF.

  • Report this Comment On November 16, 2009, at 12:09 PM, dedmunds wrote:

    Hey SIRIDick your such a PRICK!!! Why don't you go into hiding again, or better yet another drunkin stup on Seeking Alpha. They eat your lunch there!!

  • Report this Comment On November 16, 2009, at 12:18 PM, dedmunds wrote:

    HA HA SIRIDick I GUESS HOTKARLITO TOLD YOU!!! HA HA

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