Today we looked at Research in Motion's (
) Blackberry 7 release to see if it might provide a much needed
spark to RIM's smartphone efforts. We also zeroed in on the UK as
an international market that Netflix (
) might enter after Canada and perhaps Latin America. Dish Network
) gets a big boost from its settlement with TiVo relating to its
DVR technology, which has been a significant overhang for the stock
- an item we discussed in
a recent note.
We briefly discuss the outlook for
) interest rate trading outlook given recent developments. Finally,
we released an earnings preview for ArcelorMittal (
), which looks at what impact higher steel and input prices could
have on earnings.
Can BlackBerry 7 Revive RIM's Smartphone Push?
Research in Motion (
) recently announced the introduction of the latest version of
its smartphone operating system BlackBerry 7, and unveiled two new
BlackBerry Bold smartphones based on this OS. The new OS has a few
improvements over preceding versions like faster performance for
touch-screen navigation, web browsing, video and gaming and support
for Near Field Communication (NFC) technology. In the U.S.
smartphone market, RIM recently lost its top position to Google
(GOOG) Android OS, and has faced stiff competition from Apple
(AAPL). We believe that RIM desperately needs innovative products
to help revive its business and meet our quite bullish
$68 price estimate for RIM stock
, which is about 40% above market price.
Will Netflix Enter the UK?
) is enjoying rapid expansion riding on the popularity of
DVD-by-mail and online streaming. In March, we wrote Are Netflix's
International Ambitions Justified & Achievable? where we looked
at whether market saturation was a significant risk for Netflix and
if international expansion could help provide an additional source
of subscriber growth. Netflix has signaled that it plans to expand
abroad, and we believe that the UK could be high on the list of new
markets in addition to Latin America.
Outlook for CME Group's Interest Rate Trading
CME Group (
) provides trading across major asset classes including interest
rates, equity indexes, foreign exchange and energy. Interest rate
contracts constitutes about 23% of out $323 price estimate for CME
Group. Notably, interest rate trading volume for CME Group
increased by 25% in Q1 2011. The company competes with NYSE
Euronext (NYX), Nasdaq OMX (NDAQ) as well as others like BATS
Global and Direct Edge.
Dish Saves 14% of its Value, and Perhaps More, By
Settling Patent Dispute
Dish Network (
) recently settled its long-standing patent dispute with TiVo and
released its Q1 2011 earnings, beating analyst estimates. Based on
the company's improved financial performance in the recent quarter,
we have upgraded our price estimate for Dish Network. Below we take
a closer look at the dispute settlement. The company competes with
satellite-TV providers like DirecTV (DTV), cable service providers
like Comcast (CMCSA) and Time Warner Cable (TWC) and telecoms like
AT&T (T) and Verizon (VZ).
ArcelorMittal Earnings Preview: What We're
) is expected to report its Q1 earnings on May 11th. The company
reported subdued results for 2010, which were indicative of the
slow recovery in the global steel industry after the economic
recession. Here we highlight a few key trends in order to guide
investors through the earnings release. The largest steel
manufacturer in the world, ArcelorMittal competes with other
international steel giants like BaoSteel, Posco (PKX), Nippon Steel