Click here to close now.


Mobile IoT Authors: Chris Fleck, Anders Wallgren, Pat Romanski, Mav Turner, Kevin Benedict

News Feed Item

The Zacks Analyst Blog Highlights:Comcast, Time Warner Cable, Charter Communications, Sotheby's and Millennial Media

CHICAGO, Feb. 14, 2014 /PRNewswire/ -- announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Comcast Corp. (Nasdaq:CMCSA-Free Report), Time Warner Cable Inc. (NYSE:TWC-Free Report), Charter Communications Inc. (Nasdaq:CHTR-Free Report), Sotheby's (NYSE:BID-Free Report) and Millennial Media Inc. (NYSE:MM-Free Report).


Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Thursday's Analyst Blog:

Comcast to Take Over Time Warner Cable

Confirming a long-standing rumor, Comcast Corp. (Nasdaq:CMCSA-Free Report) has reached an agreement to acquire Time Warner Cable Inc. (NYSE:TWC-Free Report) for which the official announcement is yet to come. Notably, Comcast and Time Warner Cable are the largest and second largest cable MSOs (multi-service operator) in the U.S.

The deal is likely to be designed as an all-stock acquisition. Comcast will offer approximately $159 per share of Time Warner Cable, which amounts to a total consideration of around $45.2 billion. Each share of Time Warner Cable will be converted into 2.875 shares of Comcast.

After the completion of the deal, the existing Time Warner Cable shareholders will hold about 23% of the merged entity. The deal is expected to close within a year, subject to regulatory approval and approvals of the shareholders of the both companies.

Just a month ago,Charter Communications Inc. (Nasdaq:CHTR-Free Report) had offered $132.50 per share to acquire Time Warner Cable, amounting to a total consideration of approximately $37.3 billion. However, the board of directors of Time Warner Cable rejected the bid as insufficient as it valued its owned assets at around $160 per share. Comcast's present bid is very close to this expectation.

The merged entity will have around 33 million pay-TV (video), 32 million high-speed broadband (Internet) and 16 million telephony (voice) subscribers.

In 2013, the combined total revenue of these companies was approximately $86.8 billion and net profit was approximately $8.8 billion. Comcast is expected to derive a significant $1.5 billion of operating synergies from this merger of which 50% may be realized within the first year after merger.

The deal is expected to face tough scrutiny and close monitoring by the regulator, Federal Communications Commission (FCC). Although Comcast's and Time Warner Cable's operations overlap in very few U.S. markets, Comcast may assume near monopolistic power by installing better delivery mechanism, newly launched  innovative products and the bundled offerings of its NBC Universal division.

According to sources, Comcast has decided to divest around 3 million Time Warner Cable video subscribers to maintain its total market share at 30% of the U.S. pay-TV industry.

We believe if the deal finally crosses regulatory hurdles, it will be a win-win situation for both the companies. Time Warner Cable, together with most of the cable TV operators in the U.S., is getting marginalized gradually by fiber-based video offerings of telecom giants and online video streaming services by low-cost operators.

However, Comcast is the only one notable exception, which added video customers. Thus, a union with Comcast will definitely help Time Warner Cable to regain its lost ground.

Similarly, Comcast will benefit from geographic expansion, significant operating cost synergies, which will boost its bottom line and free cash flow, and a unique combination of triple-play (voice, video and data) delivery and high-quality content distribution mechanism.

Currently, Comcast carries a Zacks Rank #3 (Hold) whereas Time Warner Cable has a Zacks Rank #2 (Buy).

Yellen Doesn't Surprise, But 2 Business Services Stocks Will

Undeterred by the turmoil in the emerging markets, continued softness in Europe and lesser-than-expected 113,000 job additions in January, Janet Yellen, the new Federal Reserve Chairwoman, vowed to maintain the modest tapering efforts of her predecessor with near-zero interest rates to spur economic growth.

That the economic recovery picked up steam in the latter half of 2013 with real GDP increasing at an average annual rate of over 3.5% in the third and fourth quarters, versus 1.75% in the first and second quarters was strong enough reason for the Fed Chief to validate that the economic hand-holding could be gradually eased. In addition, about 3.25 million jobs were reportedly added since the Fed began its monthly bond-buying program in Aug 2012, although the unemployment rate was yet to achieve the set threshold limit of 6.5%. Inflation had also remained low as both the headline and core personal consumption expenditure (PCE) price indexes rose only about 1% in 2013, which was well below the Fed's 2% long-term objective for inflation.

Amid these mixed market feelers, most companies in the Business Services industry would aim to hold their purse strings until at least a clearer picture of the economic policy unfurls. The primary growth drivers in this highly fragmented industry hinge on a healthy economy with decent job growth prospects, higher disposable income and new business initiatives. An ideal mix of services, effective marketing strategies and ability to retain and attract new customers serve the perfect recipe for profitability for most of these companies.

However, as the current market conditions remain highly unpredictable with a clouded economic scenario, most companies have curtailed their operating costs, reduced marketing expenses and have deferred new business initiatives. In spite of that, the Business Services sector is expected to outperform the overall equity markets with an earnings growth expectation of 10.7% in the fourth quarter versus 9.1% for the S&P 500 index.

Given the promising forecast, it might be a good idea to zero-in on a handful Business Services stocks that are poised to beat earnings estimates this quarter. An earnings surprise should help these stocks outperform in the near term.

How to Pick?

The Business Services sector covers an array of services that include marketing, consulting, staffing, security, telecommunications, Internet services, logistics and waste handling. In this motley crew of companies, picking the right stock for your portfolio could appear to be a daunting task. An easy way to narrow down the list is to look at stocks that have a solid Zacks Rank and a favorable Earnings ESP.

Earnings ESP is our proprietary methodology for determining which stocks have the best chances of a surprise in their next earnings announcement. The Earnings ESP shows the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.

The combination of a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) and a positive Earnings ESP is usually a harbinger of an earnings beat. For investors seeking to benefit from this strategy, we have mentioned two Business Services stocks below matching these criteria. It can make them potential winners in this difficult earnings season.

Sotheby's (NYSE:BID-Free Report): Headquartered in New York, Sotheby's operates as an auctioneer of authentic fine art, decorative art, and jewelry across the globe. The company regularly conducts auctions in salesrooms around the world, including Australia, Hong Kong, France, Italy, the Netherlands, Switzerland, Singapore, New York and London.

The company anticipates a sharp 32.7% year-over-year rise in its fourth-quarter earnings. The Zacks Consensus Estimate is pegged at $1.46. Analysts have revised their quarterly and full year estimates upward, which further support a solid earnings momentum for the company.

Sotheby's currently has a Zacks Rank #3 along with an Earning ESP of +4.8%. The company is expected to report fourth-quarter 2013 results on Feb 27.

Millennial Media Inc. (NYSE:MM-Free Report): Mobile advertising and data provider Millennial Media is headquartered in Baltimore, Md. Since its inception in 2006, the company has created a niche market through innovation and a diligent focus on mobile advertising platforms. The business model of the company hinges upon sophisticated data and technology, solid partnerships with global media and application developers across all operating systems, and healthy relationships with leading global brands.

Millennial Media currently has a Zacks Rank #2 along with an Earning ESP of +42.9%. The stock is trading at a forward PE of 134.8x and has a long-term earnings growth expectation of 30.0%. Millennial Media is expected to report its fourth-quarter 2013 results on Feb 19.

Moving Forward

As the U.S. stocks are finally looking for a smooth sail after a rocky start to the year, a sneak peek at the space for some possible winners backed by a solid Zacks Rank and a positive Zacks Earnings ESP could be a great idea for investors to gain from this earnings season. The party might just not be over for the U.S. equity markets at large and for the business services sector in particular.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.


Get the full Report on CMCSA - FREE

Get the full Report on TWC - FREE

Get the full Report on CHTR - FREE

Get the full Report on BID - FREE

Get the full Report on MM - FREE

Follow us on Twitter:

Join us on Facebook:

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release.

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" in this scenario: microservice A (releases daily) depends on a couple of additions to backend B (re...
I recently attended and was a speaker at the 4th International Internet of @ThingsExpo at the Santa Clara Convention Center. I also had the opportunity to attend this event last year and I wrote a blog from that show talking about how the “Enterprise Impact of IoT” was a key theme of last year’s show. I was curious to see if the same theme would still resonate 365 days later and what, if any, changes I would see in the content presented.
Apps and devices shouldn't stop working when there's limited or no network connectivity. Learn how to bring data stored in a cloud database to the edge of the network (and back again) whenever an Internet connection is available. In his session at 17th Cloud Expo, Ben Perlmutter, a Sales Engineer with IBM Cloudant, demonstrated techniques for replicating cloud databases with devices in order to build offline-first mobile or Internet of Things (IoT) apps that can provide a better, faster user experience, both offline and online. The focus of this talk was on IBM Cloudant, Apache CouchDB, and ...
Container technology is shaping the future of DevOps and it’s also changing the way organizations think about application development. With the rise of mobile applications in the enterprise, businesses are abandoning year-long development cycles and embracing technologies that enable rapid development and continuous deployment of apps. In his session at DevOps Summit, Kurt Collins, Developer Evangelist at, examined how Docker has evolved into a highly effective tool for application delivery by allowing increasingly popular Mobile Backend-as-a-Service (mBaaS) platforms to quickly crea...
Discussions of cloud computing have evolved in recent years from a focus on specific types of cloud, to a world of hybrid cloud, and to a world dominated by the APIs that make today's multi-cloud environments and hybrid clouds possible. In this Power Panel at 17th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the importance of customers being able to use the specific technologies they need, through environments and ecosystems that expose their APIs to make true change and transformation possible.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York and Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound cha...
Internet of @ThingsExpo, taking place June 7-9, 2016 at Javits Center, New York City and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo New York Call for Papers is now open.
The cloud. Like a comic book superhero, there seems to be no problem it can’t fix or cost it can’t slash. Yet making the transition is not always easy and production environments are still largely on premise. Taking some practical and sensible steps to reduce risk can also help provide a basis for a successful cloud transition. A plethora of surveys from the likes of IDG and Gartner show that more than 70 percent of enterprises have deployed at least one or more cloud application or workload. Yet a closer inspection at the data reveals less than half of these cloud projects involve production...
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Day 2 Keynote at 17th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, wil...
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical to maintaining positive ROI. Raxak Protect is an automated security compliance SaaS platform and ma...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving this change including privacy controls, data transparency and integration of real time context with p...
There are over 120 breakout sessions in all, with Keynotes, General Sessions, and Power Panels adding to three days of incredibly rich presentations and content. Join @ThingsExpo conference chair Roger Strukhoff (@IoT2040), June 7-9, 2016 in New York City, for three days of intense 'Internet of Things' discussion and focus, including Big Data's indespensable role in IoT, Smart Grids and Industrial Internet of Things, Wearables and Consumer IoT, as well as (new) IoT's use in Vertical Markets.
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data shows "less than 10 percent of IoT developers are making enough to support a reasonably sized team....
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningful and actionable insights. In his session at @ThingsExpo, Paul Turner, Chief Marketing Officer at...
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Summit, Charles Kendrick, CTO and Chief Architect at Isomorphic Software, demonstrated examples of com...
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessions, I wanted to share some of my observations on emerging trends. As cyber security serves as a fou...