Michael Fowlkes
Bucharest, Romania - http://www.investorsobserver.com
Michael Fowlkes is an options analyst and writer at Investors Observer.
More and more Americans are moving away from landlines
As cell phone usage continues to spread, more and more Americans are rarely, if ever, talking on landlines anymore. According to a new study, 3 out of 10 homes in the country are virtually completely relying on cell phones.Cell phones are definitely more convenient, and the more we use them, the more we want to put the days of landlines in our past. According to the study, 16 percent of all homes in the country did not even have a landline installed during the second half of last year.
In addition to the 16 percent of homes that did not even have a landline, 13% of homes in the country had landlines, but reportedly never use them. For the most part, these lines are used exclusively for computers, or to have in the case of an emergency. Whenever you need to call an emergency service number it is advisable to use a landline, because it makes it much easier to identify your location.
Continue reading More and more Americans are moving away from landlines
Donald Trump pulls $100 million for his Palm Beach home
Despite the weak housing market, not everyone is feeling the pain, including Donald Trump who recently made a killing selling a home in Palm Beach for a reported $100 million.While Trump concedes that the housing market is still weak, he states that he thinks things are about to turn a corner. Trump said that what is most troublesome to him right now is that people are still pretty shy about investing in America, and is what he calls the "saddest part" of all concerning the current economic situation in the country.
Since the American economy is driven so much on oil, Trump admits that there are better investments that you can make by looking abroad.
Continue reading Donald Trump pulls $100 million for his Palm Beach home
JC Penney (JCP) gets hit by economic slowdown, but beats analyst estimates
Retail giant JC Penney (NYSE: JCP) reported its first quarter numbers this morning, and reported that the current economic environment led to a pretty hefty 50% drop in its net income. The company stated that the cut back in consumer spending was to blame for the drop in net income, and predicted that the tough times were far from over. In its earnings report, the company estimated that the difficult times could easily last for the remainder of the year.
Despite the 50% drop in income, and poor business outlook for the rest of the year, the stock is actually in the green today, as traders have pushed shares of the retailer up 1.7% to $45.01, up $0.76. The reason... the company was able to beat Wall Street estimates.
Continue reading JC Penney (JCP) gets hit by economic slowdown, but beats analyst estimates
Ford (F) recalls over 650,000 pickup trucks
If you own a Ford F-150, or a Lincoln Mark LT pickup truck, then you want to pay special attention to this, as Ford (NYSE: F) has announced that more than 655,000 of these vehicles are being recalled at this time.The reason behind the current recalls is a possible problem with a hose that can affect the trucks' ability to brake properly. So far, Ford claims that there have been 11 accidents resulting from the faulty hoses, but that there have been no injuries to date.
The vehicles in question involve the 2005 and 2006 models of the trucks that come with the 5.4 liter 3-valve engines. If you have one of these trucks you should contact your local Ford dealer as soon as possible and get your replacement hose, at no cost to you.
Most of the trucks in question are located in the United States, which accounts for more than 600,000 of the trucks. Canadian residents account for another 50,000 vehicles, with the small remainder being located in other countries around the world.
Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor's Observer.
eBay's feedback changes set to kick off Monday
Back in January, e-commerce giant eBay (NASDAQ: EBAY) announced some very controversial changes to the site that led to an uproar and seller boycotts within the eBay community. One of the most controversial changes was the decision to remove sellers' ability to leave negative feedback on the buyers, and this change is slated to start this upcoming Monday.
The decision to remove the sellers feedback has led to many eBay sellers finding alternative e-commerce sites to sell their goods, and those who remained are very worried about the impact this decision will have on their business. Sellers insist that the feedback is crucial in sifting through the large amount of buyers that give sellers hassle during transactions, but eBay feels that the change will benefit everyone on the site and prevent sellers from leaving retaliatory ratings for buyers.
The two sides just cannot see eye to eye on this one. Sellers insist that the feedback system allows the site to have a better buying community, while eBay believes that the changes are "really to make sure that we've got buyer accountability and seller accountability."
The decision to remove the sellers feedback has led to many eBay sellers finding alternative e-commerce sites to sell their goods, and those who remained are very worried about the impact this decision will have on their business. Sellers insist that the feedback is crucial in sifting through the large amount of buyers that give sellers hassle during transactions, but eBay feels that the change will benefit everyone on the site and prevent sellers from leaving retaliatory ratings for buyers.
The two sides just cannot see eye to eye on this one. Sellers insist that the feedback system allows the site to have a better buying community, while eBay believes that the changes are "really to make sure that we've got buyer accountability and seller accountability."
Continue reading eBay's feedback changes set to kick off Monday
Oil prices retreat a bit after hitting new highs
Oil prices are down a bit after trading up close to $127 a barrel yesterday on fears that production cuts could be coming out of oil rich Iran. While the chatter out of Iran could be just that, idle chatter, there was still enough of a reason to spook investors into pushing crude oil up significantly Tuesday, leading to a closing price last night of a pretty remarkable $125.80. Prices hit a high Tuesday of $126.98.
One of the main factors that has led to the current record high prices is the weak U.S. dollar. Yesterday, the dollar actually rose a bit, but traders looked past that data and instead decided that any sort of production cut rumors coming out of Iran warranted more attention.
Continue reading Oil prices retreat a bit after hitting new highs
Foreclosure rate skyrockets in April
April saw a 65% increase in foreclosures from the same month a year ago.The numbers pretty much speak for themselves, with 243,353 receiving notices in April. This is a vast increase from April 2007, when "only" 147,708 homes received the same notice. This was also a 4% increase from March. The numbers are based on a report from RealtyTrac Inc.
Homeowners in California and Florida are among the hardest hit. The two states had 9 metropolitan areas that ranked in the top ten areas of the country in terms of foreclosures.
Continue reading Foreclosure rate skyrockets in April
Gasoline prices hit another new high
Consumers are really going to be feeling the pain next weekend when they hit the road for Memorial Day weekend.
Gasoline prices have risen to yet another new high today, climbing to a national average of $3.73 as the summer driving months are on our doorstep.
Sadly, gasoline prices are showing no signs of cooling, and many analysts have already predicted $4 a gallon by the middle of the summer. At the current pace, $4 gasoline may seem cheap before it is all said and done.
The main reason for the price acceleration is, of course, crude prices. Oil prices have doubled over the past year and sent gasoline prices through the roof. Oil prices are still showing no signs of cooling off either, and are still trading above $125 a barrel. This is causing many analysts to question whether this year we will see the typical gradual decline of oil prices through the summer.
Continue reading Gasoline prices hit another new high
Americans relying more heavily on their credit cards
Credit cards ... the little plastic cards in your wallet that are so convenient to rely on when you are strapped for cash. While the convenience of having cards definitely makes it easier to buy items when you are running low on cash, the flip side is that credit card debt can drown the typical household, and statistics are showing that Americans are pulling out their cards more than before.One of the reasons why credit card usage has been on the rise is the fact that homeowners are having a harder time using home equity to get a cash infusion into their accounts. As a result, they are looking to borrow money from somewhere, and more times than not, they are turning to credit cards.
The evil with credit cards is that once you start to use them to pay for your basic necessities like food and gas, you find that in the months to come you still can't afford your basic needs but in addition, your monthly bills are racking up like crazy due to your credit card expenses. It's a scary cycle that many families find themselves trapped in.
Continue reading Americans relying more heavily on their credit cards
Oil gushes through the $125 mark!
I know that last thing you probably wanted to hear this morning was that oil prices moved even higher, but that is exactly what is taking place, as oil rose as high as $125.98 and is currently trading at $125.60.Leading the charge today is the weak dollar as investors continue to seek refuge from the falling U.S. currency in commodities -- most notably, oil. The dollar has fallen today against the euro, the British pound, and the Japanese yen. The euro was sitting at $1.5404 last night, but has moved higher today, up to a current price of $1.5466.
The market is also concerned about the upcoming peak driving season for Americans. With the season getting under way, oil prices will definitely continue to rise, and if gasoline stockpiles continue to fall, you can be sure that gasoline prices are also going to keep moving higher over the next couple of months. Will we see national averages of $4 or greater? I don't think so, but at the current rate prices are moving, nothing is out of the question right now.
Continue reading Oil gushes through the $125 mark!
Flying just got a little more expensive
In reaction to surging fuel costs, several major airlines announced today that they were raising their fares in order to recoup some of their rapidly increasing flying costs.The increase this time around is $20 and effects passengers traveling on UAL Corporation (NASDAQ: UAUA), Delta Air Lines, Inc. (NYSE: DAL), and AMR Corporation (NYSE: AMR)'s American Airlines. The $20 jump in prices will be added to the airline's fuel surcharges, and consequently, these charges are now running at $130 round trip on most flights that you will book through the airlines.
The current rate hike was first initiated by Delta, and marks the second time in just over a week that the airline has been forced to raise fares in order to combat record high fuel costs. Times are definitely tough for airlines, and they are doing everything they can to combat fuel prices, but regardless of the rate increases most analysts are still expecting to see huge losses this year from most, if not all, airline carriers.
Continue reading Flying just got a little more expensive
Crocs (CROX) shares soar after first quarter results
This afternoon Crocs, Inc (NASDAQ: CROX) reported its first quarter numbers, and the stock is soaring in after-hours trading -- despite missing Wall Street estimates by a penny.Going into this afternoon's report, analysts were expecting to see the company show earnings of 10 cents a share, but the company failed to miss that estimate, by posting 9 cents a share for its most recent quarter. Despite missing by a penny, the stock has been moving up strongly in after-hours trading, with investors so far pushing shares up a bit over 14%?
Doesn't sound right, does it? The recent market has been punishing stocks that have missed estimates, so why is CROX shooting to the upside?
Continue reading Crocs (CROX) shares soar after first quarter results
Finally some good housing news
If you are like me, you are probably getting pretty tired of reading bad housing news day after day, so today it is nice to bring you some good news on the housing market, as mortgage applications rose last week for the first time in three weeks.According to the Mortgage Bankers Association, the week ended May 2 saw a 15.6% jump in the association's index of mortgage applications. The index takes into account both new purchase as well as refinance loans.
It is a good sign for the housing market, which is entering into its peak buying season. Perhaps this is the moment we have been waiting for, when buyers are finally ready to come back into the market and sweep up some heavily discounted houses. Home prices have been steadily falling for the past year, but signs are starting to point to a possible stabilizing early in 2009.
Continue reading Finally some good housing news
Crocs first quarter earnings preview
It wasn't that long ago that Wall Street was in love with Crocs, Inc (NASDAQ: CROX), the maker of the trendy slippers that took the world by storm last year. After going on a tear for most of 2007, the stock started to break down last November, and has been in a tail spin for the past 5 months.The company is going to be reporting its first quarter numbers tomorrow after the market close, and all signs are pointing to yet another troublesome quarter for the company. Earnings.com is showing Wall Street estimates of 10 cents a share, but that number does not really hold too much water after the company announced a much weaker forecast last month in its preliminary release.
Last month, CROX shocked Wall Street when it said that it expected to see a 5 cent per share loss in the quarter, and revenues falling somewhere between $195 and $200 million. After that news came out, the already troubled stock took a serious nose dive, and gave up around 40% of its value.
Continue reading Crocs first quarter earnings preview
Take-Two Interactive (TTWO) upset that Grand Theft Auto ads got jacked
One of the most brand recognizable names in the world of video games has to be Grand Theft Auto. With its most recent release, Grand Theft Auto 4, the video game maker Take-Two Interactive (NASDAQ: TTWO) is already dealing with controversy after the city of Chicago "jacked" ads that the company purchased to advertise its newest game release.
Since the first installment of Grand Theft Auto, the game has been one of most discussed video games on the market, largely due to its high level of violence. Video game junkies love it, while parents cringe at the thought of their kids playing the game. The game definitely deals with some seriously taboo subjects; car-jacking, prostitution, cop shootings, drive by shootings, and drunk driving to name a few. But is this really enough to justify the city of Chicago pulling paid ads for the game?
Leading up the current release of Grand Theft Auto 4, Take-Two paid Chicago a reported $300,000 to place ads for the video game on the sides of buses and transit displays for a six week period starting on April 22. After the local Chicago news questioned the city's decision to run the ads, they were quickly pulled. The report questioned the taste of the ads, given the violence that has escalated recently in the city.
Continue reading Take-Two Interactive (TTWO) upset that Grand Theft Auto ads got jacked
Just how high will U.S. gasoline prices rise?
Nordstrom and Kohl's post smaller-than-expected Q1 profit declines
Oil hits record $127.43 on supply concerns, raised Goldman forecast
