Microsoft (NASDAQ: MSFT) is without a doubt the 800 pound gorilla in the business world, from computer software to video games, they have dominated. For the past few years they pretty much sat on the sidelines in the Internet industry, not really making that their main focus, but all of that has changed.
The company is very much so focused on search engine technology and paid advertising, they have begun to go head to head with Google (NASDAQ: GOOG) on that level. They are now looking to rain on Yahoos(NASDAQ: YHOO) and eBays (NASDQ: EBAY) parade as they enter the Internet phone business. Being strategic, Microsoft has aligned themselves with MCI who soon will be under the umbrella of Verizon (NYSE:VZ).
So now that Microsoft has become a real player in the Internet game things should not only heat up but become more advanced. Google is still a great situation to be in and we are not diverting from that, 2006 should be a great year for the company as they add more services for their visitors, more options for their advertising clients and increase their reach.
Microsoft is becoming intriguing, they have their hands in all the right things. From expanding abroad to going after the Internet giants with new services and a potential deal with Time Warners (NYSE: TWX) America Online. So the growth for Microsoft has not hit a plateau, this looks to be a rebirth of sorts, look for 2006 to be very interesting in the Internet Industry.
I know that we touch on Seamless Wi-Fi (OTCBB: SLWF) in yesterdays segment but since we are on the subject of the Internet, we need to make mention of how this company fits into the overall picture.
Microsoft is not making their intentions a secret, they know where the money is. Its in search engine advertising, the more they enhance the services that they provide to their members and visitors the more visitors that will receive. More visitors equals higher advertising revenue and this goes for Yahoo and Google as well. Now as they do the 100 yard dash down the information super highway they are making Internet technology advance rapidly. Now why are we mentioning something that is a no brainer, well as they advance this technology it will make more businesses mobile. It has already begun to open the doors to global business, which means more people will be using the Internet to conduct business both in and out of the office. They are starting to move from cables to wireless, and that means these companies will need to provide a secure way for their employees to access both the Internet and their Intranet network.
Seamless has the technology that allows a business to be in a totally secure wireless environment, a person can walk around with their laptop from office to office without the worry of that information being hijacked. The price at this point does not reflect what the company has as of yet, they have not received the media attention because they have kept a relatively low profile. So we will continue to follow this stock as companies like Microsoft, Yahoo and Google make the advances in the Internet industry that will draw more interest to Wireless Internet/Intranet security.
General Motors (NYSE: GM) is just having a bad time, from downgrades to rumors of the company going bankrupt. All that needs to be said at this point is that GMs CEO Rick Wagoner needs to focus on the shareholders and not the board nor himself. The company needs someone involved that has a history of success in the automotive industry, Kerkorian offered that and as of now it has not happened. According to reports Wagoner has the board behind him but what does that do for the shareholders? , if they get thrown into bankruptcy it will be damaging to shareholder equity. So until GM puts someone in play that can turn the company around they will continue to spiral out of control. The street is brutal, as we have said time and time again, so they should expect to get kicked when they are down.
Yesterday, NAMC Newswire correspondent Peter Farrell reported that the biggest takeover in the Natural Gas industry could happen and it looks like it is. ConocoPhillips (NYSE: COP) is lined up to acquire natural gas producer Burlington Resources Inc. (NYSE: BR) for a price tag of over $35 billion. This will make it the biggest deal in the Natural Gas industry since Chevron (NYSE: CVX) acquired Texaco.
Now, just today, Jonathan Jacoby of Banc of America downgraded Sirius Satellite Radio (NASDAQ: SIRI) from a Neutral to a Sell while raising their price target for XM Satellite Radio (NASDAQ: XMSR). Jacoby is off target and I think that he is not looking at the big picture. Both companies have not even tap their potential, the satellite radio industry is just beginning to develop, similar to the internet industry when it was evolving and continues to evolve. The difference is that right now there are only two players in the game and one has locked up the automobile market while the other has the retail market wide open. Even though the arrival of Howard Stern is much anticipated, I really doubt that he is the end all of Sirius. He does add value but Mel Karmazin is a smart businessman and he is not solely banking on the success of Sirius on Stern. So we are ignoring Jacobys downgrade and do agree with his target on XM Satellite. As we stated 2006 will be the catapult year for the company. Keep it on your stock watch.
Information contained herein is the opinion of Louis Victor and is intended to be used strictly for informational purposes. You should be aware that Mr. Victor attempts to assure himself of the accuracy of the information contained in the analyses he publishes. None of the information contained in this opinion constitutes a recommendation by Mr. Victor, New Age Media Concepts nor the NAMC Newswire that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. The companies that are discussed in this opinion have not approved the statements made in this opinion Louis Victors past results are not necessarily indicative of future performance. Neither Mr. Victor, New Age Media Concepts nor the NAMC Newswire guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or Investments Opinion posted here. This opinion contains forward-looking statements that involve risks and uncertainties. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained here, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment advisor. Louis Victor, New Age Media Concepts nor the NAMC Newswire are not licensed brokers, broker dealers, market makers, investment advisors, analyst or underwriters
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