Tag Archives: request

How Charter Broadband Conditions May Set Bar For Comcast

Charter Communications ( CHTR ) will not be allowed  to charge data usage-based prices or impose data caps on broadband customers for seven years as part of proposed conditions set by federal regulators  for its acquisition of Time Warner Cable ( TWC ). Whatever conditions Charter agrees to might set the bar for Comcast ( CMCSA ) down the road, analysts say. The Department of Justice on Monday cleared Charter’s purchase of TWC, while the Federal Communications Commission moved closer to approval.  FCC Chairman Tom Wheeler is circulating proposed conditions to the five-member agency. California regulators are expected to green light the purchase in mid-May. Charter snapped up TWC after regulators thwarted Comcast’s takeover of Time Warner Cable in early 2015. Conditions set on the Charter-TWC deal might have implications for Comcast if it seeks another major acquisition, such as acquiring T-Mobile US ( TMUS ) or Sprint ( S ). Comcast has filed to be a possible bidder in a government auction of radio spectrum owned by local TV stations. That auction began in late March. Comcast has been testing data caps in an increasing number of markets. “New Charter will not be permitted to charge usage-based prices or impose data caps,” Wheeler said in a statement. “Second, New Charter will be prohibited from charging interconnection fees, including to online video providers, which deliver large volumes of internet traffic to broadband customers.” Video streamer Netflix did not oppose Charter’s purchase of TWC, but it had lobbied against the Comcast-TWC deal. Charter can’t strike agreements with programmers that would make it more difficult for streaming services like Netflix ( NFLX ) to obtain content, according to a DOJ filing in federal court. Charter has also agreed to buy privately held Bright House Networks. The two deals would make Charter the No. 2 cable TV firm behind Comcast.

Will Apple Lag Or Leapfrog Samsung With Cell-Capable Watch?

Apple might add cellular connectivity in its next-generation smartwatch, as it races with rival Samsung to make the devices more functional. The Apple Watch has relied on a user’s nearby iPhone for wireless connectivity. Samsung’s Gear S2 users can read and reply to text messages and listen to voice messages but do not yet have Internet access or Web browsing. Apple is revving up new features amid disappointing demand for its initial device, says a Wall Street Journal  report . Apps may run directly on the Apple Watch’s own processor. The new Apple Watch is expected to debut in September, along with the iPhone 7. That same month, Samsung is expected to take off the wraps of the next generation Gear S3 at Europe’s IFA 2016 show, in Berlin. Both Apple and Samsung have been active in an industry standards-setting group called GSMA. The industry group has been developing standards for electronic SIMs embedded in consumer electronics such as phones, as well as for the Internet of Things. The reprogrammable software does the same job as the SIM (subscriber identity module) card, often found under the mobile phone battery. Samsung’s Gear S2 smartwatch features a built-in e-SIM, also called smart SIM. A 9to5Mac report last year speculated that Apple plans to add videoconferencing capability to its smartwatches. Apple’s move into e-SIMs or soft SIMs could be a problem for wireless service providers such as AT&T ( T )  and Verizon Communications ( VZ ). That’s because with e-SIMs consumers could shop for the best wireless data plan and switch service providers much more easily.

Steel Makers Show Their Mettle; Stocks Rise Sharply

Close watchers of the stock market witnessed a rotation out of conservative, dividend-paying utilities and REITs during the past week. The fresh cash seems to be going into steel makers, machinery and related companies. Rotations occur seemingly spontaneously when money managers decide one group has risen enough and sell, redeploying the cash elsewhere. Investors should watch the rise and fall of IBD’s 197 industry groups for clues about rotation. Steel makers are the No. 3 industry group based on six-month performance, up from No. 175 three months ago. A look at the charts of some of the leading steel companies shows a sudden run-up. Several have risen almost uninterrupted this year. Steel is a cyclical industry, so an improvement in earnings and stock price could foresee an improvement in the manufacturing sector. Steel Dynamics ( STLD ), a leading member of the group, is not far from making multi-year highs despite a 47% decline in 2015 earnings per share. Last week, it reported that Q1 earnings rose 53% from a year earlier. Analysts expect EPS to nearly double this year. The stock has gained nearly 60% since a Jan. 20 intraday low but is hitting upside resistance near 25. The stock is just 4% below a September 2014 peak of 25.15. Domestic steel makers have been pinched by falling prices resulting from a supply glut and from cheaper imports resulting from a rising dollar. CEO Mark Millett told analysts that overall demand in the first quarter was unchanged with heavy equipment, agriculture and energy markets weaker and automobiles and construction were stronger. Meanwhile, Steel Dynamics’ scrap recycling business swung from an operating loss to a profit. U.S. Steel ( X ) once produced two-thirds of all U.S. steel. It stock has rebounded 200% since late January. But the profit picture isn’t so rosy. It lost money last year and is expected to lose even more money this year. Shares of Nucor ( NUE ), the nation’s largest steel producer, has risen 45% since late January. After four quarters of declining EPS growth, it posted a 28% increase in Q1 to 23 cents a share. Analysts expect a 33% increase to 48 cents in the current quarter and a 14% rise this year. Steel producers are part of the metals sector, ranked No. 3 out of 33 sectors. The sector has risen 15% year to date through Monday’s IBD. A single stock in the sector makes the cut as stocks with EPS and Relative Strength ratings of 80 or above with an IPO in the last 15 years. That’s  RBC Bearings ( ROLL ), which is part of the No. 5 metal processing and fabrication industry group. The company makes precision ball bearings used in aircraft and industrial applications. In near lock-step with the steel companies, the stock began a sharp recovery in January that has carried it 37% higher since January. The company has experienced moderate but steady growth in recent years. Revenue growth has accelerated from 0% to 26% to 32% to 36% in recent quarters.