Diamonds and Dogs
04/11/2012Nokia Corporation (NOK)
Can you hear Nokia now? NO. Nokia is disconnected today down 15.71% at $4.24. Nokia released that it believes its first quarter operating margin to be down around 3%. The company also released that the expected number of mobile phone sales is 71 million, down from 108 million. Furthermore, Nokia's newest smartphone; the Lumia 900, has a bug in the software. This bug will cause the smartphone to lose its data connection, and is tied with the phones memory. Nokia hoped for the Lumia to spark their comeback in the United States. This bug will cost Nokia a large sum of money because anyone who purchases the phone prior to April 21st will receive a $100 credit to their AT&T account. This effectively makes the phone free because currently AT&T is offering the Lumia for $99 with a two year contract. Nokia hopes to have the problem fixed by April 16th.
Travelzoo Inc. (TZOO)
Travelzoo is an animal today, up 28.49% at $27.06. Travelzoo is a company that offers travel and entertainment deals through its websites. After losing nearly 75% of its value since July 2011, three sources told Reuters, that Travelzoo was preparing itself to be purchased. However, it is unlikely that Matt Damon will be buying this zoo (a reference to his latest movie). Although Travelzoo is able to compete directly with Groupon, Priceline, and Expedia, it still was trading at less than 14 times earnings as of yesterday's close. According to Reuter's article this morning, Google was listed as a potential buyer. This makes sense because Travelzoo's well-designed business model and large profits would work even better with one of the world's leading online companies. Zoogle has a bit of a ring to it.
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