Thursday, 9 April 2015

Verizon Customers Can Now Discontinue Its Tracking System

The users of the wireless giant can now climb out of the tracking plan that was previously introduced by the company.

According to the most recent Verizon news update, it was announced by the company that now the users of the wireless connection offered by the company will give them an opportunity to discontinue the tracking service that was previously made necessary for all the users. As for now, the customers can now easily stop using the tracking program. This tracker system has been previously taking over ‘supercookies’ which were helping the wireless company to store the data and history of the users from the very start of their use of the connection.

However, by making this service optional, customers are widely seen discontinuing the tracking plan that Verizon introduced. Analysts who are covering the stock of the company have declared that so far no problems have been faced by the users who have stopped the tracking system to further intervene with their personal information.

The customers of the wireless giant have also not been bothered by unnecessary advertisements and this has helped them to take a sigh of relief. Having said that, the biggest wireless providers of the United States are still in possession of important personal data and history of browsing saved on their network of the users that were previously under the tracking system.

As for the Verizon plans, the collection data of its customers is being done for quite some time now and for this purpose, it has been using a special kind of code to each customer that in return helps the company to reach out to the personal browsing data and other important data of the user. This introduction of a code system was also explained by the company previously which resulted in the wireless providers to have an access to the private systems of the users even if they are not willing to share it.

For taking access into the personal information of the users, Verizon wireless felt the need for an explanation and so it explained on its website that this act of tracking and recording is being done for the purpose of attracting the right kind of advertisers to the right customers. The information received by the wireless company through this system is shared to the other companies who in return provide ads that are relevant to the interests of the audience. In this way, the customers will receive ads on their end only those are relatable. In this way, the users are not bothered by unnecessary ads. The company also assured the users that their personal data is not being used in any other way. However, users still felt the need to discontinue being tracked.

Thursday, 19 March 2015

Dow Jones Industrial Average To Benefit From Apple's Entry

Apple to enter the list of Dow 30 companies by eliminating AT&T


Apple Inc is all set to enter the Dow Jones Industrial Average market which will result in boosting the Dow’s earnings.

The tech giant has finally decided to be a part of Dow Jones Average by replacing the wireless communications provider AT&T. many expect that Apple’s massive portfolio that flaunts an impressive growth in terms of earnings will allow Dow Jones to excel its growth in the times to come.

Apple is the popular, iPhone and iPad manufacturer where its fourth quarter of 2014 boasted of maximum profit maximization. The numbers were fairly strong that showed Apple’s strong position in the market. It is said that these numbers were so magnificent that they could easily boost the earnings growth for blue chip index by almost 6 points by percentage if Apple had been inducted earlier instead of AT&T. If this would have happened the overall earnings of all 30 companies included in the Dow Jones Industrial Average list would have increased to a great extent and would have not minimized.

But the Dow Jones Industrial Average market is likely to flourish now with Apple's replacement. The company is expected to continue its legacy in the first nine months at least of fiscal year of 2015 resulting in growth of the industry by double digits, in general. This will not only aid Apple’s growth but will also increase the bottom line for the entire Dow 30 fraternity.

However, it needs to be kept in mind that the earnings of the industry is likely to stagger in 2015 since oil companies that compounded a substantial amount of earnings have weakened resulting in the weaker position of the industry in general.

According to what analysts have predicted for Apple in fiscal year of 2015. The company’s growth will be fairly exceptional in the first quarter where earnings are expected to increase by 27 percent, 30 percent in the second quarter and 24 percent for the third consecutive quarter. Irrespective of this, the company pace of growth is expected to stagger this is the year to 3.5 percent

Hence, in a nutshell, Apple Inc can turn the game for the Dow Jones Industrial Average, in general. The company’s performance has been exemplary making it an ideal commodity for any industry. Apple’s performance is likely top get better in the times to come considering their growth trajectory. Hence, whoever invests in Apple or seeks to invest in Apple will always be rewarded.

Dow Jones Industrial Average is one potential market that is on the verge of disruption and that is only possible through Apple.

Wednesday, 18 March 2015

U.S. GDP Growth Cooled in Q4, But Consumer Optimism Grew Significantly

World’s largest economy achieved GDP annual growth of 2.6% in a fourth quarter of 2014


U.S. economy growth cooled in the last quarter of 2014, as business spending remained weak and trade deficit widened. However, the consumer spending grows rate was highest since 2006.

U.S. Department of Commerce announced on Friday that the world’s largest economy grew at an annual rate of 2.6% in the last three months of 2014, compared to 5% growth rate in the in previous three months of 2014.

The GDP growth rate in the U.S. has been averaged 3.27% from 1947 until 2014, reaching an all-time high of 16.90% in the Q1 of fiscal year 1950 and a recorded an all time low of -10% in the Q1 of fiscal year 1958.

Due to the instability in Europe and Asia, which seems to be threatening to U.S. based companies, economist around the world forecasted gross domestic product (GDP) growth in the range of 2 to 3%.

Secretary of Commerce of USA, Penny Pritzker said a press conference today, “Today’s advance estimate of fourth quarter real GDP was bolstered by consumer spending, which grew at its fastest rate since 2006, and consumer optimism which is driven by real wages beginning to rise and declining gasoline price.”

Consumer Spending, which seems to be the only factoring for GDP growth in USA and contributes more than two-third to GDP, increased 4.3% in the last quarter. This growth rate is highest in 11 years, Wall Street Journal reported.

The confidence of US household has been boosted by lowering fuel prices and employment growth. According to Bloomberg, current employment level is the highest since 1999. Following this development, it is expected that consumer spending will continue to rise.

Survey of Consumers by University of Michigan states consumer sentiments have improved 20.8% year-on-year (YoY) and 4.8% month-on-month (MoM) in January 2015, as the level consumer optimism is the highest in last 10 years.

Business investment, which includes capital expenditure on equipment, intellectual property, and software, growth rate was 1.9% in the fourth quarter, as companies invested more in plants and facilities. Low business investment is attributed to declining oil prices by some economics, as energy companies are reducing their capital expenditure due to falling profit margins.

Due to a sharp decline in defense expenditure, the government spending growth rate also fell to 2.2%. Growth rate of exports also remained slow at 2.8%, compared to 4.5% growth rate in the third quarter. Strengthening of the dollar compared to other foreign currencies as resulted decline in exports.

In real estate, residential investment increase at 4.1% rate in the last quarter, compared to 3.2% rate in the third quarter.

Intel Stock Performance Staggers in Q1

Intel has had a strong FY14, but its performance has staggered in Q1 FY15.

Intel Corp (INTC) had an extremely strong fourth quarter where its fiscal year of 2014 had also been exemplary. According to the company’s earnings report published two months ago, Intel’s 2014 marked several achievements for the company.

According to the company’s position at NASDAQ stock exchange, the company’s shares had been trading at $37 per share. The company’s position thus had become extremely strong in a short passage of time marking their triumph.

These great achievements paved the company’s way for a fairly strong first quarter in 2015. Many analysts believed that the revenues of the company will quadruple and they will excel to greater heights.

Sadly, the company experienced a massive boom from medium and small sized businesses that altered their strategies to redeem their position. For instance, Microsoft PC’s will not pave their way to redemption igniting concerns for the organization. This resulted in the waning of the company’s exuberance and Intel stock slashed resulting in their downfall. This can create resonance among all the investors of the company.

Mostly it has been observed that whenever a company lowers the guidance of earnings, similar to what Intel experienced, the stocks of the company experience a hit, However, the problem with Intel’s stocks revolved around the revision. For instance, the company was expected to generate revenues that compounded up to $13.7 billion in Q1. This would have resulted in a massive improvement for them considering their performance in Q1 of 2014. However, now the company is focusing on more of a give and take the position by forecasting revenues of $12.8 billion.


Windows XP refreshing was not the only reason for the company’s downfall, but another reason for this depreciation accounts for the dollar like intervention many companies experienced. The company’s gross margins are expected to be 60% since the sales have been exceptional where spending’s are also said to be $4.9 which they forecasted earlier.

Intel has succeeded in managing its overhead and also maintaining margins, but a drop of $900 million in terms of revenues has caused immense disruption making it hard for investors to digest. But the company is not just about operating software and currency exchange rates but it has a lot more to offer.

The company needs to boost up the process and come up with a strategy to counter what has happened. They had a good start in 2014, but the start of 2015 did not bear much fruit for them where a massive loss resulted in the decline of the company’s glory. however, the company will redeem itself making it a good time to opt for it.

Tuesday, 17 March 2015

Sun Pharmaceutical Ltd Permitted To Acquire Ranbaxy

Ranbaxy will have to sell its right for a drug in order to be acquired by Sun Pharmaceuticals.

Sun Pharmaceutical Industries Limited filed a request after which it has gained US antitrust authority’s approval to acquire Ranbaxy Laboratories Limited.

Sun Pharmaceutical has announced on April that they plan on purchasing Ranbaxy (NSE: RANBAXY) and were waiting for the Federal Trade Commission’s approval. Although now they have been given consent to go ahead with the deal, FTC has also implemented a condition that Ranbaxy will sell its generic minocycline antibiotic, which is used for treating various infections such as pneumonia, urinary tract infections, and acne, to Torrent Pharmaceuticals.

According to FTC, there are only 3 pharmaceutical companies in US who are currently producing the drug. Since Sun Pharmaceuticals is also in the process of introducing a similar drug, this would have led to decreasing prices. By selling Ranbaxy’s drug rights to Torrent Pharmaceuticals, Sun’s competitors will have a fair chance to compete, since then Sun won’t be able to dominate the market.

Ranbaxy has previously been in trouble with Food and Drug Administration (FDA) over safety concerns. The agency had banned its products in US, in order to protect US consumers from using second-rate products, after it found that some of the company’s plants were not following the manufacturing practices set by the authority.

Sun Pharmaceuticals (NSE: SUNPHARMA) would acquire Ranbaxy for $3.2 billion. Together, they are expected to generate revenue of $4.2 billion per year.

The shareholders of Ranbaxy Laboratories are expected to get 0.8 of the shares of Sun Pharmaceuticals after the merger gets completed. This merger of the two pharmaceutical companies is going to result in creating the fifth largest company to be working towards the creation of specialized generics in the world. However, in India, the company will be the largest company of its kind. The collaboration of both the companies is going to prove as a positive step towards the growth of this new venture of the two pharma companies.

On the other hand, this team consisting of Sun Pharma and Ranbaxy will be working to produce products that will be complex and the merger will also look into exploring and exploiting fields that have not been exploited yet. The new company will also work towards creating treatments for chronic diseases. New specialized medicines and diverse treatments will be introduced. This combination of companies will be targeting 65 countries in total all over the world.