Category Archives: nyse

Verizon CEO: Go90 ‘Overhyped,’ But ‘Expectations Are Realistic’

Verizon Communications ‘ ( VZ ) Go90 mobile video service was “overhyped,” Verizon CEO Lowell McAdam said at an investor conference Tuesday. McAdam downplayed expectations for Go90, speaking at the JPMorgan financial conference in Boston. “I think maybe it did get a little over-hyped, and I’m sure we contributed to that to a certain extent,” McAdam said. “We didn’t believe it was going to move the needle on a $130 billion revenue stream overnight. It’s one of those things you have to work into.” Verizon has not disclosed how many subscribers it has for the ad-supported Go90 service, which targets millennials (ages 18 to 34) and “Gen Zers” (teens). Launched in September, Go90 provides a mix of original Web TV series, live sports, concert streaming, prime-time TV and other offerings. Verizon’s Go90 is usually lumped with emerging over-the-top (OTT) video services, such as  Dish Network ‘s ( DISH ) Sling, but the mobile app also competes for millennial attention with the likes of Alphabet ( GOOGL ) parent Google’s YouTube,  Facebook ( FB ), Instagram and Snapchat. “We have seen enough success to make us excited about continuing to work it. We’re on pace,” McAdam said. “Bottom line is that Go90 is in a good spot from our perspective. We’re going to continue to pursue it. But our expectations are realistic.” At an analyst meeting in April, Verizon executives indicated they might expand Go90 to multiple video streaming platforms this year. As for speculation that Verizon remains the front-runner to acquire the main business of Web portal Yahoo ( YHOO ), McAdam acknowledged interest, though it’s not the first such acknowledgement by Verizon executives. “We can’t talk about Yahoo, but that’s a possibility,” McAdam said at the conference, news website TheStreet reported .  “That’s a possibility to gain greater scale.” Verizon stock was up a fraction, near 49.50, in midday trading in the stock market today .

The Fate Of Financial Advisors Part II: Financial Advisors’ Daily Digest

ETFGuide laments that DOL and the SEC are not protecting the public, just burdening advisors. Max says advisors can make a good living and gain professional satisfaction if they take the trouble to understand the nitty gritty around the financial concerns of niche professionals. For the average advisor, though, Six forecasts a homogenized, (lower) salaried future. Yesterday’s advisors’ daily digest generated a few, but quite pointed and intelligent remarks about “the fate of financial advisors” (our topic of discussion). ETFGuide ‘s main point is that the policies of public agencies, while meant to protect the public, generally have the effect of making business life intolerable. This is a widely shared view among advisors today. The next two comments — and this is the great thing about SA’s community of advisors — offered hope, perspective and practical ideas in the face of this reality. Max @mcorder.net sort of rolls up his sleeves and explains that while investors’ lives grow more complicated, there remains a paucity of competent advisors who have versed themselves in the day-to-day concerns of various niche clienteles. If you’re willing to in turn roll up your sleeves and learn about the personal financial issues of say, dentists, read dental trade magazines and perhaps contribute to them, you’ve got yourself a niche business which, as he says, doesn’t “need a whole lot of…clients to earn a decent living.” Underscoring the appeal of this proposal is the informed prognostication of another commenter, Six , who offers reasons why trends are heading toward salaried advisors at fewer and bigger firms with compressed compensation. Six anticipates an increasing standardization of highly vetted fiduciary advice. Advisors already weighed down under the yoke of a rules-burdened corporate environment might therefore want to work harder and sooner to foster the kind of practice Max described. There’s always room for a good advisor, right? Check out their detailed comments, and let us know your thoughts here! Herewith today’s advisor-related news and views:

Varian Spinoff Could Boost Sluggish Topline Growth, Says Analyst

Varian Medical Systems ( VAR ) got a mostly favorable reception from Wall Street Tuesday after it announced late Monday that it’s spinning off its imaging-components business into a separate company. Varian said that it will complete the spinoff by year’s end through a tax-free distribution that will turn the imaging unit into a stand-alone company. The business is “fundamentally different” from Varian’s core business in radiation oncology, Varian CEO Dow Wilson said in a statement, so the two will be better off apart. Varian said that it will incur $35 million in charges but financial guidance for this year is otherwise unchanged. Varian’s management said the spinoff will bring $20 million in “dis-synergies” for the remaining company, mostly through increased general and administrative expenses, but that after a couple of years this should be offset by a combination of cost-cutting and service agreements between the two companies. RBC Capital Markets analyst Brandon Henry gave a thumb’s up and raised his price target on Varian stock to 88 from 85, while affirming a sector-perform rating. “Varian’s Imaging Components business has weighed on the company’s topline growth for the last five quarters,” Henry wrote in a research note, citing slowing customer demand along with competitive and pricing pressures. “However, we expect Imaging Components to return to low-single-digit year-over-year growth in fiscal year 2017.” Varian’s revenue growth has been stuck in single digits for the last four years, and in the most recent quarter was flat. Henry sees the spinoff as an opportunity for the remaining company to broaden its reach in the cancer market. “We do not expect any transformational M&A, as management likes to keep a relatively conservative balance sheet,” he wrote. “However, we expect slightly more topline growth going forward to be from tuck-in M&A than in the past.” Varian stock was up a fraction in early trading on the stock market today , near 83. The stock holds a decent IBD Composite Rating of 76, helped partly by being in the highest-ranked of all the medical groups, Systems & Equipment, which currently stands at No. 19 in IBD’s ranking of 197 industry groups. Top stocks in the group include Intuitive Surgical ( ISRG ), Masimo ( MASI ) and Cantel Medical ( CMN ).