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Alphabet Inc (NASDAQ: GOOGL)’s Chrome Challenged By Samsung Electronics With A New Version Of Their Android Browser

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Samsung Electronics Co Ltd (KRX:005930) has initiated the roll out of Android-powered Samsung web browser version 4. This version has been based on Samsung desire to create a browser, which offers ease of use, functionality and compatibility. This web browser can be found in latest Galaxy smartphones with Android Lollipop and phablets.

The release of version 4 is aimed at changing the mentality of users toward considering Alphabet Inc (NASDAQ:GOOGL)’s Google Chrome as the most appropriate web browser. In most instances regardless of how capable, well featured and easy-to-use a browser is, most people are always oriented to disregard it and use Google Chrome. Samsung version 4 has been developed such that when users first use it, they get hooked and stick around.

Version 4 presents polished codes and the ability of the web browser to integrate with extra sensors in a user’s phone e.g. biometrics. It also has an increased level of accuracy for rendering and has received an extensive workout in virtual reality, development and privacy. Privacy has included support for content and an ad blocking plugin.

Samsung always tries to make privacy one of the essential features in their phones. It offers two approaches to privacy. It has introduced Ad blocking plugins, which will work with the browser. Since Samsung does not have its own plugins, their browser will have similar technologies to other browsers. The private feature allows users to browse without having their cookies, passwords or other information saved.

Samsung is working with web standards with the aim of ensuring a capable and highly compatible browser that will be termed as the best breed by the developers. It outscores current mobile browsers on the HTML5 compatibility test from World Wide Web Consortium. It also has a full implementation of the Service Worker API, which allows a better experience when browsing in poor connectivity alongside providing access to the back-end of an operating system for tools

Samsung is working on its own Gear Virtual Reality. This will use version 4.0 of Samsung Browser and provide immersive internet experience, seamless connectivity and also sharing of users information

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Phillips 66 (NYSE:PSX) Delivers Better Than Expected Profit for 4Q

By
Carol Harper
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Phillips 66 (NYSE:PSX)

Phillips 66 (NYSE:PSX) reported better than expected earnings for the fourth quarter though it dipped YOY driven by margin expansion in gasoline on weak crude oil price. The company’s earnings were also hurt by its midstream, as well as, chemical businesses. Its top line plummeted 38.1% and fell shy of the analysts’ expectations.

Drop In Profit

Phillips 66 (NYSE:PSX) reported that its profit plunged 58.5% to $650 million from $1.58 billion in the third quarter of the calendar year 2015. Excluding special items of $60 million, its earnings would have been $710 million or $1.31 a share. Street analysts were expecting the company to report earnings of $1.25 a share. Its refining achieved 94% utilization while recording 85% clean product yield in the fourth quarter.

The oil and gas firm’s sales and other income dropped 38.1% to $22.03 billion from $35.61 billion in the previous year quarter. This was lower than the Street analysts’ expectations of $22.75 billion. Its CEO, Greg Garland said that the company achieved a key milestone when Sweeny Fractionator One and Clemens Caverns came online. He said that perfect execution helped to generate cash from operations of $1.5 billion in the fourth quarter. As a result, it was able to return $700 million by way of dividends, as well as, share buyback to its shareholders.

Key Metrics

Phillips 66 (NYSE:PSX) CEO said that its results demonstrated resilience of its wide portfolio during the tough time of weak commodity prices. He said that the company was creating value through operational efficiencies, delivering midstream, as well as, chemicals growth programs and improving its refining margins. The company would continue to focus on its core priorities in the current year also through a disciplined approach to the allocation of capital as the balance sheet was strong.

Phillips 66 (NYSE:PSX) boosted its quarterly dividend to 56 cents a share representing 12% growth. The company’s refining generated earnings of $2.6 billion while chemicals delivered earnings of $962 million for the year 2015. The company returned $2.7 billion to its shareholders in 2015 through share repurchase program and dividend payments.

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Rising Delivery Cost Dents Amazon.com, Inc. (NASDAQ:AMZN)’s Profit And Analysts Are Unhappy

By
Carol Harper
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Amazon will outperform this year

Amazon.com, Inc. (NASDAQ:AMZN)’s earnings for the fourth quarter fell shy of the analysts’ expectations  increasing costs of delivery of goods. The online marketplace firm spent $4.5 billion in the fourth quarter representing 24.4% YOY growth thus affecting the bottom line numbers.

Worries Increase

Analysts were worried about Amazon.com, Inc. (NASDAQ:AMZN)’s investments in lease of jets, and trucks. On top of that, they were also concerned that the company would not mind spending to take on the likes of United Parcel Service, Inc. (NYSE:UPS) or FedEx Corporation (NYSE:FDX). However, its executives discounted any such move. The company opened more warehouses to handle increased orders, as well as, speed up the delivery. It was also establishing its own delivery system.

According to Wedbush Securities MD, Michael Pachter, the earnings miss was partly due to marketing and partly due to fulfillment centers. The company has been pushing its Prime membership promising free two-day deliveries for online orders. He said that the growing popularity also resulted in increased shipping costs, which might remain a big concern in the coming months too.

Adding To Logistics

Amazon.com, Inc. (NASDAQ:AMZN)’s CFO, Brian Olsavsky, said that the company was left with no alternatives but to add to its logistics so that it would supplement its partners. That does not mean that it would replace them. He was referring to the speculations about analysts expressing their opinion that the online retailers might become a major logistics player one day. The concern was that such an ambitious move would increase costs.

Currently, both FedEx Corporation (NYSE:FDX) and United Parcel Service, Inc. (NYSE:UPS) were handling the bulk of the deliveries of Amazon.com, Inc. (NASDAQ:AMZN). However, the online retailer wants to have direct control ever since the last-minute surge in online orders resulted in delayed deliveries in 2013. The CFO said that the carriers were unable to handle the capacity that the company required during the peak of the season.

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Federal Reserve to return interest rates to a normal level

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A gradual return of the interest rates to normalcy is expected in the next couple of years says top Federal Reserve officials. According to him, the Federal Reserve is already on the way to ensure that the interest rates are maintained in between 3 and 3.5%.

John Williams, the Federal Reserve Bank President, San Francisco said that the improvement in the labor market caused an increase in the rates on December 15. He further added that it would be sensible if the rates increased gradually although the hike in economic data will determine the rates.

Williams said that although the domestic demand is solid, it is the weakness in exports and manufacturing division that is causing the imbalance in interest rates. The US has a weak export base abroad, particularly in China that has affected its interest rates.

Berkshire Hathaway Inc (N:BRKa) to start buying Phillips 66 (NYSE:PSX) stock

The Warren Buffet conglomerate’s enterprise Berkshire Hathaway Inc (N:BRKa) started buying Phillips 66 (NYSE:PSX) stock and invested around $832 million in January for boosting its stake. However, the profit margins of the oil refining company continued to be marginal. In its first purchase of the Phillips 66 shares after January 14, Berkshire made a payment of around $198 million.

In total, Berkshire bought 10.81 shares, which made it the owner of roughly 13.7 % stake in the Phillips 66 company. At present, the Houston-based company is the sixth-largest stock holder of Berkshire according to regulatory filings.

Things to look out for this week.

The oil prices hiked to 3-week highs as Russia declared its intention to cooperate in the reduction of production so that the largest oversupply problem in decades can be tackled. The Federal Reserve’s statement of increasing interest rates was considered a bit dovish as trade analysts were concerned whether the Fed can continue raising interest rates when the market is unstable.

The U.S markets are expected to open higher this week.

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Wal-Mart’s (NYSE:WMT) Closure of 150 Stores Provides Golden Opportunity to Resellers

By
Carol Harper
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Wal-Mart Stores, Inc. (NYSE:WMT)

As competition from online retailers increases and minimum wage pressures bite, Wal-Mart Stores, Inc. (NYSE:WMT) resorted to shutting down 150 stores in January. As a result, the biggest retailer is providing a good opportunity for resellers to make a killing.

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The methodology is called retail arbitrage as a number of resellers clean the store shelves with the objective of scoring quick profits. Such purchases would be placed for sale through an online platform.

System Of Operation

The closure Wal-Mart stores in some regions have attracted shoppers. For instance, a shopper told the press that he was buying $12,000 of merchandise in Hartland, Michigan. The objective is to resell the discounted items through Amazon.com, Inc. (NASDAQ:AMZN) for a profit. Smartphone growth has allowed buyers to depend on mobile apps for calculating profits. Some have entire staffs that look for store closures for reselling online.

Other retailers such as Macy’s, Inc. (NYSE:M) and Gap Inc (NYSE:GPS) are also retrenching and closing down some of their stores, making this an ideal time for resellers.

Prices Slashed 50%

Wal-Mart has slashed prices by 50% earlier this month to clear the shelves of smaller Express and Supercenter stores. Later, the company increased the discount to 75%.

It appears that there was no alternative for Wal-Mart to close these stores as they announced 10,000 job cuts to reduce expenses. Retail sales also witnessed slower growth in 2015 at 2.1%. Even during the holiday season, retail sales were lower than expected by the National Retail Federation. In 2014, retail sales saw 3.9% growth. Last year’s retail sales showed the weakest growth since 2009.

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Axiall (NYSE:AXLL) Spurns Westlake Chemical’s (NYSE:WLK) Move To Buy

By
Carol Harper
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Axiall Corp (NYSE:AXLL)

Axiall Corp (NYSE:AXLL) has rejected the offer of Westlake Chemical Corporation (NYSE:WLK) to by the company for the second time in the last four years. Westlake had said that it was ready to offer cash of $11.00, as well as, 0.1967 shares of Westlake for each Axiall share. On a per-share basis, the company offered $20.00, which meant an estimated total value of $1.4 billion. In 2012, Axiall was a takeover target for the same company.

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Axiall stock hit a yearly high of $51.35 though it was considerably lower when Westlake made its unsolicited offer on January 25. Axiall’s stock jumped 83% after it disclosed the rejection of the conditional offer to buy its share of cash and stock.

Axiall indicated that its Board reviewed and considered the proposal after getting assistance from its legal, as well as financial advisors and took the decision unanimously before the deadline set by the suitor. While Morgan Stanley & Co. LLC was their financial advisor, Jones Day was legal counsel, and has given their opinion on the deal.

Taking Advantage Of Equity Price

Axiall’s President and CEO, Timothy Mann, said that Westlake Chemical made an opportunistic bid citing the stock price of December 1 last year. He added that the offer undervalued the assets, as well as long-term prospects significantly. Mann said that the company was committed to saving $100 million from cost-cutting measures, as well as productivity targets this year.

Mann indicated that the company was also continuing to assess its complete business portfolios, as well as assets to spot opportunities to improve shareholder value. That included the sale process of its building products unit. Westlake Chemical already hasa  4.4% stake and made an unsuccessful bid to buy Axial in 2012 for $1.2 billion. At that point in time, the company was known as Georgia Gulf.

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US Economy Grows At Slower Pace

By
Carol Harper
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Economy

The US Commerce Department on Friday said that gross domestic product (GDP) witnessed only 0.7% growth for the fourth quarter on an annualized basis. The strong dollar, as well as tepid demand from International markets hurt US exports even as businesses were trying to accelerate their efforts to cut down on their inventory. While weak global oil prices continued to challenge investments in the energy sector, the mild weather has slashed consumer spending on apparel and utilities.

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In Line With Expectations

However, other economic data was in line with expectations of most economists surveyed. The report came on the back of a 2% growth in the economy in the third quarter. For the full year 2015, the economy advanced 2.4% following similar growth in the preceding year. Excluding trade and inventories, the economy would have achieved 1.6% growth rate. Mild temperatures and inventories were considered temporary impediments.

The stock market took the data in stride and stocks posted major gains on Friday. All three major indices up about 2.5% on the day. This move up was contrary to expectations as some analysts and economists feared that the data would lead to another wave of selling. The equity market has already been hurt by weak growth in China.

Labor Conditions Improved

Last Wednesday, the Federal Reserve admitted that the economy has slowed since late last year. However, the central bank indicated that labor market conditions showed further improvement.

Any further negative economic data might force the policymakers to defer the next planned interest rate hike. In December last year, the Fed hiked key rates for the first time in a decade by 25 basis points. Currently, economists expect the Fed to announce another 25 basis points hike in March. However, volatility in the financial markets could spoil the hike.

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How Interim Study Of Rintega Could Change Things For Celldex(NASDAQ:CLDX)

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Celldex Therapeutics, Inc. (NASDAQ:CLDX) has kept the market waiting for the results of the interim study involving its cancer immunotherapy Rintega. The drug is the most advanced in Celldex’s portfolio and could make or break the stock in the next few months or even weeks. A team of independent monitors are conducting the interim tests analysis of the drug. The results of the analysis are expected to be announced anytime, being early 2016 in Celldex’s words.

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Results of the interim study will determine  the next steps in the development of the cancer immunotherapy. Uncertainty regarding the results of the interim analysis is what has contributed to the volatility in Celldex shares on top of general market volatility we are now experiencing. Pressure on the stock appears to be increasing as the announcement of the interim study results approaches. Shares of Celldex have declined more than 46% YTD, largely because of the uncertainty and perhaps pessimism around Rintega.

Why pessimism?

If independent monitors are satisfied that Rintega has a statistically significant benefit, it would definitely be good news for Celldex. The company could then proceed with the remaining tests and that could also increase the chances of regulatory approval of the drug.

However, if the interim analysis concludes that Rintega has little effect, it would be back to the drawing board for Celldex in terms of drug candidates. Rintega reported positive results in terms of survival back in November on brain cancer patients, so the steep decline of Celldex shares may be unwarranted and only related to weakness in biotech shares in general in January.

 

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Xerox Corp (NYSE:XRX) Succumbs to Carl Icahn’s Pressure

By
Carol Harper
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Xerox Corp (NYSE:XRX)

Xerox Corp (NYSE:XRX) appeared to have succumbed to the pressures exerted by billionaire and activist investor, Carl Icahn. As demanded by him, the company announced a split into two public companies though after an internal review. Its chairman and CEO, Ursula Burns, said that the two firms would be well equipped to take a leadership positions in their developing markets. Each individual entity would also be expected to capitalize on opportunities currently available to expand margins. This move is expected to boost margins.

Affirmative Steps

Xerox Corp (NYSE:XRX) said that the move would establish a $11 billion document technology company, as well as, a business process outsourcing (BPO) company with a valuation of $7 billion. The transaction is expected to be tax-free and the split is likely to be closed by the end of the current year. Its CEO said that the step was an affirmative one to boost value for its shareholders while aligning with the market dynamics of the current trend.

The document firm also expects the tactical transformation initiative to deliver savings of $2.4 billion from both the public firms over a three-year period. The board has made the decision after a structural review was conducted over the last few months. Burns said that the review has shown to be the right path for the company’s future. While the focus would be on achieving its goals for the current year, it would also execute its plan to execute the split in the fastest timeframe possible.

Tactical Transformation

Xerox Corp (NYSE:XRX) disclosed a tactical transformation program that will stretch over a three-year period. The program included $600 million incremental transformation initiatives from the ongoing activities while expecting to save $700 million in the current year. As part of the program, the company has embarked on improving its operational activities of its businesses.

Xerox Corp (NYSE:XRX) would initiate the separation process so as to complete it in the current year. Therefore, the company needed to get approvals from regulators. The company indicated that until it gets approval from the necessary parties, it could continue to function as a single entity. The company plans to announce names of the two firms’ management executives once significant progress is made.

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Exelixis (NASDAQ:EXEL) Makes Progress In U.S., Europe With Advanced-RCC Drug Candidate

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Exelixis, Inc. (NASDAQ:EXEL) has moved a step closer to expanding the treatment label of its drug cabozantinib. The drug is marketed as COMETRIQ in the U.S. and Europe for thyroid cancer. In the latest development, the U.S. regulators have granted priority review of cabozantinib to see if it can be approved for renal cell carcinoma (RCC). At the same time, European regulators have also agreed to review the drug for expanded label marketing in the region.

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Expanding the treatment label of cabozantinib would unlock new and considerable revenue for Exelixis.For patients and hospitals, it would mean another treatment option to combat advanced-RCC. RCC affects close to 400,000 people in the United States. Thyroid cancer, for which the drug already has approval, affects about 600,000, bringing Exelixis’s total potential market to 1 million patients.

The management of Exelixis is expressing hope that FDA’s priority review of cabozantinib for advanced-RCC will end on a positive note, allowing the company to launch the drug for the condition as early as April this year. Cabozantinib is also being trialed as a possible treatment for liver cancer and lung cancer.

It is worth noting that Exelixis has had positive FDA reviews of cabozantinib before. The regulatory body previously granted the drug Fast Track designation and later Breakthrough Therapy designation for its formulation targeted at RCC.

Exelixis shares were up over 10.5% on Friday as biotech stocks surged ahead of the broad market rally.

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