Out Fox The $treet

Verizon reported in-line Q1 numbers that provided limited catalysts for a stock rebound. The net customer numbers in wireless and FiOS support that the prime business segment is reaching peak levels. The stock becomes attractive on further dips as the P/E multiple and dividend yield offer solid support. My  investment thesis  starting toward the end of March was that Verizon Communications (NYSE: VZ ) likely would trade weak for a period of time. The combination of the big rally from $44 to $54 in a few months and the bidding process for Yahoo (NASDAQ: YHOO ) weren't agreeable to higher stock prices. The recent union strike only added fuel to the pullback while the following strategies for growth are going to take time.  Read the full article on Seeking Alpha.   Disclosure: No positions mentioned. Please read the disclaimer page for more details.

Verizon continues making progress with building new media assets while wasting time on a bid with old media Yahoo. The latest earnings results from Yahoo show a business in secular decline that keeps getting worse. Verizon's stock will continue trading weak due to the ongoing bid for Yahoo and the union strike. The latest news has Verizon Communications (NYSE: VZ ) as the likely top bidder for old media Yahoo (NASDAQ: YHOO ) while buying a new media company. After the close Tuesday, Yahoo reported  Q1 results  that again question why Verizon wants to buy the core business of the company that's in big-time decline. Read the full article on Seeking Alpha.  Disclosure: No positions mentioned. Please read the disclaimer page for more details.

Two major unions go on strike against Verizon disrupting new service installations. At this point, the strike is mainly isolated to the wireline business insulating the investment impact. Verizon will continue trading weak as the strike and the Yahoo bid impact shareholder sentiment. Due to the market focusing on the Yahoo (NASDAQ: YHOO ) bid, Verizon Communications (NYSE: VZ ) isn't getting much attention regarding the union strike. The Communications Workers of America and the International Brotherhood of Electrical Workers went on strike on Wednesday and even had Democratic presidential candidate Bernie Sanders attend a rally. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Two major unions go on strike against Verizon disrupting new service installations. At this point, the strike is mainly isolated to the wireline business insulating the investment impact. Verizon will continue trading weak as the strike and the Yahoo bid impact shareholder sentiment. Due to the market focusing on the Yahoo (NASDAQ: YHOO ) bid, Verizon Communications (NYSE: VZ ) isn't getting much attention regarding the union strike. The Communications Workers of America and the International Brotherhood of Electrical Workers went on strike on Wednesday and even had Democratic presidential candidate Bernie Sanders attend a rally.  Read the full article on Seeking Alpha.   Disclosure: No positions mentioned. Please read the disclaimer page for more details.

 Summary Yahoo reported Q314 numbers that generally beat estimates based on non-repeating items. Operations continue to show negative trends. A big jump in earnings from equity interests provided all of the upside that will drop going forward with the reduced investment in Alibaba.  After Yahoo (NASDAQ: YHOO ) released Q314 earnings, most of the financial media outlets reported that the company smashed analyst estimates. The online media company flush with cash from selling Alibaba (NYSE: BABA ) stock at the recent IPO is still struggling with operations despite the headlines. The media latched onto the non-GAAP earnings of $0.52, but seemingly missed that the results were highly influenced by gains in equity interests. The continued decline in the daily operations should garner more focus considering investors were already well aware of the strong numbers from Alibaba.  Read full article...

Summary Alibaba surging to more than $93 on the first trading day provides substantial gains for Yahoo. Solid earnings should've kept investors owning Yahoo during the lean years for the stock. The inability to turn operations around probably caps the stock gains from here with the Alibaba gains captured. With the recent Alibaba (NYSE: BABA ) IPO providing riches for Yahoo (NASDAQ: YHOO ) , it's worth taking the time to discuss the lessons learned from the stock over the last decade. Though the stock has surged since the end of 2012, most long-term shareholders haven't seen any real gains with the stock, only now flat with levels reached back in 2006. In reality, a lot of investors probably dumped the stock despite knowing the potential gains in the Alibaba investments. Read the full article at Seeking Alpha. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

With more signs that the younger generation is fleeing Facebook ( FB ), including the recent UK study suggesting the leading social site is already dead to teens across the pond, it might be time to consider the proper valuation as Facebook becomes an Internet utility. Sure it has Instagram that is still hip, but in the social media sector it seems all but inevitable that a utility type service is the future for Facebook. The good news is that the future could provide the next Yahoo ( YHOO ) , while the downside is always lined with the remains of MySpace and others. Read the full article at Seeking Alpha. Disclosure: Short FB. Please review the disclaimer page for more details. 

With all the discussion heating up regarding the legalizing of online gambling, most investors have probably missed that skill based gambling is already legal in most states. Betting on fantasy sports and other skilled based games is legal in nearly all states and has a preferential carve-out on the Federal level under the Unlawful Internet Gambling Enforcement Act of 2006. According to Forbes contributor Marc Edelman, daily fantasy sports are insulated from federal liability if it meets three conditions as follows: The value of the prizes is not determined by the number of participants. All winning outcomes reflect the relative knowledge and skill of participants. No winning outcome is based on the outcome of the score of games or the single performance of an individual athlete in a single, real-world event. Read the full article at Seeking Alpha.  Disclosure: No positions mentioned. Please review the disclaimer page for more details. 

After snatching up Tumblr and now on the prowl for Hulu, Yahoo (NASDAQ: YHOO ) should instead buy some established growth companies. At the end of last year, Yahoo suddenly became cash rich after cashing out of a large investment in Alibaba. The company is now using the cash to buy well-known growing brands, but will it work? Yahoo is following in the footsteps of the Facebook purchase of Instagram for more » Disclosure: Long MM. Please review the disclaimer page for more details. 

With the stock price plummeting to 52-week lows, Apple ( AAPL ) should immediately unleash a massive buyback plan. A plan with the size and scope that it materially reduces the shares outstanding and provides support for the stock. Clearly signs exist that the company has exited the massive growth phase of the last decade with a load of competitors constantly attempting to undercut the price and performance of its smartphone and tablet products. Apple though isn't entering a feared phase of flat stock performance similar to the often compared decade of disappear at Microsoft ( MSFT ) . Investors continue to miss the drastic difference between the valuation prospects of both stocks at those starting points. As highlighted a month ago (see Apple s Cash Balances Approaching $150B ), Apple needs to adopt a material plan to absorb the constant cash inflows. The recent success of the buyback program of Yahoo! ( YHOO ) should energize a market that typically frowns on buyba...

After the market close on Tuesday, Yahoo! ( YHOO ) reported Q1 2013 results that provided limited progress at growing the business. The company has been busy updating main products such as the home page and mail yet it hasn't led to expanded revenue, adjusted EBITDA, or operating income. The consumer internet company continues to struggle in attracting the current generation of internet users focused on social media and attached to Google ( GOOG ) search. Yahoo! though has been able to dramatically increase the earnings per share based partially on the share buyback program and the exclusion of stock based compensation (SBC). Oddly the SBC number wasn't excluded in prior periods unlike other technology stocks. The company shared that engagements had increased on updated products, but clearly those numbers aren't flowing to the top or bottom lines. Read the full article at Seeking Alpha. Disclosure: No position mentioned. Please review the disclaim...

Back in August of last year, Stone Fox Capital wrote about the continuous decline of Zipcar's stock. The stock had traded down to $6 in a steady and unrelenting decline since going public around $30 back in 2011. The stock had become so punished that it wasn't long before Avis Budget Group ( CAR ) came knocking with a $12.25 per share offer in cash that gave bottom feeder investors huge gains. The latest action in Millennial Media ( MM ) is starting to replicate the action of Zipcar. First and foremost, Millennial Media traded at the highs out of the gate and followed the path of Zipcar with non-stop declines. It's debatable which stock had the worst chart. Second, the investment concepts remained intact despite the precipitous declines. Investors feared higher competition and delayed profits in pushing the stocks to incredible lows, yet the thesis of car sharing and mobile advertising both remain strong. Read the full article at Seeking Alpha. Disclos...

Typically when the RSI hits a figure below 30 the stock is oversold. When that number creeps below 27, the stock is reaching the significantly oversold position. Not many stock go lower than 24 other than complete destruction of the stock. Millennial Media (MM) is trading around 26 on the RSI as the stock plunges further to nearly $7 today from $8 on Friday. Remember the stock was trading over $14 prior to earnings. Incredible to see this much destruction with revenue growing 55% this year. Traders clearly do not believe the updated guidance. The fear is that Google (GOOG) is and will eat their lunch. The stock action is amazing because logically Yahoo (YHOO) should want the independent mobile ad network to compete against Google and Apple (AAPL) . Just don't see Google dominating the mobile display sector without a player like Millennial competing with it. The chart though tells a different story. See below: Investors will be wise to buy this stock as it settles out....

Millennial Media ( MM ) remains the leading independent mobile advertising network with a market share behind Google ( GOOG ) . The company had one of the hottest IPOs in 2012 yet the stock fizzled from day one. As the mobile advertising market heats up should this stock trade near the lows? The company is the leading independent mobile ad network provider. Its technology, tools, and services help developers maximize their advertising revenue, acquire users for their apps, and gain insight about their users. The company has a platform that enables advertisers powerful Mobile Audience Solutions (MAS) that utilize the significant scale, sophisticated targeting and uniquely engaging creative capabilities to deliver meaningful results. The company reports earnings on the 19th and investors should consider entering the stock prior to the release as mobile advertising heats up. Read the full article at Seeking Alpha. Disclosure: Long VELT. Please review the disclaimer ...

Back in mid-November, it appeared that Facebook (FB) was headed to the teens for good as investors became very pessimistic regarding the stock. Along came the much-expected massive stock lock-up on November 14th and the market was surprised to see the stock soar instead of plunging to new lows. Within weeks, the stock soared from a low around $19 to $26.15. An incredible 35% surge for a stock left for dead. A major reason for the leader in social media surging was three analysts increasing price target this week. What has made analysts so bullish on a stock that recently traded as low as $17 to only be upgraded once the stock hit $24? The stock remains a favorite short candidate of us, but our firm has been on the sidelines waiting for a better entry point after the market became too bearish based on the lock-up issues and the mobile monetization fears. See our previous articles here . Note the comments section has been full of warnings that the lock-up might trigger a bottom. R...

Back in February, OCZ Technology (OCZ) did a secondary at $9 to raise $110M. The company had recently faced low cash balances so analysts and investors a like were concerned about the need to raise funds. The company was always clear about the need to raise major funds would only occur if it signed a major customer. Fast forward to the Q412 earnings report last night and the company guided to nearly $700M in revenue for fiscal 2013 compared to estimates around $513M. Based on that, one would think the stock has now soared way beyond the secondary price.  Well that person would be mistaken. The stock has now plunged 50% from the highs around $10 shortly after the secondary while all but confirming a deal with the much speculated Facebook (FB) .  The company clearly stated in the conference call that it had a deal with a leading social media company not to mention numerous other data center customers. No to mention that Yahoo (YHOO) had forecasted a 3x increase in ...