Yahoo China president resigns after two months

HONG KONG (MarketWatch) -- Yahoo China president Xie Wen resigned his position Monday after less than two months on the job, citing personal reasons, according to the company.

The resignation comes at a time when Yahoo China faces difficulties restructuring amid sliding market share in the competitive Chinese Internet search space. Analysts said the resignation may reflect management conflict on whether Yahoo China should focus on the Internet search market or expand into other areas involving video-sharing and community-focused online sites, according to a Dow Jones Newswires, citing

Frances Guan, a Beijing-based analyst at market research firm In-Stat. paid 1$ billion and transferred all of its existing China assets to Alibaba.com in return for a 40% stake in the company in October 2005.

Since the transfer the portal has changed direction twice, initially reinventing itself as a minimalist search-centered site with a front page similar to rivals such as Google Inc , and later switching back to its familiar portal-approach in April, according to reports. Xie Wen will continue to be a strategic consultant to Alibaba, the Internet company said in a statement released earlier this week.

Zeng Ming, a senior vice president for strategy and business development at Alibaba, will become acting president of the Yahoo China division. Yahoo China trails market leaders Baidu.com and Google in China's Internet search market, which ranks behind only the U.S. at 123 million users as of the end of June.

Baidu's share of China's Internet-search traffic was 62%. Google's share was 25% while Yahoo China's share was 4.8%, according to the China Internet Network Information Center, directed by the Ministry of Information Industry. Chinese media reported Xie made a trip to the United States earlier in November to meet with Yahoo founder Jerry Yang to present a restructuring plan.

U.S. stocks close higher as investors return after heavy losses

NEW YORK (MarketWatch) -- U.S. stocks closed higher on Tuesday as investors digested a spate of economic data and remarks from Federal Reserve Chairman Ben Bernanke and came back to the market following the prior day's sharp losses.

"Good markets don't give up easily," said Al Goldman, chief market strategist at AG Edwards.

The Dow Jones Industrial Average closed up 14 points at 12,136, rebounding from a morning low of 12,072.

Boeing Co. , a Dow component, rose 0.7% after news that German discount airline Air Berlin plc plans to order more than 60 airplanes.

The S&P 500 , meanwhile, gained 4 points to 1,386, while the Nasdaq Composite added 6 points to 2,412.

Apple rose 2.5%, helping support the tech-heavy Nasdaq after Monday's slump, after UBS raised its price target on the stock to $108 from $95.

In a speech, Bernanke said that core inflation, which excludes energy and food, has "improved modestly since the spring" but is still "uncomfortably high."

"The reaction to Bernanke was fairly muted," said Michael Malone, trading analyst at Cowen & Co. "On the one hand, he said inflation is still high and on the other that it has been moderating."

"All in all, nothing new," Malone added.

Trading volume was 1.59 billion shares on the New York Stock Exchange and 1.99 billion on the Nasdaq.

Gaining issues outpaced decliners 21 to 11 on the Big Board and 15 to 14 on the Nasdaq.

By sector, oil , broker/dealers and telecom stocks were among the gainers, while transportation and biotechnology issues fell.

The market had opened under pressure after news that durable goods orders fell 8.3% in October, the largest drop in over 6 years and a much greater drop than expected by Wall Street economists. See full story.

But later news that existing home sales rose in October, the first gain in eight months, gave an excuse for investors to return to the market following Monday's sell-off.

"After the big drop in the Dow we saw yesterday, those that feel they had missed some of the big rally we've had since July want to jump in," said A.G. Edwards' Goldman. "Sideline cash sees this as an opportunity."

With that mindset, investors shrugged off the fact that while home sales rose, inventories continued to rise and prices fell 3.5% year-on-year, the first time ever that existing home prices have fallen for three months in a row. See full story.

In addition, consumer confidence continued to drop in November, against expectations for a rebound. See full story.

Weak economic data recently has spurred a rally in Treasury bonds, which benefit from easing inflation pressures.

The stock market has also continued to rally, betting that slowing economic growth will prompt the Fed to cut interest rates and protect the economy from a hard landing.

But a slide in the dollar since last week has fueled new concerns.

"If a weak dollar, as a proxy of economic growth in the US, is indicating a recession, then it would be a negative," said Marc Pado, market strategist at Cantor Fitzgerald.

Other markets

The dollar dropped 0.1% against the euro but it rose 0.1% against the yen.

Crude-oil futures extended prior-session gains on continued speculation that the Organization of the Petroleum Exporting Countries could cut output further in a bid to stabilize prices close to $60 a barrel. See full story.

Crude for January delivery closed up 54 cents at $60.86 a barrel in electronic trading.

Gold for January delivery closed down $3.30 at $637.30.

Treasurys rallied after the weak economic data. The benchmark 10-year note closed up 6/32 at 100-30/32 with a yield of 4.536%.

Stocks on the move

Nokia Inc. shares closed down 1% at $20.09 after the world's largest maker of mobile phones cut its operating margin forecast for the next two years, predicting slower growth in the global phone market. See full story.

Palm Inc. fell 7.7% to $14.19 after the company late Monday slashed its fiscal second-quarter forecast, citing the delayed U.S. rollout of one of the newest versions of its Treo line of handheld smartphones. See full story.

Anheuser-Busch Cos. rose 1.6% to $46.89 after it reiterated its overall 2006 earnings forecast, but said that it now expects "unfavorable revenue mix" to hurt results in the U.K.

U.S. stocks close higher as oil price falls; GM loses 5%

NEW YORK (MarketWatch) -- U.S. stocks closed slightly higher on Wednesday, as a big drop in crude oil prices and better-than-expected earnings from Dell Inc. offset an unexpected drop in consumer confidence and weakness in the shares of General Motors Corp.

With trading volumes thin ahead of the Thanksgiving holiday, the Dow Jones Industrial Average gained 5 points to 12,326. It earlier reached an all-time intraday high of 12,361.

Positive momentum came as crude oil dropped - the January futures contract lost 93 cents to close at $59.24 -- following bearish inventory data from the American Petroleum Institute and the Energy Department

The trade-off was weakness in oil shares, notably a 0.7% drop in shares of Exxon Mobil Corp.

GM dropped 4.7% -- and has lost 11% in three sessions - on speculation, later confirmed in a filing with the Securities and Exchange Commission, that billionaire Kirk Kerkorian has reduced his stake in the automaker. See full story.

On Wednesday, Kerkorian's investment firm Tracinda Corp. said it plans to make a $55 a share bid for 15 million shares of MGM Mirage . Tracinda currently owns 56% of MGM shares. MGM shares gained 10.6%.

Meanwhile, Dow component Alcoa Inc. gained 4.3% after unveiling a broad restructuring program that will cut 5% of its workforce and lead to a spin-off of its molded soft-alloy business via a joint venture with Norway's Orkla ASA. See full story.

The S&P 500 rose 3 points to close at 1,406 and the Nasdaq Composite gained 11 points to 2,465.

Early positive momentum waned after news that consumer sentiment weakened in late November. The University of Michigan consumer sentiment index inched lower to 92.1 in late November from 92.3 earlier in the month and 93.6 in October.

"The consumer confidence number was used as an excuse because we're really overbought and it's hard to take the averages much higher," said Donald Selkin, director of equity trading at Joseph Stephens.

Earlier, the Labor Department said that initial jobless claims rose to their highest level since late October in the most recent week, climbing by 12,000 to 321,000. See full story.

"Though these figures did little to change the overall outlook, they took the luster off the outlook as we enter the Thanksgiving Day holiday, and the start of the U.S. holiday shopping season on Friday," the Action Economics team wrote in a note.

Trading volume was 1.3 billion shares on the New York Stock Exchange and 1.6 billion on the Nasdaq.

Advancers topped decliners 19 to 12 on the Big Board while decliners barely outpaced gainers on the Nasdaq.

By sector, hardware , internet and semiconductors were strong gainers, while oil and banks were weak.

On Tuesday stocks closed higher as gains by Alcoa, Caterpillar Inc. and Boeing Co. supported the Dow and helped offset concern about crude oil prices, which topped the $60-a-barrel mark.

So-called Black Friday, when retailers offer discounts the day after Thanksgiving, will provide fresh clues about how consumers are faring amid the declining wealth effect from a fast-falling housing market.

According to Kevin Kruszenski, director of equity trading at KeyBanc Capital, only some sectors of the market will see some weakness should the sales fall short of expectations.

"Some retailers and restaurants have risen something like 20% off their lows since gasoline prices came down," he said. "So if sales don't live up to expectations, some of these names would be hit."

The S&P Retail Index gained 0.3% on Wednesday, having risen nearly 20% since mid-August.

But the broad market can continue rising even after disappointing sales, Kruszenski said, "because we've got pretty strong demand for stocks".

"As long as the general economy is slowing but not screeching to a halt," the market can continue moving up, he said.

Other markets

Platinum futures fell sharply early Wednesday, reversing the record gains seen earlier this week as speculation about the possible launch of an exchange-traded fund continued to evaporate after Barclays, the bank behind the silver ETF, said it has no such plan. See full story.

Unlike gold and silver, platinum supplies have been running at a deficit for the past eight years, while demand has hit a new record every year for at least the last 10 years. See Commodities Corner.

Platinum for January delivery closed down $65.10 at $1,154 an ounce, after earlier falling to a low of $1,140.

Gold futures closed up 30 cents at $629 an ounce.

Crude oil for January delivery closed down 93 cents at $59.24, following bearish inventory data from the American Petroleum Institute and the Energy Department.

Treasurys ticked slightly higher, pushing yields lower, after the data. The 10-year benchmark note rose 3/32 to close at 100-15/32 with a yield of 4.575%.

The dollar tumbled to a three-month low against the euro and a three-week low versus the yen Wednesday, after the White House announced that growth estimates for 2006 and 2007 would be pared down and as traders squared positions ahead of U.S. and Japanese holidays on Thursday.

The dollar was last down 0.8% against the euro and down 1% against the yen.

Stocks in play

Shares of Dell Inc. rose nearly 10% to $27.13. The computer maker late Tuesday reported a third-fiscal-quarter profit that was up almost 12% from a year ago. See full story.

The earnings beat expectations but Dell stressed that they are preliminary and subject to change as it faces a probe by federal securities regulators into its accounting practices.

International Business Machines Corp. rose 0.5% after it said the Defense Advanced Research Projects Agency has given the company a 4-year, $244 million contract to develop a supercomputer that is more efficient and simpler to program.

Comcast Corp. said late Tuesday it has bought Walt Disney Co.'s 39.5% stake in E Networks for $1.23 billion. Comcast dropped 2.5% and Disney fell 0.7%.

Stocks Expected to be Range-bound as Holiday Approaches

SAN FRANCISCO (MarketWatch) -- U.S. stocks are likely to be traded in a narrow range next week with few economic reports to dictate direction as market professionals and investors wind down for the Thanksgiving holiday.

Trading volume is expected to thin leading up to Thursday, when financial markets will be closed. Equity trading will finish early on Friday and the bond market will close early on Wednesday and Friday.

Edgar Peters, chief investment officer at Pan Agora, said stock movement in thinly traded markets may be exaggerated in either direction if something "completely unexpected" arises. But at this point Peters doesn't see anything significant enough to cause major fluctuations.

On Monday, the Conference Board releases leading economic indicators for October. The index is expected to edge up to 0.2% from 0.1%, according to a poll of economists conducted by MarketWatch.

The final revision of the University of Michigan's consumer confidence survey for November is due on Wednesday. Economists expect that it will move up slightly, to 92.8 from 92.3. The survey gauges consumer sentiment on current economic conditions and their expectations for the future.

There are few earnings reports on the schedule, but investors will zero in on results from Lowe's Cos. , Nordstrom Inc. , Medtronic Inc. , and Borders Group Inc. .

Ted Parrish, co-portfolio manager at Henssler Equity Fund, said if the earnings are positive, "chances are [good] that we'll finish higher," next week.

The jump into the holiday shopping season will begin on "Black Friday," the day after Thanksgiving when consumers traditionally pack the stores to look for price bargains.

Peters said market players will be keen to see how retail sales perform that day, as a yardstick for measuring demand through the full holiday season.

He also said the recent drop in oil prices, including this week's 6% fall in the benchmark crude contract, is positive.

"It's a boon for consumers," freeing up funds for other items.

Paul Mendelsohn, chief investment strategist at Windham Financial Services, said this week's tamer-than-expected inflation data was another support for equities, which finished higher for the week. The data has eased concerns that the Federal Reserve will hike rates again, and raised hopes it may even begin to cut them early next year.

The Fed has been on hold since June, after raising its key rate to 5.25% with 17 hikes.

Mendelsohn said the optimistic view has kept investors in buying mode. The central bank, in notes released Wednesday from its most recent policy meeting, was less concerned about the slowing economy than it was with inflationary pressure building.

A number of Federal Reserve officials delivered speeches this week emphasizing that policymakers need to be vigilant on inflation.

Mendelsohn said the Thanksgiving break may give market players time to assess the run-up in stocks.

"The market is incredibly overbought. In addition, bullish sentiment has really skyrocketed which would be another warning signal. I'm participating in this rally, but...my antenna is up," he said.

Dow hits a new record; stocks finish higher for the week

The major indexes closed mixed Friday but they recovered from their lowest levels of the session as investors shrugged off a government report that October housing starts tumbled nearly 15% to a six-year low. See Economic Report.

The Dow Jones Industrial Average rose 37 points to 12,342.56, its new record closing level and its sixth consecutive close higher. The S&P 500 Index picked up 1 point to 1,401.20, while the Nasdaq Composite Index lost 3.2 points to 2,445.86.

For the week, the Dow rose 1.9%, the S&P 500 gained 1.5%, and the Nasdaq Composite climbed 2.3%. See Friday's Market Snapshot.

Treasury prices closed with strong gains Friday. The 10-year benchmark Treasury note closed with a yield of 4.600%, down from 4.653% in late trade on Thursday. See Bond Report.

Crude-oil futures' benchmark contract closed Friday at its lowest level in 17 months as concerns over global energy production continued to ease and volatility associated with the expiration of the front-month contract increased. Read Futures Movers.

The U.S. dollar fell against other major currencies Friday. For the week, the dollar gained about 0.2% against the euro and 0.1% versus the Japanese yen. See Currencies column.

Gold futures closed higher Friday for the first time in six sessions, but posted a loss of 2.4% for the week. See Metals Stocks.

Buy Before It's Too Late

By Seth Jayson (TMF Bent)
11/18/2006

So, I blew it. Again.

A few weeks back, a certain pharmaceutical firm tanked into bargain territory, and I missed out on much of the inevitable rebound by being too tentative with my purchase. No, I'm not going to tell you about that one (I'm still contemplating a buy, and I have Foolish trading guidelines to follow), but I will share with you a story about a similar situation that offers the same lesson.

When I first penned this article back in January, it was occasioned by my regrets about not buying shares of a steel company I knew to be a value, maybe even a steal. I'd done the research. I'd considered the odds. I thought the then-current share price vastly discounted the company.

The company I was talking about then was Wheeling-Pittsburgh, a steelmaker not to be confused with the likes of Nucor. We're talking about a tiny producer that dropped from $45 to $8 per share after it suffered the quadruple whammy of raw material supply problems, technical setbacks in plants and new furnaces, a tough steel price environment, and some trouble with loan covenants.

But while trouble is trouble, the stock traded down to a point where it was selling for about half of its tangible book value. Half! What's more, it looked as though survival was not only possible, but also highly likely. And in the event things went bad? Half of tangible book value? That's a heck of a backstop in the case of a fire sale.

I'd discussed all of this with Bill Mann, a very sharp Dumpster-diver who picked this one up off the 52-week-low list. He was generous enough to have shared the idea with me but also smart enough to have taken his fingers out of his nostrils (unlike yours truly) and purchased shares.

So what did I do? Hey, I figured there was no hurry. I figured I could afford to wait a bit and see how things progressed. Wrong!

The big jump
Shortly after I neglected to buy, Wheeling-Pittsburgh jumped a bit more than 50% -- some of the jump was unexplained, but some of it was directly following merger activity in the space. My theory was that given the acquisition derby these days, big money out there would be thinking it's time to buy up cheap steel. And that's what ended up happening.

The lesson here is timeless. Don't do what I did. Listen to the masters. Successful value investors from Buffett to Olstein have explained that you can't time the bottom and you can't wait for a catalyst. By the time that happens, it's too late. So when something's cheap, you buy it. If it gets cheaper, you buy more.

Over the past 18 months or so, I was sure I'd missed out on dozens of such opportunities. I was right. A quick screen of major U.S. companies that jumped between 50% and 200% in the same time period, after having dropped at least 20% in the prior months, resulted in more than a dozen well-known names. Here are a few.

Company	Original Fall	18-Month Return
NewMarket(NYSE: NEU)	(27.65%)	338.49%
Savvis(Nasdaq: SVVS)	(58.62%)	326.97%
Gymboree(Nasdaq: GYMB)	(20.54%)	308.08%
Level 3 Communications(Nasdaq: LVLT)	(39.13%)	229.17%
HarmonyGold(NYSE: HMY)	(41.96%)	153.78%
PiperJaffray(NYSE: PJC)	(37.69%)	148.23%
Atmel(Nasdaq: ATML)	(36.81%)	128.7%

Screening and data by Capital IQ, a division of Standard & Poor's.

The reasons for the returns vary, but any one of these would have been a real portfolio power, and to tell the truth, I'm embarrassed that I didn't own a single name in that list.

Lessons learned
If you take anything from this article, let it be the ability to recognize cheap. And if you find cheap, take it.

If you need some help recognizing what cheap is, or some courage in helping you take the plunge when you find it, Motley Fool Inside Value can help. It's not always the case that value is realized so quickly, but it never hurts to take a look at what's cheap. If you'd like to see what Inside Value is eyeballing, we've got a 30-day guest pass waiting for you.

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about

Fundhouse is a Jakarta-base Investment Club. Like another clubs in the world and have been around for decades, Fundhouse is one of tens of thousands Investment Clun exist in America today. Members of Fundhouse is a groups of friends. The US National Association of Investors Corp. (NAIC) -- established in 1951 -- has set forth guidelines for running successful investment clubs. It urges members to: Invest money regularly, regardless of market conditions Reinvest all dividends and capital gains Buy stock in companies that are growing faster than most of their peers Diversify investments, not putting all the communal eggs into one basket Investment clubs today hold a total of more than $175 billion worth of equities in their portfolios -- rivaling the largest mutual funds. Each month investment clubs add more than $50 million.

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