Roulston Research Energy Partner Thomas Pyle and his not-for-profit organization the Institute for Energy Research recently created a blog posting about the Keystone XL Pipeline. Their argument is that the $7 billion proposed pipeline expansion by TransCanada should be a no brainer because it will create more jobs domestically and reduce our dependence on foreign oil. Most detractors cite that the pipeline will not be safe, increase greenhouse gas emissions, and is not in the best interest of our country since it crosses the border from Canada. The Institute for Energy Research thinks these issues are minor and nonsensical. The pipeline is not using new technology and safety will not be a major issue with the expansion. The idea that the United States should not approve the pipeline because it will increase EPA emissions and is not in our national interest is also irrational. This theory assumes that Canada will not produce the oil which his highly unlikely because they can ship it to growing Asian countries where energy is in high demand. To read the full blog posting to see their entire views on the Keystone XL Pipeline please visit there website at http://www.instituteforenergyresearch.org/2011/09/29/keystone-xl-more-energy-and-more-jobs/.

Thomas J. Pyle is the president of the Institute for Energy Research (IER). In this capacity, Pyle brings a unique backdrop of public and private sector experience to help manage IER’s Washington, DC-based staff and operations. He also helps to develop the organization’s free market policy positions and implement education efforts with respect to key energy stakeholders, including policymakers, federal agency representatives, industry leaders, consumer entities and the media. To read more about the Institute for Energy Research and their mission please visit http://www.instituteforenergyresearch.org/.

Advertisements

A New York portfolio manager recommends Sapient (NASDAQ: SAPE, $10.35) as a Buy.  This global provider of integrated marketing and technology services is growing rapidly, with service revenues rising 27% in Q2.  The company has a strong pipeline across all segments, particularly in its main business, SapientNitro.  A number of important wins have been registered recently, including Adidas, Ladbrokes, Harley Davidson, Mattel, Coca Cola.  In its Global Markets group working mainly with financial services companies, Sapient is benefitting from Dodd Frank regulations and increased data and risk management requirements.  Margins keep rising and the balance sheet is very healthy with almost no debt and plenty of cash.  The presenter targets a 30% upside from here.

Ed Berger and Greg Erman offered an overview of companies in Orthapedic (ex. Stryker, Zimmer etc) and commodity pricing of certain sectors where companies living off past laurels.

Discussed how pharma due to regulatory environment and patent sunsets are forced to change competitive paradigm, make acquisitions, reduce cost and drive new product. This model has not hit devices who do not have some of same issues. Despite hundreds of device companies (400 in Boston alone) little M+A activity, private equity or even venture activity. Everybody looking for more revenue companies and little capital flow. So many device companies still single product and capital starved.

Three areas where activity is happening in part due to Affordable Health Act which is really only an insurance reform act). Health information technology, accountable care organizations and comparative effectiveness initiatives are all where spending and new initiatives are encouraged.In each area there has been spending most notably in health care records(Athena, Epic) but with few companies of scale.

Med Device managements seem to be overly concerned with short term impacts to earnings and thus are not spending like pharma on their future strategy. Pharma is moving faster with more obvious generic sunset issues. The FDA has really not made life more difficult for the device companies. Compliance is still an issue and so companies without staffing and experience cant get quick traction. This feeds the chain of poor IPO market, weak M&A market, few buyers, little competitive threats, fear of change with Obama Care and perceived regulatory risk with the current environment.

Areas of potential interst are more for venture and PE firms. Small company opportunities in home dialysis, diagnostic and preventive are areas of probably first opportunity. The critical tipping point is maybe to watch capital investment divisions of larger companies.

Roulston Research Technology Partner Rob Enderle recently commented on the potential alliance between AOL, Yahoo, and Microsoft as they look to gain back market share in online search advertising from Google. Currently Google owns 65.5% market share of the search industry and its competitors have been scrambling to stop the bleeding. One rumor that has been rampant is that either AOL or Microsoft would purchase Yahoo because both have been interested in the past. Rob dismisses this because last time Microsoft bid for Yahoo they were rejected by Yahoo’s board. This was very embarrassing to Microsoft’s executive team and the stock dropped 10-15% and never recovered. An alliance between AOL, Yahoo, and Microsoft to sell display ads could be the best chance for the three companies to make a dent in Google’s dominance. Microsoft is the only company that has hinted about the partnership but expect to hear more about this in the coming months. To read the full article please visit http://business.newsfactor.com/story.xhtml?story_id=100006NXPA1C.

Rob Enderle is President and Principal Analyst of the Enderle Group, a forward looking emerging technology advisory firm. He specializes in providing rapid perspectives and suggested tactics and strategies to a large number of clients dealing with rapidly changing global events. You can visit his website at http://www.enderlegroup.com/.

Roulston Research Partner Keith Mallinson recently wrote an article about whether Vodafone would put Verizon Wireless free cash flow to better use. Vodafone shareholders have been frustrated that Verizon Wireless has not paid a regular dividend for its 45% stake in the company. There had been speculation that Verizon decided to block dividends as an unsuccessful attempt to get Vodafone to sell its stake in the company.  Keith questions shareholders unhappiness because Verizon Wireless has generated significantly higher returns than Vodafone over recent years. For Q2 2011 the company doubled the number of net new subscribers than its primary domestic competitor AT&T and has been very committed to growing organically rather than making major acquisitions. Keith argues that Vodafone shareholders are better off with Verizon Wireless keeping its free cash flows internally because the United States has been favorable to the leading operators with market growth and regulatory stability unlike other places around the world where Vodafone has a strong presence. To read the full article please visit http://www.fiercewireless.com/europe/story/would-vodafone-put-verizon-wireless-free-cash-flow-better-use/2011-09-20.

Keith Mallinson is founder of WiseHarbor, providing expert commercial advisory to technology and services businesses in wired and wireless telecommunications, media and entertainment serving consumer and professional markets. He is also regular columnist with Wireless Week, FierceWireless Europe, and IP Finance. Prior to forming Wise Harbor Mallinson led Yankee Group’s global Wireless/Mobile research and consulting team as Executive Vice President. He currently forecasts the long-term outlook in mobile operator services, network equipment and devices to 2025 which is available to purchase on his website at http://wiseharbor.com/forecast.htmlhttp://wiseharbor.com/forecast.html

A New York-based PM likes Innospec (NASDAQ: IOSP, $25.08) at this level.  The company until recently had a cloud hanging over it stemming from the government investigation into kickbacks to win business in Iraq.  Innospec has settled with the government and one of its competitors and can fully focus on the implementation of its growth strategy under new management.  Both Fuel Specialties and Active Chemicals businesses are growing rapidly and the company is expanding overseas.  Jeffrey Gendell, who was the big seller in the $30-$32 range has reduced his stake from 15% to 9.9%.  Going forward, with the stock added to Russell 2000 and the selling pressure subsiding, volatility should not be a big issue.  The stock is only covered by one analyst and increased coverage would be an important catalyst.  Trading at well below peer multiples , IOSP is attractive here with a possible 40% upside.

Roulston Research Media partner Robert Rose recently commented on Netflix’s controversial decision to split up their original DVD business from their higher growth streaming content. The spun off DVD business is now called Qwikster and it has incorporated DVD rentals into the product offering. However, there is now a separate charge for this offering and customers have been extremely upset at the move by CEO Reed Hastings. While Robert Rose thinks separating the businesses could be very beneficial long-term he believes that it is a major marketing blunder by the company. Netflix is a business focused on building subscribers and they failed to keep their customers engaged with what is going on with the price changes. He feels they made three major mistakes which were not giving their subscribers any time to adjust, failed to research into their channels, and being flat out dishonest with their customer base. To read Robert’s entire thoughts on Netflix please visit his website at http://adaptivemarketer.com/2011/09/netflix-qwikster-when-the-story-starts-without-you/.

As the Founder and Chief Troublemaker at Big Blue Moose, Robert Rose helps marketers become storytellers. Author of the book Managing Content Marketing, and a recognized expert in content marketing strategy, digital media and the social Web, Robert innovates creative and technical strategies for a wide variety of clientele. He’s helped large companies such as PTC, First American Title, Valley Crest, American Camp Association and Nissan tell their story more effectively through the Web. He’s worked to strategize digital marketing efforts for entertainment and media brands such as Dwight Yoakam, Nickelodeon and NBC. And, he’s helped marketers at smaller organizations such as East Harlem Tutorial Program, Coburn Ventures, Hippo and Magus to amplify their story through Content Marketing and Social Web Strategies.