Thu07022015

News

Effective today, library cards free again in Los Altos

Both Los Altos libraries should see a spike in use soon. After the elimination of an $80 annual card fee that had been in place since 2011, nonresidents will receive free library cards at local libraries, effective today.

Residents of Mountain View ...

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Schools

Almond fifth-graders set sail at Shoreline

Almond fifth-graders set sail at Shoreline


Courtesy of Corinne Finegan Machatzke
Fifth- graders at Almond School launched the boats they designed and built at Shoreline Lake last month.

Almond School fifth-graders boarded their handmade boats at Shoreline Lake in Mountain View last month to...

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Community

Taking it back to 'The Streets': Local filmmaker aims to revive 1970s series 'Streets of San Francisco'

Taking it back to 'The Streets': Local filmmaker aims to revive 1970s series 'Streets of San Francisco'


Courtesy of Charles Alley
Charles Alley’s filmmaking company may be based in Mountain View, but he knows all about “The Streets of San Francisco.” He’s rebooting the 1970s TV classic.

When people look for the next hit TV show, they often assume ...

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Sports

Enjoying the moment


Courtesy of Dick D’OlivA
Former Golden State Warriors trainer Dick D’Oliva, from left, wife Vi, former Warriors assistant coach Joe Roberts and wife Celia ride on a cable car in the victory parade.

Dick D’Oliva almost couldn’...

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Comment

The death knell of suburbia: A Piece of My Mind

The orchards are gone. The single-story ranch house is seen as a waste of valuable land and air space. An eight-lane freeway thunders past the bridle paths in Los Altos Hills. But nothing has signaled the death of suburbia more strongly than the ann...

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Special Sections

While competent & safe, MKC still can't catch European competitors

While competent & safe, MKC still can't catch European competitors


courtesy of Ford
The 2015 Lincoln MKC doesn’t overwhelm as far as overall performance goes, but it does offer comfortable ride quality.

Of all the auto companies with headquarters in the United States, only Ford managed to weather the great re...

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Business

Company installs EV charging stations at LAHS

Company installs EV charging stations at LAHS


Courtesy of Green Charge
Officials from Los Altos, Los Altos Hills and the Mountain View Los Altos Union High School District celebrate the installation of electric-vehicle charging stations at Los Altos High last week.

The Mountain View Los Alto...

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Books

People

HILDA CLAIRE FENTON

Hilda Claire Fenton, beloved wife and mom to 9, grandmother to 30 and great grandmother to 22, passed away June 20 following a long illness. She was 90.

Hilda was born Sept. 28, 1924, to Lois and Gus Farley then of Logan, W. Va. While she was still ...

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Travel

Venetian spa offers ways to de-stress

Venetian spa offers ways to de-stress


Courtesy of The VEnetian
The HydroSpa in the Canyon Ranch SpaClub at The Venetian in Las Vegas offers a muscle-relaxing bath and radiant lounge chairs.

Vegas cab drivers usually ask if you won or lost as soon as you get in their vehicles. They assum...

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Stepping Out

Cast carries 'Arcadia'

Cast carries 'Arcadia'


Courtesy of Pear Avenue Theatre
“Arcadia” stars Monica Ammerman and Robert Sean Campbell.

The intimate setting of Mountain View’s Pear Avenue Theatre proves the perfect place to stage “Arcadia,” allowing audience members to feel as though they a...

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Spiritual Life

Magazine

Living it up Older adults aim to age in place

Living it up Older adults aim to age in place


Megan V. Winslow/Town Crier
Local enthusiasts flock to the Los Altos Senior Center to play bocce ball. The center hosts informal games four days a week and occasional tournaments.

As baby boomers in Los Altos, Los Altos Hills and Mountain View nose...

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Inside Mountain View

Carrying the torch

Carrying the torch


Members of the Mountain View Police Department carry the Special Olympics torch as they run along El Camino Real between Sunnyvale and Palo Alto June 18. Members of the department participate in the relay annually to show their support for Spec...

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Stocks tumble on weak earnings

The stock market correction finally arrived Friday when the Dow Industrials closed down 318 points. That is important because it has been more than two years since the last stock market correction. Investors fleeing from stocks are wondering whether this will be the end of the correction.

The stock market fall comes over weak corporate earnings of blue chip stocks like IBM Corp., Starbucks Corp, and McDonald’s Corp. At some point, companies will have to produce revenue growth to translate into real earnings before the market reaction turns positive.

Earnings-reporting season is in full swing and the near-term action deserves a closer look. Fourth-quarter results hold importance because they often come with guidance for the year ahead. The December reporting quarter is crucial because it tells you what the future holds for a company.

Last week’s drop also stems from worries about China’s manufacturing growth and China’s economic growth. Between China and earnings season, analysts have been looking for that long overdue correction and this is kindling the fire.

Expectations for the March quarter are modest, pointing to just 4 percent year-to-year growth. The market’s reaction to quarterly results is a great gauge for guidance.

Traditional Town Crier “50” titans such as Hewlett-Packard Co. (HPQ; $28.88), IBM Corp. (IBM; $178.87), Microsoft Corp. (MSFT; $36.27) and Oracle Corp. (ORCL; $36.68) have struggled with earnings in the latest quarter and should be drawing attention.

Some companies have grown so big that their acquisitions barely move the needle, while others face threats from nimble startups that offer cloud-based software. These new cloud-based software companies undercut the bulky, lucrative contracts that once assured the giants steady income and growth.

Without improved signs of profit growth, your favorite stock may have trouble making headway, so keep a close eye on the market and the next hundred companies that report earnings for the December quarter.

One Town Crier “50” stock is reasonably priced but reported a loss for the December quarter:

• IBM is a large and diversified tech company whose stock is widely held by institutions and everyday investors. You could spend hours breaking down the business of IBM, but it is still a company that generates more than $100 billion in annual revenue through the many services it offers. However, earnings determine stock prices.

After the market closed Jan. 21, the company reported its quarterly revenue, recording its steepest drop in more than four years. The results immediately lowered the Dow Jones industrial average because of the vast holdings throughout the market.

Fourth-quarter results for the firm revealed earnings of $6.13 per share on $27.8 billion in sales, short of the $28.25 billion analysts had expected. Cloud and software services continued to help IBM’s hardware business, but systems and technology revenue plunged 26 percent over a year to $4.3 billion.

IBM’s fourth-quarter revenue dropped 5.5 percent below expectations, and the hardware group’s revenue fell 27 percent. The stock price has tumbled, with some analysts dropping their target price to $175.

Reports circulated that IBM was trying to divest its x86 server segment, with both Dell and Lenovo reported to express interest. Last week Chinese PC maker Lenovo Group agreed to buy IBM’s low-end server business for $2.3 billion. The sale will allow IBM to focus on more profitable software and services.

Essentially, IBM is unable to grow, and it is using its buyback program to drive earnings growth. With the business in decline, there are times when the buyback is not enough. Free cash flow was down 16.7 percent year-over-year to $15 billion.

An analyst at J.P. Morgan Chase recommended that investors take profits from the stock, because there are limited catalysts that could boost investor sentiment.

Clyde Noel is a Los Altos Hills resident and longtime investor in stocks. A strong supporter of IBM, he has shares in his retirement program.

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