Fri03062015

News

Council considers freezing First St. development

Council considers freezing First St. development


Megan V. Winslow/Town Crier
A pedestrian walks along First Street in downtown Los Altos last week. Future construction on the street could soon be barred by an emergency moratorium on development.

Further construction along First Street could...

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Schools

Santa Rita students put on Kranky Kids Radio Show

Santa Rita students put on Kranky Kids Radio Show


Traci Newell/ Town Crier
Neighborhood volunteer Lishka DeVoss, center, introduces members of Santa Rita School’s Kranky Kids Radio Club to their interviewee last week. The students star in the Kranky Kids Radio Show, which airs Fridays on KZSU.
...

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Community

Music for Minors partners with Harvard to expand efforts

Music for Minors partners with Harvard to expand efforts


Palmer

When the thriving Music for Minors began to outgrow its capacity, the local nonprofit organization made new friends.

Beginning in late February, Music for Minors – a Town Crier Holiday Fund recipient – partnered with Harvard Business Sch...

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Sports

Eagles make school history

Eagles make school history

Ellie Van Houtte/Town Crier
The Los Altos High School Eagles defeated Santa Clara High School Tuesday to advance to the Central Coast Section basketball finals Saturday.

The Eagles are headed where no Los Altos High boys basketball team has gone...

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Comment

Dangerous streets: A Piece of My Mind

I’m driving along El Monte Avenue between Foothill Expressway and Springer Road at approximately 6 p.m. on a midwinter evening. In keeping with the “village feeling” of our town, there are no sidewalks and no streetlights.

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Special Sections

Lions, lambs and Cab Franc for March

Lions, lambs and Cab Franc for March


Christine Moore/Special to the Town Crier
Oven fries, a slice of feta cheese and the bite of harissa mayonnaise make for a late-winter, early-spring dinner perfectly paired with Cabernet Franc.

I can’t help but wonder whether March will come in ...

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Business

Los Altos scientist named Inventor of the Year

Los Altos scientist named Inventor of the Year

Alicia Castro/Town Crier
Robert Showen, above, the Silicon Valley Intellectual Property Lawyers Association’s Inventor of the Year, began researching his ShotSpotter technology in his Los Altos home. Sensors are placed around a city, below, and fou...

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Books

French novel

French novel "Hunting and Gathering" offers character-driven suspense


Anna Gavalda is a well-known author in her native France, where she has published six books, most of which have met with considerable praise and commercial success. Her fourth novel, “Hunting and Gathering” (Riverhead Books, 2007), is filled ...

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People

JACK JOSEPH CRANE

JACK JOSEPH CRANE

Long time Los Altos resident, Jack Joseph Crane, loving husband and devoted father of two children, passed away peacefully at the Terraces in Los Altos, Saturday, February 21, 2015. He was 95 years of age. Jack was born on June 22, 1919. He is prec...

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Travel

Seoul of the city: Korean capital offers mix of old and new

Seoul of the city: Korean capital offers mix of old and new


Ramya Krishna/Special to the Town Crier
Seoul’s Cheonggyecheon public recreation space, above, features an elevated pedestrian bridge.

Seoul, South Korea, is a study in contrasts. Having grown quickly, the city is a mix of old and new.

Using...

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Stepping Out

TheatreWorks jumps into ‘Lake’

TheatreWorks jumps into ‘Lake’


Kevin Berne/Special to the Town Crier
Jason Bowen, from left, Adam Poss and Nilanjana Bose star in “The Lake Effect,” opening this weekend at the Lucie Stern Theatre in Palo Alto and running through March 29.

The TheatreWorks production ...

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Spiritual Life

Is your thought life sabotaging your spiritual journey?

My computer started having problems – there seemed to be some sort of malware running in the background. At first it was just annoying, then it began to slow down my computer, interfering with its basic operations. What is it doing? Why can...

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Magazine

Local events serve up family fun

Local events serve up family fun


Courtesy of Peninsula Youth Theatre
Peninsula Youth Theatre’s production of “Pecos Bill: A Tall Tale” is slated to open March 20 in Mountain View.

For families seeking a break from the daily routine, events abound this month and next in Los Alto...

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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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