IAC/InterActiveCorp (NASDAQ: IACI) needs to build up its little Ask.com franchise before it is spun out in a breakup of the parent company. Ask.com is an "also ran" in the search engine fight which includes Google (NASDAQ: GOOG), Microsoft (NASDAQ: MSFT) and Yahoo! (NASDAQ: YHOO).

In an attempt to turn a loser into a contender, IACI is buying Lexico, which owns Dictionary.com, Thesaurus.com and Reference.com. According to The Wall Street Journal, "Lexico sites drew about 15.6 million unique U.S. visitors in March, according to comScore Inc., compared with 55.4 million for Ask and an array of affiliated sites."

Even if the price of the new addition is low, the Lexico sites are not likely to do much good for the Ask.com franchise. It has already fallen so far behind the three search leaders that it almost certainly cannot catch up. Internet users have already set their preference in this part of the online market. Owning a dictionary site is not going to help that.

IACI's Ask.com can't come from behind and buying additional reference sites is not going to change that.

Douglas A. McIntyre is an editor at 247wallst.com and the author of the Ten Stocks Under $10 newsletter.

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Hundreds of stories have been written over recent weeks about the plans of Microsoft (NASDAQ:MSFT) to buy Yahoo! (NASDAQ:YHOO) and Yahoo!'s plan to outsource its search to Google (NASDAQ:GOOG). At the end of the day, the are all speculation backed by very little fact.

More "news" about the deals came out overnight. According to Bloomberg ,"Yahoo may agree to use Google's Web advertising software within a week." The Wall Street Journal says that "Microsoft Corp. late Thursday was leaning toward going hostile in its pursuit of Yahoo Inc."

All of this is great theater because both stories may be true and the entire situation could dissolve into a cauldron of competing companies, investment bankers, and corporate boards each competing for leadership in the web search market.

Who is served? In this case, for once, the shareholders. Yahoo! could take a deal to have Google handle its search and search advertising features. Depending on which analysis Wall Street wants to believe, this should save the portal hundreds of millions of dollars a year, if the government will approve an alliance between the two largest search companies.

On the other hand, Microsoft may raise its bid in an attempt to tempt shareholders to take $33 or $34 for Yahoo!. The company's shares traded around $20 before Redmond made its offer.

The media may have months of fun ahead of them A proxy fight could drag on and on as could a government decision about whether Yahoo! and Google can form a search venture.

At the very least, its sells newspapers.

Douglas A. McIntyre is an editor at 247wallst.com and the author of the Ten Stocks Under $10 newsletter.

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MOST NOTEWORTHY:

• Thomas Weisel downgraded Motorola Inc (NYSE: MOT) to Market Weight from Overweight based on the general uncertainty in the company's core markets and the likelihood that the spin off may not occur for several quarters.
• Piper believes Williams-Sonoma Inc (NYSE: WSM) faces a challenging environment, and their checks reveal weakness at Pottery Barn. Shares were cut to Neutral from Buy.
• ThinkPanmure downgraded Synchronoss Technologies Inc (NASDAQ: SNCR) to Accumulate from Buy. The firm expects a strong Q1 report but expects shares to sell-off following the Q1 conference call due to modest guidance and the lack of a major customer win announcement.

• RBC Capital downgraded Bank of Nova Scotia Halifax (NYSE: BNS) to Underperform from Sector Perform.
• JP Morgan cut The Goodyear Tire & Rubber Company (NYSE: GT) to Neutral from Overweight.
• Goldman removed Potash Corporation of Saskatchewan Inc (NYSE: POT) from its Conviction Buy List.

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Goldman Sachs affirmed its "neutral" rating on Sysco (NYSE: SYY), saying "shares have been trading lower on concerns related to whether softening consumer spending is affecting casual dining and upper-end restaurants," according to the AP.

Thomas Weisel downgraded Motorola (NYSE:MOT) to "market weight" from "overweight" according to Briefing.com. The news service also reports that Morgan Stanley intiated Visa (NYSE:V) with a rating of "equal weight".

Credit Suisse (NYSE:CS) was raised to "peer perform" at Bear Stearns according to a report at 24/7 Wall St. The financial website also writes that Goodyear Tire & Rubber (NYSE:GT) was cut to "neutral " at JP Morgan.

Douglas A. McIntyre

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Here are some highlights from this past week's earnings coverage from BloggingStocks:

• American Axle & Manufacturing Holdings Inc. (NYSE: AXL) reported a strike-related Q1 loss.
• Arch Coal Inc. (NYSE: ACI) Q1 profit tripled on increased demand and higher prices.
• Boeing Co. (NYSE: BA) posted better-than-expected earnings despite Dreamliner delays.
• Coach Inc. (NYSE: COH) better-than-expected quarter didn't impress Jim Cramer.
• ConocoPhillips (NYSE: COP) reported Q1 earnings and revenue above analysts' forecasts.
• Delta Air Lines Inc. (NYSE: DAL) reported a big loss on a one-time charge and fuel costs.
• Dow Chemical Co. (NYSE: DOW) posted a smaller-than-forecast profit drop and predicted a good Q2.
• EI DuPont de Nemours & Co. (NYSE: DD) Q1 earnings rose 26% but missed expectations.
• Ford Motor Co. (NYSE: F) surprised Wall Street by swinging to a profit in the first quarter.
• Goodyear Tire and Rubber Co. (NYSE: GT) easily surpassed analyst estimates for the first quarter.
• Halliburton Co. (NYSE: HAL) Q1 earnings and revenue rose due to international growth.
• Hershey Co. (NYSE: HSY) profit fell but was in line with analysts' expectations.

• JetBlue Airways Corp. (NASDAQ: JBLU) reported a narrower-than-expected loss in the first quarter.
• Lockheed-Martin Corp. (NYSE: LMT) posted solid Q1 results and raised its full-year outlook.
• McDonald's Corp. (NYSE: MCD) easily beat Q1 estimates due to gains overseas.
• Northwest Airlines Corp. (NYSE: NWA) reported a larger-than-expected loss due to fuel costs.
• PepsiCo Inc. (NYSE: PEP) posted solid Q1 results that were merely inline with expectations.
• Pepsi Bottling Group (NYSE: PBG) earnings were flat, but beat Wall Street expectations by a penny.
• Potash Corp. of Saskatchewan Inc. (NYSE: POT) posted strong results on strong demand and price hikes.
• Sonoco Products Co. (NYSE: SON) reported better-than-expected Q1 results and revised guidance.
• Starbucks Corp. (NASDAQ: SBUX) preliminary Q2 results were lower than analyst's expected.
• 3M Co. (NYSE: MMM) beat earnings expectations and reaffirmed its guidance.
• UAL Corp. (NASDAQ: UAUA) posted a worse-than-expected Q1 loss on rising fuel prices.
• US Steel Corp. (NYSE: X) better-than-expected quarter didn't impress Jim Cramer.
• Yum! Brands Inc. (NYSE: YUM) Q1 profits soared on overseas strength, and raised its guidance.

Also, Jim Cramer discusses "crummy lenders" and Jonathan Berr wonders if Ford's turnaround is for real. Joseph Lazzaro considers Citigroup Inc. (NYSE: C) as a barometer of the economy. One analyst thinks financials may have hit bottom and it may be time to buy, and Jon Ogg looks at what short sellers are making of tech stocks. Ted Allrich discusses what to sell/what to buy.

Upcoming results to watch for include Verizon Communications (NYSE: VZ), Tyson Foods (NYSE: TSN), CBS Corp. (NYSE: CBS), Countrywide Financial (NYSE: CFC), U.S. Steel Corp. (NYSE: X), Office Depot (NYSE: ODP), General Motors (NYSE: GM), Procter & Gamble (NYSE: PG), Kraft Foods (NYSE: KFT), Starbucks (NASDAQ: SBUX), Time Warner (NYSE: TWX), Comcast (NASDAQ: CMCSA), Exxon Mobil (NYSE: XOM), and Chevron (NYSE: CVX).

Visit AOL Money & Finance for more earnings coverage.

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• DJIA 12,892.84 (+43.89; +0.34%)
• S&P500 1,397.86 (+9.04; +0.65%)
• NASDAQ 2,422.93 (-5.99; -0.25%)
• 10YR-TBond 3.866% (+0.039)
• 52-WEEK LOWS (AAI, HRZ, IAR, LEE, NTGR, PAY, UCBH, VDSI)

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Here are a few highlights of this past week's earnings coverage from BloggingStocks:

• Abercrombie & Fitch Co. (NYSE: ANF) beat estimates on strong sales and higher profit margins.
• Baidu.com Inc. (NASDAQ: BIDU) profit soared on strong revenue from online marketing.
• Coca-Cola Co. (NYSE: KO) earnings and revenue surged in the fourth quarer.
• Dean Foods Co. (NYSE: DF) missed expectations on rising commodity costs and lower profit margins.
• Deere & Co. (NYSE: DE) posted better-than-expected profits as rising grain prices spurred demand.
• Goodyear Tire & Rubber Co. (NYSE: GT) posted solid results on cost savings and debt reduction.
• Insight Enterprises Inc. (NASDAQ: NSIT) beat expectations and raised its guidance.
• LECG (NASDAQ: XPRT) posted a net loss despite a slight increase in revenue in the fourth quarter.
• Loews Corp. (NYSE: LTR) missed estimates due to profit decline in its CNA Financial (NYSE: CNA) affiliate.
• Marsh & McLennan Inc. (NYSE: MMC) missed estimates on weakness in its insurance services business.
• Playboy Enterprises Inc. (NYSE: PLA) posted disappointing results on weakness in publishing and TV.
• Qwest Communications International Inc. (NYSE: Q) fourth-quarter and full-year results met estimates.
• Sierra Wireless Inc. (NASDAQ: SWIR) beat esimates on the launch of new product s.
• Taser International Inc. (NASDAQ: TASR) profits doubled, which was in line with expectations.
• Visteon Corp. (NYSE: VC) posted a fourth-quarter loss on restructuring costs and write-downs.
• Waste Management Inc. (NYSE: WMI) beat espectations and offered 2008 guidance.
• Wyndham Worldwide Corp. (NYSE: WYN) earnings met expectations and were buoyed by lodging revenue.
• Zoltek Companies Inc. (NASDAQ: ZOLT) missed earnings estimates due to inventory buildup.

Upcoming results to watch for include Wal-Mart (NYSE: WMT), Hewlett-Packard (NYSE: HPQ), OfficeMax (NYSE: OMX), Whole Foods (NASDAQ: WFMI), MGM Mirage (NYSE: MGM), JCPenney (NYSE: JCP), and Safeway (NYSE: SWY).

Visit AOL Money & Finance for more earnings coverage.

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There are some boring businesses out there, and for me, selling tires is one of them. But Goodyear Tire & Rubber (NYSE: GT) is having an exciting day today while the major indexes wallow in another bearish posture, at least at the time of this writing.

For the fourth quarter, Goodyear increased its top line by 11% to $5.2 billion (in the previous year's quarter, a three-month strike affected sales to the tune of over $300 million). Net income from continuing operations came in at $0.27 per diluted share, a vast improvement over the $1.74 per-share loss observed in the year-ago period. For the full year, net sales increased 5% to $19.6 billion; net income from continuing operations was $0.65 per diluted share, against a loss in 2006 of $2.11 per diluted share.

Things seem to be going well for Goodyear. The company's cost-savings initiatives are on track, gross margin for the quarter was up, long-term debt and capital leases are down, and cash/equivalents stand at $3.5 billion. The stock is up 5.5% as I write this -- so, what's not to love?

I certainly don't want to rain on a parade here, but Goodyear just isn't my kind of company since it doesn't have a dividend yield at the moment. There are better old-economy ideas out there for me, ones that pay a dividend and seem like better bets. General Electric (NYSE: GE) comes to mind (it should, because I own it!). So, bravo to Goodyear for a well-executed period, but I won't be allocating investing dollars toward it; I know it's Valentine's Day and all, but I just don't feel the love.

Disclosure: I own shares of GE, and may buy more after this post.

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10 Stocks With Big Insider Buying & Buybacks
When people in the know in a company start purchasing large chunks of stock that is usually a good sign because they know better than anyone the in what is really going on. Here are ten that you should take a closer look at that are either seeing insider buying or are buying back shares. They include Amazon.com, US Steel, Move, Digital River, Verizon, GE and EMC.
TheStreet.com : Top 10 Stocks With Big Insider Buying,


Not Tax Return = No Rebate
Up to 20 million Americans who normally don't need to file returns must file this year to receive a rebate check. That's part of the fine print in the tax stimulus legislation that became the law of the land Wednesday.
IRS offers details on stimulus checks, says nonfilers must file - MarketWatch


Love Your Money
It's about your finances. How do you feel things are working out between you? Are your needs being met? See how to build a fulfilling long-term relationship with your finances.
Love Your Money. It Will Love You Back - Kiplinger.com

8 Ways to Save on Engagement Rings
How to hunt down and haggle for an engagement ring without spending a fortune.
8 Ways to Save on Engagement Rings SmartMoney.com

Hot Hotel Tips
Joe Brancatelli's expert advice for getting the best, fastest, and least expensive service possible.
Best Hotel Tips - Seat 2B - Portfolio.com

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When they are in the market for electrical and industrial construction products and MRO supplies, many of the biggest firms around go to an outfit that represents some 29,000 suppliers and offers more than a million products. It serves about 110,000 customers worldwide.

WESCO International (NYSE: WCC) is a leading distributor of electrical construction products and electrical/industrial maintenance, repair and operating (MRO) supplies. The firm operates seven automated distribution centers and approximately 400 full-service branches around the world. Clients include ConAgra Foods (NYSE: CAG), Goodyear Tire & Rubber (NYSE: GT) and Tyson Foods (NYSE: TSN).

The company pleased investors last week, when it announced that it had completed a $400 million stock repurchase program and had authorized a new program for the same amount. CIBC World Markets and Bank of America Securities subsequently initiated coverage of the stock with "buy" ratings. The stock popped on the news and has since moved into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the stock with four "strong buys," seven "buys" and three "holds." Analysts see a 15% growth rate, through the next year. The WCC P/E ratio (10.42), PEG ratio (0.77), Price to Sales ratio (0.36), Price to Book ratio (3.68), Price to Cash Flow ratio (7.78), Price to Free Cash Flow ratio (7.79), Return on Investment (17.23%) and Return on Equity (37.94%) compare favorably with industry, sector and S&P 500 averages. Institutions hold about 95% of the outstanding shares. Over the past 52 weeks, the stock has traded between $37.65 and $71.10. A stop-loss of $38.90 looks good here. Note that the firm is expected to announce Q3 results on October 18, before the open.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.

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• Courtesy hello -- I really enjoyed awkwardly waving at you
• Graduation -- Congratulations on getting through the easiest part of your life
• Business - Just getting on your radar because I may need something from you soon

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Although they spent most of the day in the green the indexes gave up ground through most of the session to close just in the red.

The NYSE had volume of 3.6 billion shares with 1,612 shares advancing while 1,706 declined for a loss of 6.18 points to close at 9,428.86. On the NASDAQ, 2.2 billion shares traded, 1,426 advanced and 1,685 declined for a loss of -2.65 to 2,542.24.

EMC Corporation (NYSE: EMC) rose $1.33 (8%) to $19.05; ahead of it's subsidiary VMware making its debut on the NYSE tomorrow in an IPO that analysts are predicting will be big. EMC will retain 90% of the shares. This is likely the reason for the active calls as EMC Corp. (NYSE: EMC) saw heavy volume on the August 19 calls (EMCHT) with over 56,000 options trading.

Centex Corporation (NYSE: CTX) fell $2.78 (-7%) to $35.63. Lennar Corporation (NYSE: LEN) fell $2.53 (-7%) to $32.92. Brinker International (NYSE: EAT) rose $1.82 (7%) to $28.98. The Goodyear Tire & Rubber Company (NYSE: GT) rose $1.70 (6%) to $28.95.

In options there were 5.4 million puts and 5.8 million calls traded for a put/call open interest ratio of 0.92. The CBOE Volatility Index has been high closing today at 26.57. This is the fear indicator of the market. Not only is the index up, but options on the index are high with the CBOE S&P 500 Volatility Index (NASDAQ: $VIX) moving volume on the August 25 calls (VIXHE) with over 35,000 contracts.

Other stocks with active options include State Street Boston (NYSE: STT) saw heavy volume on the November 75 calls (STTKO) with over 60,000 options trading. Most of the active puts were on the indexes and the iShares Russell 2000 ETF (NYSE: IWM) had volume on the August 78 puts (IOWTZ) with over 86,000 options trading.

Kevin Kersten is an Options Analyst with InvestorsObserver.com. Disclosure note: Mr. Kersten owns and or controls a diversified portfolio of long and short positions that may include holdings in companies he writes about.

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MOST NOTEWORTHY:

• Citigroup downgraded RadioShack (NYSE: RSH) to Sell from Hold on valuation as they believe shares have priced in a more aggressive top-line recovery than the company can deliver over the next 12 months and that margin improvement is likely to slow.

• Merrill downgraded Weyerhauser (NYSE: WY) to Neutral from Buy based on the tighter credit environment and the impact on a potential containerboard divestiture or merger.

• Matrix downgraded shares of Goodyear Tire (NYSE: GT) to Sell from Hold to reflect rising oil prices and negative fundamental trends.

• AG Edwards downgraded Hot Topic (NASDAQ: HOTT) to Sell from Hold to reflect negative performance momentum and a lack of back-to-school prospects.

• Credit Suisse downgraded Unilever (NYSE: UN, UL) to Underperform from Neutral as their analysis suggests the company continues to lose market share...

• Baird cut Franklin Electric (NASDAQ: FELE) to Underperform from Neutral.

• Bear Stearns downgraded Kyphon (NASDAQ: KYPH) to Peer Perform from Outperform.

• Jarden (NYSE: JAH) was cut to Neutral from Buy at Goldman.

• Citigroup downgraded PetroChina (NYSE: PTR) to Hold from Buy.

• Alacatel-Lucent (NYSE: ALU) was downgraded to Neutral from Buy at Goldman.

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The markets bounced back after last weeks big declines. There was positive action across the board with markets gaining about 1%. Radio Shack (NYSE: RSH) dropping $3.25 (-11%) to $25.55 on Q2 results. The Goodyear Tire & Rubber Company (NYSE: GT) bounced up $2.12 (8%) to $29.12 after a labor deal was reached. Chipotle Mexican Grill (NYSE: CMG) tasted better rising $6.07 (7%) to $87.57 on earnings. Nordstrom (NYSE: JWN) rose $3.15 (7%) to $47.06 after an upgrade. MasterCard Incorporated (NYSE: MA) rose $10.56 (7%) to $164.59.

The NYSE had volume of 4 billion shares with 2,115 shares advancing while 1,216 declined for a gain of 114.95 points to close at 9,623.18. On the NASDAQ, 2.4 billion shares traded, 1,718 advanced and 1,377 declined for a gain of 21.04 to 2583.28.

In options there were 7.1 million puts and 6.8 million calls traded for a put/call open interest ratio of 1.04. The most active call was the Financial Sector SPDR ETF (NYSE: XLF) saw heavy volume on the September 34 calls (XLFIH) with over 104,000 options trading. Likewise the two most heavily traded put were in the Financial Sector SPDR ETF (NYSE: XLF) on the September 31 puts (XLFUE) with over 97,000 contracts and the January 30 puts (XLFMD) with over 80,000 contracts. Bristol-Myers Squibb Co. (NYSE: BMY) saw exceptionally heavy volume on the January 35 calls (BMYAG) with over 77,000 options trading. Clear Channel Communications (NYSE: CCU) also saw activity the January 35 calls (CCUAG) with over 35,000 options trading.

Kevin Kersten is an Options Analyst with InvestorsObserver.com.

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While the market plummeted 311 points today on loan worries; it is easy for people to forget the market is still up. Last week when the Dow broke 14,000; it was up 12.3% for the year. Now the market is up 8.1%. But are we really in a crisis? Market corrections are a normal part of the action and we will live through it. People celebrate when their favorite retail stores have a sale and drop prices; but when the stock market has a sale they panic.

The NYSE had volume of 4.2 billion shares with 313 shares advancing while 3,036 declined for a loss of 275.98 points to close at 9,654.38. On the NASDAQ, 3.5 billion shares traded, 553 advanced and 2,583 declined for a loss of 48.83 to 2599.34.

Akamai Technologies (NASDAQ: AKAM) fell $8.91 (-19%) to $38.27 on outlook. The Goodyear Tire & Rubber Company (NYSE: GT) fell $2.87 (-9%) to $29.18 on cut forecasts. Sotheby's (NYSE: BID) fell $5.60 (-11%) to $45.50. OfficeMax Incorporated (NYSE: OMX) fell $3.1 (-8%) to $33.65 after Office Depot (NYSE: ODP) weighed down the sector with lower results.

The options market saw about two and have time normal activity with 11.3 million puts and 8.6 million calls for a put call ratio of 1.3. A lot of this volume was on the indexes we usually ignore index option volume because it isn't that interesting by the PowerShares QQQ Trust ETF (NASDAQ: QQQQ) saw heavy volume on the August 50 calls (QQQHX) with over 109,815 options trading and the 49 calls (QQQHW) moved over 84,000 contracts. On the put side of things there were a lot of people buying insurance with the August 48 puts (QQQTV) moving 147,000 options trading and the August 49 puts (QQQTW) counted over 122,000 options traded. Apple Computer (NASDAQ: AAPL) saw heavy volume on the August 150 calls (APVHJ) with over 74,816 options trading as the stock moved up 6% today. General Motors (NYSE: GM) saw heavy volume on the January 40 calls (GMAH) with over 33,000 options trading.

Kevin Kersten is an Options Analyst with InvestorsObserver.com. Mr. Kersten does own Office Depot Stock.

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