CNET Networks (NDAQ:CNET) finally began to heed the advice of former president Barry Briggs by undergoing a sort of restructuring that some are speculating could be a precursor to a sale of the company. Investors are hoping that old media companies may take advantage of this opportunity to add a strong online presence to their existing portfolio.

CNET picked up Stephen Colvin from Maxim as executive vice president of the company's entertainment and lifestyle brands. Then the interactive media company announced that it sold its photo-sharing service, Webshots, to American Greetings for $45 million, a price that is $25 million less than what it paid in 2004. The company appears to be making a move towards adding valuable content onto its premium domain portfolio.

"Steven is a dynamic, experienced, and respected media executive who has an impressive track-record of bulding highly successful lifestyle media brands in the U.S. and international markets," said chief executive Neil Ashe. "We're extremely pleased to have him join our executive management team."

In the end, CNET is making a genuine attempt to restructure itself and in the process may become a great target for an old media company. Combined, these factors make CNET a stock worth watching!

Related Companies
Yahoo Inc. (YHOO)
Google Inc. (GOOG)
Time Warner Inc. (TWX)

Merrill Lynch (NYSE:MER) may be headed for some turbulent waters after its recent derivatives fiasco that sent earnings plummeting. The investment firm is reportedly ousting CEO Stan O'Neal in a matter of days. Further, there is also speculation that the company is considering a merger with Wachovia. The news sent shares up today after today's steep loss.

The shares rallied on the news despite the fact that even more writedowns are expected during the next quarter. Merrill Lynch reportedly owns $20.9 billion in collateralized debt obligations and subprime mortgages - two markets that are continuing to deteriorate. The $8.4 billion writedown may have been a hit, but some analysts are expecting an additional $4.5 billion in the near future.

Merrill Lynch also has many investors confused after it refused to disclose what happened to $11 billion in CDO exposure - a position that was open in the second quarter but suddenly disappeared, neither written down nor on the firm's books. Events like this lead many to wonder how well the firm really is able to value these securities in the first place.

In the end, the ousting of this chief executive may result in a more conservative pick during the next round. The board will also likely step up their oversight into risk management policies and procedures. Moreover, a potential merger with Wachovia or investment by a large investor like Warren Buffet would certainly prove to be a windfall. Combined, these things make MER a stock worth watching!

Related Companies
Morgan Stanley (MS)
Lazard Ltd. (LAZ)
BlackRock Inc. (BLK)

Charter Communication (NDAQ:CHTR) shares dropped around 20 percent yesterday before rebounding slightly today. Things are looking bad for the $800 million company with an astounding $19 billion in debt. The cable company's operating income of $200 million is hardly enough to service its debt while it struggles to compete with others in the industry.

Shares in the company fell around 20 percent after competitor Comcast Corporation (NDAQ:CMCSA) announced earnings that showed a slowdown in the growth of digital cable subscribers. Many are speculating that this could be the end of the "triple play" boom as countless other telecom companies are entering the fray.

This is a big problem for Charter, who is quickly running out of time to ramp up its offerings to match the triple-play offerings seen at other companies. These triple offerings include phone, cable and internet services over newer and faster fiber optic networks. The company also has yey to embrace the HDTV wave to the same extent as others in the industry.

Unfortunately, Charter does not have enough money to move into the triple play market and continue to service is debt. This is bad news for shareholders who are likely to see their money erode in value unless the company takes action soon to unlock value and return it to shareholders. Combined, these factors make CHTR a stock worth watching!

Related Companies
EchoStar Communications (DISH)
DIRECTV Group Inc. (DTV)
Comcast Corporation (CMCSA)

Countrywide Financial Corporation (NYSE:CFC) shares spiked over fifteen percent today after troubled realestate firm posted better than expected earnings. The company reported a net loss of $1.2 billion, or $2.85 per diluted share, compared to net income of $1.03 per diluted share in the third quarter of 2006.

"Countrywide's results for the third quarter of 2007 reflect the impact of unprecedented disruptions in the U.S. mortgage market and the global capital markets, as well as continued weakening in the housing market," said Angelo R. Mozilo, Chairman and Chief Executive Officer. "However, during the period we also laid the foundation for a return to profitability in the fourth quarter. Countrywide has responded decisively and taken the steps we believe are necessary to address the current challenging market environment."

Countrywide's guidance was the most carefully watched area of its earnings. The company expects weakness in the housing market to continue in the near-term and absent declining interest rates, lower mortgage market origination volumes are anticipated through 2008. However, the company said it expects to be profitable in the fourth quarter of 2007 and in 2008.

"We view the third quarter of 2007 as an earnings trough, and anticipate that the Company will be profitable in the fourth quarter and in 2008," said David Sambol, President and Chief Operating Officer. "Over the longer term, we believe that prospects for the U.S. housing and mortgage markets, as well as for Countrywide, remain very attractive."

In the end, this is great news for Countrywide shareholders. The company's problems aren't nearly as bad as many people once believed, as the real estate firm looks to return to profitability before the year is over. The company also noted that it wss taking advantage of the industry consolidation to bolster its future prospects even further. Combined, these factors make CFC a stock worth watching!

Related Companies
Principal Financial Group (PFG)
Torchmark Corporation (TMK)
PHH Corporation (PHH)

Fidelity National Information Services (NYSE:FIS) announced today that it would spin off its lender processing division into a new publicly traded company. The decision comes just weeks after the company bolstered its transaction services business with the $1.8 billion acquisition of eFunds.

"We believe the proposed separation will provide more company flexibility and dedicated management focus with respect to product development, capital investment and strategic initiatives, which should ultimately drive higher value to our customers and shareholders," Foley said.

The split will let Fidelity National focus on transaction processing services for banks and thrifts, which sell processing, electronic payment and credit card processing services. Meanwhile, the new spin-off will handle the mortgage end of the business which sells data processing and other technology to mortgage lenders.

Fidelity expects the spin-off to be completed by the middle of 2008, pending approval by the Securities and Exchange Commission and a ruling from the IRS related to the tax-free nature of the transaction. Shares rose over three percent today on the news before falling marginally. Combined, these factors make FIS a stock worth watching!

Related Companies
Global Payments Inc. (GPN)
Total System Services (TSS)
Cash Systems Inc. (CKNN)

WellCare Health Plans (NYSE:WCG) shares plunged after the FBI showed up with search warrants for documents and files at the company's headquarters. The company offered no further details, but are cooperating with the investigation and keeping core services running. Shares were trading at $115 before being halted and are now set to trade around $40.

The investigation is likely related to an abuse of government subsidies for healthcare since any accounting fraud is usually handled by the SEC and IRS. Similar FBI raids took place in the online education industry not long ago, when the government alleged that they were misappropriating subsidized government loans. The case against those companies was eventually dropped after the allegations turned out to be false.

Currently, shares in the company appear to be priced for the worse case scenario. The stock is trading at around $41 per share, which is just a few dollars above the company's $39 per share in cash. Assuming that the company will not be forced to pay any huge fees, a profitable company trading at cash value is definitely something you don't see every day.

In the end, investors do not yet have enough information about the situation to pass judgment. If the investigation goes the way of online education companies not long ago, then the shares will likely return to their previous levels. Meanwhile, even if the investigation finds some issue, a company trading at cash value is certainly a great deal assuming there are no huge fees levied. Combined, these factors make WCG a stock worth watching!

Related Companies
Humana Inc. (HUM)
Centene Corporation (CNC)
UnitedHealth Group Inc. (UNH)

Nintendo (OTC:NTDOY) continues to woo investors after announcing yet another record quarter. The video game company reported net profits of $1.16 billion on sales that more than doubled and operating profit that rose 181 percent. Shareholders are hoping that the company can continue this streak of impressive growth and deliver value to investors.

Nintendo shares have nearly doubled this year with the success of its innovative Wii gaming console and continued strength in its handheld gaming businesses. Since the Wii's launch in November, the company has sold 13.17 million units and now expects to sell 17.5 million during this fiscal year. Meanwhile, the company also raised its sales forecast on handheld units by 61 percent.

The Wii continues to outsell the Sony Playstation and it wasn't until only recently that Microsoft's Xbox was able to beat out the console. The Wii relies on price and a unique controller in order to drive gamers despite a lack of big-name software titles. This is the opposite of Microsoft and Sony who rely on huge titles like Halo and Final Fantasy to drive sales.

In the end, Nintendo continues to impress shareholders and investors with astounding numbers. The only big problem in the near-term is a strengthening Yen that may end up affecting the price of its units. It's shares have been on a steady increase since 2006 - up over 350 percent. Clearly, this makes NTDOY a stock worth watching!

Related Companies
Atari Inc. (ATAR)
Sony Corporation (SNE)
Microsoft Corp. (MSFT)

Oracle Corporation (NDAQ:ORCL) will have to increase  its offer for BEA Systems (NDAQ:BEAS) by more than 23 percent if it wants to continue negotiations to buy the company. BEA rejected Oracles prior bid of $17 per share made two weeks ago that was set to expire this Sunday. The company, along with its shareholders, are still looking for a sale but at a better price.

BEA believed that Oracle's previous bid significantly undervalues BEA and therefore is not in the best interest of BEA shareholders. The new $21 per share valuation was derived with help from Goldman Sachs and based on analyst estimates of synergies in prior acquisitions by Oracle. The investment banking firm believes that BEA could achieve earnings accretion in a BEA acquisition at levels well in excess of $21 per share.

A valuation of $21 per share would set the company's market cap at $8.15 billion. The company believes it can justify this valuation because it has an exceptionally strong balance sheet with over $1 billion in cash and no debt. Moreover, the business support software industry is booming and Oracle is finding itself under pressure to purchase after SAP acquired Business Objects earlier this month.

In the end, with investors like Carl Icahn pushing for a sale of BEA, it is likely that the company will continue to find ways to unlock value. Whether or not Oracle will negotiate at $21 per share remains to be seen, but this is definitely a stock that is worth watching!

Related Companies
Sun Microsystems (JAVA)
Tibco Sofware (TIBX)
Microsoft Corporation (MSFT)

Microsoft Corporation (NDAQ:MSFT) reportedly beat out Google (NDAQ:GOOG) in securing a minority stake in social networking giant Facebook. The software maker agreed to invest $240 million for a minority stake that values the site at $15 billion. The two companies also expanded their existing advertising agreement.

The agreement comes after substantial lobbying by both Microsoft and Google for a prized stake in the very closely held Facebook. The company will use Microsoft's existing advertising platforms in order to handle deals in new markets as well as the U.S. market. The software maker recently scaled up its technology investment and owns several new technologies aimed at brokering advertising over the web.

There is some concern that the valuation of Facebook is far to great to justify; however, it is important to remember that Microsoft is only buying a stake - not the whole company. Microsoft may be willing to overpay for a variety of reasons - chiefly, the commercial implications of a relationship with the social networking giant. Others believe that Facebook may go the way of Friendster who went bust due to difficulties monetizing its audience.

In the end, this is good news for Microsoft shareholders as it is a deal with one of the fastest growing and largest social networks in the world. This makes MSFT a stock worth watching!

Related Companies
Yahoo Inc. (YHOO)
Google Inc. (GOOG)
Apple Inc. (AAPL)

Merrill Lynch (NYSE:MER) shocked investors today after it announced a steep loss in the third quarter resulting from a $7.9 billion writedown on its fixed-income trading business. The investment company's first quarterly net loss since 2001 totalled $2.24 billion and sparked concerns about the company's risk management policies.

The losses stemmed from collateralized debt obligations (CDOs), subprime mortgages and management's misvaluation of the assets. The big surprise was the firm's $32 billion exposure to CDOs at the end of the second quarter - am amount that is much higher than expected. The firm also wrote down losses from its corporate restructuring business, although they were not nearly as severe.

Standard & Poor's cut Merrill's credit rating on notch to A+ calling the net loss "startling" and the scale of the writedowns "staggering". The company also experienced downgrades from Moody's Investors Service and Fitch. Combined, these cuts may increase the firms cost of capital and ipact its earnings.

Meanwhile, Merrill insists that it is financially secure and comfortable with its liquidity but the bank warned that conditions could become even more secure in the future due to liquidity. It is worth noting, however, that Merrill was the only one of the five biggest investment banks to swing to a quarterly loss - all the others were able to better weather the storm.

These losses have led to speculation that the bank could even become a buyout target for someone like Warren Buffet - who was rumored to have an interest in Bear Stearns not long ago. The firm's stock is certainly cheap at these levels while the brand and reputation is still relatively in tact. Combined, these factors make MER a stock worth watching!

Related Companies
Morgan Stanley (MS)
Lazard Ltd (LAZ)
BlackRock Inc. (BLK)