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Everything in life clarifies with beer.
I can sell you some for $24, but I need to go borrow it 1st
now I am totally confused
think I need to start drinking beer!!
good naked short analogy, but say it was your current g/f and
her dad owned a liquor store where she was allowed to buy
beer at wholesale prices on mondays only, when sales were
down. She gets the beer for $9 a case. She then takes it to her apartment to stockpile it,
knowing that frat boys have parties every weekend. She knows
you have no money, but also knows you can get higher prices
for the beer than she can retail it for. So you and her have
an understanding. Every week you borrow her beer and sell it
for $24 a case because demand is higher on those days. You
catch up to her on Monday when the beer is cheaper and pay
her back.
This is a form of legal short-selling.
Woogster's short selling analogy in terms we can all understand (well maybe the guys at least)
Posted by: THE WOOGSTER
In reply to: None
Date: 8/10/2009 11:15:06 PM
Post # of 1520
Most people understand that shorting
something means you'll make money if it goes down.
Here's how it actually works:
It's Saturday afternoon and you stop by your ex girlfriend's apartment to pick some of your old stuff. You guys are friends and all, so you just let yourself in. You're grabbing your clothes from behind the fridge and see that she's got a case of Budweiser sitting in the pantry next to it. You happen to be on your way to a pool party and you know that your frat boys will be out of beer by the time you make your "casually late" entrance.
So you "borrow" that case of beer from your ex. That's called the locate, and since you didn't get her permission then that'd be called doing it naked. (Hey, stay focused here and stop dreaming about your ex's great body. I'm learnin' y'all something right now.)
You get to the party and sure enough, your boyz are desperate for more beer, so you sell (read: short-sell, since it ain't your beer in the first place) them the case at a dollar a pop, and you just pocketed $24.
Sure enough, you ex calls you just then as she's got a new loser boyfriend who wants to drink some Bud and she wants to know why you've stolen her beer (naked shortsellers ALWAYS get in trouble).
The brilliant part of this particular trade is that you stop by the Safeway on your way to your ex's and pick up a case of bud for $15. And you've just "covered" your short sell at a nice $9 profit (you sold the beer at $24 and bought it back at $15, see?).
Hmm, trading beer...maybe there are some real arbitrage opportunities here that I've not realized before.
HSTC News!!!
HST Global, Inc. to Announce Second Quarter Results
Aug 10, 2009 9:00:00 AM
Copyright Business Wire 2009
HAMPTON, Va.--(BUSINESS WIRE)-- HST Global, Inc. (OTCBB: HSTC) today announced it will issue its second quarter results on Friday, August 14, 2009.
About HST Global, Inc.
HST Global, Inc. is a development stage biotechnology company that acquires and develops innovative products for the treatment of cancer. We focus on in-licensing drug candidates that are undergoing or have already completed initial clinical testing for the treatment of cancer, and then developing those drug candidates for commercial use.
HST Global, Inc. wishes to inform readers that forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that such forward looking statements involve risks and uncertainties including, without limitation, unforeseen changes in the course of research and development activities and in clinical trials by others; possible acquisitions of other technologies, assets or businesses; possible actions by customers, suppliers, competitors, regulatory authorities; and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.
CGCA News
Cobra Oil & Gas Announces Clarifying Press Release
Aug 10, 2009 8:50:00 AM
View Additional ProfilesHOUSTON, TX -- (MARKET WIRE) -- 08/10/09 -- Cobra Oil & Gas Company (OTCBB: CGCA) (hereafter "Cobra") announced the correction of a press release issued on July 23, 2009 titled "Cobra Oil & Gas Provides Technology Update for Utah Oil Sands Prospect" which made incorrect references to Cobra's relationship with Dr. Daulat Mamora, Dr. Mamora's relationship with Rocky Mountain Consulting and Cobra's right to utilize the In-situ Combustion Process in any tar sands extraction activities it may engage in.
At this time Dr. Mamora has no relationship with either Cobra or Enercor, Inc., the Nevada corporation that entered into Purchase Agreements with Cobra on each of July 25, 2009 and August 5, 2009. Dr. Mamora has however, served as a consultant for UOS Energy, LLC., the predecessor in interest of certain of Enercor, Inc.'s and Enertech Energy, Inc.'s rights, with regard to the property that it is the subject of the July 25, 2009 Purchase Agreement. Although Cobra and Dr. Mamora may enter into a consulting agreement or establish a similar relationship in the future, there can be no assurance given that they will do so.
Further, Dr. Mamora has no relationship with and has never had a relationship with Rocky Mountain Consulting ("Rocky Mountain"). Rocky Mountain serves as a consultant for Enercor, Inc. with respect to certain drilling, permitting and oil and gas operating activities and has no present relationship with Cobra. The specific In-situ Combustion Process technology expected to be utilized by Cobra was developed by Dr. Milind Deo of the University of Utah.
UOS Energy, LLC has assigned its ISC rights through Enertech Energy, Inc. to Enercor who will grant its application to Cobra before the production process begins. The use of ISC is expected to be employed with the oversight of Rocky Mountain Consulting.
Any statements made in the July 23, 2009 press release that are inconsistent with statements made herein are inaccurate and should not be relied upon.
About Cobra Oil & Gas Co.
Cobra Oil & Gas Co. is a publicly traded independent oil and gas exploration and production company headquartered in Houston, Texas (OTCBB: CGCA). Shareholders and prospective investors are encouraged to visit Cobra Oil & Gas's website: http://www.cobraoilgas.com and to subscribe to the email newsletter. Please feel free to call our investor relations toll-free at 1-866-503-8613 if you have any questions.
Forward-Looking Statements
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects," "intends," "plans," "may," "could," "should," "anticipates," "likely," "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management.
Contact:
Cobra Oil & Gas Co.
Max Pozzoni
President
Investor Relations
1-866-503-8613
Email Contact
http://www.cobraoilgas.com
OMCM News
Major Biotechnology Company Selects OmniComm Systems to Provide eClinical Solutions for Phase I HIV Trials
Aug 10, 2009 8:40:00 AM
FT. LAUDERDALE, Fla., Aug. 10 /PRNewswire-FirstCall/ -- OmniComm Systems, Inc. (OTC Bulletin Board: OMCM), a global leader in integrated electronic data capture (EDC) solutions for clinical trials announced today that a major West coast biopharmaceutical company has selected OmniComm to provide eClinical solutions for two of its phase I HIV studies involving over 100 patients. Both HIV studies are expected to run for approximately 7 months. OmniComm Systems has already done extensive work with this client in different therapeutic areas.
"This latest contract, awarded to us by a major Biotech company reemphasizes the high value of the overall service offerings we bring to our clients," said Stephen Johnson, OmniComm's COO. "Our continued ability to provide uniquely tailored state of the art e-clinical solutions to life science companies is what distinguishes us from other EDC providers. Our products allow companies involved in clinical research, to stay competitive in the current healthcare market while significantly improving their operational efficiencies." Mr. Johnson also added, "We will continue to add products and services to our mix to not only optimize the value to our customers, but to also generate additional revenue and increase shareholder value." This explains the two recent acquisitions that OmniComm has completed acquiring the EDC assets of ERT and Logos Technologies Ltd.
About OmniComm
OmniComm Systems, Inc. (www.OmniComm.com) provides customer-driven Internet solutions to pharmaceutical, biotechnology, research and medical device organizations that conduct life changing clinical trial research. OmniComm's growing base of satisfied customers is a direct result of the company's commitment to deliver products and services that ensure ease of use, faster study build, ease of integration and better performance. OmniComm's client intuitive pricing model allows companies that range from small, to mid-size to large scale institutions to safely and efficiently capitalize on their clinical research investments. OmniComm Systems, Inc has U.S. headquarters in Fort Lauderdale, FL and European headquarters in Bonn, Germany, with satellite offices in New Jersey, the United Kingdom, and Russia as well as sales offices throughout the U.S. and Europe.
Safe Harbor Disclaimer
Statements made by OmniComm included in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve a number of risks and uncertainties such as the Company's ability to obtain new contracts and accurately estimate net revenues due to uncertain regulatory guidance, variability in size, scope and duration of projects, and internal issues at the sponsoring client, integration of acquisitions, competitive factors, technological development, and market demand. As a result, actual results may differ materially from any financial outlooks stated herein. Further information on potential factors that could affect the Company's financial results can be found in the Company's Reports on Form 10-K and 10-Q filed with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise.
CONTACT:
Catherine Lemercier Gary Nash
OmniComm Systems, Inc. CEOcast, Inc. for OmniComm
954-473-1254 Extension 283 212-732-4300
clemercier@omnicomm.com gnash@ceocast.com
Stephen Johnson
OmniComm Systems, Inc
954-377-1726
SOURCE OmniComm Systems, Inc.
----------------------------------------------
Media: Catherine Lemercier
+1-954-473-1254 Extension 283
clemercier@omnicomm.com
or Financial: Stephen Johnson
+1-954-377-1726
both of OmniComm Systems
Inc.; or Gary Nash of CEOcast
Inc. for OmniComm
+1-212-732-4300
gnash@ceocast.com
ARTI News
Artfest International, Inc. Subsidiary Charity Sports Distributor Signs Agreement With Leading Technology Solutions Provider for Nonprofit Organizations
Agreement Will Increase the Company's Auction Revenues to Over $1 Million Annually
Aug 10, 2009 8:33:00 AM
View Additional ProfilesDALLAS, TX -- (MARKET WIRE) -- 08/10/09 -- Artfest International, Inc. (OTCBB: ARTI) is pleased to announce that the Company's wholly owned subsidiary, Charity Sports Distributor (CSD) has signed an agreement with Auctionpay, Inc. to be a mutual lead generating source for CSD's charity auction services and Auctionpay's event management software. CSD currently provides products and shipping services to over 150 charity auction events annually, and expects the alliance with Auctionpay to more than double the number of charity events managed by CSD in 2010. CSD has the most extensive product offering in the charity silent auction market place, including custom framed sports and entertainment memorabilia, etched crystal designs, human interest, home décor, jewelry, art, and "experiences packages" such as a culinary class in Paris France, Masters Golf Tournament tickets, fighter pilot for a day, or tickets to the Tonight Show.
Formed in 2002, Auctionpay has grown to offer a variety of technology solutions and services specifically designed to meet the fundraising needs of schools and nonprofit organizations. Auctionpay's clients use Auctionpay's products ranging from event management software to event registration to donation payment processing to online auctions, in order to automate and streamline their fundraising efforts so they can raise more money. Due to their clients' fundraising success, Auctionpay has been honored with various awards and recognition. They've been named one of Oregon's Fastest Growing Companies (2006) and was included in Inc. Magazine's Inc. 500 (2007). Auctionpay has also been selected as category winners at the Oregon Entrepreneurs Network's annual Entrepreneur of the Year awards for 2004, 2005 and 2007.
"Artfest is excited about the significant increase in revenue which management believes will be generated by the new events secured through CSD's alliance with Auctionpay. Most of Auctionpay's leads will be for high dollar fundraising events, so we estimate that our partnership will increase our charity fundraising auction department's annual sales volume to over $1,000,000 annually," stated Edward Vakser, CEO of Artfest International, Inc.
For more information on Auctionpay, Inc., please visit: http://www.auctionpay.com.
About Artfest International, Inc.
Artfest International, Inc. is a publicly traded Company under the stock symbol "ARTI." Artfest brings together artists, investors, decorators, designers, private collectors and art galleries. Artfest International's corporate site is www.artfestinternational.com. Artfest's subsidiaries are Art Channel, Inc. www.artchannel.tv, and Art Channel Galleries, Inc. www.ArtChannelGalleries.com, offering the most exciting product and rewards program in the history of direct sales marketing.
Safe Harbor Statement -- This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 27E of the Securities Act of 1934. Statements contained in this release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions. Such statements are based on management's current expectations and are subject to certain factors, risks and uncertainties that may cause actual results, events and performance to differ materially from those referred to or implied by such statements. In addition, actual or future results may differ materially from those anticipated depending on a variety of factors, including continued maintenance of favorable license arrangements, success of market research identifying new product opportunities, successful introduction of new products, continued product innovation, sales and earnings growth, ability to attract and retain key personnel, and general economic conditions affecting consumer spending. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. ARTI does not intend to update any of the forward-looking statements after the date of this release to conform these statements to actual results or to changes in its expectations, except as may be required by law.
Contact:
Investor Relations
Big Apple Consulting USA
1-407-389-5900
VirtualHealth Technologies, Inc. Announces Launch of Newly Designed Website
Aug 10, 2009 8:35:00 AM
View Additional Profiles
LEXINGTON, Ky., Aug. 10 /PRNewswire-FirstCall/ -- VirtualHealth Technologies, Inc. (OTC Bulletin Board: VHGI) announced the release of its new website at www.virtualhealthtechnologies.com. Jim Renfro, VHGI President was quoted as saying "The release of the new website coincides with the launching of a whole new era for VirtualHealth. We have a series of very exciting announcements in the coming months including the finalization of our partnership with DRM Security to license CIFRA, a secure messaging and data delivery platform that will change the way healthcare practitioners collaborate with one another." Also expected is the long anticipated release of Medical Office Software's fully integrated web-based Practice Management / Electronic Health Record solution expected in the 4th Quarter of this year.
"Much of this has been waiting in the wings for quite a long time. The timing of the new website provides us the perfect platform for sharing VirtualHealth's vision for making healthcare technology available to everyone and for showcasing our innovation," continued Jim Renfro.
About VirtualHealth Technologies, Inc.
VirtualHealth Technologies, Inc. is committed to being the leader in the development and distribution of next generation solutions that connect healthcare providers to the rest of their community securely and efficiently. VirtualHealth's foundation is based on years of experience in providing highly sophisticated technology solutions to its existing medical customers and has branched out to include the pharmaceutical industry, as well as State and Federal Regulatory Agencies. VirtualHealth Technologies, Inc. is headquartered in Lexington, Kentucky, with offices in Texas, Georgia and Florida. For more information, visit www.virtualhealthtechnologies.com
This press release contains forward-looking statements that reflect the Company's current expectations regarding future events. While these statements reflect the Company's best current judgment, they are subject to risks and uncertainties. Actual results may differ significantly from projected results due to a number of factors, including, but not limited to assumptions, beliefs and opinions relating to the business and growth strategy of VirtualHealth Technologies, Inc. and its wholly owned subsidiaries Verified Prescription Safeguards, Inc., VPS Holding, LLC, Secure eHealth, L.L.C., Medical Office Software, Inc. and implementation thereof, based upon the Company's interpretation and analysis of financial and market conditions, the decisions of businesses with whom the Company is either engaged in business with or negotiating, healthcare industry trends and management's ability to successfully finance, develop, market, sell and implement its e-commerce and internet solutions, clinical and financial e-transaction services and software applications to physicians, pharmacies, governmental agencies, laboratories, insurance companies, HMOs, and payers. These factors and other risk factors are more fully discussed in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any intent or obligation to update any forward-looking statements.
Contact: Shareholder Relations
VirtualHealth Technologies, Inc.
325 West Main Street, Suite 240
Lexington, KY 40507
(859) 455-9255
Email: Shareholder.Relations@virtualhealthtechnologies.com
Website: www.virtualhealthtechnologies.com
SOURCE VirtualHealth Technologies, Inc.
----------------------------------------------
Shareholder Relations
VirtualHealth Technologies
Inc.
+1-859-455-9255
Shareholder.Relations@virtualhealthtechnologies.com
Gold Coast Mining Announces Trading of Max Media Group, Inc.
Aug 10, 2009 8:30:00 AM
2009 GlobeNewswire, Inc.
View Additional ProfilesBOSTON, Aug. 10, 2009 (GLOBE NEWSWIRE) -- Gold Coast Mining Corp. (Pink Sheets:GDSM) announced today that Max Media Group, Inc. has begun trading on the OTC Pink Sheets as of Monday August 10, 2009 under the symbol MXMI.
Max Media will have a total of 76,098,803 shares outstanding upon the issuance of all shares required by its acquisition of the Hot Web domain properties and completion of its current private placement of 1,000,000 common shares at a purchase price of $0.50 per share.
James Grady, CEO of Max Media Group, Inc., commented, "We are very excited to begin trading as Max Media. We have many plans and opportunities for the company and its shareholders that can now be aggressively pursued. While we have been working tirelessly over the last few months, we plan to increase our activities substantially now that we are an independent publicly traded company."
Jason Cooper, Interim CEO of Gold Coast Mining Corp. stated, "Our focus regarding Max Media over the next several weeks will be on assisting them with their transition as a public company and expediting the distribution of the dividend shares to our shareholders in a timely manner."
Cooper further stated, "We have set out many plans over the last few months. The accomplishment of Max Media trading is another step in the execution of those plans. We will continue to push forward our plans and goals of enhancing shareholder value the best way we can, always with the shareholders best interest in mind."
Additionally, management cautioned that the trading and price in Max Media stock over the first week may be volatile and erratic until all new shares after the reverse split and name change have been distributed. Max Media will have approximately 15,098,000 shares in the free trading float.
As previously announced, the Board of Directors of Gold Coast Mining have approved and set a record date of August 31, 2009, for the proposed dividend of the common stock held in Max Media Group, Inc. The Board declared a dividend of one share of common stock of Max Media for every thirty (30) shares of Gold Coast Mining common stock held by shareholders on August 31, 2009.
About Gold Coast Mining Corp.
Gold Coast Mining Corp. seeks to provide financing, equipment and finance related services to the mining industry. It is the Company's plan to pursue these opportunities through acquisitions and joint ventures with other mining concerns.
The Company currently has a joint venture with Western Sierra Mining Corp.(Pink Sheets:WSRA) for its Ore Cache and SunGold Mine Projects located in the Prescott, Arizona area. Gold Coast has agreed to provide capital to WSRA to fund initial expenses to put each of the mines into production. Such initial expenses will include the construction of a hard rock free gold recovery plant. Gold Coast is a 50% revenue sharing joint venture partner in both projects.
The Company currently has 444,887, 086 shares issued and outstanding.
CONTACT: Brass Bulls Investor Relations
Matthew Lovito
866-342-2700
GDSM News
Gold Coast Mining Announces Trading of Max Media Group, Inc.
Aug 10, 2009 8:30:00 AM
2009 GlobeNewswire, Inc.
View Additional ProfilesBOSTON, Aug. 10, 2009 (GLOBE NEWSWIRE) -- Gold Coast Mining Corp. (Pink Sheets:GDSM) announced today that Max Media Group, Inc. has begun trading on the OTC Pink Sheets as of Monday August 10, 2009 under the symbol MXMI.
Max Media will have a total of 76,098,803 shares outstanding upon the issuance of all shares required by its acquisition of the Hot Web domain properties and completion of its current private placement of 1,000,000 common shares at a purchase price of $0.50 per share.
James Grady, CEO of Max Media Group, Inc., commented, "We are very excited to begin trading as Max Media. We have many plans and opportunities for the company and its shareholders that can now be aggressively pursued. While we have been working tirelessly over the last few months, we plan to increase our activities substantially now that we are an independent publicly traded company."
Jason Cooper, Interim CEO of Gold Coast Mining Corp. stated, "Our focus regarding Max Media over the next several weeks will be on assisting them with their transition as a public company and expediting the distribution of the dividend shares to our shareholders in a timely manner."
Cooper further stated, "We have set out many plans over the last few months. The accomplishment of Max Media trading is another step in the execution of those plans. We will continue to push forward our plans and goals of enhancing shareholder value the best way we can, always with the shareholders best interest in mind."
Additionally, management cautioned that the trading and price in Max Media stock over the first week may be volatile and erratic until all new shares after the reverse split and name change have been distributed. Max Media will have approximately 15,098,000 shares in the free trading float.
As previously announced, the Board of Directors of Gold Coast Mining have approved and set a record date of August 31, 2009, for the proposed dividend of the common stock held in Max Media Group, Inc. The Board declared a dividend of one share of common stock of Max Media for every thirty (30) shares of Gold Coast Mining common stock held by shareholders on August 31, 2009.
About Gold Coast Mining Corp.
Gold Coast Mining Corp. seeks to provide financing, equipment and finance related services to the mining industry. It is the Company's plan to pursue these opportunities through acquisitions and joint ventures with other mining concerns.
The Company currently has a joint venture with Western Sierra Mining Corp.(Pink Sheets:WSRA) for its Ore Cache and SunGold Mine Projects located in the Prescott, Arizona area. Gold Coast has agreed to provide capital to WSRA to fund initial expenses to put each of the mines into production. Such initial expenses will include the construction of a hard rock free gold recovery plant. Gold Coast is a 50% revenue sharing joint venture partner in both projects.
The Company currently has 444,887, 086 shares issued and outstanding.
CONTACT: Brass Bulls Investor Relations
Matthew Lovito
866-342-2700
OPSY News:
Grass Roots Research and Distribution, Inc. Issues a 'BUY' Rating With a Long Term $0.37 Target Price for Optical Systems, Inc.
Aug 10, 2009 6:30:00 AM
2009 GlobeNewswire, Inc.
View Additional ProfilesDALLAS, Aug. 10, 2009 (GLOBE NEWSWIRE) -- A new research report has been issued on Optical Systems, Inc. (Pink Sheets:OPSY) by Grass Roots Research and Distribution, Inc. (www.grassrootsrd.com) with a long term "BUY" recommendation and a $0.37 long term price target. An error was made in the August 7, 2009 press release stating that Cohen Research and Distribution, Inc. issued and released this report.
For the full report, please visit the Company's web site at http://www.opticalsystemsinc.com, or Grass Roots Research and Distribution, Inc.'s web site, www.grassrootsrd.com.
About Grass Roots Research and Distribution, Inc.
Led by D. Paul Cohen, Grass Roots Research and Distribution, Inc. is the nation's number #1 investment awareness micro cap and small cap independent research firm. As founder of Bear Stearns Western Regional Offices, D. Paul Cohen was one of the original 12 Dirty Dozen analysts, regarded by many to be the top 12 security analysts in the nation. Mr. Cohen was also the West Coast Senior Vice President of CBWL-Hayden Stone-American Express. Mr. Cohen's partners were Sanford I. Weill (past Chairman and CEO of CitiGroup and past Chairman of Solomon Smith Barney) and Arthur Levitt (past Chairman of the Securities and Exchange Commission (SEC).
Grass Roots Research and Distribution, Inc. targets the backbone of the fundamental research for micro and small cap stock investment. This research includes investigative research into significant corporate events, thorough review of SEC filings, in depth financial analysis, valuations, and management profiles. Grass Roots Research and Distribution, Inc.'s analysts forecast and value for 5 years each company researched by the firm.
About Optical Systems, Inc.
Optical Systems, Inc., through its operating subsidiary, Automotive Software Designers, Inc., develops technology and services for the automotive retail industry designed to maximize productivity and increase profits at auto dealerships. ASDI's flagship technology solution, Save-a-Deal (http://www.opticalsystemsinc.com/save-a-deal/), is a turnkey customer relationship management (CRM) tool for auto dealerships. Our business development center (BDC) (http://www.opticalsystemsinc.com/business-development-center/) provides a variety of services designed to help auto dealerships drive traffic to their showroom or web site, retain customers and generate new streams of revenue. For more information, visit http://www.opticalsystemsinc.com.
Safe Harbor Statement
This release includes forward-looking statements. Statements contained in this Release that are not historical facts may be deemed to be forward-looking statements. Investors are cautioned that forward-looking statements are inherently uncertain. Actual performance and results may differ materially from that projected or suggested herein due to certain risks and uncertainties including, without limitation, ability to obtain financing and regulatory and shareholder approvals for anticipated actions. Additional information concerning certain risks and uncertainties that could cause actual results to differ materially from that projected or suggested may be identified from time to time. The Company does not undertake any obligations to update forward-looking statements made by it. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities of the Company. For additional information, see our website: http://www.opticalsystemsinc.com.
CONTACT: Automotive Software Designers, Inc.
Ray Rogers
877 781 2030
invest@a-s-d-i.org
Good morning chippers!
I still haven't done the "short" thing yet!
"Five Signs The Current Rally Is Out Of Sync With The Economy"
I have been hinting towards this some.
I feel we may see a good month in August, but I am sceptical of the months to come, especially this winter.
Be ready to short Ford this fall?
BMO Financial Group Welcomes Canada's Minister of Finance to its New Premises in Beijing as it Continues to Expand its Commitment to China
Aug 9, 2009 9:30:00 PM
View Additional ProfilesNames new CEO for Asia
BEIJING, Aug. 10 /CNW/ - BMO Financial Group, Canada's first bank - and the first Canadian bank to do business with China - today officially opened its new premises in Beijing's business district, as the bank continues to grow in China.
Canada's Minister of Finance, the Honourable Jim Flaherty, who is in China leading a high-level delegation of government officials and financial services executives, paid a special visit to the branch to cut the ribbon at the official opening ceremony.
"China is now one of Canada's largest trading partners, and we have become Pacific Rim economic partners through APEC. Clearly we share a long and proud history and we are working toward a future that is mutually beneficial to both countries," said Minister Flaherty. "As an important part of that future, we are very encouraged by the advancements that Canadian banks such as BMO have made in China."
Gilles Ouellette, the president and chief executive officer of BMO's Private Client Group, welcomed Minister Flaherty and thanked him for his commitment to growing trade in financial services between Canada and China.
"We are honoured by the Minister's presence," said Mr. Ouellette. "Minister Flaherty appreciates the tremendous value of Canada's business relationships with China and understands the important role that Canadian financial institutions can play in this market."
Mr. Ouellette also formally introduced Albert Yu, an experienced bank executive who has just been named Chief Executive Officer for BMO's Asian operations. Mr. Yu, who until recently worked in New York for a major global financial services company, will be resident in Beijing, and will be responsible for BMO's operations in mainland China (Beijing, Guangzhou, and Shanghai) as well as in Hong Kong and Taiwan.
"Albert is a very seasoned and capable banker," said Mr. Ouellette. "He will have responsibility for the oversight, growth and development of BMO businesses in Asia."
About Mr. Yu
Albert Yu has more than 20 years of experience in the financial services industry, having worked for major international banks in New York, Hong Kong and Toronto. For the past eight years, he was based in New York working for an international bank, where he ran a number of capital markets businesses with operations in New York, Toronto, Sao Paulo and Hong Kong. He holds a Masters of Science in Finance from the University of British Columbia and did his undergraduate work at the University of Windsor.
About BMO in China
BMO's ties with China go back to 1818 - the year after its founding - when the bank undertook its first foreign exchange transaction in support of trade with China. BMO has branches in Beijing, Guangzhou, Hong Kong and Shanghai, and has a 28% equity interest in Fullgoal Fund Management Co., which manages mutual funds and pension plan assets in China. BMO is the first Canadian bank to provide services locally denominated in RMB; it is a leading market-maker in foreign exchange trading; and it is increasingly involved in China's IPO market, having been named co-lead manager of Bank of China's 2006 IPO in Hong Kong. BMO Capital Markets' Representative Office in Beijing provides support to the Investment & Corporate Banking Coverage groups and Product groups to offer M&A advisory services and debt/equity placement/underwriting capabilities in North America to selective Chinese corporations for their overseas investment activities.
About the new premises
BMO's new Beijing branch is located on the 27th floor of Tower 3 at China Central Place (77 Jianguo Road) in Beijing's business district. With 2,400 square meters of space (26,000 sq. ft.), the new premises will accommodate up to 100 employees and all the back-room facilities required to operate BMO's growing banking, investment banking and wealth management businesses. The branch will be open daily, Monday to Friday, from 9 a.m. to 6 p.m., and will provide a full range of services to customers, including trade finance, cash management services, lending in local and foreign currencies (for both foreign and domestic companies) and foreign exchange, as well as providing consulting services for Chinese immigrants to Canada and students planning to study in Canada.
<<
/NOTE TO PHOTO EDITORS: A photo accompanying this release is available on
the CNW Photo Network and archived at http://photos.newswire.ca.
Additional archived images are also available on the CNW Photo Archive
website at http://photos.newswire.ca. Images are free to accredited
members of the media/
>>
----------------------------------------------
Media Contacts: Paul Deegan
BMO Financial Group
Toronto
(416) 867-3996
paul.deegan@bmo.com; Ron Monet
BMO Financial Group
Montreal
(514) 877-1873
ronald.monet@bmo.com; Ella Yu
Hill & Knowlton
China
(W): (86 21) 5109 7070 ext. 113
(M): (86) 137 6453 8775
ella.yu@hillandknowlton.com.cn
Playing a U.S. housing recovery through European stocks
By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- There are some tentative hopes out there -- so-called 'green shoots' -- that maybe, just maybe a U.S. housing market recovery is lurking. If so, interesting plays could be found in Europe, say some money managers here.
The idea that the U.S. housing market has hit the bottom and is starting to stabilize has taken root among some observers, although it's set against a backdrop of ample housing supply and lending reticence on behalf of banks. And of course, a shaky labor market is another wild card that could push back any recovery overall.
"It's a much better picture than everyone believes," said Alister Hibbert, Edinburgh, Scotland-based portfolio manager of BlackRock's European Dynamic fund.
"If you look at new home inventories in terms of the absolute number of houses available for sale, then inventory is already back to the same kind of levels seen in 2005 and 2006."
He also sees stabilization in U.S. house prices coming sooner than he initially expected. With that comes indirect support for the financial system as banks and insurers are all looking for a way to price subprime assets, but haven't been able to because of a major unknown variable -- the level of house prices, he said. Europe is included in this.
"More than half the large-cap banks in Europe from one degree to another would have exposure to mortgage-backed securities in the U.S.," along with many insurers, he said.
"There will less likely be profit write-downs if U.S. house prices do stabilize at these levels."
Exposure to U.S. mortgages has been one of the main drivers of write-downs among European banks, though lenders like HSBC Holdings /quotes/comstock/13*!hbc/quotes/nls/hbc (HBC 55.50, -0.27, -0.48%) /quotes/comstock/23s!a:hsba (UK:HSBA 667.00, +6.00, +0.91%) , Barclays /quotes/comstock/13*!bcs/quotes/nls/bcs (BCS 24.14, +0.69, +2.94%) /quotes/comstock/23s!a:barc (UK:BARC 365.00, +11.00, +3.11%) and Switzerland's UBS /quotes/comstock/13*!ubs/quotes/nls/ubs (UBS 15.11, +0.34, +2.30%) have been reducing those exposures.
European insurers, meanwhile have been weighed down by the breakup of American International Group /quotes/comstock/13*!aig/quotes/nls/aig (AIG 27.14, +4.61, +20.46%) over big bets it placed on credit default swaps.
Swiss Re /quotes/comstock/!rukn (CH:RUKN 43.94, +0.04, +0.09%) , U.K.'s Old Mutual /quotes/comstock/23s!a:oml (UK:OML 93.35, -1.45, -1.53%) and Germany's Allianz /quotes/comstock/13*!az/quotes/nls/az (AZ 10.76, 0.00, 0.00%) are among companies seen as having exposure to U.S. structured credit products.
Directly, there are plenty of European companies that would benefit from a housing recovery, notably those involved in new home building or even renovation and upkeep, Hibbert said. He said improvement in the National Association of Home Builders' survey in the last couple of months is something he's been watching. "As that indicator goes up, housing starts go up," he said.
Stocks that could benefit include U.K.-based Wolseley /quotes/comstock/23s!e:wos (UK:WOS 1,412, +8.00, +0.57%) , the world's biggest supplier of plumbing and heating materials, cement groups Irish-based CRH /quotes/comstock/13*!crh/quotes/nls/crh (CRH 25.19, +0.10, +0.40%) /quotes/comstock/23s!e:crh (UK:CRH 17.40, +0.20, +1.16%) , Swiss-based Holcim /quotes/comstock/!holn (CH:HOLN 64.25, +0.35, +0.55%) and France's Lafarge /quotes/comstock/23r!plg (FR:LG 51.80, +0.09, +0.17%) .
Austrian brick maker Wienerberger /quotes/comstock/11e!fwib (DE:WIB 12.35, +0.02, +0.16%) , also falls under this category, he said. Also to be considered, Stockholm-based maker of Yale locks, Assa Abloy AB /quotes/comstock/22u!assa-b (SE:ASSAB 111.75, +1.25, +1.13%) .
Along the lines of home maintenance, there is also Husqvarna /quotes/comstock/22u!e3:o-husq-a-sek (SE:HUSQA 44.80, +1.60, +3.70%) , the Swedish company that makes chainsaws and sit-on tractors, and Holland-based Hunter Douglas /quotes/comstock/23r!ahdg (NL:HDG 25.10, +0.20, +0.80%) , said Hibbert.
Allan Nichols, international equity strategist at Morningstar, questioned, though, whether investors may have missed the best of the gains for European stocks hooked to U.S. housing, owing to the strong rally seen for Europe overall this year.
The S&P 500 /quotes/comstock/21z!i1:in\x (SPX 1,010, +13.40, +1.34%) is up 11% year-to-date, while the Dow Jones Stoxx 600 /quotes/comstock/22c!sxxp (ST:SXXP 230.68, +2.79, +1.22%) is up 15.7% by the same measurement. The Stoxx 600 Europe banking sector /quotes/comstock/22c!sx7e (ST:SX7E 212.37, +4.79, +2.31%) is up 45%, beating all but one sector, while one measure of U.S. banks, the Keefe Bruyette & Woods Bank ETF /quotes/comstock/13*!kbe/quotes/nls/kbe (KBE 22.54, +0.77, +3.54%) , is up 1% year-to-date
"I think that if you get some of those that haven't moved and you're patient you could still make money. Just don't go blanketly into anything housing-related...because you think housing has bottomed and everything is going to go up because a lot has gone up [already]," said Nichols.
Shares of Swedish vacuum maker Electrolux /quotes/comstock/22u!e3:o-elux-a-sek (SE:ELUXA 165.00, +7.00, +4.43%) , for example, are up 116% year to date, but some analysts are worried that shares have already gained on anticipation of improvement, setting up for potential disappointment later. By comparison, shares of U.S. white goods maker Whirlpool /quotes/comstock/13*!whr/quotes/nls/whr (WHR 61.78, +3.95, +6.83%) are up 45% on that same measure.
Hibbert, though, argued that European equities are still a better place to be than U.S. equities. "As we move towards a bull market and again economic recovery, the chances are that in a couple of years, European valuations will move in line with the U.S. As that happens, you get much better returns out of Europe," he said.
He said European companies with exposure to their U.S. counterparts are still largely less expensive on a valuation basis. "We see that both in aggregate across the entire market and also see it within sectors as well."
CRH, for example, trades at a huge discount to its U.S. equivalents -- Vulcan Materials /quotes/comstock/13*!vmc/quotes/nls/vmc (VMC 50.40, +1.67, +3.43%) or Martin Marietta Materials /quotes/comstock/13*!mlm/quotes/nls/mlm (MLM 88.79, +1.52, +1.74%) on a range of measures including price/earnings and cash flow multiples, he said.
Curt Lyman, Palm Beach, Fla.-based managing director of HighTower Advisors, said investors should also consider that many U.S. companies could become acquisition targets for more solid European companies. And if the euro moves higher versus the dollar, investments in stocks by European companies will look attractive based on currency fluctuations, he said.
"If you're a longer term, fundamental investor, you may want to own equity in a company that is taking advantage of another's distress to acquire assets that will expand earnings," said Lyman.
He suggests looking at European banks that may be on the acquisition trail, or European companies that want raw materials like industrial metals and construction commodities.
For example, they like French water treatment group Veolia Environnement /quotes/comstock/13*!ve/quotes/nls/ve (VE 31.71, -1.05, -3.21%) /quotes/comstock/23r!pvie (FR:VIE 22.38, -0.50, -2.16%) , which has made a number of U.S. acquisitions and which he expects will continue to look for U.S. acquisitions. "They've made massive investments in infrastructure projects in America and other countries. Those investments take time to mature and expand earnings," he said.
"If you are an investor, who believes that U.S. housing market is grossly undervalued and will turn around, then you may want to invest in European companies with healthy balance sheets and the capital needed to acquire U.S companies who will benefit due to the improvements in the housing markets," he said
HONG KONG (MarketWatch) -- This year we have witnessed a succession of warnings from industry leaders and regulators about the risks of a financial bubble in Hong Kong. But as the market climbs ever higher, these warnings fade to background noise.
Last week, Joseph Yam, the head of the Hong Kong Monetary Authority, said there were risks of an asset bubble from surging money flow. In a city-state that lives by the pulse of the stock market, the surprise was that Yam's comment was relegated to the inside business pages of the leading English daily -- the South China Morning Post. Forget bear-market rallies, the hot story now is the new issues bonanza. But should these warnings get more attention?
One explanation for the remarks is that Yam is being extra vigilant in the remaining couple of months before he steps down as Hong Kong's de facto central banker. He can retire with a catch all get-out: "Don't say I didn't warn you."
But his warnings are coming thick and fast.
Back in February, he was telling local legislators to brace for Financial Tsunami, Part II. By May, he had switched his attention from a credit crunch to warning about an asset bubble. To be fair, in that period the Hang Seng Index also underwent a major turnaround, rising from 11,000 in March to 17,000 in May, and are now north of 20,000.
This time he highlighted that Hong Kong's monetary base -- formed by notes in circulation, the aggregate balance of the banking system, and Exchange Fund paper -- more than doubled to 771 billion Hong Kong dollars ($99.5 billion) at the end of last month from 324 billion Hong Kong dollars a year earlier. His concern is this surge in hot money inflows.
"We are mindful of the potential negative impact that asset-price bubbles, if they were to occur, could have on financial stability," he said.
The problem is that after such a large come-back in property and stock values in Hong Kong, prices could reverse if these liquidity inflows suddenly retreat.
But Yam can do little to stop bubbles forming. Thanks to the 26-year-old Hong Kong dollar peg, Hong Kong must follow U.S. interest rates and the level of the greenback. If as many predict, the U.S. dollar is heading lower, the Hong Kong dollar must follow.
If we go back to March when Yam made his first warning about money inflows and bubbles, he was hardly helped by HSBC /quotes/comstock/22h!e:5 (HK:5 83.80, -1.40, -1.64%) /quotes/comstock/13*!hbc/quotes/nls/hbc (HBC 55.50, -0.27, -0.48%) , the dominant local bank. It responded to its swelling deposit base by slashing its deposit rate by 90% to 0.001%, effectively pouring fuel on the fire.
Lending rates are also at rock bottom. The continually low Hibor rates -- the three-month at 0.20% last week -- mean incredibly cheap mortgage loans. In addition to low Hibor base mortgages, banks are offering effective mortgages as low as 1.9% to 2.5%, thanks to big discounts from prime.
This time, Yam says he can take new measures to command banks to restrict their lending, perhaps borrowing a trick from China's unorthodox monetary tactics.
Still, taking a step back, this Hong Kong situation all does seem rather an anomaly. In much of the rest of the world, central bank chiefs are turning themselves blue in the face exhorting banks to lend.
Given the number of bubble cycles Hong Kong has been through in its recent past, few expect a serious policy effort to stop it.
The government, after all, is arguably the biggest bubble speculator in town, as it owns the largest land-bank. It is as keen to sell at the top of the market as any developer tycoons.
But for many businesses and the wider population who are not hooked or skilled at asset trading, living in the manic state of a perennial bubble economy is a pain. One year, the worry is run-away prices -- six months later it's deflation. Now it's back again to rising prices. The upshot is everyone from a sole trader to a school teacher needs the savvy of a Wall Street trader to navigate living in this rollercoaster economy.
To question if this economic model is sustainable, we must come back to the Hong Kong dollar peg itself. Last week speculation mounted that money inflows are merely betting on the currency re-pegging higher against the dollar, rather than any particular asset class, after currency forward rates moved higher.
The consensus is that we would need a much bigger, more serious bubble before meddling with this sacred cow. But perhaps we are nearer to that endgame than many think.
Although Yam's warnings may sound like crying wolf, they are worth listening to. He is likely to be right, but just like most things with the market -- it's a matter of timing
Japan core machinery orders surge 9.7% in June
By Lisa Twaronite TOKYO (MarketWatch) -- Japanese core machinery orders jumped 9.7% in June from the previous month, government data showed Monday, a much bigger increase than the 2.9% rise expected on average by economists surveyed by Nikkei and Dow Jones Newswires. Core orders exclude often-large orders for ships and those from electric power companies, which can skew data. Total orders rose 2.3% in June from May, the Cabinet Office said. Machinery orders are considered a leading indicator of capital spending, though the data set is particularly volatile. Orders fell 4.9% in the April-June period from the previous quarter, but were forecast to drop 8.6% in the current quarter, the government said, based on its survey of companies. Separate data from the Ministry of Finance showed Japan's current account surplus rose 144.4% on year in June, also beating forecasts for a 39.9% increase.
Exporters lift Tokyo shares, Rio caps Sydney gains
HONG KONG (MarketWatch) -- Asian markets started the week on a buoyant note after strong gains Friday on Wall Street, with Japanese shares getting an additional boost as the yen's recent sharp fall spurred exporters such as Honda Motor Co. . The Nikkei 225 Average climbed 1.1% to 10,527.23, and the broader Topix Index rose 1.4% to 969.63 in early Monday action. Australia's S&P/ASX 200 advanced 0.7%, but gains were capped by a fall in Rio Tinto shares after a Chinese watchdog group accused the mining giant of overcharging local steelmakers by $100 billion for its iron ore over the past six years. South Korea's Kospi rose 0.6%, while New Zealand's NZX 50 climbed 0.5%.
Aug 9, 2009, 8:59 p.m. EST
Asian Shares Boosted By U.S. Jobs Report; Rio Drops
By Colin Ng
SINGAPORE (MarketWatch) -- Asian stock markets were higher Monday, lifted by a better-than-expected U.S. jobs report and gains on Wall Street Friday. In Australia, new reports on China's accusations against Rio Tinto drove the miner's shares lower.
"Bottom line is the (U.S. jobs) data is good in detail as well as headline and revisions are in the right direction. This will likely strengthen the green shoots story and take some pressure off the Obama Administration's defenders that the stimulus plan is not working," said analysts at Brown Brothers Harriman in a note.
Data released Friday showed U.S. employers cut 247,000 jobs in July after shedding a revised 443,000 a month earlier. The July drop was less severe than the 275,000 fall forecast by economists in a Dow Jones Newswires survey. The unemployment rate slid to 9.4% from 9.5% in June, compared with expectations for a rise.
The Dow Jones Industrial Average rose 1.2% on Friday, while the Nasdaq Composite index gained 1.4%.
Japan's Nikkei 225 was up 1.1%, Australia's S&P/ASX 200 was up 0.7%, South Korea's Kospi Composite gained 0.2% and New Zealand's NZX-50 was 0.6% higher. DJIA futures were about eight points lower in screen trade. Singapore markets were closed for a public holiday.
In Australia, Rio Tinto was down 2.0% following weekend accusations published on a website that says it is affiliated with China's state secrets bureau, that Rio illegally obtained information about China's steel sector for six years, which resulted in Chinese steelmakers being overcharged more than $100 billion for iron ore.
Ord Minnett analyst Peter Arden said investors had been hoping that the issue of the four detained Rio employees was cooling off, but that these latest statements have revived fears.
Arden said the issue may weigh on Rio's shares until it is resolved, even though iron ore sales will continue. "The reality is that China needs the iron ore," he said.
BHP was down 1.5%, while Fortesque was up 2.5%, Bluescope gained 4.0% and Westfield rose 3.1%.
Patersons' senior trader, Chris Blair expected the Sydney market to consolidate, with the benchmark index likely to post a 20 point gain. "I think we'll wait to tonight to see if Friday's gains on Wall Street are sustainable. It was probably a bit of a knee-jerk reaction to those U.S. jobs figures and I think the market is too stretched."
The Japanese stock market was enjoying a broad-based rally with exporters lifted by the yen's weakness against the dollar over the weekend. Toyota was up 2.2%, Honda gained 3.2%, Canon 2.6% and Sony 2.4%.
Data released before the market open showed Japanese core machinery orders rose 9.7% in June from the previous month, but the data also showed that Japanese companies expect core orders to decrease 8.6% from the previous quarter in the July-September period; "The June figure is positive but the July-September forecast is negative, so overall, the data won't move the market much," said Tachibana Securities analyst Kenichi Hirano.
Sentiment in Seoul was lifted after the International Monetary Fund said Sunday it has sharply revised upward its 2009 growth outlook for the country, citing the government's "timely" and "comprehensive" measures to mitigate the financial and economic turbulence that erupted after the collapse of Lehman Brothers last year.
"Of course, the U.S. job data and IMF news are positives for sentiment, but stocks have risen sharply already, reflecting expectations for the global economic recovery," said Lee Jin-woo at Mirae Asset Securities.
Banks were leading with KB Financial up 2.1% and Shinhan Financial 1.1% higher.
In New Zealand, bellwether Telecom underpinned the market, rising 1.1%. Retailer Hallenstein Glasson was up 3.9% while Fletcher Building had lost 1.0%.
In foreign exchange markets, the yen was a little higher against the euro and the dollar due to demand from Japanese exporters. Trade was light and in a relatively tight range with some traders away for summer vacations.
The dollar was at Y97.30 from Y97.48 in late New York trade, while the euro was at $1.4197 from $1.4169 and at Y138.14 from 138.46.
The September Japanese government bond futures contract was sharply lower, down 0.22 at 137.37 points, weighed by the Nikkei's rise.
Spot gold was down $2.10 from late in New York, at $951.80 per troy ounce. LME three-month copper dropped to $6,085 per metric ton, down 1.1% from the afternoon kerb Friday, with just 131 lots traded so far in Asia.
Nymex September crude oil futures were down 42 cents at $70.51 per barrel
Has Wall Street Speculation Pushed Small Investors To Real Estate?
By: Tom Lindmark Sunday, August 09, 2009 3:20 PM
Henry Blodget on Clusterstock notes that the average holding period for New York Stock Exchange stocks has declined to six months. Blodgett’s take is that this doesn’t constitute investing.
In any event, can we please stop pretending that what most fund managers are doing every day is “investing”? Holding stocks for six months isn’t investing. It’s trading. And because trading is a negative-sum game–one largely focused on trying to figure out what everyone else is doing–it is really speculating.
When you’re speculating, there’s no reason to pay attention to things like fundamental analysis, valuation, future cash flows, and all the other stuff they teach you in security-analysis school. For holding periods of less than six months, those things don’t mean jack. Over holding periods that short, the game is all about figuring out what everyone else thinks and then gambling that you’ll be right and they’ll be wrong.
So remember that next time your favorite fund manager sends you a note patting himself on the back for hisinvesting prowess. What he’s really talking about is speculating.
One of the things that I’ve found puzzling has been the the willingness of small investors to embrace the residential real estate market. By all accounts, investor interest in single family rental homes is higher now than even during the bubble years. One might have expected a distinctly different reaction but maybe Henry’s point helps explain the contradiction.
It might very well be that the small investor has caught on to the game going on in the securities markets and figured out that his ability to control his own destiny in those markets is close to nil. Having seen a decade of sub-par returns and then being immolated in the meltdown earlier this year, they may have just tossed in the towel.
Possibly they’re saying, I can understand this, I control the investment and given prices I can be relatively confident I’ll generate positive cash returns. If it appreciates over a number of years then fine, I’m even further ahead. In other words, they’re trusting that old-fashioned buy and hold with a positive current carry will still work.
If that’s the case — I realize I’m doing some heavy duty speculating here — then perhaps the next Wall Street trend will be back to real buy and hold with an emphasis on current income. They would just have to figure out how to justify their fees and replace the churning income.
Five Signs The Current Rally Is Out Of Sync With The Economy
By: Sentiment Beat
Investors have unknowingly been watching a bull and bear work together simultaneously. We have a stock market bull and an economy bear. How can that be?
For almost five months, the major U. S. indexes such as the S&P 500, Dow and NASDAQ have been steadily moving higher along with other global stock markets.
From March low, the S&P 500 has rallied to the tune of 50%. Simultaneously, economic reports continue to disappoint. In other words, the stock market bull is thriving, while the economy bear is driving forward. Granted many economic reports are coming in better then expectations but the expectations have been lowered and if you cut to the bottom line the economic numbers are not good and we are clearly still in the mist of the great recession. The fact that worrisome economic data isn't making it to the front page of newspapers and financial television stations should concern the stock market bulls.
Knowing a bull and bear can't cohabitate on the same turf, here is a list of five reasons the stock market is out of sync with the reality of the current economy.
Disappointing earnings
As earnings season ends, it is shocking to take a look at the composite results. Even though a good portion of companies have beaten their earnings estimates, we shouldn't forget that those estimates were low-ball estimates. Profits were not the result of new sales; they were the result of cost-cutting, or stimulus money. Of course, cost-cutting equates to employee cutting and a higher unemployment number. Despite their cost reduction efforts, low-ball forecasts and stimulus money, 39% of companies (according to Standard & Poor's data) were not able to meet their forecasts. Revenue of S&P component companies are down more than 10%.
Poor jobless reports
The 9.5% unemployment rate does not reflect the over 4 million people who have been unemployed for more than 27 weeks, or the employees who've been forced to work less and make less. As part of the above mentioned cost-cutting efforts, companies cut the hours worked by a record 2.3% to an all-time low 33 hours. The 'all-inclusive' unemployment rate published by the Bureau of Labor Statistics is 16.4%. There is no light at the end of the tunnel when it comes to better unemployment numbers.
Bank lending
The total amount of loans held by the 15 largest U. S. banks shrank by 2.8% in the second quarter. More than 50% of total loan volume came from refinancing mortgages and renewing credit to existing businesses. Banks have realized that there is no benefit in lending out more money. As credit worthiness decreases, loan defaults increase.
Consumer sentiment
The most recent University of Michigan Consumer Sentiment Survey revealed the following: Confidence slipped from 70.8 to 66
Income expectations fell from 113 to 120 (50% of consumers fear losing their job)
This sentiment is perfectly inline considering that wages and salaries have declined at a record pace during the recession.
Baby-boomers
The hopes for a continued bull market, or bull market resumption, have often relied on the financial stamina of the baby boomer generation. Baby boomers were responsible for nearly 80% of the spending growth from 1995 to 2005. Nearly 70% of baby boomers around age 60 now say they are financially unprepared for retirement due to the hit to their 401K or loss of job.
During the Great Depression, the stock market declined in steps. A 50% decline was followed by a 50% rally. The next 50% decline was followed by a 25% rally. This process continued until the Dow Jones lost over 89% of its value at the final low of the Great Depression.
Fed likely to keep key interest rate at record low
Even as economy shows improvement, Fed is likely to hold rates at record low this week
By Jeannine Aversa, AP Economics Writer
On Sunday August 9, 2009, 2:55 pm EDT
WASHINGTON -- With the economy strengthening but still fragile, Federal Reserve policymakers are expected to hold a key lending rate at a record low this week and will weigh whether to extend some programs that were created to ease the financial crisis.
Fed Chairman Ben Bernanke and his colleagues also are likely to signal that while the recession is winding down, the pain isn't over.
Though the unemployment rate dipped to 9.4 percent in July -- its first drop in 15 months -- economists predict it will start climbing again. Many, including people in the Obama administration and at the Fed, say it could still top 10 percent this year.
For months, consumers have pulled back on spending and borrowing. To try to stimulate economic activity, Fed policymakers are all but certain to keep the target range for its bank lending rate between zero and 0.25 percent at the end of their two-day meeting Wednesday.
That means commercial banks' prime lending rate, used to peg rates on home equity loans, certain credit cards and other consumer loans, will stay around 3.25 percent, the lowest rate in decades.
Fed policymakers also will probably pledge anew to keep rates there for "an extended period," which economists interpret to mean through the rest of the year and into part of 2010.
"We're doing everything we can to support the economy," Bernanke said recently. "We will try to get through this process. It's going to take some patience."
By holding rates so low, the Fed hopes to induce consumers and businesses to boost spending, even though banks are still being stingy about extending credit.
"The Fed will be guardedly optimistic," said Brian Bethune, economist at IHS Global Insight. "We're seeing initial signs of the economy moving toward recovery ... (but) the underlying fundamentals are still weak."
With numerous signs that the recession is finally ending and financial stresses easing, the Fed will consider whether some rescue programs should continue. Any such decisions, though, might not come at this week's meeting.
One such program, aimed at driving down interest rates on mortgages and other consumer debt, involves buying U.S. Treasurys. The central bank is on track to buy $300 billion worth of Treasury bonds by the fall; it has bought $236 billion so far.
Another program, the Term Asset-Backed Securities Loan Facility, or TALF, is intended to spark lending to consumers and small businesses. It got off to a slow start in March and is slated to shut down at the end of December. Despite this program, many people are still having trouble getting loans, analysts say.
The Fed isn't expected to launch any new revival efforts or change another existing program that aims to push down mortgage rates. In that venture, the Fed is on track to buy $1.25 trillion worth of securities issued by mortgage finance companies Fannie Mae and Freddie Mac by the end of the year. The central bank's recent purchases have averaged $542.8 billion.
In the meantime, the economy has shown clear signs of improvement. Employers cut only 247,000 jobs in July, the fewest in a year, the government said Friday. Wages and workers' hours also nudged up -- encouraging signs that companies no longer see the need for drastic cost-cutting. Those developments could deliver a psychological boost to both companies and consumers.
The economy in the second quarter contracted at a pace of just 1 percent, suggesting that the recession, which started in December 2007, is ending.
That dip came after a dizzying free-fall in the first three months of this year. The economy had plunged at an annual rate of 6.4 percent in the first quarter, the worst showing in nearly three decades.
With the economy improving but still weak, inflation should stay low, the Fed says. Given consumers' caution, companies won't have much power to raise prices.
And the weak job market will limit wage growth. Companies aren't going to feel generous about wages and benefits until they are confident a recovery will last.
Market rally, economic growth depend on consumer
After improvement in housing, unemployment, investors look to consumer to drive growth
By Sara Lepro, AP Business Writer
On Sunday August 9, 2009, 2:00 pm EDT
NEW YORK (AP) -- Now that housing and even unemployment are showing signs of improvement, Wall Street wants consumers to do their part to heal the economy.
Investors get some insight this week into how consumers are spending from a government report on July retail sales. They'll also find out if consumers helped major retailers including Wal-Mart Stores Inc. and Macy's Inc. join the stream of companies that reported better-than-expected second-quarter earnings and forecasts.
"What we'll see now is close attention to consumer behavior," said Joe Heider, president of Dawson Wealth Management in Cleveland.
Analysts say investors need to see evidence that consumer spending is picking up before they'll keep the market's summer rally going. Despite signs the recession is easing, investors are still worried that consumers, whose spending accounts for 70 percent of all U.S. economic activity, could hurt the economy's chances for a robust recovery if they continue to limit what they buy.
The stock market has soared in the last month as reports showed steady increases in home sales, improving corporate earnings and a stabilization in the manufacturing industry. On Friday, investors cheered an unexpected dip in the unemployment rate.
The Standard & Poor's 500 index is up 15 percent in just four weeks and 49 percent from a 12-year low in early March. All the major indexes now stand at their highest levels since last fall.
Lackluster sales reports from some of the nation's retailers last week were a reminder that consumers are still nervous. But Friday's surprisingly positive employment report, which showed job losses slowed last month and the unemployment rate fell to 9.4 percent from 9.5 percent in June, could signal brighter days. If job losses are stabilizing, that should give consumers more confidence to buy beyond their basic needs.
One potential problem that could deter consumers and stifle the economy's rebound is rising interest rates. As the economy improves, the Federal Reserve may be forced to raise its benchmark federal funds rate, which stands at a record low of near zero, to prevent a surge in inflation. That would force up borrowing costs including mortgage rates.
Linda Duessel, equity market strategist at Federated Investors, said these fears could weigh on the market, especially as the Fed readies for a two-day meeting that begins Tuesday.
"The people that are going to look for an excuse to pull this market back might look at the fear of the Fed raising rates too soon," she said.
Still, expectations are for the Fed to keep rates steady at least through the end of the year. Investors, though, will be watching closely for any changes in the Fed's assessment of the economy that accompanies its interest rate decision. Up until now, the Fed's stance has been cautiously optimistic, warning that growth will be slow and controlled.
The market will also want to see how well Treasury auctions go this week. The Treasury Department is issuing $75 billion of long-term notes as part of its ongoing effort to fund the government's stimulus programs. Treasurys have tended to sell off ahead of the auctions, which drives yields higher, as investors fear there won't be enough demand to support the flood of supply. Long-term Treasury yields are closely tied to rates on mortgages and other types of loans, so when yields creep higher, investors get nervous.
So far, the auctions have been going relatively smoothly.
Aside from the risks posed by a slack in consumer spending and higher interest rates, the traditional summer slowdown on Wall Street in August could threaten the market's rally. As traders and investors leave for vacation, there will be lighter trading volume, and therefore increased volatility in the market, especially considering stocks have barely taken a breather after such a considerable run.
"Equities seem to be on a one-way train here," said Todd Colvin, vice president at MF Global. "That sets us up for a potential pullback."
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AmeriResource Holds Stock Portfolio in the Face Value Exceeding $750,000 in Pink Sheet Companies
LAS VEGAS, Aug. 7 /PRNewswire-FirstCall/ -- AmeriResource Technologies, Inc. (Pink Sheets: ARIO - News) announced today that it holds common stock and convertible preferred with a face value exceeding $750,000 in Nexia Holdings, Inc. (Pink Sheets: NXHD - News) and Green Endeavors, LTD. (Pink Sheets: GRNE - News).
"We believe Nexia Holdings and Green Endeavors both have sound business models that offer their shareholders and investors a diversification of industries for their investments. It is our anticipation and belief that AmeriResource and its subsidiaries stock portfolios will have a greater value upon the conversion of the stock portfolios and after meeting the requirements of Rule 144," Janovec comments.
"AmeriResource also is in the process of updating its own website as well as its ATTO Solutions website which has dated information. We are committed to delivering up to date and accurate information to potential customers and investors alike. Management is working diligently to bring AmeriResource filings current with the SEC and revamping our website to be in compliance with the current information requirements," concluded Janovec.
The Company encourages the public to read the above information in conjunction with its year-end 10-KSB for December 31, 2007, and the Quarterly statements filed in calendar year 2008. The financial statements can be viewed at www.sec.gov.
ARIO AH NEWS 8/6
AmeriResource Reports Revenue of $1,341,904 for Six Months Ended June 30, 2009
Press Release
Source: AmeriResource Technologies, Inc.
On Thursday August 6, 2009, 4:24 pm EDT
LAS VEGAS, Aug. 6 /PRNewswire-FirstCall/ -- AmeriResource Technologies, Inc. (Pink Sheets: ARIO - News) announced that its subsidiary, BizAuctions, Inc. (Pink Sheets: BZCN - News), a prime provider of commercial eBay liquidation services for excess inventories and returns, generated revenue for the six months ended June 30, 2009 of approximately $1,341,904.
"While the revenues are down from the same period in calendar year 2008, we are optimistic that our eBay business model will begin increasing revenues going into the fall when the consumer expenditures for back-to-school hit the retail markets and as the economy begins to make improvements. We are beginning to see hints of some of this spending at BizAuctions as well as our Lucky 7's retail store," noted CEO Delmar Janovec.
"We believe with our sound eBay business model and the addition of ATTO Enterprises, Inc., this year, the Company should enjoy a reasonable progressive year in 2009," Janovec concluded.
The Company encourages the public to read the above information in conjunction with its year-end 10-KSB for December 31, 2007, and the Quarterly statements filed in calendar year 2008. The financial statements can be viewed at www.sec.gov.
ABOUT AMERIRESOURCE: AmeriResource is a diversified holding company with headquarters in Las Vegas, Nevada. For more information on the Company, please see the Company's website at http://www.bizauctions.com, and http://www.attosolutions.com.
The information contained in this press release may include forward-looking statements. Forward-looking statements usually contain the words "estimate," "anticipate," "believe," "expect," or similar expressions that involve risks and uncertainties. These risks and uncertainties include the Company's uncertain profitability, need for significant capital, uncertainty concerning market acceptance of its products, competition, limited service and manufacturing facilities, dependence on technological developments and protection of its intellectual property. The Company's actual results could differ materially from those discussed herein. Factors that could cause or contribute to such differences are discussed more fully in the "Risk Factors," "Management's Discussion and Analysis or Plan of Operation" and other sections of the Company's Form 10-KSB and other publicly available information regarding the Company on file with the Securities and Exchange Commission, at www.sec.gov. The Company will provide you with copies of this information upon request.
Website: http://www.bizauctions.com
Website: http://www.attosolutions.com
ARIO +100%, just cracked 1.5 billion in volume
ARIO AH News
AmeriResource Enters Multi-Billion Dollar Freight Savings Business
LAS VEGAS, Aug. 5 /PRNewswire-FirstCall/ -- AmeriResource Technologies, Inc. (Pink Sheet: ARIO), a diversified holding company, shares its insight into the multi-billion dollar freight industry. ARIO, through its subsidiary, ATTO Enterprises, Inc., is in the initial stages of hiring sales staff, retooling its software, and updating its web site in an effort to begin saving potentially thousands of clients anywhere between 5% to 20% on their shipping bills.
Delmar Janovec, CEO of AmeriResource comments, "The trucking-freight industry has enjoyed some of its best years in the amount of revenues and tons shipped during the 2006 and 2007 timeframe, as detailed in the Reuters press release report at http://www.reuters.com/article/pressRelease/idUS162692+25-Jan-2008+BW20080125. Revenues exceeded $600 billion and over 10 billion tons were shipped. The report shows the industry is an enormous market and If ATTO Enterprises is able to capture only a fraction of this industry revenue, ATTO will have a bright future."
Mr. Janovec continued, "With the economy still on the ropes, ATTO's technology is another way for businesses to trim the 'fat' by reducing shipping costs. The beauty of ATTO's service is that it cost nothing other than the time it takes for its clients to sign up. ATTO gets paid out of the savings it creates for its clients. According to documents from former Atto Solution LLC, the technology was able to save up to 20% in shipping cost for it clients. I am optimistic that ATTO, with the proper financing, will be able to land many clients that spend in excess of $1M in shipping every year. I encourage potential clients and investors alike to do the math on what such numbers could mean to ARIO's bottom line in the not too distant future."
If you are interested in a sales position with ATTO please contact Delmar Janovec at the number below or the email address.
About ATTO Enterprises - Addressing the Freight Industry
ATTO Enterprises addresses the shipping expenditures for its clients by providing our software technology that reviews the customer's overall freight systems and expenses to determine if the customer's costs are in line within the industry. Following the analysis, the Company will provide the customer with our findings and cost saving projections. If ATTO does not save the customer on its shipping charges, then the customer does not pay. If ATTO saves the customer on its shipping charges, then ATTO shares in the cost savings as our fee for the services.
The Company encourages the public to read the above information in conjunction with its year-end 10-KSB for December 31, 2007, and the Quarterly statements filed in calendar year 2008. The financial statements can be viewed at http://www.sec.gov/.
ABOUT AMERIRESOURCE: AmeriResource is a diversified holding company with headquarters in Las Vegas, Nevada. For more information on the Company's subsidiary, please see the Company's website at http://www.attosolutions.com/.
The information contained in this press release may include forward-looking statements. Forward-looking statements usually contain the words "estimate," "anticipate," "believe," "expect," or similar expressions that involve risks and uncertainties. These risks and uncertainties include the Company's uncertain profitability, need for significant capital, uncertainty concerning market acceptance of its products, competition, limited service and manufacturing facilities, dependence on technological developments and protection of its intellectual property. The Company's actual results could differ materially from those discussed herein. Factors that could cause or contribute to such differences are discussed more fully in the "Risk Factors," "Management's Discussion and Analysis or Plan of Operation" and other sections of the Company's Form 10-KSB and other publicly available information regarding the Company on file with the Securities and Exchange Commission, at http://www.sec.gov/. The Company will provide you with copies of this information upon request.
DATASOURCE: AmeriResource Technologies, Inc.
CONTACT: Delmar Janovec of AmeriResource Technologies, Inc.,
+1-702-214-4249,
Web Site: http://www.attosolutions.com/
SYMW AH NEWS
SymPowerco Fuel Cell Partner Advances Business Plan
Date : 08/04/2009 @ 4:48PM
SymPowerco Fuel Cell Partner Advances Business Plan
GARDNERVILLE, NV -- (Marketwire) -- 08/04/09 -- SymPowerco Corporation (PINKSHEETS: SYMW) CEO John Davenport announced today that the company's fuel cell partner, Hybrid Energy Technologies, Inc. ("HET") of Ontario, Canada, has advanced its business plan on several fronts and that HET's initiatives continue to support the planning and timing of SymPowerco's fuel cell development program. HET owns 30% of SymPowerco's majority owned (70%) subsidiary, Polygenic Power Systems, Inc. ("PPSI"), which manages all aspects of SymPowerco's Flowing Electrolyte Direct Methanol Fuel Cell (FEDMFC) program.
HET, which owns the exclusive rights to a unique flat-plate rechargeable battery technology, has informed SymPowerco that it has successfully completed Phase I of a study to determine the feasibility of mass producing its battery technologies and to determine the feasibility of constructing a high speed manufacturing facility at a certain location for the world market.
In addition, HET has advised SymPowerco that it has begun design and construction of various prototype flat-plate battery configurations that will be made available to its existing and potential customers for design and testing purposes.
SymPowerco President and CEO, John Davenport, commented, "SymPowerco owns the exclusive rights to use HET's flat-plate battery technologies in Hybrid Power Systems that use Direct Methanol Fuel Cells. We believe that the FEDMFC and the flat-plate battery technologies, when used together in Hybrid Power Systems, will create a formidable presence in the burgeoning Alternative Power Systems markets for small to medium sized vehicles and for other markets. We're very pleased that HET is advancing its battery technologies so rapidly."
SymPowerco Corporation develops advanced fuel cell and power delivery systems for the rapidly growing personal transportation and portable power system markets.
SymPowerco's soon-to-be majority-owned subsidiaries, HOSS Motor Sports and Highline Hydrogen Hybrids Systems, offer potentially expansive synergies and marketing opportunities with SymPowerco's Flowing Electrolyte Direct Methanol Fuel Cell and Hybrid Power System technologies.
Except for historical information contained herein, the matters set forth above may be forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors such as the level of business and consumer spending, the amount of sales of the Company's products, the competitive environment within the industry, the ability of the Company to continue to expand its operations, the level of costs incurred in connection with the Company's expansion efforts, economic conditions in the industry and the financial strength of the Company's customers and suppliers. The Company does not undertake any obligation to update such forward-looking statements. Investors are also directed to consider all other risks and uncertainties.
Contact:
Investor Relations
775-636-8486
Email Contact: Email Contact
ARIO news AH
AmeriResource Acquires Assets Formerly Held by ATTO Solutions, LLC
Press Release
Source: AmeriResource Technologies, Inc.
On Friday July 31, 2009, 5:13 pm EDT
LAS VEGAS, July 31 /PRNewswire-FirstCall/ -- AmeriResource Technologies, Inc. (Pink Sheets: ARIO - News), a diversified holding company, announced today the acquisition of the assets and technology formerly held by ATTO Solutions, LLC, as detailed in the 8-K filed on or about March 20, 2009.
Delmar Janovec, CEO of AmeriResource comments, "ATTO Solutions technologies have been in existence for well over eight plus years providing its customers a very valuable service for the shipping industry that generally provides significant savings for the customer. It is our intent to expand ATTO's customer base in different geographical markets in order to grow the revenues of the Company."
The Company encourages the public to read the above information in conjunction with its year-end 10-KSB for December 31, 2007, and the Quarterly statements filed in calendar year 2008. The financial statements can be viewed at www.sec.gov.
ABOUT AMERIRESOURCE: AmeriResource is a diversified holding company with headquarters in Las Vegas, Nevada. For more information on the Company, please see the Company's website at http://www.attosolutions.com.
The information contained in this press release may include forward-looking statements. Forward-looking statements usually contain the words "estimate," "anticipate," "believe," "expect," or similar expressions that involve risks and uncertainties. These risks and uncertainties include the Company's uncertain profitability, need for significant capital, uncertainty concerning market acceptance of its products, competition, limited service and manufacturing facilities, dependence on technological developments and protection of its intellectual property. The Company's actual results could differ materially from those discussed herein. Factors that could cause or contribute to such differences are discussed more fully in the "Risk Factors," "Management's Discussion and Analysis or Plan of Operation" and other sections of the Company's Form 10-KSB and other publicly available information regarding the Company on file with the Securities and Exchange Commission, at www.sec.gov. The Company will provide you with copies of this information upon request.
The principals of Laidlaw Berlin BioPower, LLC (LLEG)have substantial experience in power development and operations, including biomass plant operations, and have prior experience with retooling projects of this nature. The management team is lead by CEO, Michael Bartoszek. Prior to founding Laidlaw Energy, Mr. Bartoszek spent over 10 years in the securities industry with a number of top investment firms.
EWRC Profile:
http://www.eworldcompanies.com/factsheet.php
APRO Professional Employer Organization Link
http://www.allprobiz.com/page10.php
EWRC Main Website:
http://www.eworldcompanies.com
BLKL profile:
http://www.blinklogic.com/blinklogic/overview.php
BLKL Resellers Partner Data Sheet:
http://www.blinklogic.com/pdfs/Blink_Logic-Reseller-Program.pdf
BLKL Management Team:
http://www.blinklogic.com/company/management.php
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