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$DSCR: Global Hemp Revolution - Decriminalize Cannabis Marijuana Industrial Hemp for Victory!
$UNQT: Union Equity Inc. Announces Current Status Update
Date : 04/15/2014 @ 8:15AM
Source : Marketwired
Stock : Union Equity, Inc. (PN) (UNQT)
Union Equity Inc. Announces Current Status Update
INDIANAPOLIS, IN--(Marketwired - Apr 15, 2014) - Union Equity Inc. (OTC Pink: UNQT) (PINKSHEETS: UNQT) and CEO JT Thornburg are pleased to announce new updates on acquiring current status. In accordance with the new rules and regulations handed down by the OTC, all forms and documents have been filed. All associated fees have been paid to all agencies accordingly. Corporate financials are currently in the process of being finalized. Upon completion, these will also be submitted to the OTC.
Union Equity Inc. is also pleased to announce that the short term goals and vision from the CEO remain unchanged. Mr. Thornburg and the board of directors are pleased with the recent happenings in becoming current, and look forward to finalizing this adventure. Mr. Thornburg states, "The recent events involving our company has shown me how far we have already come, and especially how far our company can go." He goes on to say, "With our board of directors, securities attorney, other personnel, and the backing of the shareholders, I feel like we can push Union Equity Inc. to the top."
Union Equity Inc. will make every attempt to provide informative press releases as information becomes available. Although news may not be available every week, Mr. Thornburg and the board of directors believe that it is important to keep the shareholders current in the recent happenings of the company. Mr. Thornburg would also like to remind the shareholders that he is always available to be contacted at his email address, jtthornburg@live.com.
Contact:
Investor Relations
Phone: 317-575-4113
Email: jtthornburg@live.com
- Go UNQT
$HPNN: Hop-on and United Cannabis Sign Contract
Date : 05/19/2014 @ 11:40AM
Source : Marketwired
Stock : Hop-on, Inc. (PC) (HPNN)
Hop-on and United Cannabis Sign Contract
Re-Medical Finds Partner for Standardized Strains, Regional Production
TEMECULA, CA--(Marketwired - May 19, 2014) - Hop-on, Inc. (OTC Pink: HPNN) (PINKSHEETS: HPNN) is pleased to announce today that an agreement has been reached with United Cannabis Corporation, Inc. (UCANN) (OTC Pink: CNAB) (PINKSHEETS: CNAB) to assist with a regional rollout in the multibillion dollar Cannabis market utilizing their licensed partners' prolific catalog of award winning CBD-dominant and THC:CBD strains and world class cultivation expertise.
UCANN was selected as a strategic partner for their expertise in the medical and recreational Cannabis marketplace, their numerous regional partners that are state licensed and have been vetted for quality, consistency, and business ethics, and the fact that they are actively expanding from Colorado to other markets as they become viable. UCANN will assist in provisioning exclusive Cannabis cultivars that meet the stringent needs of Re-Medical's standardized cannabinoid profiles, and provide assistance in the build-out of processing, extraction, and production facilities, and regional sales and distribution operations for Re-Medical's cannabinoid therapies.
Re-Medical will provide licensing of intellectual property, where appropriate, regarding standardized cannabinoid profiles that show empirical or clinical efficacy as treatment for specific ailments, standardized cannabinoid profile extraction methods, efficient extraction of active ingredients from Cannabis using supercritical CO2 fluid extraction technologies, and the formulation and fabrication of transdermal and other innovative cannabinoid delivery technologies.
The market for CBD and other cannabinoid therapies is just beginning to be tapped, with over $600 million in annual sales expected this year in Colorado alone. With the entrance of more regions into the self-regulated cannabis marketplace, and the use of curated strains, professional production and processing methods, and rigorous testing standards, the market currently valued at $1.53 billion is projected to grow 68% to $2.57 billion by the end of 2014.
Peter Michaels, Hop-on CEO, stated, "As strategic partners, Re-Medical and UCANN have the combined resources, experience, and intellectual property to fulfill the longstanding dreams of many who have suffered far too long in a marketplace without standards. Together, we bring a force for quality, safety, efficacy, and a true passion to end needless suffering. It's an amazing thing when what's great for business is also great for society."
About Hop-on, Inc.
Hop-on, Inc. is a global ODM and OEM manufacturer of electronics, based in the United States. Over the past 20 years, Hop-on has successfully secured essential patents for mobile communications and computing technologies, and is respected for developing the world's first disposable cell phone. Hop-on's focus on smartphones and innovative mobile device applications is bringing cost friendly solutions to today's demanding world market. Hop-on is also diversified in nutraceutical and cannabinoid technologies through its subsidiary Re-Medical, Inc. For more information, please visit www.hop-on.com and www.re-medical.com
About UCANN
United Cannabis Corporation has a foundation in the cannabis industries. With our consulting services, management and oversight we are capable of assisting any Cannabis oriented company on any scale. United Cannabis Corporation is now partnering domestically and internationally with local businessmen, entrepreneurs, scientists, and government agencies for the purpose of promoting Best Practices in Planning, Procedures, Governance and Patient Care. Consulting and providing guidance on design and construction of growth facilities and cultivation of medical grade cannabis-based products worldwide. With access to a catalog of award winning genetics and coupled with our leadership & experience we are positioned to take any Cannabis Business through all of the steps for success. For further information, please visit www.unitedcannabis.us
Forward-Looking Statements
Certain statements in this news release may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933, and are subject to Rule 3B-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and other results and further events could differ materially from those anticipated in such statements. Future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements.
Additional Information
For additional information, please contact
Shareholder Services
(949) 756-9008
Email contact@hop-on.com
- Go HPNN
===========================================================
$HPNN: Hop-on Shareholder Meeting Update
Date : 05/20/2014 @ 1:45PM
Source : Marketwired
Stock : Hop-on, Inc. (PC) (HPNN)
Hop-on Shareholder Meeting Update
Hop-on Identifies 170 OEMs and ODMs for IP Licensing
TEMECULA, CA--(Marketwired - May 20, 2014) - Hop-on, Inc. (OTC Pink: HPNN) (PINKSHEETS: HPNN) a global electronics OEM, is pleased to announce today that its shareholder meeting held on May 16, 2014 was a successful opportunity to interact with shareholders regarding recent developments. The format of the meeting allowed for an open and broad-ranging discussion to address Company progress and concerns.
The Company has put out several news releases in recent months, and the purpose of the shareholder meeting was to review the Company's positive developments and lay out the plans for its future.
The agenda items covered were
1. Update on the intellectual property royalty agreement with Microsoft.
2. Closing of the Company's first IPR deal with Teleepoch
3. Update on IPR negotiations with 12 Chinese and Taiwanese OEMs
4. Update on 170 companies Hop-on will be pursuing for licensing arrangements
5. Retirement of significant portions of Company debt
6. Plans for spin-off of Re-Medical subsidiary to fully reporting public BB company
7. CTO summarized Re-Medical's proprietary cannabinoid therapies and delivery technologies
8. Plans for Re-Medical IP licensing arrangements and operations in Colorado
9. Plans for USACig subsidiary
10. Plans for adjusting the capital structure of the Company, including dispelling false rumors of a pending reverse stock split
11. At the insistence of shareholders, Mr. Michaels addressed concerns regarding a stalker harassing him using different aliases on the Internet. Mr. Michaels acknowledged in response to shareholder concerns that law enforcement is investigating this individual. The shareholders were also informed regarding status of an extortion attempt by one internet poster earlier this year.
Peter Michaels, President of Hop-on stated, "I was pleased with our shareholder turnout at the meeting, and even more pleased about the positive response and outlook of our investors. I also appreciate the support from our shareholders."
ABOUT HOP-ON, INC.
Hop-on, Inc. is a global ODM and OEM manufacturer of electronics, based in the United States. Over the past 20 years, Hop-on has successfully secured essential patents for mobile communications and computing technologies, and is respected for developing the world's first disposable cell phone. Hop-on's focus on smartphones and innovative mobile device applications is bringing cost friendly solutions to today's demanding world market. Hop-on is also diversified in nutraceutical and cannabinoid technologies through its subsidiary Re-Medical, Inc. For more information, please visit www.hop-on.com and www.re-medical.com
Safe Harbor
This press release contains forward looking statements pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements include risks and uncertainties that may cause the company's plans to change and are in no way intended to guarantee that the company will be successful in executing its plans. Hop-on, Inc. common stock currently trades on the over-the-counter "Pink Sheets" under the symbol HPNN. This press release in no way constitutes any recommendation regarding the securities of HPNN or its affiliates. Any person reading this press release is advised that this release should be considered in the light of all facts and circumstances regarding the business and financial condition and prospects of HPNN, and no inference has been made that this release contains all such information.
Additional Information
For additional information, please contact
Peter Michaels
(949) 756-9008
Email contact@hop-on.com
- Go HPNN
$CLNP: CleanPath Resources Corp Announces Excellent Results From Clinical Trials
Date : 02/05/2014 @ 12:45PM
Source : PR Newswire (US)
Stock : Cleanpath Resources Corp. (PL) (CLNP)
LAS VEGAS, Feb. 5, 1014 /PRNewswire/ – CleanPath Resources Corp (OTC: CLNP) (www.re-load.biz) announced today that the test results from its overseas randomized double-blind, placebo-controlled, human clinical trial showed a 268% increase in circulating stem cells in the blood, when using its product known as NUTRALOAD™. This increase in circulating stem cells is credited with decreased recovery time after work-outs and overall improved wellness.
The Company is moving ahead with distributors and international firms that have indicated an interest as a result of these findings. Ken Lewis, President of CleanPath Resources, stated, "This is one of the most important test results promoting overall Wellness universally." He also, indicated that the Company will be releasing another startling announcement in the next ten days.
ABOUT CLEANPATH RESOURCES CORP.
CleanPath Resources Corp (CLNP) focuses on the vast nutraceuticals market created by the growing demand for natural sources of wellness and an ever increasing desire of people to take control of their health and wellbeing through proper diet and nutritional supplements. The company offers products that give aggressive entrepreneurs access to advanced beneficial products that are herbal, natural, and safe.
FORWARD-LOOKING DISCLAIMER
This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risks, uncertainties and other factors, which may cause the actual results, performance or achievements of CleanPath Resources Corp to be materially different from the statements made herein.
Contact:
Ken Lewis
CleanPath Resources Corp.
2400 S. Cimarron Road, Suite 120B
Las Vegas, NV 89128
Voice – (877)-309-9876
- Go CLNP
Strongus, FYI Grifco
and Jim Dial have finally been busted:
http://houston.fbi.gov/dojpressrel/pressrel10/ho031110a.htm
I know you got out of this stock a long time ago before it became obvious.
best2
LUMC : More than 50% jump since the alert!
LNG : Keep an eye for a bounce Be careful with your entry & exit points. It goes up & down very fast.
I am in LUMC big time Added a few times in the last 2 days.. Thats some solid dd there, lee. I haven't posted much on this forum for a while. May be it is time to bring it back to life
Posted by: leebret
In reply to: None Date:5/3/2008 10:19:43 AM
Post #of 390
Things that have changed (vs) Things that haven't.
Things that changed.
1) On March 31st 2008 Luminent announces with a pr the proposed restructuring the stock opens @ 65 and hits a low of .55 and closes @.61 on 890,400 shares
2) The zacks article on April 14th gave a .30 price target and nothing to really back up their position.....link below; Stock drops from a high of .52 and closes @.44 on 1,214,000 shares.
http://www.zacks.com/blog/post_detail.html?t=12318
3) On April 28th 2008 the NYSE puts out a pr of its own saying they would delist the company on Friday, May 2nd. Stock opens on the (28th) @ .38 and closes @ .37 on low volume of 231,600 shares and as the week progresses to Thursday (May 1st) the day before the delisting we open @.25 and close @.22 on heavy volume of 5,437,700 shares as institutions liquidate their positions.
NEW YORK, April 28, 2008 – NYSE Regulation, Inc. (“NYSE Regulation”) announced today that it determined that the common stock of Luminent Mortgage Capital, Inc. (the “Company”) – ticker symbol LUM - should be suspended prior to the opening on Friday, May 2, 2008.
The decision was reached in view of the fact that the Company has fallen below the New York Stock Exchange’s (“NYSE”) continued listing standard regarding average share price over a consecutive 30 trading-day period of not less than $1.00. In addition, the market capitalization of the Company’s common stock recently has also fallen below the NYSE’s continued listing standard regarding average global market capitalization over a consecutive 30 trading day period of not less than $25 million, which is the minimum threshold for listing.
4) We start trading the OTC exchange with all the chaos of ticker symbol change, no streamer exc. We open @.21 hit a low of .15 and close @.19 with heavy volume of 2,539,200 shares traded. With those who got shocked, running from their positions.
Now onto the things that haven't changed. This is the part that irritates the doom and gloomers who claim at every-turn that "I" told you so...."Look at me and what I said, ain't I brilliant"? Now while I will agree they have visual evidence that the share price has changed and they temporarily have crystal balls that seem to work.
I'm so sorry to disappoint them when I say ...........Nothing has changed and now I'll run down a list of things that we have no need of a crystal ball to enhance our positions to remain long.
THINGS THAT HAVEN'T CHANGED;
1) On April 22nd I reported the new short numbers. By April 15th they had covered almost 4 million shares of the 11 million short over a 45 day period. I'm sure the new period between April 15th and April 30th those numbers went even lower. Last short numbers reported on April 15th stood @ approximately 7 million.
Even though the short numbers haven't boosted the share price they have continued to cover and we have the evidence to prove it. Assuming they covered as many as 2 million in the latest period, they still need 5 million more. The four events above helped them in their quest to cover while not raising the price and I don't think there is anyone that would disagree with that. So there is no need for anyone to point out the lack of the "so called short squeeze" hasn't happened. It's obvious, we know, and we understand why we haven't got one! Now do you get it? No need for a crystal ball to explain it, hey?
2) Since August of 2007 when everything collapsed and expectations were they would declare bankruptcy, the doors remain open and Luminent remains in business.
3) Has anything changed since the release of their 10k (for the year 2007) on March 28th 2008? They took another massive write down and remain in business as of May the 3rd.
4) In December we know that Arco upped the extended line of credit to Luminent too $190 million dollars.
5) At the end of Dec we know they had $45 million of undistributed income to shareholders;
As of December 31, 2007, we estimate that we had approximately $45.0 million of undistributed REIT taxable income
6) We know that as of Dec 31st 2007 they had over 4 billion of loans on the books;
For the near-term, we believe we can take advantage of our existing resources to absorb CRM business without significant increases in expenses as our own whole portfolio has decreased from $5.9 billion as of July 2007 to $4.2 billion as of December 31, 2007 primarily due to prepayments.
7) We know that the markets have stabilized since last August and with the latest Fed moves, it has pumped much needed liquidity back into the markets.
8) We know that the recent cut in interest rates has added significantly to Luminent's advantage.
9) We know of no additional margin calls since the last reporting period.
10) We can assume that the first & second quarter numbers will be much better than the 3rd and 4th quarters of 2007.
11) We know that in addition to the 45 million of undistributed income through Dec 2007 they will also have the 1st and 2nd quarters income to distribute as well.
12) We know that they will be paying out a one time dividend of cash and stock at some point in this process.
13) We know that Arco has been steadfast in their continued support of Luminent, with cash and board-member guidance.
14) We know that those short this stock will want to cover their positions long before (if possible) any dividend is announced. We have the evidence!
15) We know they have a plan of action under the new LLC to become diversified and already have a new partner in one venture.
16) We know that the current market cap in no way reflects the current value of the company even with the negative events of late.
17) We know that one day they will up-list the stock.
18) We know the silence is do to pending lawsuits and the litigious society we live in.
19) We know that by the end of June we will have several pr's about the dividend payouts and much more up-to-date financial information to properly value Luminent.
20) Twenty is for the Naysayer's.
We know that there are many on the sidelines wishing, praying, hoping, for this to fall much further. We know they want it to fall so they can jump in for a quick trade. We know that they are vicious and unrelenting in there pursuit of all the negatives. We know that they will joyfully proclaim that they jumped in and made a quick trade. They will stop at nothing to disrupt any logical long term view and remind everyone how far the price has fallen. They are hanging around in the hopes of jumping in quickly on any positive news. Some enjoy the art of inflicting pain on anyone's loses and how superior it makes them feel when they can ridicule and degrade others.
I could have made more points on "Things that haven't changed" and anyone that would like to add more is certainly welcome to do so. I don't invest with my heart, I invest with my head and the knowledge that I have attained. I have a large investment and the things that haven't changed is the reason I share these things and hold my investment
Nice board strongus,
Wanted you and your board to see this and give some time for research before next week's explosion.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=29003478
Sure, Peach. Starting to see some good signs there GL!
Save a few coins to jump back on AMGG..best of luck you have been very helpful to me.
ABK made an amazing move today! Sold some AH and keeping a little for next week.
Added some more to my SIRF position here..way oversold..
SCA 70s buys look golden now
lol..taken to the cleaners today..more exciting to watch than pinkies it will bounce back up..I bought some at 70s..BRLC bounced big today..made out nice on that..timing is every thing..
what fk happen to sca.
BRLC : News out this morning. New contract !!
well..he was bullish before but not now..I got in very recently and I am very comfortable with my position..
BRLC : Bounce time Appointment of new BD member is seen positive!
Sorry, yes I found it with the new symbol.
Strongus What happened to the RGNO board????????????
Keep an eye on BRLC. Way oversold and playing it for a nice bounce
Going by your logic, you should be bullish on HMGP now
No thanks thats one of lowman picks are ready been rip off on some of his other picks.
Bought more HMGP today. I am one of those guys who can't live without putting money O & G plays..lol..With the demise of RGNO, I was looking around for a safe bet. HMGP is the answer I found.
I also got shares in more speculative O & G plays : NWOL & FTXN
You are brave to hold long term crazy market.I have to make some money so how far do think sca will go short term.
OPXT doing good today Still a bargain at this price..
Holding onto my SCA RAMR & ABK They got a huge upside potential when the first candle is lighted Too much darkness clouding them..Bailout would take them up big time..
SCA is flying as we speak
It's going to be very interesting to see how it all plays out.
ABK saviors and destroyers are present.
There is a core position which i would like to keep..the trading position is to make use of the volatility..lol every thing is a speculation at this point..
Keep a close eye on your ABK shares...
the stock price will be volatile today/ week. Should have a good chance to make a few bucks before the selloff.
Got to remember that ABK will not be able to generate any new business. There is no future for them. No one will do any business with them. The Band-aids are coming....that's all that can be done.
mb
Yes ! ABK bailout news is expected this week. I have bought good amount of SCA RAMR & ABK in the last few weeks and planning on holding the core position in them for long term.
Guys could be a big day abk sca if a bailout comes look at the moves fri I bid on sca at 1.35 just missed it sould have been 1.37. cor is started to move and watch gax if it goes below 0.05 its abuy I wish I had more money.
Bought some ABK today..Great trading stock
ency : WOW ! That was a nice jump for the shareholders..Cool double in a day I will check out the other stocks..Thanks.
Did you see ency they got bought I sold them a couple months ago because of delisting.Watch finl,llnw,cege,cor finl is starting to move. and llnw is a player.
I like OPTX & SIRF for long term. Looking at BRLC for a bounce play.
ABK is a good trading stock. You did good by selling it at 11. Now you can buy back a buck cheaper I bought some ABK at yesterday's lows. I have a lot of RAMR & SCA. I trade around the core positions a lot. I reduced my exposure to pinkies/penny stocks and ARSC is no exception to that. GL!
Igot in at 1.60 sca I own arsc to I dont no what you think of arsc.I sold abk at 11.00 maybe sould have held litter longer.
FTXN is starting to run..this stock's low market cap continues to amaze me..there were press releases from
them about producing wells..the market cap is lower than what it would cost to buy a shell..
http://investorshub.advfn.com/boards/read_msg.asp?Message_id=26647057&txt2find=ftxn
one possible reason is that ftxn ceo is also GFCI CEO and he didn't deliver on the promises there..I am buying ftxn
hoping for a management change..looks cheap to me however I slice it..the following was posted on
another forum..take it as a pointer but not as a dd as no one can confirm the assumptions for sure..
By: been_burned_before
16 Feb 2008, 04:32 AM EST
Msg. 44220 of 44302
(This msg. is a reply to 44215 by cyofish2.)
Jump to msg. #
OT: cyofish: I beg to differ!
I just confirmed today (that would be Friday, February 15, 2008) that Ronnie Taylor's business (aka Precision Drilling, Inc., PDEI) spudded the 10th well for Universal Energy Resources, Inc. (UERI) last Friday (February 8, 2008). The 8th and 9th wells for UERI have already been completed (perforated, fractured and stimulated) and are currently in the process of being swabbed in preparation for bringing them on-line to the Producers Gas transmission line for gas sales. The contact is also saying that PDEI has already taken receipt of a new rig, but the new rig is still waiting on some key components before being utilized to step up the pace of this drilling program.
Now, PDEI spudded UERI's 1st gas well back in February 2007, and PDEI spudded UERI's 10th gas well in February 2008. So, PDEI is averaging a little more than 9 wells per year right now. PDEI will easily have generated $300k x 9, or $2.7 million in revenue for a recent trailing 12 months. Of course, most of us here already know that but only 51% of PDEI is actually owned by UERI, so essentially, UERI has generated about $1.38 million in indirect trailing twelve month (TTM) revenues; add to that mix the additional revenue from UERI's gas sales over the same time frame, which I estimate to be just a hair better than $600k (that would be the 75% net royalty interest portion), and you can get a respectable revenue stream.
Therefore, the annual revenue being generated right now is about $3.3 million. Now, out of those gas sales revenues, though, will come out the 50% Working Interest portion that will go to direct participation investors. Thus it should likely generate about $1.67 million in net revenues. That is not that bad at all for a little, start-up company with 8 employees. Of course, I have to admit that none of this makes a hill of beans IF we fail to receive shares in PDEI. Yet, given the facts that Grifco has already put out in the past, regarding PDEI, we DID own it at one time, as PDEI was proclaimed as a Grifco subsidiary that was "sold" to UERI. We must receive some compensation for it.
What truly amazes me the most right now is that Victory Energy (VYEY) has only professed to own 2 gas wells, only one of which is completed and the other of which was just spudded on or around February 6, 2008 (that is what they have claimed), and they are currently trading at a market cap of $2.5 million. If FTXN was valued, using the same broad based approach, it would trade at a market cap of $12.5 million. The pps, with their professed 76.3 million shares issued and outstanding, would essentially be priced better than $0.16 per share.
cyofish, I find it quite hilarious that you dare to proclaim that the only thing of any worth here is the tangible equipment asset. But an enterprising company is more than the sum of its tangible assets! If a small company can actually generate revenues and ultimately produce positive earnings, wouldn't that company be valued on something going beyond just the collective amalgamation of tangible assets? I really believe that you are far smarter than this; it does seem that you are trying very hard to disguise or bury the real issue.
For you concerned FTXN shareholders, by the way: The upcoming 75% net royalty interest check for December 2007 production will be issued to UERI, which is very encouraging news. Moreover, the payor has not an inkling of who VYEY is. You would think that if a substantial amount of FTXN's assets had been given up or relinquished to VYEY, the payor of the net royalty interest would have SOME idea, no? This fact must reveal that whatever VYEY is doing with FTXN, it must be some kind of direct participation "assignment of working interest" agreement, much like what HCP Investments, LLC has done with UERI. This does beg the question: WHY or HOW is VYEY touting their new gas wells as THEIR gas wells, and HOW are they drilling these wells? According to my latest reputable source, the only drilling rig that is doing any drilling to his knowledge is Taylor's old rig, and that rig is drilling on behalf of UERI. So, then, WHO in the world is drilling for VYEY?
Well, I must admit that the straightest answer to that question is an interesting one, to say the least. Visit VYEY's web site; located at the middle-left portion of the page, just underneath that nice pic of an offshore flare stack, you will see a link that is titled "** Click here for pictures of our latest drilling"; go ahead and click on that link and you will then see some nice pics of that actual drilling rig in action. It may interest you to know that that rig is Taylor's old rig. How do I know? Another Grifco shareholder visited UERI's drill site at Adams "127" Well 11 back on May 11, 2007, and he took pics of that drilling rig in action. The work crew told the shareholder that they were anticipating receipt of a new rig -- a bigger, better rig.
According to that work crew, the old rig is capable of going downhole as deep as 5,500 feet with 25-foot segments. That new rig is capable of going downhole as deep as 8,500 feet with 33-foot segments. As it turns out, the new rig (yet to be utilized) is a much better piece of drilling equipment.
You can compare the two pics of the actual rig here (the top one is a pic that was taken on May 11, 2007, and the bottom one was taken from the VYEY web site; as you will see, they are one and the same rig):
http://img213.imageshack.us/img213/6431/ueririgvsvyeyrigvn3.png
Been_Burned_Before
SCA : The big boys are scooping it cheap..SCA is trading very close to its all time low. Unlike other bond insurers they didn't sell shares to raise capital. 52 week high was $34.58. It is a safe bet at $1.59 considering the fact that they got $3.888 in cash per share !!!
Recession? Where to put your money now
Gloom in the markets means great opportunities, if you've got courage and patience.
By Shawn Tully, editor at large
(Fortune Magazine) -- Here we go again. Day after day, Americans are being bombarded by a relentless drumbeat of unsettling economic news. The Dow regularly swings by hundreds of points in a single session as it gyrates near bear-market territory. Oil prices keep bubbling toward $100 a barrel. The dollar is crumbling, and a rogue trader in Paris is blamed for triggering a synchronized selloff heard round the world. We're constantly warned that an ugly recession is looming, if not already here. It's all enough to cause a panic attack.
Don't let the doomsday headlines and the careening markets scare you. Take a sip of Chardonnay - or a shot of bourbon - and remember your history. We've been through this kind of wrenching volatility many times before: during the meltdown in October 1987, the S&L crisis of the early 1990s, the Asian Contagion of 1997 and 1998, and most recently, the tech bubble of 2000. These plunges are both predictable - because they're part of the bumpy ride that holding stocks is all about - and unpredictable, because you never know when they'll strike. In fact, stocks offer big returns in the long term precisely because their performance zigzags wildly at times like these. "Investors should be grateful for bear markets, because without them stocks would offer bondlike returns," says Larry Swedroe, a financial advisor with Buckingham Asset Management in St. Louis. So while it's tough to see anything good about this rocky market while watching your 401(k) shrink - the S&P 500 index is off 13% from its high in October, and the Nasdaq has shed 18% - remember that big selloffs present rare and essential buying opportunities, and the current one is no exception.
Still, investors need to temper their courage with caution by picking investments that are genuinely cheap, not just less expensive than they were a year ago. This isn't a shopper's paradise like the early 1980s, when every type of stock seemed to be a screaming buy. But for the first time in years we're seeing lots of genuine bargains, chiefly in beaten-down sectors that have already gone through the equivalent of a steep recession. It's a great time to grab big-dividend-paying bank and pharma stocks, for example. Meanwhile, keep plenty of cash so you can pounce when still-overpriced issues - hint, the tech sector is full of them - spiral downward. It's going to happen: That's why bear markets are a gift to nimble investors.
This story will help you make smart decisions to profit from today's turbulence. We'll guide you through the market noise and Wall Street chatter so that you'll make the right moves at the right times. We'll start by looking at current conditions; then we'll get down to specific stocks, bonds, and funds to buy now.
Wall Street wisdom says that the biggest danger to the markets is the R-word: recession (generally defined as two quarters of falling gross domestic product, but "officially" determined after the fact by the National Bureau of Economic Research). However, the predictions of a deep downturn are highly exaggerated, in part because Washington is rushing to revive the flagging economy. GDP increased 0.6% in the fourth quarter (on first estimate), after a powerful 4.9% surge in the third quarter - so no contraction yet. Exports are booming, growing at an annual rate of 13%, thanks to the weak dollar. The employment picture is surprisingly resilient. Jobless claims, a reliable harbinger of recession, have averaged about 325,000 for the past four weeks, far below the danger point. "We haven't seen the 25% increase in jobless claims we had before the last two recessions," says Michael Darda, chief economist with MKM Partners, an equity trading and research firm. "We're not getting a recession signal."
The forces weighing down the economy are soft consumer spending and plummeting housing prices, along with far more expensive credit that's slowing everything from auto purchases to the creation of new businesses. Those factors are a serious drag on demand. But they pose their gravest threat in the first two quarters of 2008. If we're going to get a recession, it will most likely happen amid this turmoil, in the first half of this year.
But any slump is likely to be short and mild, mainly because Washington is on the case. Since mid-September, Federal Reserve chairman Ben Bernanke has reduced the target for the Fed funds rate by 2.25 percentage points, with the biggest move, a sudden 75-basis-point cut, coming on Jan. 22. On Jan. 30, the Fed cut another half-point, bringing the target to 3%. It usually takes six to nine months for a Fed rate cut to bolster consumer and business spending. By midyear the flood of liquidity will be channeled into new loans for companies and consumers. A resurgence in easy credit - stoking the appetite for everything from big-screen TVs to capital equipment - will be practically irresistible. Consumer spending will get another boost from the roughly $150 billion economic stimulus plan Congress is poised to approve. Checks that could range from $1,000 to well over $2,000 are likely to start going out to families this summer. The easy money doesn't stop there. The Fed has practically promised even more rate cuts. The markets are predicting that the Fed funds rate will be 2% to 2.5% by year-end. With that kind of aggressive stimulus, look for growth to jump back to the 3% to 3.5% range in the second half of the year. Says Brian Wesbury, chief economist at First Trust Advisors: "You simply don't get recessions when the Fed funds rate is at 3% or below, and the Fed is in a strongly expansionary mode."
Those low rates, though, are creating the conditions for a bigger crisis down the road. "The real challenge will be inflation," warns Darda, "not the near-term economic worries that the financial press is harping on." After fretting over surging prices early last year, the Fed is now ignoring them in its all-out campaign to revive the economy. But the threat isn't going away. In 2007 the consumer price index rose 4.1%, the biggest jump in 17 years. The combination of high oil, food, and metals prices, along with low interest rates and growing global demand, is a classic recipe for inflation. "Much higher inflation is practically inevitable," says Carnegie Mellon economist Allan Meltzer. Eventually the market will wake up to the problem, and so will the Fed. "The real danger is in 2009 and 2010," says Meltzer. "The Fed will be forced to raise rates substantially to kill off inflation, possibly causing a recession."
While the economic outlook is highly uncertain, one key fact is not: Stocks are still expensive. Wall Street analysts never tire of telling investors that equities are cheap. They cite the current price/earnings ratios, which indeed appear reasonable. The problem is that corporate earnings are coming off not just a cyclical peak but a historic pinnacle, which makes P/E ratios look artificially low. Until late 2006, average earnings for the stocks in the S&P 500 had jumped by at least 10% over the previous year for 18 consecutive quarters, a feat never before achieved. (Profit margins rose to well above their historical average as well.) Yale economist Robert Shiller has developed a formula that smooths out earnings to remove the cyclical spikes. It shows that stock prices now stand at a lofty 24.5 times earnings - well below the towering 27.5 posted in March but still leagues ahead of the long-term average of around 15.
Now we're ready to get down to business. As an investor, you face two challenges in today's tumultuous market: First, you have to choose bargain stocks while recognizing that the overall averages are still extremely pricey and have plenty of room to fall. Second, you must assemble a portfolio that will protect you from the claws of inflation, while keeping plenty of funds in cash so you can grab the beaten-down buys when they appear. We offer our advice with a big proviso: If you already have a sound, highly diversified portfolio spread across a wide variety of U.S. and foreign large-cap, value, and small-company stocks, you're already positioned to withstand and even profit from market shocks. In that case, we recommend that you do nothing. Simply stay with your plan. But if you're about to start building a portfolio, or if you've just received a big bonus or inheritance, or if you're stuck in high-cost funds guaranteed to sap a huge part of your future gains, even if you're regularly adding to your 401(k), Fortune can guide you to both profit and protection of your money in turbulent times.
Watch those fees
One thing is true in good markets and bad: Investors who pay big fees will fare far worse than those who exclusively buy ultra-cheap funds. Vanguard founder John Bogle, the leading apostle of low-cost investing, estimates that the average actively managed mutual fund absorbs an astounding 2.5 percentage points in expenses (the total of sales charges, management fees, and trading costs) - vs. one- or two-tenths of a point for most index funds and exchange-traded funds. Research shows that index funds perform just as well as actively managed mutual funds before fees, and that after fees, it's no contest. "All the studies show that expenses are the most powerful indicator of a fund's performance," says Russell Kinnell, director of research at Morningstar.
Index funds and ETFs come in all varieties, covering large and small stocks, growth and value styles, foreign and domestic, and everything in between. The most popular are those that cover the whole range of large-cap U.S. stocks, including Vanguard 500 Index (VFINX) and Fidelity Spartan 500 (FSMKX). ETFs are similar to index funds, except that they trade on exchanges like stocks. The Rydex Russell Top 50 (XLG) is a Morningstar favorite that holds the 50 largest U.S. stocks. It's a bit pricier, with annual expenses of 0.2%, but still a bargain.
Dividends can cushion the blow
The big selloff is creating a rare opportunity: a chance to buy big-dividend-paying companies at yields we haven't seen in years. Dividend stocks offer fatter yields when their prices fall - and that's precisely what has happened in sectors as diverse as financial services, pharmaceuticals, and tobacco.
There are lots of reasons to love dividends. They're taxed at only 15% at the federal level, at least until 2010. Unlike the fixed interest payments on bonds, they generally grow with earnings. So yield stocks are a great hedge in America's jittery new world of sharply rising prices, and the ability to pay a consistent dividend signals that the company is healthy. "It shows that management believes the prospects are good," says Lowell Miller of Miller/Howard Investments, a money management firm. (Of course, an unusually high yield can be a warning sign: Citigroup's yield jumped into double digits shortly before the beleaguered bank cut its payout.) For investors, the crucial task is to find solid players that are unloved but boast strong, predictable earnings. Those companies will keep dispensing - and increasing - dividends. If you want growing income for life, now is the time to pounce.
Where do you go hunting for yield? One place to start is pharma. Today Bristol-Myers Squibb (BMY, Fortune 500) and Pfizer (PFE, Fortune 500) yield over 5%, and GlaxoSmithKline (GSK) isn't far behind at 4.5%. A second category is utilities. Here, prices are far stronger, but yields remain attractive: Consolidated Edison (ED, Fortune 500) for example, pays over 5%, and its earnings are solid as granite. A number of big utilities that specialize in energy distribution offer attractive yields, and they're protected from the bumpy economy by regulated rates of returns. Pepco Holdings (POM, Fortune 500), AGL Resources (ATG), and WGL Holdings (WGL) are all paying around 4.3%. A smart strategy is diversifying via ETFs and index funds. Vanguard's SPDR S&P Dividend ETF (SDY) spreads the risk among 52 stocks that have increased their payouts steadily. Current yield: 3.5%.
Buy battered shares, if you dare
If you have a strong stomach for risk, read on. In this section we'll talk about the two most reviled, bloodied sectors in the current carnage - banks and homebuilders. The argument for buying them selectively is compelling, for this reason: They pass the test of being genuinely cheap. When it comes to banks and homebuilders, the market's expectations are extremely low, hence easy to beat. Let's look first at banks. The best buys aren't the Wall Street giants, which depend heavily on highly erratic profits from trading, but the big, diversified players that sell lots of retail products, from credit cards to checking accounts. They've suffered from write-downs too, but the worst is behind them, and the Fed's rate cuts will boost their profit margins on loans. Four excellent picks are Bank of America (BAC, Fortune 500), Wachovia (WB, Fortune 500), Wells Fargo (WFC, Fortune 500), and US Bancorp (USB, Fortune 500). BofA and Wachovia earnings have been dented by bad subprime debt but are still extremely strong. Both stocks are trading at less than 12 times the past 12 months' earnings and boast dividend yields of better than 6%. Wells and US Bancorp skirted most credit problems, yet Wells pays a dividend of almost 4%, and US Bancorp yields over 5%.
True daredevils may want to consider the homebuilders. Keep in mind, stocks usually rebound not when news in a stricken sector gets better, but well before. So it's a good time to start building stakes in the battered builders, a bit at a time, via dollar-cost averaging. Despite all the chaos in real estate, Americans aren't going to stop buying homes in the future, and the future is what counts. We recommend two. The first is Toll Brothers (TOL, Fortune 500) which has lost 60% of its value since 2005. Toll specializes in high-end homes, so it stands to reap excellent margins when markets recover. Our second pick: NVR (NVR, Fortune 500), which is known for innovative, mass-production building techniques and carries relatively little debt.
Look abroad
Want to improve your returns without increasing your risk? One answer is tilting your portfolio heavily toward international stocks. As always with a sound portfolio, the benefits will materialize over a number of years. But the time to start is now. In the past two years foreign stocks have wildly outperformed U.S. equities. European stocks soared at a 23% annual rate in 2006 and 2007, while emerging markets jumped 35% a year. In 2008, however, both markets have suffered sharp corrections, as have equities worldwide. The EAFE index of big-cap stocks worldwide now looks like a bargain: Its P/E stands at under 14, far below multiples in the U.S.
Not all foreign stocks deliver diversification. Players like Sony (SNE) or Unilever (UL) are fully global - they simply mimic the performance of other international colossi like Coca-Cola and IBM. "To get diversification, you need to go to the less liquid part of the market, to small-cap stocks," says Dan Wheeler of Dimensional Fund Advisors, a pioneer in index funds. Why do small caps work best? Because far more of their sales are concentrated in local markets. And since those markets offer very different dynamics from the U.S., they often thrive when America is swooning. The benefits? According to a study by Rex Sinquefield, DFA's co-founder, investing heavily in stocks that track local markets and in value shares yields investors an extra two points of return, without increasing volatility.
With that in mind, we suggest devoting 35% of your equity stake to foreign shares, with about two-thirds going into small-cap and value stocks, via funds like Vanguard International Explorer (VINEX). Divide the rest of your stake between a broad large-cap ETF like iShares' MSCI EAFE Index (EFA) and an emerging-markets entry like iShares MSCI Emerging Markets (EEM). DFA offers a variety of strong choices, available through financial advisors.
Beware of bonds
The problem with most bonds is that they're not paying enough to compensate investors for today's inflation, let alone the surging prices that haunt our future. Right now ten-year Treasuries are yielding just 3.6%, because in these rocky times, many investors are willing to sacrifice returns for short-term safety. As Wharton economist Jeremy Siegel puts it, "There is no value for investors in most bonds."
Indeed, for your fixed-income portfolio, only two choices make sense: municipal bonds and Treasury Inflation-Protected securities, widely known as TIPs. Now is an ideal time to buy munis. Bonds issued by state and local authorities in New York and California pay around 3.3% and are exempt from federal taxes (and local levies if you live in those states). That's the equivalent of a pretax return of almost 5%, far above the yield on Treasuries. For a diversified blend of munis, an excellent choice is Vanguard Intermediate-Term Tax-Exempt (VWITX), which boasts a yield of 3.4% and fees of just 15 basis points.
With increased inflation almost a sure thing, TIPs are an essential. They are the only investment guaranteed to keep pace with inflation. The face value of each TIP is adjusted every six months to reflect the change in the CPI. You can buy TIPs online the same way you buy Treasuries, with no fees. Simply log in to treasurydirect.gov. And Fidelity, T. Rowe Price, and Vanguard, among others, offer TIPs funds.
Finally, let's deal with cash. The best place to park it is in CDs. Even though the Fed is chipping away at short-term rates, the yields on CDs are holding up amazingly well. The reason is that banks are competing ferociously for funds, especially now that longer-term lending rates are rising. The key is to stay in maturities of six months or less - and shop around. Corus of Chicago, for example, is paying 4.1% on a six-month CD. That term is just about right. If rates rise, you can quickly move your cash into CDs or bonds that yield more.
Winning in these treacherous times is as much about psychology as following the rules. It takes guts to be daring when markets are melting down. But that's the quality that makes great investors. As Warren Buffett says, "Be fearful when others are greedy and greedy when others are fearful." Now's a time when greed, Buffett-style, is good. Just make sure your greed is highly selective.
Reporter associates Katie Benner and Eugenia Levenson contributed to this article.
Read this every one : Carlos Slim, the richest man in the world
The son of a Mexico City shopkeeper has built a staggering $59 billion fortune. Fortune's Stephanie Mehta tells the inside story of how he made it to the top.
By Stephanie N. Mehta, Fortune senior writer
August 20 2007: 12:12 PM EDT
(Fortune Magazine) -- I remember there was a time when the value of his enterprises was very low," recalls Patrick, the youngest son of Carlos Slim Helú. It was the early 1980s, and Mexico was in the depths of a massive financial crisis. Periodically the elder Slim would round up his three teenage sons for an economics lesson. Sitting them down in the living room of the family home, Slim would produce a single handwritten list. One line would show, for instance, how a Mexican insurance company was selling for far less than a similar American insurer. Another would show that compared with European candy or cigarette makers, Mexican manufacturers were drastically undervalued. "It was a very, very long time ago," says Patrick, "but I absolutely remember him teaching us at an early age."
For Slim, a onetime math instructor, this was no mere academic exercise. Yes, he wanted to instill in his sons the same lesson his father - a Lebanese immigrant who started acquiring real estate in Mexico City during the Revolution of 1910 - taught him: Though Mexico will have its ups and downs, don't ever count the country out. But Slim wasn't just teaching, he was buying. He spent $55 million on an insurance company. He took a stake in retailer Sanborns. He invested in a hotel chain.
Now those early investments are paying off big time. His three heirs - Carlos Jr., 40; Marco Antonio, 39; and Patrick, 38, run day-to-day operations at various Slim businesses and are increasingly making strategic decisions, while their father, who had heart surgery in 1997, pulls back. And Slim's investments in downtrodden Mexico? They laid the foundations of a sprawling, $150 billion business empire whose growth in recent months has turned Carlos Slim Helú into the world's richest man.
By our calculations, the 67-year-old Slim has amassed a $59 billion fortune, based on the value of his public holdings at the end of July. This number puts him just ahead of perennial No. 1, Microsoft founder Bill Gates, whose net worth is estimated to be at least $58 billion. But Gates is selling off his single greatest source of wealth, Microsoft stock, to fund his foundation, while Slim's fortune is growing at a stunning clip. His net worth jumped $12 billion this year alone. His family's holdings represent more than 5% of Mexico's 2006 gross domestic product, and Slim-controlled companies make up one-third of the $422 billion Mexican Bolsa, or stock exchange.
Portly and often puffing a cigar, Slim could pass for a latter-day Latin American J.P. Morgan. But with his dominant stakes in everything from phones to finance, his business profile more closely resembles that of John D. Rockefeller, who likewise thrived in a loosely regulated environment. (For the record, though, even in current dollars Rockefeller's wealth pales in comparison to Slim's: At his death in 1937, Rockefeller was worth $20.3 billion, representing one fifty-second of 1937 U.S. GDP.) The average Mexican encounters a Slim-owned business when she visits an ATM, drives a car, stops for coffee, and especially when she picks up the phone - Slim's Teléfonos de México controls 92% of the country's phone lines, and his América Móvil wireless service has a 70% market share. George W. Grayson, a professor of government at the College of William & Mary, coined the term "Slimlandia" to describe how entrenched the Slim family's companies are in the daily life of Mexicans.
It's not a reverential term. Many Mexicans hoped privatization, which began in the early 1990s, would create competition and drive prices down drastically. That hasn't happened. "Slim is one of a dozen fat cats in Mexico who impede that country's growth because they run monopolies or oligopolies," says Grayson. "The Mexican economy is highly inefficient, and it is losing its competitive standing vis-à-vis other countries because of people like Slim."
"The accusations are not well-founded," Carlos Jr. fires back during an interview. He then pulls out an analyst's report showing how the average price of long-distance phone service in Mexico compares with that in other countries. Mexico is third cheapest, according to the report, behind the U.S. and Finland. (A recent study by the World Bank paints a different picture, showing that Mexico's rates for monthly service and residential phone hookups are among the highest in the developing world.)
Wooing the public isn't exactly a favorite activity for the Slims. "I think sometimes when you are successful in business," says Slim in heavily accented English, "you have others trying to turn public opinion against you because they are trying to compete with you." Slim, however, is beginning to court public opinion, pledging earlier this year to increase the size of his charitable foundations. Meanwhile, his sons are doing what the Slims do best: making more money.
***
Anyone expecting to find monuments to the Slim financial empire in Mexico City - a gleaming TelMex tower jutting out of the skyline or an América Móvil stadium - would leave disappointed. In fact, América Móvil, Latin America's largest provider of wireless services, is housed in a converted tire factory. The juxtaposition of austerity and wealth can be quite odd, as evidenced by a recent visit to the headquarters of Inbursa, Slim's financial business. Just beyond the lobby is a makeshift art gallery that features a rotating selection of paintings on loan from the Museo Soumaya, a Slim-financed fine-arts museum named after his wife, who died in 1999. The room is a bit shabby. It is poorly lit and smells faintly of cigarettes; several large crates are propped against one of the walls. "We had several El Grecos here," Arturo Elias Ayub, Slim's son-in-law and spokesman, says matter-of-factly. There's also a folding table in the center of the room. "Mr. Slim sometimes likes to eat his lunch here," Elias adds.
The famous Slim thrift - he used to show up for business meetings wearing a cheap calculator watch - extends across the entire company. Years ago he wrote "official principles" for Grupo Carso, his industrial conglomerate, which are distributed annually to all employees. One tenet translates into English as follows: "Maintain austerity in prosperous times (in times when the cow is fat with milk); it accelerates corporate development and avoids the need for drastic change in times of crisis." So, for example, TelMex's net debt equals Ebitda, or earnings before interest, taxes, depreciation, and amortization, a statistic that's unheard-of in its industry, where debt is typically three times cash flow. América Móvil actually has less debt than Ebitda. "They're rabid about costs," says New York-based Citi investment research analyst Patrick Grenham. "They borrow as little as possible and very carefully."
Slim inherited his head for numbers - and his knack for bottom-fishing - from his father, Julian, who fled to Mexico in 1902 to avoid the Ottoman Empire's military draft. Julian Slim started a general store and bought commercial real estate in downtown Mexico City during the 1910 Revolution. He required his young son to record his childhood purchases in notebooks; Slim, a bit of a pack rat, keeps some of the ledgers on a shelf in his office.
Though he taught math to make money in college, Slim graduated with a degree in engineering from the National Autonomous University of Mexico in the early 1960s. He then started a stock brokerage in Mexico City and began to acquire industrial companies he deemed bargains. He would reinvest the cash from those businesses or use it to acquire additional properties, and he named his holding company Grupo Carso ("Carso" is an amalgam of his first name and Soumaya's).
Then came the crash of the Mexican economy in 1982. The country defaulted on foreign-debt payments, investors fled Mexico, and companies traded for centavos on the peso. Slim was able to scoop up assets on the cheap. All the while, he was schooling his heirs on his investments, occasionally even seeking their counsel to test their business savvy - such as the time he asked 12-year-old Patrick if he should acquire cigarette maker Cigatam (he did). "You make it fun," Slim says. "It is one thing to listen to a father lecture. It is better to learn from experience."
The Mexican economy eventually recovered, and by the late 1980s Slim was one of the country's most successful businessmen. When the government put the state-owned telephone company, Teléfonos de México, up for sale, Slim jumped. He partnered with SBC (now AT&T (Charts, Fortune 500)) and France Télécom to buy 20% of the company in late 1990 for about $2 billion - a fair price, based on other phone companies' market values at the time. What rankled would-be competitors of TelMex (including U.S. long-distance companies such as MCI) were the terms of the privatization: Slim and company got what amounted to a seven-year guarantee of monopoly status at a time when phone companies around the world had the money - and will - to expand into new markets.
Further clouding the deal was the fact that Slim was a huge contributor to Carlos Salinas de Gortari's PRI party. In his book about Mexican politics Bordering on Chaos, author Andrés Oppenheimer describes a 1993 dinner party in which Salinas's people solicited 30 Mexican businessmen for contributions. According to Oppenheimer's account, Slim was willing to give but told the group he "wished the funds had been collected privately, rather than at a dinner, because publicity over the banquet could 'turn into a political scandal.'" Oppenheimer writes that the businessmen present pledged to contribute an average of $25 million apiece. A Slim rep declined to comment.
"He made his billions because of an extremely close and advantageous relationship with the Salinas government," says professor Grayson of William & Mary. More recently Slim has been pragmatically investing in multiple parties, a common practice among Mexico's oligarchs.
Slim's cozy relationships weren't limited to powerful government officials. In the 1990s many of Mexico's trade associations were struggling financially because membership in the groups, once compulsory, had become voluntary, and some businesses stopped paying dues. Slim began supporting many of the associations. A trade group leader confessed to a U.S. researcher that he was glad for the financial help, but it certainly kept him from complaining too loudly about phone rates in Mexico.
Middle- and working-class Mexicans are less reticent, says Marco Muñoz, assistant director at the Teresa Lozano Long Institute of Latin American Studies at the University of Texas. They, too, feel Slim hasn't been a good steward of TelMex: Many Mexicans hoped the privatization would produce new operators and lower rates; instead, the company has a virtual monopoly more than 15 years after the government got out of the phone business.
That is due in part to Slim's masterful neutralization of his opponents. AT&T and MCI told local and U.S. regulators that TelMex consistently stymied their efforts to expand in Mexico by setting exorbitant rates to connect calls to TelMex's network. Meanwhile, consolidation in the U.S. - which reduced the landscape to just two big carriers - worked to Slim's advantage. AT&T, of course, is now owned by SBC, Slim's original partner in TelMex. And Verizon (Charts, Fortune 500) just agreed to sell a bunch of wireless and wireline assets in Latin America to Slim. (CEO Ivan Seidenberg got to know the Mexican businessman a few years ago when he was trying to buy MCI and had to cut a deal with Slim, who turned out to be one of the largest owners of the bankrupt company's distressed debt.)
Even as Slim was keeping competitors out of Mexico, he was looking to expand beyond his home country. AT&T CEO Randall Stephenson, who worked in Mexico from 1992 to 1996 overseeing SBC's investments, vividly remembers talking strategy with Slim in 1995. "It's always a late night with Carlos," says Stephenson, who recalls him laying out his plans to go into the rest of Latin America and bet big on wireless. Slim began acquiring wireless assets in the region, and he also took advantage of the dot-com crash in 2000 to scoop up phone assets that had gone belly-up, including AT&T Latin America, which provided him with a backbone for moving traffic throughout the region.
During a recent visit with Slim, Stephenson says he "pulls out this piece of paper, and he keeps on unfolding and unfolding." It was a handwritten table of all the major communications companies in the world. (Slim doesn't use computers.) In one column he had listed all the companies he owns or controls. Elsewhere he listed the other players, along with their revenue and operating and net incomes. "I took the sheet and made a comment about one of the companies, and he starts going through all the financial metrics for the company," Stephenson says, grinning. "He's got all that information in his head."
Another executive at a U.S. telco remembers being summoned to a pitch meeting in Mexico City a few years back, when Slim was looking to invest in busted phone companies. Slim grilled the group for a couple of hours, asking a seemingly endless number of questions concerning minute details about the business, such as margin information for each of the company's segments. Only after Slim left the room did the stunned executive realize that in addition to doing due diligence, Slim had gleaned valuable information about the competition. (An obsessive baseball buff - especially when it comes to the Yankees - Slim also has a moneyball memory for sports stats. In 1998 he even penned an article in a local magazine extolling the performances of historical baseball figures, both famous and obscure.)
Though Carlos Sr. gets most of the credit for building the Slim empire, the various companies for years have been managed by a network of relatives and confidants. While he was undergoing heart surgery in 1997, all eyes were suddenly on his sons. "When I was sick a few years ago, they were very young," says Slim. Still, "they were in charge, and nobody knew I was gone."
I have been whisked into a sparsely furnished conference room at Inbursa's Mexico City offices, waiting to meet the eldest son of the world's richest man. Security guards pace outside the door. Suddenly Carlos Slim Domit (Domit was his mother's maiden name) walks into the room unannounced, sleeves of his dress shirt rolled up, and apologizes for running late. Though Carlos Sr. has announced no formal succession plans, his eldest son and namesake may end up being the de facto public face of the Slim family (he now runs Grupo Carso, the most complex of Slim's three holding companies). It is a role that suits him: Friends and business associates say all the sons are social, but Carlos Jr. is the most charismatic of the three. A bachelor who enjoys car racing (observing, not driving), he seems to genuinely like interacting with the public. Unlike the children of many international moguls, he and his brothers didn't go to European boarding schools or pursue advanced degrees at B-schools abroad. They studied business as undergraduates in Mexico, and they learned on the job.
For Carlos Jr., that meant working at his father's banking operations in his teens, during breaks from school. He went on to join Sanborns (an old-style emporium known for its lunchtime cafeteria crowd), making frequent early-morning trips to La Merced market in an unsavory part of Mexico City to help purchase produce. Eventually Carlos Jr. took over the chain, and under his watch Sanborns became Mexico's No. 1 bookseller and music retailer. Since 1998 he's been running Grupo Carso.
If Carlos is the customer service guy, Marco Antonio is the moneyman. An intense fellow who has inherited his father's mind for math, the middle son has been in his current job, chairman of Inbursa, since 1992, when he was just 24. The stock has performed respectably but hasn't outpaced the broader market. The laid-back youngest son, Patrick, works with brother-in-law Daniel Hajj at América Móvil (Charts). That stock, traded on the New York Stock Exchange and the Bolsa, has tripled since Patrick became chairman in 2004 and has emerged as the greatest source of the Slim family's wealth.
The Slims have also had their share of clunkers, such as the Carlos Jr.-led 1999 purchase of a 15% stake in CompUSA, which has been a disaster. It was all part of a plan to build an Internet business in both the U.S. and Mexico that included dial-up Internet operator Prodigy and a Spanish-language portal. For once, the Slims' timing was terrible. They unwound their U.S. Prodigy investment as consumers flocked to broadband, but held onto CompUSA too long. The company was squeezed by direct sellers like Dell (Charts, Fortune 500) as well as by electronics retailers like Circuit City. Earlier this year CompUSA announced plans to shutter half its 250 stores, and the Slims have said they would consider selling the business. "If we have to make mistakes, we make small mistakes," Slim says. "We prefer no mistakes, of course, but small mistakes are the best mistakes."
A few days after my first set of interviews, the entire Slim family, including grandchildren, was set to take a vacation together on the beaches of western Mexico near the Sea of Cortez. I asked how many people were going, and Slim's son-in-law Arturo Elias, who was sitting in on the session with Carlos Jr., started to count the family members in his head. "The only bachelor is Carlos," Elias said, smiling. "And my father," Carlos added. "So we count them as a couple," Elias joked.
By all accounts the family seems to enjoy spending time together. The elder Slim and his sons and sons-in-law meet for dinner every Monday night in la casa familiar, the family house. "My mother and father were very close to us," Carlos Jr. told me. "They taught us to try to be happy with your life and also to be conscious of the responsibility we have" as a prosperous clan.
The issue of responsibility is one that is already dominating the thinking of family members and outsiders alike, given Slim's new designation as the richest man in the world. He has a "historical opportunity to become the Rockefeller of Latin America," says Jose Antonio Rios, a former Global Crossing and Teléfonica executive who now runs a U.S. real estate holding company. "A wealthy, powerful family like the Slims could be a tremendously positive factor in the next 25 years of development in Latin America."
What form will that take exactly? The Slims' three main foundations have roughly $4 billion today, and they've pledged at least another $6 billion over the next several years. Among the causes: institutes for health and education, each seeded with $500 million to start. Slim has been a big backer of Nicholas Negroponte's One Laptop Per Child initiative, and Bill Clinton recently convinced Slim to donate at least $100 million to his foundation's efforts to reduce poverty in Latin America. He also has invested heavily in refurbishing Mexico City's Centro histórico, or downtown. That said, the family tends to embrace economic development rather than donations as a way of eradicating poverty. "I think the best way to help people is not to give them money but to give them a job," says Marco Antonio. "We support education, health, and employment - that's what people need for a better life." Carlos Sr. caught a lot of flak from the Mexican press and U.S. commentators earlier this year when he was quoted as saying that he had no intention of "going around like Santa Claus" distributing his wealth.
Indeed, Slim seems to have a slightly different view of how he might give back. A few years ago he won an award from the World Education and Development Fund for his work on infrastructure in the developing world. His entire family accompanied him to the dinner in New York City. In his acceptance speech, Slim explained his life's work: "Many people want to leave a better world for their children," he told the crowd. "I'm trying to leave better children for my world."
REPORTER ASSOCIATES Lisa Bergtraum, Patricia A. Neering and Lillian Ruiz contributed to this article
Well, there is a bit more to it than that.
It goes a lot deeper than the foreclosure issue. The companies do need to find a way out and there is a risk that it doesn't go down like we would like it to. Its all very risky with no great solutions to be had. Someone will have to pay the price and I think that will be all of us in the coming years.
Banks may begin to fail and that is now staring to occur.
mb
The reason I like bond insurers is this. The recent measures from the government's aim to help homeowners avoid foreclosure is a big positive for the future. Stimulus package should help drive the economy at the latter half of the year. Banks are moving in the assist bond insurance companies for their own self preservation. We have seen only bad news so far but once the news flow starts getting better, all these stock will start running lot higher.
Check out SCA !
I bought OPXT yesterday at the close and looking to add more if it drops further.
Both ABK MBI are moving up pre-market. SCA is gapping up as well !! PMI is on my radar for a possible entry. It looked very weak yesterday but must have been due to MTG's bad news. This sector is long due for a big bounce. RAMR is the one to look at on the reinsurance sector.
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