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What a disaster this stock turned out to be.
Industrial Enterprises Provides Accounting Update
NEW YORK, Nov 7, 2007 (PrimeNewswire via COMTEX) -- Industrial Enterprises of America, Inc. (Nasdaq:IEAM) today provided an update on its accounting review for the Company's fiscal year ended June 30, 2007, and made certain other announcements.
During the year-end annual audit, it has come to the Company's attention that a supplier to the Company may be required to be accounted for as a Variable Interest Entity (VIE) due to the fact that the Company is its sole customer. Based upon further evaluation by both the Company and its auditors, the VIE does not appear to be material to the overall operations of the Company and consequently does not appear to require an audit or to be consolidated into the Company's financials. The Company's previous auditors are now reviewing this relationship during the fiscal 2006 time period and are evaluating whether the VIE needs to be consolidated into the Company's fiscal 2006 financials. Company management believe that the auditors will concur with the 2007 accounting treatment of the VIE, but no conclusion has yet been made. Management cautions that the filing of the 2007 Form 10KSB is contingent upon the Company filing the restated 2006 annual report.
Also, during the Company's internal review of its accounting policies, it has determined that its reserve for current litigation should be increased by an additional $9.5 million, to $13.5 million.
Additionally, the Company has determined, after reviewing its bill and hold transactions for fiscal 2007, that the Company did not properly follow GAAP revenue recognition procedures. Therefore, the bill and hold transactions for the quarter ended December 31, 2006 in the amount of approximately $3.1 million will be cancelled, and the bill and hold sales for the quarter ended March 31, 2007 in the amount of $4.9 million will also be cancelled. Such bill and hold sales represented $1.3 million of EBITDA in the quarter ended December 31, 2006 and $3.5 million of EBITDA in the quarter ended March 31, 2007. Also, the bill and hold transactions that were to take place in the 4th quarter have been cancelled. These sales would have accounted for EBITDA in excess of $1.5 million. Based on the cancellation of the fourth quarter bill and hold sales, the EBITDA guidance for the quarter is no longer applicable. Of the total cancelled bill and hold revenue, $1.6 million will be reflected in the first quarter of 2008 representing $1.1 million in EBITDA and $1.2 million in revenue will be recorded in the second quarter of 2008 representing EBITDA of approximately $400,000. The margins on these sales were unusual because the Company was able to sell finished goods inventory that the Company had purchased at distress prices. It is expected that the Company's customers will continue to execute bulk transactions in the future; however, the margins from the previous bill and hold transactions are not sustainable.
All bill and hold purchases were paid in full, and cash was received prior to June 30, 2007, but because the buyers were unable to take delivery of their merchandise, the Company was forced to cancel these transactions and will reflect an approximate $8 million in liabilities on its books at the year ended June 30, 2007. The buyers of the bulk purchases have agreed to settle their potential claims for these cancelled sales for 2.4 million shares of restricted stock and the above purchase and delivery of product. This settlement will remove the liability during the second quarter ended December 31, 2007. Additionally, Industrial Enterprises has the option to repurchase these shares at current market prices.
The Company also wishes to announce the settlement of all pending litigations with Trinity Bui and Trinity Financing Investments Corp. (TFIC), relating primarily to certain convertible notes and warrants issued to Ms. Bui and TFIC. Pursuant to the settlement agreement, the parties have exchanged releases and will dismiss all outstanding claims and counterclaims with prejudice. The Company has paid $500,000 in cash and has issued 870,000 shares of common stock, representing the conversion of certain notes, the exercise of a warrant, and other consideration. The shares issued are freely tradable but are subject to certain daily transfer restrictions. Under terms of the settlement, all notes issued to Ms. Bui and TFIC have been converted and/or cancelled, and all unexercised warrants will remain valid and exercisable, including certain warrants (those issued on or before July 15, 2004) that had been taken off of the Company's books but which will now be placed back on the books.
Also, during the year end annual audit, it was determined that certain litigation expenses paid by the Company's CEO John Mazzuto, in defense of litigation against the Company and Mr. Mazzuto personally, were not recorded as an expense by the Company and that such expenses should be reimbursed to Mr. Mazzuto. The Company and its auditors have determined that such payments should have been recorded as an expense by the Company and reflect a liability to repay Mr. Mazzuto approximately $1.2 million. Mr. Mazzuto has agreed to accept 500,000 shares of restricted stock as settlement for these paid legal expenses.
According to Dan Redmond, President and COO, "Current management has recommended and the board has approved the decision to use our common stock as settlement for these liabilities so as to not drain future cash flow and over burden future operations."
The resulting issued and outstanding stock will amount to 26 million shares outstanding following the above transactions. This is an increase of 7 million shares over the previous 19 million shares announced in the Company's July 12, 2007 press release. The increase in shares outstanding can be attributed to the 4 million shares as detailed above and an additional 3 million issued since June 30, 2007. Since the year-ended June 30 2007, 1.65 million shares have been issued as a result of note conversions and warrant exercises, 850,000 shares have been issued to consultants and for severance costs and 500,000 shares have been issued to John Mazzuto. These shares were authorized by the board of directors in December 2006, but not issued until after the 2007 fiscal year at the request of Mr. Mazzuto.
With the addition of settlement shares, the Company's target shares outstanding has increased to 18 million shares from the 14 million previously indicated. The Company is in the process of retaining new securities counsel and will resume repurchases when it is deemed appropriate. The Company plans to continue to buy back shares at a slow but consistent pace. The Company still has approximately $25 million left remaining in its buyback program.
According to CEO John Mazzuto, "We take our responsibility to provide complete and accurate financial information seriously and are taking proactive steps that we believe are appropriate under these circumstances. Given the current price of the Company's common stock, the Company will add additional debt over and above the $10 million recently added, to increase the pace of the share buyback as well as to expand operations."
WAG, OIL : $95
nelson, JCTCF.
I sold most of my shares this AM as well, even though I feel the stock is still slightly undervalued here. With the 2 weakest quarters upcoming, I think we will have a chance to re-accumulate shares in the $8's in the months ahead. I like the fact that JCTCF's higher margin specialty metal products segment is projected to increase from 21% to 30% of total company sales y/y. My guess for 2008 is revenue will be flat to down as their wood products continues it's gradual decline, but EPS will be @ $1 or slightly more as the ramp in specialty metal products contibutes to the bottom line.
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Outlook
In the first two quarters of the new fiscal year earnings per share should be lower than in the final two quarters of the year just ended. This would be a reflection of a seasonal slowdown in our lawn, garden and pet segment. However, based particularly on positive sales trends for our specialty metal products we expect 2008 to be a very good year. It could possibly be a record year in terms of earnings. My guess is revenue will be flat to down in 2008 as their wood products continues it's gradual decline, but EPS will be $1+
CEO Comment
"We view the fourth quarter as a satisfying conclusion to a good year and are optimistic about the outlook for the coming year," said Don Boone, CEO of Jewett-Cameron. "Also, a significant transformation is taking place at Jewett-Cameron as specialty metal products like dog kennels, our proprietary gate support system, and perimeter fencing continue to grow in total sales and become a bigger part of our sales mix. Investors may still tend to view us as a lumber or wood products wholesaler, but this characterization is becoming less accurate. Specialty metal products have grown from about 14% of total company sales in 2006 to about 21% in 2007, and in 2008 these products could be around 30% of total sales. This is a very important and positive trend, since metal products have a much higher gross margin than other products that the company sells."
Mr. Boone also noted, "It is gratifying that our balance sheet is very strong relative to the size of the company. In fact our financial condition is as strong as it has ever been."
KSW to Trade on the NASDAQ
Monday October 29, 12:00 pm ET
LONG ISLAND CITY, N.Y.--(BUSINESS WIRE)--KSW, Inc. (AMEX: KSW - News) announced today that the NASDAQ Stock Market has approved its common stock for listing on the NASDAQ Global Market. The Company expects to begin trading on the NASDAQ on or about November 12, 2007.
Chairman of the Board, Floyd Warkol, commented: “We expect that our shareholders will benefit from the increased visibility that the NASDAQ offers.”
In accordance with AMEX Rule 18, the Company has notified the American Stock Exchange of its intention to delist from the AMEX.
About KSW
KSW, Inc., through its wholly-owned subsidiary, KSW Mechanical Services, Inc., furnishes and installs heating, ventilating and air conditioning (HVAC) systems and process piping systems for institutional, industrial, commercial, high-rise residential and public works projects. KSW Mechanical Services, Inc. also acts as Trade Manager on larger construction projects, such as the New York Presbyterian Cardiovascular Center.
Anyone from Philly?
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Looking for attractive people? Don't go to... Mon Oct 22, 10:55 AM ET
PHILADELPHIA (Reuters) - Philadelphia is home to the least attractive people in the United States, a survey of visitors and residents showed on Friday.
The city of more than 1.5 million people was also found to be among the least stylish, least active, least friendly and least worldly, according to the "America's Favorite Cities" survey by Travel & Leisure magazine and CNN Headline News.
About 60,000 people responded to the online survey -- at www.travelandleisure.com -- which ranked 25 cities in categories including shopping, food, culture, and cityscape, said Amy Farley, senior editor at the magazine.
For unattractiveness, Philadelphia just beat out Washington DC and Dallas/Fort Worth for the bottom spot. Miami and San Diego are home to the most attractive people, the poll found.
But Farley pointed out the results don't mean people in Philadelphia are ugly or the city is a bad place to visit.
"We were asking people to vote on attractiveness, not unattractiveness. Travel & Leisure editors believe there are a lot of attractive people in Philadelphia," she said.
"The relative attractiveness of its residents is only a minuscule factor in evaluating a city's merit."
Philadelphians' self-esteem has been undermined by national surveys showing they are among the fattest people in the United States. The American Obesity Association ranked the city in the top 10 for overweight people every year between 2000 and 2005.
And sporting pride in a city known for the fierce loyalty of its fans has been hurt by not having had a national champion in any of its four main sports since the 76ers won the National Basketball Association title in 1983.
TAM.V has a new presentation out:
http://www.tamerlaneventures.com/files/October%202007.pdf
I've shorted multiple times A/H in my Ameritrade account without any problems. However, I've been finding it very difficult to find shares to short of many high-flyers these days...
Capstone Declares Expanded Commercial Production at Cozamin and Highlights Q4 Production and Sales
Thursday October 11, 9:01 am ET
VANCOUVER, BRITISH COLUMBIA--(MARKET WIRE)--Oct 11, 2007 -- Capstone Mining Corp. ("Capstone")(Toronto:CS.TO - News) is pleased to report that it has completed the expansion and commissioning of the 120% increase in production at its Cozamin mine located in Zacatecas State, Mexico.
Commissioning of the mine expansion from the initial 350,000 tonnes per year (1,000 tonnes per day) to 750,000 tonnes per year (2,200 tonnes per day) began in late May, with start up commencing in mid-June. Production in July and August averaged 1,900 tonnes per day or 86% of planned throughput. Production in September has averaged 1,977 tonnes per day or 90% of planned throughput and has achieved over 2,200 tonnes on successive days. During the first week of October the mine has operated at designed throughput.
"Having declared commercial production at the 2,200 tonne per day rate in just 12 months from our initial production at Cozamin, will provide our shareholder's with increased cash flow and earnings from the Cozamin Mine," said Darren Pylot, President and CEO.
As announced on July 19, 2007, the expansion was completed under budget and ahead of its scheduled completion date of October 2007. 100% of the capital was provided from internal cash flow.
PRODUCTION AND SALES FROM THE COZAMIN MINE IN FISCAL 2007
(all figures unaudited)
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Q1 Q2 Q3 Q4 Total
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Milled tonnes 93,055 95,439 112,277 161,162 461,883
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Copper Produced (lbs) 2.7M 2.8M 3.5M 4.8M 13.8M
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Copper Sales (lbs) 2.9M 2.1M 2.9M 3.9M 11.8M
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Zinc Produced (lbs) 1.9M 1.2M 1.6M 2.1M 6.8M
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Zinc Sales (lbs) 1.9M Nil 1.5M 1.6M 5.0M
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Lead Produced (lbs) 0.9M 0.5M 0.6M 1.0M 3.0M
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Lead Sales (lbs) Nil 1.4M 0.7M 0.7M 2.8M
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Note: Audited results for the fiscal year ended August 31, 2007 will
be reported in November 2007.
NORMAL COURSE ISSUER BID
Further to the news release dated July 12, 2007 Capstone purchased 484,100 common shares at an average price of $2.38. The shares have been returned to the transfer agent and subsequently cancelled. Capstone has 81,732,351 shares outstanding after the cancellation of the above share purchases.
ABOUT CAPSTONE
Capstone is a Canadian based mining company currently operating the 100% owned Cozamin copper-silver-lead-zinc mine located in Zacatecas State, Mexico. Capstone has approximately 81.7 million shares outstanding and is well financed with no bank debt. More information is available online at: www.capstonemining.com.
This press release contains "forward-looking information" that is based on Capstone's current expectations, estimates, forecasts and projections. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Capstone's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include, but are not limited to: projected sales or production rates; uncertainties related to drilling results; the ability to raise sufficient capital to fund exploration; changes in economic conditions or financial markets; changes in prices for costs; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labor relations matters.
This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. Capstone disclaims any intention or obligation to update or revise forward-looking information, whether as a result of new information, future events or otherwise.
Contact:
Contacts:
Capstone Mining Corp.
Chris Tomanik
(604) 684-8894
(604) 688-2180 (FAX)
Email: ctomanik@capstonemining.com
Website: http://www.capstonemining.com
Over $4 again. After CPHI's big move, maybe people are starting to look at other cheap Chinese pharma stocks....
Friday, October 5, 2007
Republicans rail against taxes
By Susan Milligan, Boston Globe Staff
WASHINGTON -- Just in case you missed it, Republicans want to be clear: they really hate taxes.
Corporate taxes? Lower 'em, said former Tennessee Senator Fred Thompson. Income taxes? They need to be cut so Americans can have more money in their pockets to spend and invest, said former New York Mayor Rudy Giuliani.
And both of those ideas are too tame for former Arkansas Governor Mike Huckabee, who wants to get rid of the income tax and replace it with a consumption tax to fund a pared-down federal government.
In serial pitches to Americans for Prosperity, a group focused on cutting federal spending and taxes, GOP presidential candidates today pledged their commitment to lower taxes and slammed Democrats for what several of the GOP contenders claimed would inevitably take more money from American workers.
Giuliani, in a speech that received numerous standing ovations from the boisterous, 1,500-strong crowd, blamed his fellow Republicans in Congress for expanding government, and said it was a main reason Republicans lost control of the House and Senate in last year's elections. Under GOP control, Congress during the Bush administration has voted to expand Medicare to include prescription drug coverage; approved tens of billions of dollars in earmarks, commonly known as "pork;'' and created an entirely new federal agency.
"Unfortunately, our party in the Congress became just like the Democrats as far as spending money concerned. Shame on us. Shame on us,'' Giuliani said. "When I'm nominated, we'll have this party back as a party clearly rooted in fiscal discipline: restraining spending, no more earmarks, low taxes, a growth party.''
But Democrats, Giuliani insisted, would be worse. "Republicans are amateur spenders and Democrats are professionals,'' he said, drawing laughter from the crowd.
Giuliani has come under attack this week by former Massachusetts Governor Mitt Romney, who has noted that Giuliani opposed the line-item veto and wanted to keep a commuter tax on people who worked in the city but lived elsewhere.
Romney said spending on government programs has created a "culture of dependency'' that leads to increasingly bigger government. In remarks prepared for a speech to the group tonight,
Romney pledged to veto any appropriations bill that totaled more than current spending, plus the inflation rate minus one percentage point.
Huckabee and Texas Representative Ron Paul -- who is in the single digits in polls but has a loyal following of supporters attracted to his libertarian message -- argued against nearly all taxes. Kansas Senator Sam Brownback lifted two heavy volumes he said contained the IRS code, dropping on the lectern with a heavy thud.
"I think it should be taken behind the barn and hit with a dull axe,'' Brownback said.
KSW continues to get large contracts in NYC
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KSW Awarded Two Downtown Projects Totaling $14,600,000
Thursday October 4, 4:15 pm ET
LONG ISLAND CITY, N.Y.--(BUSINESS WIRE)--KSW, Inc. (Amex: KSW - News) announced that during this week the Company was awarded two new projects on West Street in downtown Manhattan. The contracts total approximately $14,600,000.
The first project is a 15-story condominium, designed by Robert A. M. Stern, and being developed by Related Properties, LLP. This is the third project where KSW is working with this prestigious developer.
The other project is a rental apartment building being developed by The Jack Parker Corporation, a new KSW client. KSW was recommended to this owner by the construction manager, Gotham Construction Co., Inc., with whom KSW is currently working on three other projects.
KSW's CEO, Floyd Warkol, commented: "We continue to use our value engineering skills to save our clients money and they continue to reward us with their new projects."
About KSW
KSW, Inc., through its totally-owned mechanical subsidiary KSW Mechanical Services, Inc., furnishes and installs heating, ventilating and air conditioning (HVAC) systems and process piping systems for institutional, industrial, commercial, high-rise residential and public works projects. KSW Mechanical Services, Inc. also acts as trade manager on larger construction projects, such as New York Presbyterian Cardiovascular Center.
KSW continues to get large contracts in NYC
-------------------------------------------
KSW Awarded Two Downtown Projects Totaling $14,600,000
Thursday October 4, 4:15 pm ET
LONG ISLAND CITY, N.Y.--(BUSINESS WIRE)--KSW, Inc. (Amex: KSW - News) announced that during this week the Company was awarded two new projects on West Street in downtown Manhattan. The contracts total approximately $14,600,000.
The first project is a 15-story condominium, designed by Robert A. M. Stern, and being developed by Related Properties, LLP. This is the third project where KSW is working with this prestigious developer.
The other project is a rental apartment building being developed by The Jack Parker Corporation, a new KSW client. KSW was recommended to this owner by the construction manager, Gotham Construction Co., Inc., with whom KSW is currently working on three other projects.
KSW's CEO, Floyd Warkol, commented: "We continue to use our value engineering skills to save our clients money and they continue to reward us with their new projects."
About KSW
KSW, Inc., through its totally-owned mechanical subsidiary KSW Mechanical Services, Inc., furnishes and installs heating, ventilating and air conditioning (HVAC) systems and process piping systems for institutional, industrial, commercial, high-rise residential and public works projects. KSW Mechanical Services, Inc. also acts as trade manager on larger construction projects, such as New York Presbyterian Cardiovascular Center.
Good article from the Economist regarding China's growth...
China's economy
How fit is the panda?
Sep 27th 2007 | BEIJING
From The Economist print edition
China's booming economy is helping to support global growth as America turns sickly. So now it has to keep up the pace
NO COUNTRY in history has sustained such a blistering rate of growth over three decades as China. Its economy grew by a staggering 11.9% in the year to the second quarter. Since 1978 it has grown by an average of almost 10% a year—more than Japan or the Asian tigers achieved over similar periods when their economies took off. But eventually every sprinter trips. Japan's growth averaged 9.5% in the two decades to 1970, but slowed to 4.7% in the 1970s and to only 1% by the 1990s.
As China has grown, it has come to matter much more to the rest of the world. For the first time it is now contributing more to global GDP growth (measured at market exchange rates) than the United States is. Yet, even as growth forecasts for China are being revised upwards, America is looking at a downturn caused by falling house prices, which threaten to clobber consumer spending. The fate of the world economy now hinges not just on America, but also on China's economic fitness continuing over at least the next two years.
So what immediate threats does China face? The biggest worry is that the economy is overheating and inflation surging out of control. In August consumer-price inflation jumped to 6.5%, up from 1.3% a year earlier and its highest for more than a decade. If China slams on the brakes, its economy could suffer a hard landing, as happened after past episodes of inflation.
But inflation is nowhere near previous danger levels in 1988 and 1994, when it soared above 25% (see chart 1). Moreover, the leap in inflation does not seem to be a symptom of overheating caused by excess demand, as it was in the past. It is due entirely to the rise in food prices caused by supply-side problems. Excluding food, inflation is only 0.9%. This does not mean that food is unimportant: it accounts for one-third of the inflation basket, and rising prices could trigger social unrest. But it is not something that China's central bank can easily fix by raising interest rates. The bank has raised interest rates five times this year, but they still remain low relative to the country's growth rate.
Growing public concerns over inflation recently prompted Beijing to introduce a freeze until the end of 2007 on a wide range of government-controlled prices, such as oil, electricity and water. A more effective way to curb inflation would be to allow the Chinese currency to rise faster. This would reduce import prices of food and raw materials and also curb the build-up of liquidity as a result of rising foreign-exchange inflows.
Unless checked, excessive monetary growth combined with over-rapid GDP growth could eventually lead to more general inflationary pressures. In its latest “China Quarterly Update”, the World Bank says that in the first half of 2007 China grew faster than its potential growth rate (currently estimated at around 10.5%) for the first time in a decade (see chart 2). However, excess demand is tiny compared with previous phases of overheating so the risk of soaring inflation causing a hard landing in the near future is remote.
Bubble trouble
A second much-talked-about threat is the bursting of China's stockmarket bubble. Share prices have risen by 400% in just over two years, and average price-earnings ratios based on historic profits are around 50 (based on forecast 2008 profits they are a still-racy 30). Even though almost everyone reckons this is a bubble, history suggests that a bust is not imminent and that share prices could continue to rise for a lot longer: both Japan's Nikkei and America's NASDAQ saw p-e ratios well above 100 at their peaks.
Even if share prices did tumble this year, the impact on the economy would probably be relatively modest. The total value of tradable shares—that is, excluding those held by the government—is only 35% of GDP compared with 180% in America at its peak in 2000. Equities account for less than 20% of Chinese households' total financial assets, compared with half in America, so price swings have less impact on spending. When Chinese share prices collapsed by 55% from 2001 to 2005, GDP growth remained robust. Over the past year there has been little sign that people are saving less and spending their capital gains, so a slump in share prices should not have much impact either.
Share prices can also affect the cost of capital. But only a small proportion of Chinese companies are listed on the stock exchange and those that are rely mainly on internal finance. Only 10% of total financing for investment this year has come from equities. A more serious problem is that because firms have invested in other companies' stocks, a slump in share prices could directly hurt their profits and hence their investment. According to a study by Morgan Stanley, one-third of listed companies' profits in the first half of 2007 came from share-price gains and other investment income. If share prices sink, so will profits, which would make shares look even more overvalued.
Some analysts also worry that a sharp plunge in equity prices could seriously hurt banks' balance sheets, causing them to squeeze their lending. Chinese banks are officially not allowed to lend to investors to buy shares, but anecdotal evidence suggests that households and firms have taken out loans disguised as mortgages to buy shares. If so, the effect of the bubble bursting could be larger than the direct impact on consumers' wealth—especially if, as seems more likely, the bubble continues to swell for another couple of years before it finally bursts.
In many ways China today looks ominously similar to Japan before its bubble burst at the start of the 1990s, resulting in a decade of stagnation. Like Japan, China has high rates of saving and investment, low real interest rates, soaring asset prices, a big current-account surplus and upward pressure on its currency. After the Plaza accord between the big industrial countries in 1985, the Japanese yen rose by 80% against the dollar in three years.
Many in China have concluded that the blame for Japan's economic malaise in the 1990s lay largely with the appreciation of the yen. Beijing has therefore allowed the yuan to rise by only 10% since July 2005. But Japan's real mistake was its loose monetary policy to offset the impact of the rising yen—which further inflated the bubble—and then its failure to ease policy once the bust had happened. By holding down the value of the yuan and allowing a consequent build-up of excess liquidity, China risks repeating the same error.
However, Paul Cavey, a China economist at Macquarie Securities, suggests that China may have more in common with Taiwan in the 1980s than with Japan. Taiwan's bubble was even bigger, with share prices rocketing by 1,800% between 1985 and 1990. In Japan, reserve accumulation did not play a big role in the bubble. By contrast, the foreign-exchange inflows into Taiwan were greater in relation to its GDP than those seen recently in China. Taiwan, like Japan, saw a big rise in its exchange rate, by 60% in the four years to 1989.
In 1990-91 the Taipei stockmarket slumped by 75%, even more than the Tokyo market did. But Taiwan's growth remained fairly strong because policy was eased much sooner than it was in Japan. In other words, contrary to Beijing's fears, a big exchange-rate rise does not inevitably lead to economic depression.
The other big difference between China and Japan in the late 1980s is that Japan had a serious property bubble against which banks had lent heavily. Although a house-price crash would have much nastier consequences for China's economy than a share-price crash, because 80% of China's urban households now own their home, there is no evidence of a nationwide housing bubble. Average house prices across China are rising at an annual rate of 8%, with double-digit gains in some cities, such as Shenzhen and Beijing.
In a developed economy such increases might seem a little bubbly, but not in one in which nominal GDP is growing at an annual pace of 15%. The ratio of house prices to average income has fallen by 25% in China since 1999. In contrast, at their peak last year American house prices had risen by 45% relative to incomes. A collapse in house prices therefore seems unlikely in China.
If America sneezes
If neither a surge in inflation nor a bust in asset prices seem likely to derail China's economy over the next year or two, what about a recession in America? Exports account for over 40% of China's GDP, so some economists predict that a fall in exports as a result of a downturn in America would create massive excess capacity and a sharp fall in profits and investment—the making of a nasty hard landing. But the popular notion that China is dependent on export-led growth is a myth; domestic demand is much more important. This year the increase in China's net exports (ie, less imports) is likely to account for about one quarter of its growth—a record amount. But even without this external boost, GDP growth would still have been a respectable 9%.
During America's 2001 recession, China's export growth fell by 25 percentage points, but imports also slowed sharply, so GDP growth (as officially reported) remained strong. Since then, the share of its exports to America has shrunk; the European Union and other emerging economies are now more important markets. In the three months to August, Chinese exports to America increased by 14% compared with a year earlier, whereas those to the EU grew by 40%.
America's slowdown so far largely reflects a collapse in house-building, but if consumers cut their spending, the impact on Chinese exports would be harsher. The World Bank estimates that if American consumption falls by the equivalent of 1% of GDP, this could knock 0.2-0.5 percentage points off China's GDP growth, depending on how much the Federal Reserve does to cushion the downturn.
A recession in America would reduce China's growth, but since Beijing's policy-makers are fretting that the economy is starting to overheat, weaker exports and hence slower GDP growth might be a good thing. Not only would it reduce the risk of inflation, but it would also help to trim China's embarrassing trade surplus.
If a fall in exports threatens to slow growth by more than desired, the government's strong fiscal position means that it has plenty of room to boost domestic demand by spending more on infrastructure, education or health. The budget was in small deficit in 2006, but may now be in surplus—even excluding the large surpluses of state-owned enterprises. China's public-sector debt is only 18% of GDP, much lower than the 75% average in developed economies, giving the government ample room for a fiscal stimulus.
In the short term, therefore, an American downturn is more likely to cause sniffles in China than a heavy cold. Indeed, an American recession might be a blessing in disguise to China: if weaker exports forced the government to do more to boost domestic demand it would help to rebalance the economy and make growth more sustainable in the long run.
The bigger danger is that an American recession would inflame America's increasingly protectionist mood and make trade sanctions against China more likely. In an election year, politicians will need a scapegoat. But import barriers would do more harm to America's economy than China's. If China was forced to depend less on exports and more on consumption it would gain in the long run.
Running out of fuel?
In recent months there has been much talk about a new threat. China, it is claimed, is running short of cheap labour—the main source of its extraordinary growth. This is nonsense. It is true that average wages have risen by around 15% over the past year, but labour productivity in manufacturing has risen even faster. Indeed, wages have been rising at double-digit rates for a decade with no harmful impact on growth, because higher labour productivity has actually reduced wage costs (see chart 3). There are localised skill shortages, but it is hard to believe that China's labour surplus is exhausted when almost 60% of the population still lives in rural areas. The wide income gap between rural and urban areas will continue to attract workers from farms to factories.
In any case, it is not true that China's growth has been based primarily on cheap labour. Over the past decade, the increase in the labour force has contributed an average of only 1% a year, or one-tenth of its GDP growth. It is true that the population of working age will peak by 2015 and then start to shrink. But an analysis by the World Bank argues that China is unlikely to face a labour shortage for many years. The decline in the working-age population can be offset by making it easier for surplus labour to migrate into cities.
One thing China does not seem short of is capital investment. Indeed, some economists have long predicted that overinvestment as a result of an artificially cheap cost of capital will lead to China's downfall. Sooner or later, it is argued, overcapacity will lead to a plunge in capital spending, bringing the economy crashing to earth.
According to government figures, China's investment amounts to over 45% of GDP and is growing at 25% a year. But many economists reckon that is grossly overstated. For example, land purchases are wrongly counted as new investment when they are really just a transfer of ownership. If China were massively overinvesting, one would expect the return on capital to be falling. Instead, corporate profit margins have been rising. Mr Cavey estimates that average capacity utilisation, measured by the ratio of sales to assets, has been rising not falling—in strong contrast to Japan during its 1980s bubble.
Worries about rising excess capacity feed another long-standing concern that China's banks, groaning under the weight of non-performing loans, are heading for a crisis. Official figures show that non-performing loans had fallen to 7% of all loans early this year from almost 30% in 2001. But independent analysts suggest the true figure may be closer to 20% (down from over 50% at its peak). The fear is that an economic downturn and falling profits could lead to a surge in new bad loans.
China's fragile and inefficient banking system is certainly a drag on its economy, but the risk that a banking crisis could bring down the economy seems small. China has huge foreign-exchange reserves available to protect its banking system. Capital controls limit capital flight. And the government, unlike Japan's in the 1990s, has plenty of money if necessary to write off bad loans.
The list of potential threats to China's economy is long and some might shave a couple of percentage points off its growth rate (leaving it close to 10%). But none seems likely by itself to cause the economy to collapse in the next two years—ie, during the time when America's economy is likely to stumble. But what if several blows land at the same time? For example, an American recession breeds greater protectionism, global financial turmoil unnerves Chinese stockmarket investors, share prices collapse and a downturn creates social unrest. The overall impact on the economy would then be more painful.
China's best insurance against this is that its budget finances are in better shape than those of any other big economy. China's leaders are acutely aware of the risks of social unrest and they will be willing and able to try to spend their way out of trouble. That makes a sharp downturn in China less likely in the near future. But what about farther ahead?
China's economic success has been based on the essential ingredients of growth: high savings, openness to trade, good education and strong productivity growth. This means its long-term prospects remain strong, although its trend growth rate will inevitably slow as its economy matures and its labour force starts to shrink.
Tao Wang, Bank of America's economist in Beijing, says she is optimistic about China's economy in the short term and the long term, but thinks the medium term looks risky. There is a high chance of a sharp slowdown sometime within the next ten years. The problem with years of rapid growth is that it hides problems that are then painfully exposed when times are hard. But for the time being, the chances are that China can keep sprinting even if America takes to its sick bed. That is good news for the world.
The SEC filing of the 10-K actually came out @ noon on Friday, so I don't think there was a leak....I bought some right after someone alerted the Value Microcap board to SGTI's fantastic numbers on Friday afternoon:
http://investorshub.advfn.com/boards/read_msg.asp?message_id=23252817
Looking at the numbers, SGTI looks very cheap here in the $3's. Trailing p/e is in the 5's and it sounds like the numbers will only get better from here. Chinese stocks are hot and most comparable companies have a higher p/e and lower growth rate than SGTI. Anyone know why SGTI's share price took a drive in July? I seem to remember some sort of Chinese pharmaceutical scare over the summer....was this to blame? Whatever the case, the company looks stronger than ever before at this point. I think SGTI will have a good week....
SGTI-
Nice pr. Too bad they decided to put it out Friday after the close instead of Monday morning (like IR told me they were going to do). Looks cheap. Bought a few shares today.
re: SGTI. A pr will be out Monday morning, according to their IR (Crocker Coulson).
JCTCF ($8.35)
The company reported their highest quarterly profit ever last Q w/ EPS of .32(.57 for the first 9 months of the fiscal year). The last earnings pr sounded bullish, w/ CEO Dan Boone stating "the outlook overall for the fourth quarter looks good." With profitable Nasdaq microcaps back en vogue, I'm hoping JCTCF will attract some attention in the near future. I added a few shares today...
Alberta Panel Recommends Higher Oil, Gas Royalties (Update3)
By Ian McKinnon
Sept. 18 (Bloomberg) -- Alberta, the biggest producer of oil and natural gas in Canada, should raise royalty rates to reap additional benefits from rising prices, a government-appointed task force said.
The western Canadian province could gain an additional C$2 billion ($1.97 billion) a year, about a 20 percent increase if the group's recommendations are adopted, according to a government report today. The rules would apply to all projects, with no exception for existing ones.
Royalties on oil-sands projects that are profitable should be raised to 33 percent of net revenue from 25 percent, said the six-person panel, appointed in February by Premier Ed Stelmach.
``Albertans do not receive their fair share of energy development and they have not been receiving their fair share for some time,' Bill Hunter, panel chairman, said at a news conference.
The panel also proposed a new tax on the production of bitumen, a heavy crude extracted from Alberta's tar-like deposits. The so-called severance tax would start at 1 percent on bitumen selling for C$40 a barrel and rise to a maximum of 9 percent, if prices are at C$120.
The recommendations would boost Alberta's share of oil-sands revenue to 64 percent from 47 percent, the report said. The higher take ``remains competitive internationally,' Hunter said. The government's share from oil and gas wells would rise 5 percentage points to 49 percent and 63 percent, respectively.
Impact on Projects
Higher royalties and increased construction costs caused by a boom in oil-sands projects due to rising oil prices may cause some companies to cancel some projects, said Greg Stringham, a vice president at the Canadian Association of Petroleum Producers.
``If the report is implemented, it certainly could have a significant impact,' he said in a telephone interview. ``At first blush, this is far worse than we anticipated.'
The energy industry generates about one-third of Alberta's revenue, according to government statistics. Alberta's economy will expand 4.5 percent this year, almost double the national average of 2.5 percent, Canada's Bank of Nova Scotia forecast earlier this month.
Alberta lowered its oil-sands royalty a decade ago to encourage development of the tar sands, estimated to hold the most crude outside of the Middle East. The panel recommended maintaining a rule that allows companies developing oil-sands projects, including Royal Dutch Shell Plc and EnCana Corp., to pay a 1 percent revenue royalty until they recover their investments.
'Fair' Rate
The 25 percent rate of net revenue after costs are recovered ``is unnecessarily low in view of the significant changes that have occurred in world energy markets and fiscal royalty systems over the past decade,' Hunter said. The proposed rate is ``fair to both Albertans and the producers,' he said.
The province's royalty structure should be simplified, and more information needs to be gathered and analyzed regularly to ensure Alberta is receiving an adequate share of the energy production, the panel said.
The government, in a separate statement today, said it will respond to the panel's recommendations by mid-October.
Rising oil prices, which today closed at a record of $81.90 a barrel in New York, are spurring companies including Shell and Suncor Energy Inc. to spend billions to extract oil from Alberta's tar sands.
The oil-soaked sand, located about 750 kilometers (466 miles) north of Calgary, may hold 175 billion barrels of recoverable oil, second after Saudi Arabia's 259 billion barrels, according to the Canadian Association of Petroleum Producers.
Alberta produces about 68 percent of Canada's daily oil output and 77 percent of gas production, according to the association.
To contact the reporter on this story: Ian McKinnon in Calgary at imckinnon1@bloomberg.net .
Last Updated: September 18, 2007 19:51 EDT
http://www.bloomberg.com/apps/news?pid=20601082&sid=a7ZVQQ73GJV0&refer=canada
SVLF weakness over the last few days may be due to concerns over Hurricane Humberto hitting their Galveston, TX property.
SGR.V news:
Press Release Source: San Gold Corporation
"98" Vein High Grades and Length Significantly Increased
Thursday September 13, 8:00 am ET
BISSETT, MB--(MARKET WIRE)--Sep 13, 2007 -- Dale Ginn, CEO of San Gold Corporation (CDNX:SGR.V - News) is pleased to report that lateral mine development within the high grade "98" vein on the 29th level (4350 feet) of the Rice Lake Gold Mine has significantly extended the strike length to over 550 feet (168 m), with an average vein grade of 1.27 oz/ton (43.6 g/tonne) over an average true width of 5.0 feet (1.5 m). Details on the development results are contained below:
29th level, "98" vein:
-- Over 550 feet (168 m) of horizontal development completed.
-- Over 600 feet (183 m) of raise development completed on the "98" vein
to date.
-- Average face grade of 1.27 oz/ton (43.6 g/tonne) on lateral
development from chip samples.
-- True width of the vein established at 5.0 feet (1.5 m).
-- 54 faces were sampled and 270 samples were assayed.
-- 21 faces displayed vein grade averages between 1.0 oz/ton (34.2
g/tonne) and 6.46 oz/ton (221.2 g/tonne).
-- 14 faces displayed vein grade averages between 0.50 oz/ton (17.1
g/tonne) and 1.0 oz/ton (34.2 g/tonne).
-- 19 faces displayed vein grade averages between 0.16 oz/ton (5.5
g/tonne) and 0.50 oz/ton (17.1 g/tonne).
-- Individual sample values ranged from 0.10 oz/ton (3.4 g/tonne) to 7.64
oz/ton (261.6 g/tonne).
The "98" vein continues to be open in an upward direction with the plunge or "shoot" direction nearly perpendicular to the main plunge of previously mined zones. The recent development of this vein is also significant in that it stretches across the full width of the host gabbro unit, from footwall to hangingwall. This is consistent to the recent exploration drill results (see press release dated September 5, 2007) which are confirming the new geological model whereby high grade mineralization exists on the under-explored footwall side of the gabbro host. A new decline is now underway from the 26th level in order to access the high grade "93" and "98" veins at various elevations above the 29th level in order to establish numerous stoping blocks within the high grade veins.
The above program was carried out under the supervision of D. Ginn, P.Geo., the Qualified Person for San Gold under National Instrument 43-101. Chip, muck and mill samples are assayed on site in the company's assay lab using the fire assay method with an AA and gravimetric finish. San Gold's quality control and assurance program includes the insertion of blanks and standards, the retention of pulps and rejects, and spot checks utilizing independent labs including TSL Laboratories in Saskatoon, SK and Accurassay Laboratories of Thunder Bay, ON.
For further information contact Dale Ginn, President of San Gold Corporation, at (204) 794-5818 or investor information at 1-800-321-8564 or visit www.sangoldcorp.com.
Shamrock Capital was going to buy AVPI.ob for $1.25/share but large shareholders voiced opposition to the (takeunder) deal. Could be a stock to watch now as the popularity of professional volleyball seems to be increasing....
AVP and Shamrock Terminate Merger Agreement
Thursday September 6, 6:30 am ET
LOS ANGELES, Sept. 6 /PRNewswire-FirstCall/ -- AVP, Inc. (OTC Bulletin Board: AVPI - News; "AVP") and AVP Holdings, Inc. (the "Shamrock Affiliate"), an affiliate of Shamrock Capital Growth Fund II, L.P. ("Shamrock"), announced today that because of strong opposition from many of the stockholders of AVP they are mutually terminating their agreement under which the Shamrock Affiliate would acquire all of the outstanding stock of AVP and take AVP private.
"While we are disappointed that we were unable to conclude this transaction, we are very optimistic about the future of the AVP and the tremendous opportunities available to enhance AVP shareholder value," said Leonard Armato, CEO of AVP. "Many shareholders let us know that they felt the price to be received by the shareholders did not accurately reflect what they saw as the true potential of AVP, and we listened. With our tremendous fan support and viewership, as well as strong sponsor support, our new winter tour, and a number of other exciting new projects, we will continue to increase the value and reach of AVP as the preeminent volleyball organization and a top lifestyle brand, and do so as a public company."
"We have had a strong start to the year with substantial revenue growth for the first six months. We have increased the number of Tour events and sponsorship relationships and invested in the infrastructure necessary to support our growth opportunities. We believe these results highlight the growth opportunities that exist for AVP and we look forward to growing the company in the future," concluded Armato.
On April 5, 2007, AVP entered into an Agreement and Plan of Merger (the "Merger Agreement") with the Shamrock Affiliate and AVP Acquisition Corp. (another affiliate of Shamrock). Under the terms of the Merger Agreement, AVP Acquisition Corp. was to be merged with and into AVP, with AVP continuing as the surviving corporation. The transaction was expected to close in late September 2007 but was subject to certain customary terms and conditions, including stockholder approval. It had become apparent to both Shamrock and AVP that a substantial number of the stockholders of AVP would not vote their shares to approve the transaction. As a result, both parties decided to terminate the Merger Agreement rather than risk substantial additional expenses related to proceeding with the transaction. AVP will not pay any "breakup fee" to Shamrock or any Shamrock affiliates. It was agreed, however, that AVP will reimburse certain expenses related to the transaction incurred by the Shamrock Affiliate.
Robert F. Perille, a Managing Director of Shamrock, said, "We are disappointed that this transaction will not close, but in light of the strong opposition from major stockholders of AVP, it no longer made sense for AVP to assume the costs and risks of moving forward." Mr. Perille continued, "We wish the AVP and its management great success in the future."
About AVP, Inc.
AVP/Crocs Pro Beach Volleyball Tour, Inc. is a leading lifestyle sports entertainment company focused on the production, marketing and distribution of professional beach volleyball events worldwide. AVP operates the industry's most prominent national touring series, the AVP/Crocs Pro Beach Volleyball Tour, which was organized in 1983. Featuring more than 150 of the top American men and women competitors in the sport, AVP is set to stage 18 events throughout the United States in 2007. In 2004, AVP athletes successfully represented the United States during the Olympics in Athens, Greece, winning gold and bronze medals, the first medals won by U.S. women in professional beach volleyball. For more information, please visit http://www.avp.com.
Don't worry about trading on the pinksheets. Roo trades on the OTC:BB (over-the-counter bulletin board) exchange, which has no share price requirement. If they traded on the Nasdaq Capital Market (the Nasdaq exchange), they would have to meet the $1 share price requirement, but they do not.
Disclosure: Thankfully I sold out of this stock a couple of months ago.
CSPI reports EPS of .23 v. (.01), revs. 25.9M v. 18.6M. Looks like a solid report.
CSP Inc. Announces Third-Quarter Fiscal 2007 Financial Results
Tuesday August 7, 4:34 pm ET
Company Reports Fifth Consecutive Quarter of Growth on Strength of MODCOMP and MultiComputer Sales
BILLERICA, MA--(MARKET WIRE)--Aug 7, 2007 -- CSP Inc. (NasdaqGM:CSPI - News), a provider of IT solutions, systems integration services and dense cluster computing systems, today reported financial results for the third quarter of fiscal 2007 ended June 30, 2007.
For the third quarter of fiscal 2007, CSP Inc. sales increased 40% to $25.9 million from $18.6 million in the third quarter of fiscal 2006. Net income for the third quarter of fiscal 2007 was $882 thousand, or $0.22 per diluted share, compared with a net loss of $44 thousand, or $0.01 per share, in the third quarter of fiscal 2006.
For the first nine months of fiscal 2007, CSP Inc. sales increased 28% to $65.9 million from $51.3 million for the first nine months of fiscal 2006. Net income for the first nine months of fiscal 2007 grew 377% to $2.1 million, or $0.54 per diluted share, from net income of $443 thousand, or $0.12 per diluted share, in the first nine months of fiscal 2006.
"We hit on all cylinders in the third quarter and achieved our fifth consecutive quarter of year-over-year revenue growth," stated Alexander R. Lupinetti, CSP chairman and chief executive officer.
"Our Systems segment performed well in the quarter, due primarily to shipments to Raytheon related to our existing supply contract for FastCluster 220R MultiComputers," said Lupinetti. "We have now shipped $9.4 million of product and services to Raytheon and expect to ship the remaining systems under the approximately $18 million contract in the current fourth fiscal quarter.
"In our Service and Systems Integration segment, MODCOMP also achieved another impressive quarter, driven by continued sales growth by our German subsidiary and the Systems and Solutions Division (SSD)," added Lupinetti. "We are enthusiastic about our recently launched 'Information Lifecycle Management' professional consulting practice in Germany. To capitalize on the demand for these consulting services, we have hired five new professionals to focus on Identity Management, Archiving and Network Migration. This new practice is an ideal complement to our 'Security' and 'Data Storage' practices both in terms of expertise and customer needs.
"During the third quarter we reduced the workforce in our UK subsidiary in order to lower overhead and focus on our higher margin custom software development solutions," said Lupinetti. "This should enhance the level of profitability in the UK and for MODCOMP overall. MODCOMP's Systems and Solutions Division (SSD) also continues to report strong sales. We are focused on hiring salespeople to capitalize on the healthy demand for SSD's cutting edge IT infrastructure solutions.
"Looking ahead, our visibility into our Systems segment is limited as a result of uncertainty regarding defense appropriations for strategic programs due to shifting military tactical priorities," said Lupinetti. "At the same time, our ability to meet Raytheon's high quality and performance needs and strict deadline requirements strongly positions CSP for future military procurement opportunities. In addition, we are receiving positive preliminary feedback on our new FastCluster 3000 Series MultiComputers.
"We are enthusiastic about our prospects as we enter the final quarter of what has been an excellent year for CSP thus far. We are looking forward to completing delivery of our FastCluster 200R shipments to Raytheon and MODCOMP is positioned well in each of its businesses to capitalize on strong market demand," concluded Lupinetti.
Anyone follow MEM? A/H reported EPS of .18 v. (.11), Revs. 20.4M v. 14.9M. Very solid balance sheet. Last trade $4.36. Haven't dug too deep yet....
Moab Cap Reports 5.1% KSW Stake, Says Shrs Are Undervalued
Last update: 8/3/2007 6:58:42 AMDOW JONES NEWSWIRES Moab Capital Partners LLC on Friday reported holding a 5.1% stake in KSW Inc. (KSW) and said it believes the company's shares are "significantly undervalued."
Moab Capital beneficially owns 313,266 shares of KSW, a Queens, N.Y., furnisher and installer of heating, ventilating and air conditioning systems and process piping systems.
The New York-based investor said it purchased the shares because KSW's "highly-regarded management" team has created a "unique value-engineering business proposition" which is driving the company's superior growth in backlog, revenue and earnings margins. Furthermore, Moab believes KSW's shares are significantly undervalued based on the free cash flow the company generates, and on a relative basis to its publicly traded peers, including Comfort Systems USA Inc. (FIX) and Emcor Group Inc. (EME).
As of July 30, KSW had the highest Ebitda margins of the peers, the smallest capitalized expenditures and predominantly operates in the rapidly growing New York City construction market where it has no exposure to the declining single-family homebuilding cycle.
Moab also believes KSW is "well capitalized and poised to expand its business into major metropolitan markets beyond the New York City market." KSW's shares closed Thursday at $7.22 each.
August 02, 2007
AUSTRALIA'S most influential economist, Ross Garnaut, forecasts in a report that China is at an historic economic and social turning point that will lead to an even bigger appetite for resources at higher prices.
"In 20 years time China is likely to consume more energy and metals than all of the industrialised economies today," Garnaut says.
This analysis is in a paper about to be published by the Rio Tinto-Australian National University China Partnership and will be handily ready for distribution soon after Rio Tinto chairman Paul Skinner and chief executive Tom Albanese present the firm's results later today.
The report appears to provide strong justification for Rio's recent $44 billion purchase of Canadian aluminium giant Alcan.
The report, China's resources demand at the turning point, was drafted by Prof Garnaut with a colleague, Associate Professor Song Ligang.
Garnaut was the chief economic adviser to Bob Hawke when he became prime minister in 1983, and helped mastermind the floating of the dollar and the rapid opening of the economy.
He then became ambassador to China before writing the report, Australia and the northeast Asia ascendancy, which helped steer Australia's focus towards Asia. He is now drafting a review of the impacts of climate change for the state premiers.
Based on studies of neighbours Japan, South Korea, Singapore and Taiwan at similar stages of their development, Garnaut and Song say in their report, China is about to enter "a period of resource-intensive demand unique in world history".
It would not be surprising at all, they say, if China's economic output multiplies by eight times over the next two decades. It has grown almost six times over the last two decades.
They have identified in China today "the interplay of forces whereby labour becomes relatively more scarce and the economy shifts towards more capital-intensive production" -- effects labelled "the turning point" by Nobel Prize-winning economist Arthur Lewis.
Garnaut and Song say: "Economies which are more urban, more investment-reliant and more export-oriented tend to have a more accelerated increase in demand for metals and energy per capita as they grow.
"Sure enough, these are all aspects of China's economy that stand out," they say.
Most countries increase their demand for metals and energy per person markedly when per capita income reaches $US2000-$US5000 ($2300-$5800). In 2006, China's GDP hit $US2000 per capita for the first time.
The heightened demand, says Garnaut, will come from the increased consumption of resource-intensive products in China as more people become middle class and become able to afford new homes and more expensive goods, such as air-conditioners.
The demand will also come, he says, from the need for greater resource inputs to the more capital-intensive products being made and exported. If the latest Chinese Government moves to slash the number of new energy-intensive ventures prove effective, China will import more aluminium (perhaps processed in Australia) than the more upstream alumina -- a further justification for Rio's purchase of Alcan.
The transition to more capital-intensive exports is a strong indicator that "the turning point in China has been reached" already, Garnaut and Song say. The country's energy demand has been growing more rapidly than economic output since 2002.
They say: "China's influence will be greater in the future, mainly for petroleum, but also for natural resources in a wide range of alternative energy sources, notably uranium" -- which China is shortly expected to start importing from Australia.
Overall, "it is therefore likely that global prices for resources will remain on the high track for the foreseeable future -- at average levels that provide incentives for continued rapid growth in supply for a long time".
It is also likely, they conclude, that "China's imports of metals and energy will rise to levels well beyond those of any other country at any time".
The threats to this golden scenario include domestic unrest, a major upheaval in China's banking or corporate structures, and serious environmental damage leading to reduced capacity.
Answers.com & mtvU Partner to Launch Interactive Reference Tool on Over 500 Online College Newspapers
Wednesday July 25, 8:47 am ET
AnswerTips Now Available on All College Media Network Websites
NEW YORK--(BUSINESS WIRE)--Answers Corporation (NASDAQ: ANSW - News), creators of Answers.com(TM), announced today a partnership with mtvU, MTV's 24-hour college network and a division of Viacom Inc.'s (NYSE: VIA - News and VIA.B - News) MTV Networks, to incorporate AnswerTips on every site in mtvU's College Media Network, the largest interactive network of online college newspapers in the US. Users of all sites in the network - including prestigious university publications such as The Daily Herald (Brown University), The Chronicle (Duke University), The Lantern (Ohio State University), The Daily Texan (University of Texas, Austin), The Daily Tarheel (University of North Carolina) and The Daily Free Press (Boston University) - now have instant access to Answers.com's proprietary AnswerTips technology.
The patented AnswerTips technology enables readers to double-click any word or phrase in an article, and launch a helpful "information bubble" with a relevant explanation and/or definition. Information is drawn from Answers.com's collection of more than four million topics spanning dozens of categories. Readers can access this "virtual library" covering academic subjects like history, business, literature, geography and sciences, as well as cultural categories such as arts, music, food, movies and technology. AnswerTips award-winning online technology has already been deployed by world class news organizations including The New York Times and CBS News.
"This partnership with mtvU and the College Media Network is a great fit," said Jeff Cutler, Answers.com's Chief Revenue Officer. "College students are intelligent, savvy web users who expect to find what they need, when they need it. The ability to have any word or phrase in an article pop up and 'talk about itself' is an efficient way to read online, and an approach that fits their busy lifestyle."
"AnswerTips is a helpful reference tool that will enhance the user experience on every College Media Network site," said Stephen Friedman, GM, mtvU. "We're committed to offering our student newspaper affiliates the means to rival or surpass any news outlet on the Web, and this partnership with Answers.com is the latest example of how we're delivering on that promise."
About Answers Corporation
Answers Corporation (NASDAQ: ANSW - News) operates the award-winning Answers.com(TM )information portal, delivering comprehensive content on over four million topics spanning health, finance, entertainment, business and more. Content includes over 180 licensed titles from leading publishers such as Houghton Mifflin Company, Barron's, Encyclopedia Britannica, All Media Guide and others; original articles written by Answers.com's editorial team; community-contributed articles from Wikipedia; and user-generated questions & answers from Answers.com's industry-leading WikiAnswers(TM) (wiki.answers.com). Founded in 1999 by CEO Bob Rosenschein, Answers.com can be launched directly from within Internet Explorer 7, Firefox and Opera browsers, and its service is integrated into sites like Amazon.com's A9.com, The New York Public Libraries' homeworkNYC.org, The New York Times, CBSNews.com and others. Answers.com is also available for mobile devices at mobile.answers.com. For investment information, visit ir.answers.com. (answ-f)
About mtvU
Broadcast to 750 colleges across the country, with a combined enrollment of over 7.2 million, mtvU is the largest, most comprehensive television network just for college students. Twenty-four hours a day, seven days a week, mtvU can be seen in the dining areas, fitness centers, student lounges and dorm rooms of campuses throughout the U.S. mtvU is dedicated to every aspect of college life, reaching students everywhere they are, through a three pronged approach - on-air, online and on campus. mtvU focuses on content including music videos from emerging artists which can't be seen anywhere else, news, student life features, events and pro-social initiatives. mtvU is always on campus, with more than 500 events per year, including exclusive concerts, giveaways, shooting mtvU series and more. For more information about mtvU, and for a complete programming schedule, visit www.mtvU.com.
mtvU also owns and operates the College Media Network, the largest interactive network of online college newspapers in the US, and RateMyProfessors.com, the Internet's largest listing of collegiate professor ratings. The College Media Network comprises over 510 campus publications that serve institutions including Brown University, the University of Illinois, the University of Southern California, the University of Texas at Austin and Duke University, with a combined enrollment of over 5.5 million students, reaching an average of 5 million unique users each month. RateMyProfessors.com reaches approximately 1.5 million college students each month, via the site's more than 6.6 million student-generated ratings of over 1,000,000 college professors.
CXTI: saw this posted on Ragingbull. If this is the case, the stock's steep decline is unjustified, imo...
By: nitty910
20 Jul 2007, 12:45 PM EDT
Msg. 7703 of 7703
Jump to msg. #
From PR Matt Hayden of CXTI:
1. Quarterly #'s are not completed and they don't want to have a call before they are finalized.
2. Simon Fu is leaving for a better opportunity. They have alreday identified his replacement and are negotiating with him.
3. The reason Simon left is that they wanted to centralize all functions in China and Simon lives in Hong Kong, a city he didn't want to leave.
4. Matt spoke directly to Simon and Simon told him that there were none (nada) accounting or reporting issues.
5. Matt also communicated to the CEO and told them of our concerns.
6. He acknowledged that this is painful but should be a short term blip.
Looks like people agree. I like how they broke down what accounted for the ballooning sharecount. I can understand the the shares issued for conversion of debentures, as well as the shares issued for warrants and options. But "the liquidated damages and green shoe penalties were agreed to by the company in order to convince convertible debt holders to convert their notes into shares" seems unusual and excessive. (?) Also, the 1 millions shares for finder's fees and grants seems like a lot to me.
Hopefully today begins a shift towards more transparency with Redmond as President. I have lessened the amount of IEAM I own, but this is still a large position for me. Willing to ride it out and holding my remaining shares with bated breath....
"The company will experience a net loss in the fourth quarter due to derivative and interest expenses as has been consistent throughout the fiscal year. It is expected that these expenses, with the conversion of most of the convertible debt, will be significantly lower during fiscal 2008. Also, as mentioned in the prior press release, the shares outstanding increased during the fourth quarter from approximately 13.3 million to approximately 19.5 million shares outstanding. During the quarter, approximately 2.8 million shares were issued for the conversion of debentures, approximately 1.4 million shares were issued for the exercise of warrants and options, approximately 1.0 million shares were issued for liquidated damages and green shoe penalties, and approximately 1.0 million shares were issued for finder's fees and as employee stock grants. The liquidated damages and green shoe penalties were agreed to by the company in order to convince convertible debt holders to convert their notes into shares of stock of the company. These amounts were not previously disclosed as they were too contingent to value. The cash that was generated from operations and from the warrant and options exercises was used to pay down the existing credit facility at the Pitt Penn subsidiary. The credit facility was inherited by the company during its acquisition of Pitt Penn last year. The company is in the process of replacing the credit facility with one that has more favorable terms to the company."
Industrial Enterprises Appoints Dan Redmond as President and Chief Operating Officer
Friday July 20, 9:00 am ET
NEW YORK--(BUSINESS WIRE)--Industrial Enterprises of America, Inc. (NASDAQ: IEAM - News), a specialty automotive aftermarket supplier, today announced that its Board of Directors has appointed Robert "Dan" Redmond as president and chief operating officer of the company, responsible for all day-to-day operations and reporting to the chief executive officer. John Mazzuto, previously president and chief executive officer, will remain as chief executive officer and will continue to provide strategic guidance to the company and manage its financial reporting process.
Mr. Redmond joined Industrial Enterprises in April, 2007 as executive vice president of Industrial Enterprises and president of Pitt Penn, having previously been employed by Chemtura Corporation, where he managed 12 manufacturing facilities and 1,800 employees. During his three months at Pitt Penn, Mr. Redmond has incorporated lean manufacturing techniques, increased throughput and capacity utilization, and streamlined the corporate infrastructure.
"I have planned on relinquishing day-to-day operating responsibility for some time to focus on the long-term strategic planning for the company and I am happy that the Board has decided to move in this direction," stated John Mazzuto, chief executive officer.
"With Industrial Enterprises now approaching $70 million in annualized revenue, the Board felt it was appropriate to transition to a more operational management team from an entrepreneurial one. Since joining, Dan Redmond has made an important impact at the company, and we believe he has the right operating experience to take over the day-to-day operations - with a focus on increasing revenue, margins, and cash flow," stated Bob Casper, chairman of the Board of Directors.
"At the same time, we want to thank John Mazzuto for building Industrial Enterprises into what it is today, aggregating several underperforming businesses into a growing leader in its field with very little debt and a strong balance sheet. The Board's decision today represents the first in a number of actions contemplated to strengthen the management team of Industrial Enterprises and enhance transparency of the company's operations and financial performance going forward - to ensure we are well positioned for improved bottom line performance in fiscal 2008. The Board expects that these moves will aid in generating free cash flow to fund the company's previously announced extended stock buy back program.
"Finally, the company's current chief financial officer, Dennis O'Neill, is still ill and unable to return to work. We are continuing to search for a qualified CFO in case Dennis O'Neill is unable to return to work in this capacity."
Clarification of July 12, 2007 Press Release
The $4 million in anticipated earnings forecasted for the fourth quarter (up from $3.7 million last quarter) as referenced in the press release was calculated based on EBITDA. EBITDA (earnings before interest, taxes, depreciation and amortization) is a financial measure which it believes is a useful performance indicator. EBITDA is not a recognized term under generally accepted accounting principles, or "GAAP," and should not be considered as an alternative to net income/(loss) or net cash provided by operating activities, which are GAAP measures. A reconciliation of EBITDA to net income/(loss) appears at the end of this release, as do both actual results for the quarter and year-to-date periods.
The company will experience a net loss in the fourth quarter due to derivative and interest expenses as has been consistent throughout the fiscal year. It is expected that these expenses, with the conversion of most of the convertible debt, will be significantly lower during fiscal 2008. Also, as mentioned in the prior press release, the shares outstanding increased during the fourth quarter from approximately 13.3 million to approximately 19.5 million shares outstanding. During the quarter, approximately 2.8 million shares were issued for the conversion of debentures, approximately 1.4 million shares were issued for the exercise of warrants and options, approximately 1.0 million shares were issued for liquidated damages and green shoe penalties, and approximately 1.0 million shares were issued for finder's fees and as employee stock grants. The liquidated damages and green shoe penalties were agreed to by the company in order to convince convertible debt holders to convert their notes into shares of stock of the company. These amounts were not previously disclosed as they were too contingent to value. The cash that was generated from operations and from the warrant and options exercises was used to pay down the existing credit facility at the Pitt Penn subsidiary. The credit facility was inherited by the company during its acquisition of Pitt Penn last year. The company is in the process of replacing the credit facility with one that has more favorable terms to the company.
MENV.OB
Any thoughts on this speculative Oil Sands play, Micron Enviro? Looks like they have a high outstading share count (412 million+) but they seem to be aggressively acquiring land in Alberta. Last trade .038.
"We are currently focused on one of the single largest oil and gas producing regions in the world; the massive OIL SANDS OF ALBERTA. Micron is one of, if not the smallest, market capitalized company with multiple leases (seven) and now operations underway in this world-class oil and gas producing region. This is quite an enviable position for a company of our modest market capitalization, and therefore Micron offers tremendous leverage to one of the world's largest oil resources. As you can see by the recent activities within the Company, Micron appears to be moving steadfastly towards its goal of becoming a mid-range oil and gas producer. Micron has increased its net Oil Sands acreage significantly in 2007 and management is optimistic for additional acquisitions in the future. A recent third party independent report stated that there is potentially $3.7 billion (approximate gross) worth of oil reserves on the total acreage in which Micron has an interest. This number does not take into account the new information on the thickness of the Leismer Oil Sands Prospect or give any value to the significant acreage that Micron has acquired in 2007. Management feels that 2007 will be a turning point for the Company's growth and hope Micron's shareholders are also enthusiastic regarding Micron's short and long term growth potential."
Answers Corp. to Acquire Dictionary.com for $100 Million
Monday July 16, 4:01 pm ET
Strategic Addition of Dictionary.com, Thesaurus.com and Reference.com Propels Company Into Leadership Position as Online Information Publisher
Acquisition Expected to be Accretive to 2008 EBITDA, Excluding Stock-Based Compensation, per Share
Company Updates Second Quarter Revenue Range
NEW YORK, July 16 /PRNewswire-FirstCall/ -- Answers Corporation (NASDAQ: ANSW - News), creator of Answers.com(TM), announced today that it has entered into a purchase agreement to acquire Lexico Publishing Group, LLC, owner of the popular Web properties Dictionary.com, Thesaurus.com and Reference.com, for $100 million in cash. The transaction is subject to financing and customary closing conditions and is scheduled to be completed by fall of this year.
Lexico is a leading online provider of reference products and services, which attracted approximately 11.5 million unique monthly users in the U.S. during the month of June 2007, according to comScore Media Metrix.
Lexico is a highly profitable company that strongly complements Answers' user base. In 2006, it generated revenues of $7 million, EBITDA of $2.9 million and net income of $2.8 million. This strategic acquisition drives Answers to a leadership position in online information publishing.
Key benefits of the acquisition include:
- Page Views: Lexico's Web properties currently generate approximately three times the total page views of Answers.com.
- Monetization: Lexico's Web properties currently monetize at approximately one-third the rate of Answers.com, presenting material revenue upside.
- Direct Traffic: Over 85% of Lexico's traffic is direct from end users or people searching specifically for the term "dictionary" in search engines. The resulting shift in traffic mix should significantly reduce Answers.com's current reliance on search engine algorithms.
- Market Leadership: Based on the June 2007 comScore data, the addition of Lexico's Web properties will increase Answers reach to over 22.5 million monthly unique users, which would rank #28 in the top U.S. properties.
"The acquisition of Lexico is a transformative event for us," explained Robert S. Rosenschein, Chairman and CEO of Answers Corporation. "We are excited about applying our experience in monetization to significantly increase Lexico's 2008 revenues and EBITDA. Lexico's suite of popular brands, steady direct traffic and loyal users are valuable assets that we believe will reduce our products' reliance on search engine-driven traffic. Post-transaction, we estimate that over 70% of our total traffic will now be direct from end users or people searching specifically for the term 'dictionary' in search engines. Our combined size and available ad inventory should provide greater exposure among online media buyers, which we expect will lead to increased advertising sales."
Dictionary.com and other Lexico properties will remain standalone brands, as they are today. "The bottom line is, with three times the traffic and one-third the monetization rate, together with our monetization expertise, the upside potential is compelling," added Steve Steinberg, Chief Financial Officer. "We will also offer cross-promotion to other Answers sites. For example, this acquisition will allow us to introduce our WikiAnswers property to Lexico's 11.5 million monthly unique users."
From a competitive standpoint, the acquisition combines two of the top players in the reference market. According to Hitwise, a leading competitive research firm, in June 2007 the Lexico sites ranked #3 in "Education-Reference" and the Answers sites ranked #4, out of nearly 4,000 sites included in the category. The combined properties would rank #2, behind only Wikipedia.
"Dictionary.com's success is built on its unique, descriptive domain name and simple, straightforward interface," explained Bruce D. Smith, Chief Strategic Officer. "According to a Hitwise analysis of 2006 search terms, 'dictionary' was the second most popular 'generic' search term on the Internet. Lexico's Web properties clearly are well-known brands that we hope will remain the standard for people looking up definitions online. More than anything, we're acquiring a solid user base that we believe will provide steady direct traffic and attractive growth."
"Our vision for Lexico has been to make learning easy and accessible for all on the Internet," said Brian Kariger, Lexico CEO and Co-Founder. "Together with Answers, we will reach more people worldwide and have the resources to innovate and expand our offerings for both end users and advertisers alike."
RBC Capital Markets is advising Answers Corporation; Montgomery & Co., LLC, is advising Lexico Publishing Group, LLC; REK Partners, LLC, is advising Daniel Fierro, Co-Founder of Lexico.
Conference Call
The company will host a conference call to discuss the acquisition tomorrow morning, July 17 at 8:30 a.m. ET. Management will share brief prepared remarks and then open the floor to questions. Investors are invited to listen to the conference call and the replay over the Internet through Answers' Website, within its Investor Relations page at http://ir.answers.com. To listen to the live call via Webcast, please go to our Website at least 10 minutes early to connect and register. To dial in to listen and/or submit a question, please dial 877-502-9272 and request the Answers call. For those unable to listen to the live broadcast, a replay will be available on the site shortly after the call.
Updated Q2 2007 Revenue Range
Answers is also updating its revenue range for the second quarter of 2007. In May, the Company stated that it expected revenues of between $2,800,000 and $3,200,000 for the three months ended June 30, 2007. However, due to more pronounced seasonality in traffic in 2007 than what was experienced in 2006, along with a continued slower than anticipated ramp of its direct ad sales effort, the Company currently anticipates revenues of between $2,750,000 and $2,800,000 for the three months ended June 30, 2007.
About Answers Corporation
Answers Corporation (NASDAQ: ANSW - News) operates the award-winning Answers.comTM information portal, delivering comprehensive content on over four million topics spanning health, finance, entertainment, business and more. Content includes over 180 licensed titles from leading publishers such as Houghton Mifflin Company, Barron's, Encyclopedia Britannica, All Media Guide and others; original articles written by Answers.com's editorial team; community-contributed articles from Wikipedia; and user-generated questions & answers from Answers.com's industry-leading WikiAnswers(TM) (wiki.answers.com). Founded in 1999 by CEO Bob Rosenschein, Answers.com can be launched directly from within Internet Explorer 7, Firefox and Opera browsers, and its service is integrated into sites like Amazon.com's A9.com, The New York Public Libraries' homeworkNYC.org, The New York Times, CBSNews.com and others. Answers.com is also available for mobile devices at mobile.answers.com. For investment information, visit ir.answers.com. (answ-f)
Non-GAAP Discussion
The financial discussion in this release includes reference to a non-GAAP financial measure called "EBITDA", which is defined as earnings before interest, taxes, depreciation, and amortization. We believe that EBITDA provides useful information to investors about a company's performance because it eliminates the effects of period-to-period changes in costs associated with acquisitions, capital investments and income from interest on a company's cash and investment securities that are not directly attributable to the underlying performance of ongoing business operations. EBITDA should be considered in conjunction with, not as a substitute for, other measures of financial performance reported in accordance with accounting principles generally accepted in the U.S.
This release includes a reference to a non-GAAP financial measure called "EBITDA Excluding Stock-Based Compensation", which is EBITDA, as defined above, excluding stock-based compensation. It is our practice to prepare and maintain the Company's budgets and forecasts for future periods on a basis consistent with this non-GAAP financial measure. We believe that because of the variety of equity awards used by companies, the varying methodologies for determining stock-based compensation expense, and the subjective assumptions involved in those determinations, excluding stock-based compensation from this measure enhances the ability of management and investors to compare financial results over multiple periods with those of other companies. EBITDA Excluding Stock-Based Compensation should be considered in conjunction with, not as a substitute for, other measures of financial performance reported in accordance with accounting principles generally accepted in the U.S.
Regulation G Reconciliation
Reconciliation of Lexico EBITDA to its Net Income (thousands)
EBITDA $2,911
Interest income $29
Income taxes ($13)
Depreciation and amortization ($119)
Net income $2,808
Cautionary Statement
Some of the statements included in this press release are forward-looking statements that involve a number of risks and uncertainties, including, but not limited to: statements regarding the proposed acquisition, future market opportunity and future financial performance. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Important factors may cause our actual results to differ materially, including, but not limited to, our inability to complete the acquisition of Lexico Publishing Group, LLC; our inability to realize the intended benefits of the acquisition of Lexico; our inability to successfully integrate the operations of Lexico; our inability to increase the number of persons who use our products; our inability to increase the number of partners who will generate increased traffic to our sites; our failure to improve the monetization of our products; a change in the algorithms and methods used by Google, the provider of a substantial amount of our search engine traffic, and other search engines, to identify Web pages towards which traffic will ultimately be directed or a decision to otherwise restrict the flow of users visiting www.answers.com and our other Web properties; a decision by Google, Inc., to discontinue directing user traffic to www.answers.com through its definition link; the effects of facing liability for any content displayed on our Web properties; potential claims that we are infringing the intellectual property rights of any third party; and other risk factors identified from time to time in our SEC filings, including, but not limited to, our annual report on Form 10-KSB filed in March 2007. Any forward-looking statements set forth in this press release speak only as of the date of this press release. We do not intend to update any of these forward-looking statements to reflect events or circumstances that occur after the date hereof. This press release and prior releases are available at www.answers.com. The information in Answers' Website is not incorporated by reference into this press release and is included as an inactive textual reference only.
Answers Corp. Contacts
Investor Contact:
Bruce D. Smith, CFA
Chief Strategic Officer
bruce@answers.com
+1-646-502-4780
Press Contact:
Alison Minaglia
Technology PR for Answers.com
aminaglia@technologypr.com
+1-203-972-3170 or +1-917-902-3404
Here the actual pr. Looks like lower rev ests., increasing buyback. Mazzuto has been losing a lot of credibility and confusing everyone.
Industrial Enterprises Provides Fourth Quarter and Year-End Update
Thursday July 12, 3:05 pm ET
Board of Directors Authorizes $25 million Increase to Share Repurchase Program
NEW YORK--(BUSINESS WIRE)--Industrial Enterprises of America, Inc. (NASDAQ: IEAM - News), a specialty automotive aftermarket supplier, today reported preliminary fiscal fourth quarter financial highlights, including positive changes in its capital structure and balance sheet.
As expected, a majority of the Company's $4.6 million in convertible debt was converted into equity at the end of the quarter, and the Company's overall debt was reduced to less than $3 million from greater than $14 million. Additionally, the total number of warrants outstanding fell to fewer than 500,000 from 2 million. The reduction of convertible debentures and warrants outstanding significantly lowers the potential dilution going forward; however, due to the recent conversion of debt into equity, warrants exercised, and the interest and liquidated damages related to such debt paid in stock, the Company's outstanding share count has temporarily increased to approximately 19 million shares of common stock. The current share count also reflects management's near-term decision to use warrant proceeds to pay down debt instead of buy back shares. Shares outstanding does not include shares repurchased in the Company's share repurchase program, via cash or note, shares that are in the process of being cancelled and shares that have been issued but not earned, which would all be reported by the transfer agent as outstanding.
Due to the improved financial strength of the Company's balance sheet, the Board of Directors has voted to increase the existing share buyback program by $25 million dollars in order to minimize the effect of the debt conversions and to keep the share count consistent with management's prior 13-14 million share guidance. This does not include stock that may be issued as part of future acquisitions.
For the fiscal fourth quarter ended June 30, 2007, financial performance is expected to be on par with previously guided earnings estimates of $4.0 million, although such performance is always subject to auditor adjustments. However, revenues are expected to come in lower than anticipated due to a change in product mix, as previously discussed on the Company's third quarter conference call. Additionally, the Company's accounts receivable balance, which had risen sharply in the previous two quarters due to bulk sales, has been subsequently reduced by those amounts as receivables on the bulk sales have been collected. Actual financial results are expected to be reported sometime in late September.
Chief Executive Officer John Mazzuto stated, "Moving into fiscal 2008, our balance sheet is stronger than it has ever been, and the potential dilution to our stockholders has been largely eliminated due to the conversion of debt and exercise of warrants. I feel we have taken the necessary steps to position IEAM for substantial revenue growth and margin expansion going forward, providing a strong return on investment for our stakeholders. Now that our Board of Directors has authorized an increase in our share repurchase program, we will continue to purchase stock at the appropriate times."
Industrial Enterprises Puts 4Q Net At $4M, In Line With ViewLast update: 7/12/2007 3:07:02 PM(MORE TO FOLLOW) Dow Jones Newswires
Industrial Enterprises Puts 4Q Net At $4M, In Line With ViewLast update: 7/12/2007 3:07:02 PM(MORE TO FOLLOW) Dow Jones Newswires
hmmmm....this is all very strange.
Industrial Enterprises Boosts Shr Buy Back By $25M >IEAMLast update: 7/12/2007 3:05:54 PM
KSW Awarded Prestigious West Side Project
Thursday July 12, 11:13 am ET
LONG ISLAND CITY, N.Y.--(BUSINESS WIRE)--KSW, Inc. (AMEX: KSW - News) announced today that it has been awarded a contract, valued at approximately $9,200,000, to furnish the HVAC systems for a new mixed use project at 808 Columbus Avenue in Manhattan. The project, which extends from 97th to 100th Streets, includes a 359 unit apartment tower situated atop 220,000 square feet of retail space. Construction is scheduled to begin in September, 2007.
KSW's Chairman, Floyd Warkol, commented that "Both the developer and the construction manager are repeat clients. The developer is headed by The Chetrit Group, for whom KSW is currently performing work at an apartment building at 1510 Second Avenue. KSW has worked on several projects for the construction manager, Gotham Construction Company, including the large apartment building at 10 West End Avenue currently near completion."
State to refinance troubled mortgages
Plan calls for $250m fund and for lenders to accept some loss
By Kimberly Blanton, Boston Globe Staff | July 11, 2007
Massachusetts officials today are expected to unveil a $250 million fund to help delinquent borrowers of subprime mortgages refinance into more affordable loans to prevent them from losing their homes to foreclosure.
One of the first such efforts underway around the country, the Massachusetts plan has an unusual edge to it: State officials said they would use hardball negotiating tactics to force lenders to take a financial hit on the troubled mortgages the state will refinance.
The Patrick administration and the Massachusetts Housing Finance Agency, or MassHousing, reached agreement on the program yesterday. MassHousing will provide financing in conjunction with Fannie Mae, a federal agency that invests in mortgages.
Tina Brooks, Governor Deval L. Patrick's undersecretary of housing, said the refinancing fund is the largest piece yet of the administration's multipronged effort to deal with the rising number of foreclosures hitting Massachusetts homeowners.
The refinancing plan "is the big piece of the governor's program that we've all been waiting for," Brooks said.
The program will allow only those subprime mortgage borrowers who are 60 or fewer days behind on their monthly payments to refinance into 30-year loans at fixed rates of about 7.75 percent. The money should be enough to refinance loans for about 1,000 delinquent borrowers statewide.
Financial regulators blame the rise in foreclosure actions against Massachusetts homeowners on the proliferation of subprime mortgages used during the state's housing boom.
Such loans were targeted at people with less-than-stellar credit and typically offered low "teaser" interest rates that made them manageable in the first two years, but then spiked up to levels many homeowners could not afford.
Perhaps the most disputed element of the Massachusetts plan is state officials' insistence on forcing lenders to accept losses on loans when the value of the properties has dropped since the loans were first made, which is common in the current real estate downturn.
For example, if a subprime borrower purchased a home with a $250,000 mortgage and that property is now worth $230,000, MassHousing would offer $230,000 to the subprime borrower in a refinancing. The lender, to accept, would take a $20,000 loss.
Thomas Gleason, MassHousing's executive director, said lenders in such situations may have no choice but to accept the state's offer because, "that's the best deal they're going to get. Lenders understand if they go to foreclosure, that property will be worth dramatically less."
A spokesman for the trade group of Massachusetts mortgage lenders could not be reached to comment.
Some housing specialists questioned whether many lenders will agree to the state's tough terms.
Massachusetts' approach will "get the lenders to pay some share of the cost of the problems they created," said William Apgar, a senior scholar at Harvard University's Joint Center for Housing Studies. "Whether it works or not depends on whether the lenders have the authority to accept" losses on mortgages they've resold to Wall Street investors, he said.
The state of Ohio has initiated a similar refinancing effort with a $100 million fund. Such bailout programs have drawn criticism from some economists who contend such assistance efforts let overly aggressive lenders or overextended borrowers off the hook.
Massachusetts Secretary of State William F. Galvin said the program was "a step in the right direction, but it wasn't going to solve any major problems" because it can't help all the borrowers now in trouble -- those already in foreclosure. He's proposed legislation to require lenders to obtain court approval before they can foreclose on, and seize, a property.
The refinancing program has income limits: qualified borrowers in the Boston area can earn up to 135 percent of median household income, or up to $108,000. In the rest of the state, the income limit is 125 percent, or $98,000. MassHousing will refinance single homes up to $417,000 in value and three-family homes up to $645,300.
However, borrowers who used subprime mortgages as a refinancing tool to cash out equity from their homes would not be eligible for the assistance.
To apply for refinancing, borrowers must call NeighborhoodWorks America through a toll-free number (888-995-4673). NeighborhoodWorks will screen borrowers and pair up those who are eligible with a counselor.
shmolton, IEAM's transfer agent could still be Computershare....found this from a 2006 filing:
"Our transfer agent is Computershare Limited, located at 350 Indiana Street, Suite 800, Golden, Colorado 80401, telephone number (303) 262-0600."
http://sec.edgar-online.com/2006/05/31/0001354717-06-000024/Section31.asp
I just saw the IEAM ticker go by on CNBC (for the first time). Exposure is good...