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Walmart quarterly profit tops estimates.
Thu Aug 13, 2009 9:18am EDT
SAN FRANCISCO (Reuters) - Walmart Stores Inc posted better-than-expected earnings on cost cuts, and forecast full year earnings that could beat Wall Street estimates, sending its shares up 1.6 percent.
But its key metric of sales at stores open at least a year fell unexpectedly and its chief executive said the economy will remain challenging in the short term.
"Our customers are more disciplined in their spending," said CEO Mike Duke on a recorded call. He said customers are saving more and consuming less.
The retailer also said on Thursday that sales at its U.S. stores open at least a year fell 1.2 percent. Wall Street on average expected a gain of 0.85 percent.
Telsey Advisory Group analyst Joseph Feldman was disappointed in the decline in same-store sales, but he noted the company outperformed its rivals despite a stronger dollar and the recession. He also noted the company raised the low end of its annual guidance.
"Without question, the company continues to operate well in a challenging environment," he added.
Walmart's Duke said the company would focus even more on reducing expenses.
Net income fell slightly at $3.44 billion from $3.45 billion. Earnings per share rose to 88 cents from 87 cents, as the company has a lower outstanding share count in this year's second quarter. Analysts on average were expecting 85 cents a share, according to Reuters Estimates.
Total sales fell 1.4 percent to $100.08 billion in the quarter, pressured by the stronger dollar, which cuts the dollar value of sales made outside the United States. Sales rose 2.7 percent to $104.28 billion on a constant currency basis.
For the current third quarter, the company, which has dropped the hyphen from the name of its stores and now refers to them as Walmart, expects earnings per share from continuing operations of 78 cents to 82 cents. The average Reuters estimate was 80 cents a share.
For the 13 weeks ended October 30, the company forecast U.S. same-store sales to be flat to up 2 percent, with same-store sales at its Sam's Club to be flat, plus or minus 1 percent.
The stores have been gaining market share during the recession, as shoppers head to its stores for discount prices on groceries, shampoo, household cleaners and flat-screen TVs.
But it said in May that it would stop posting sales on a monthly basis, leaving analysts to guess how it fared in the second quarter compared with last year, when it was helped by rising food and fuel prices, and consumers spending tax rebate checks in its stores.
For the year, the company forecast earnings from continuing operations of $3.50 to $3.60 a share. Analysts on average forecast $3.53, according to Reuters Estimates.
Sales at Walmart stores in the United States rose 0.3 percent in the second quarter to $64.21 billion, while they fell 3.2 percent to $11.91 billion in Sam's Club warehouse locations.
In the company's international division, sales fell 5.1 percent to $23.97 billion, but on a constant currency basis international sales increased 11.5 percent to $28.16 billion.
Walmart shares were up 79 cents to $51.30 in premarket on Thursday.
(Reporting by Nicole Maestri and Brad Dorfman; Editing by Lisa Von Ahn and Derek Caney)
Earnings Schedule dated ~ 08/13/09 ~
Company Name Symbol Date Time Estimate YrAgo
Ada Es Inc ADES 8/13 B -0.12 -0.02
Antares Pharma Inc AIS 8/13 B -0.06 -0.05
Arcadia Res Inc KAD 8/13 B n/a -0.02
Briggs & Stratton Corp BGG 8/13 B -0.05 0.01
Companhia De Bebidas DaABV 8/13 B n/a n/a
Dr Pepper Snapple GroupDPS 8/13 B 0.49 0.60
Elixir Gaming TechnologEGT 8/13 B n/a -0.08
Fortress Intl Group IncFIGI 8/13 B n/a n/a
Gammon Gold Inc GRS 8/13 B 0.06 0.05
Gildan Activewear Inc GIL 8/13 B 0.26 0.46
Henry Bros Electronics HBE 8/13 B n/a 0.06
Hexion Specialty ChemicHXN 8/13 B n/a n/a
Insmed Inc INSM 8/13 B n/a -0.04
Internet Gold-Golden LiIGLD 8/13 B 0.16 0.08
Khd Humboldt Wedag IntlKHD 8/13 B -0.11 0.63
Kohls Corp KSS 8/13 B 0.73 0.83
Lauder Estee Cos Inc EL 8/13 B 0.20 0.61
Mi Devs Inc MIM 8/13 B 0.91 0.83
Orascom Constr Inds S AOCIC 8/13 B n/a n/a
P & F Inds Inc PFIN 8/13 B n/a 0.12
Pharmathene Inc PIP 8/13 B -0.18 -0.99
Presstek Inc PRST 8/13 B -0.02 0.02
Royal Gold Inc RGLD 8/13 B 0.14 0.24
Sorl Auto Pts Inc SORL 8/13 B 0.08 0.26
Syneron Medical Ltd ELOS 8/13 B -0.19 0.40
Turkiye Is Bankasi A S TYABY 8/13 B n/a n/a
Wal Mart Stores Inc WMT 8/13 B 0.86 0.86
Watson Wyatt & Co HldgsWW 8/13 B 0.69 0.95
Advansource BiomaterialASB 8/13 D n/a -0.03
Advantage Oil & Gas LtdAAV 8/13 D n/a n/a
Affirmative Ins Hldgs IAFFM 8/13 D n/a 0.15
Arden Group Inc ARDNA 8/13 D n/a 2.09
Aryx Therapeutics Inc ARYX 8/13 D -0.33 -0.67
Assuranceamerica Corp ASAM 8/13 D n/a 0.01
Autodesk Inc ADSK 8/13 D 0.19 0.56
Birner Dental Mgmt ServBDMS 8/13 D n/a 0.21
Citadel Broadcasting CoCTDB 8/13 D n/a -0.96
Columbia Bancorp Ore CBBO 8/13 D -0.73 -0.02
Community Bancorp Nev CBON 8/13 D -0.36 0.36
Devry Inc Del DV 8/13 D 0.50 0.34
Elizabeth Arden Inc RDEN 8/13 D -0.08 0.22
Emagin Corp EMAN 8/13 D n/a -0.01
Energy Focus Inc EFOI 8/13 D n/a -0.11
First M & F Corp FMFC 8/13 D -0.09 -0.05
Gnc Corp GNC 8/13 D n/a n/a
Interleukin Genetics InILI 8/13 D -0.05 -0.05
Mastech Holdings Inc MHH 8/13 D n/a n/a
Ntn Commununications InNTN 8/13 D n/a -0.04
Orchard Enterprises IncORCD 8/13 D -0.10 -0.12
Patriot Capital FundingPCAP 8/13 D 0.20 0.31
Pico Hldgs Inc PICO 8/13 D -0.36 1.49
Pinnacle Gas Resources PINN 8/13 D n/a 0.01
Pro Pharmaceuticals IncPRW 8/13 D n/a -0.01
Provident Energy Tr PVX 8/13 D -0.07 -0.71
Puda Coal Inc PUDC 8/13 D n/a 0.03
Saraiva S A Livreiros ESVLSY 8/13 D n/a n/a
Smartpros Ltd SPRO 8/13 D n/a 0.05
Spectrum PharmaceuticalSPPI 8/13 D -0.10 0.34
Spire Corp SPIR 8/13 D -0.02 -0.03
Symbion Inc Del SMBI 8/13 D n/a n/a
Tegal Corp TGALD 8/13 D n/a -0.11
Tlc Vision Corp TLCV 8/13 D -0.03 -0.04
Trimedyne Inc TMEDE 8/13 D n/a n/a
Univision CommunicationUVN 8/13 D n/a n/a
Urban Outfitters Inc URBN 8/13 D 0.25 0.33
Urs Corp New URS 8/13 D 0.66 0.72
Winland Electrs Inc WEX 8/13 D n/a -0.21
Yankee Candle Inc YCC 8/13 D n/a n/a
Zagg Incorporated ZAGG 8/13 D 0.04 0.01
Allied Defense Group InADG 8/13 A 0.11 -0.04
Bakbone Software Inc BKBOE 8/13 A n/a n/a
Blockbuster Inc BBI 8/13 A -0.12 -0.23
Cardiogenesis Corp CGCP 8/13 A n/a 0.01
China Grentech Corp LtdGRRF 8/13 A 0.02 -0.10
Cover-All Technologies COVR 8/13 A n/a 0.01
Dongkuk Steel Mill Co LDKUSF.OT 8/13 A n/a n/a
Icx Technologies Inc ICXT 8/13 A -0.18 -0.26
Image Entmt Inc DISK 8/13 A n/a 0.08
Integral Vision Inc INVI 8/13 A n/a -0.02
Intersearch Group Inc BNX 8/13 A n/a -0.03
Iridex Corp IRIX 8/13 A n/a 0.03
Management Network GrouTMNG 8/13 A n/a 0.06
Netlist Inc NLST 8/13 A -0.18 -0.11
Nordstrom Inc JWN 8/13 A 0.64 0.71
Red Robin Gourmet BurgeRRGB 8/13 A 0.37 0.52
Satcon Technology Corp SATC 8/13 A -0.09 -0.18
Solar Pwr Inc SOPW 8/13 A -0.06 -0.05
Tam Sa TAM 8/13 A 1.08 0.89
Ticketmaster TKTM 8/13 A 0.25 n/a
Tucows Inc TCX 8/13 A 0.01 0.01
Willdan Group Inc WLDN 8/13 A -0.09 -0.01
*** A = After market hours B = Before market hours D = During market hours U = Time unknown ***
RMBS ~ video chart 08.12.09
Rambus, Inc. (RMBS), situated in and around critical support ($15.42), conveyed a potential sign of reserval following Wednesday's trading session, forming a "doji" candle. Short-term resistance is found at this trading session's high ($15.87). My thoughts and analysis in video format follow.
Link to video chart: http://timelesswealth.net/rmbs.html
RMBS ~ video chart 08.12.09
Rambus, Inc. (RMBS), situated in and around critical support ($15.42), conveyed a potential sign of reserval following Wednesday's trading session, forming a "doji" candle. Short-term resistance is found at this trading session's high ($15.87). My thoughts and analysis in video format follow.
Link to video chart: http://timelesswealth.net/rmbs.html
RMBS ~ video chart 08.12.09
Rambus, Inc. (RMBS), situated in and around critical support ($15.42), conveyed a potential sign of reserval following Wednesday's trading session, forming a "doji" candle. Short-term resistance is found at this trading session's high ($15.87). My thoughts and analysis in video format follow.
Link to video chart: http://timelesswealth.net/rmbs.html
InEnTec seems well-established, however, it does not have exclusive rights to Eurplasma's world-renowned plasma torch technology nor are they a publicly traded company that investors can easily take advantage of...
http://www.inentec.com/
Reading through several interesting studies and articles, I will post these in the evening...
Global Ship Lease: Heads I Win, Tails I Don't Lose Much.
by: Pakiya August 11, 2009
Global Ship Lease (GSL) is a containership lessor that signs long-term lease contracts based on fixed lease rates. GSL was spun-out by CMA CGM, the third largest liner shipping company, in late 2008. GSL has 16 ships that it owns and leases out to CMA on long-term contracts. The lease rates to be received are fixed, so GSL gets a steady cash flow. Also GSL is not impacted by the drop in lease prices, due to the long-term nature of their contracts. CMA owns a 40% stake in GSL, so there is an incentive for CMA to ensure that GSL doesn't go into bankrupcy, more on this below.
Current Results
GSL's fixed long-term contracts ensures the company gets a steady flow of cash. The company makes about 15M of FCF per quarter. In the worst quarters the global economy faced and extremely tough quarters for the shipping industry, GSL grew its CF.
Quarter - NI - CF
3Q 08 - (.3)M - 12M
4Q 08 - (43)M - 13M
1Q 09 - 11M - 15M
2Q 09 - 22M - 14.8M
So basically in some of the worst quarters in decades, the company increased cash flow (net income is impacted by hedges for interest rate). So operationally the company can pay the current interest expense and still generates plenty of cash.
The company takes the FCF and gives it out as dividend to shareholders. In the last 2 quarter of '08 and first quarter of '09 the company gave out $.23 per quarter. For CMA, taxwise this works out nicely.
GSL has quite a bit of debt. It has about 550M of debt. The company can easily cover its interest expense on the debt and still has tons of cash flowing in. Although the company's debt has a covenant about debt-to-ship value. If the debt-to-ship value goes over 100% the bank can cause default. Although given that the company can pay the interest expense and generates plenty of cash, the bank is highly unlikely to force bankrupcy. The current situation has caused the company to stop making dividend payout since Feb '09. Since Feb, the company's debt-to-ship value ratio is over 100%, although the bank has still not forced default. (The stop on dividend has forced investors who were holding the stocks for the dividends to sell out and has created an incredibly compelling investment opportunity.)
The company has been working w/ the bank to amend its agreement. The contracts are still in discussion but it is highly likely an amendment will be worked out and the company will start paying out dividend.
The Bank's Perspective
From the bank perspective, it doesn't make sense to force the company into default. First, the company can pay the interest expense (about 4.5M per quarter). Second, by forcing default the banks will be stuck w/ ships in a market where the value of the ships is extremely low. So the banks would take a loss by selling the ship at these depressed values. Third, GSL has a steady stream of cash coming. With the long-term rates, GSL is not exposed to current market rate fluctuations. So I know what this company can make and whether it can keep making the interest payments. Finally, GSL makes plenty of FCF each quarter. So if I'm the banker, I'm thinking how do I force the company to pay me more. If I'm the banker, I work with this company to either increase the interest rate or force the company to make additional principal payments. In either case, it would be a mistake on the banks part to force default. Also since the bank hasn't forced default since Feb, that is clear indication the bank is not interested in bankruptcy.
To understand the bank's perspective, all you need to do is look at whats happening in the commercial real estate market. The big REITs are on the brink on bankruptcy because of the drop in occupancy and asset value. Although the banks have been working w/ the REITs to extend maturity on the loans or forcing the companies to raise equity. In either case, the REITs are surviving and the banks are not stuck w/ having to sell assets in a distressed market or writing down the assets on its balance sheet. In GSL's case, 'occupancy rate' does not drop due to long-term contracts. The asset values also don't drop, since the company is not really looking to sell its assets until after the contracts are over. I think GSL doesn't really need to raise equity, since it is not struggling operationally to meet its operational or interest expense.
CMA CMG Risk
I think GSL's biggest risk comes from what CMA is doing. As long as CMA can keep paying the monthly charter rates, per agreement, GSL will make its steady cash flow. CMA is a private company, so getting data on it is hard. The main concern regarding CMA is that it has tons of CapEx that it has signed agreements for. With the bad credit crisis and already having a ton of debt, people have concerns over CMA's ability to survive. Although CMA can get out of those CapEx agreements by paying a penalty and cutting back on other expenditures. Also, CMA roughly gets a huge dividend from GSL, so CMA would look to cancel lease agreements with other lessors first. CMA is getting the dividends, tax benefit, and has an equity stake in GSL. So CMA cancelling its contracts with GSL would be the last scenario that CMA would consider.
The shares of GSL has dropped substantially for mainly two reasons: the CMA concern (whether GSL's agreements will be honored by CMA) and the temporary hold on dividends payout has dropped the shares dramatically. The CMA concern are valid, although CMA has options to cut or control its CapEx. Also CMA has been buying back its debt in the open market at huge discounts, so management is taking the right steps. As for the hold on dividends, I think this is only temporary. The management definitely wants to pay out those dividends and CMA wants the dividends. Once the bank issues are fixed, I think the dividends will be reinstituted. Also there has been huge selling in GSL shares recently, I think this is because a major holder started unloading once the dividends were put on hold.
Current Valuation
The shares currently trade at $1.40, a market cap of 98M. Remember the company was paying dividends of $.23 per quarter, so you are getting a 70%+ dividend yield if the old dividends are reinstated. Most likely dividends will be cut. It is not clear what type of dividend payout will happen in the future, but you basically get a company making 60M in FCF for less than 100M. Plus the assets don't need to be sold in this distressed market, so GSL can wait until the market recovers to get a fair value on its assets. GSL doesn't have a single contract expiring until 2012, plenty of time for the market to recover and place historical values on the assets.
Source: http://seekingalpha.com/article/155490-global-ship-lease-heads-i-win-tails-i-don-t-lose-much?
Excellent chart ~6979~, thank you.
Global Ship Lease: Heads I Win, Tails I Don't Lose Much.
by: Pakiya August 11, 2009
Global Ship Lease (GSL) is a containership lessor that signs long-term lease contracts based on fixed lease rates. GSL was spun-out by CMA CGM, the third largest liner shipping company, in late 2008. GSL has 16 ships that it owns and leases out to CMA on long-term contracts. The lease rates to be received are fixed, so GSL gets a steady cash flow. Also GSL is not impacted by the drop in lease prices, due to the long-term nature of their contracts. CMA owns a 40% stake in GSL, so there is an incentive for CMA to ensure that GSL doesn't go into bankrupcy, more on this below.
Current Results
GSL's fixed long-term contracts ensures the company gets a steady flow of cash. The company makes about 15M of FCF per quarter. In the worst quarters the global economy faced and extremely tough quarters for the shipping industry, GSL grew its CF.
Quarter - NI - CF
3Q 08 - (.3)M - 12M
4Q 08 - (43)M - 13M
1Q 09 - 11M - 15M
2Q 09 - 22M - 14.8M
So basically in some of the worst quarters in decades, the company increased cash flow (net income is impacted by hedges for interest rate). So operationally the company can pay the current interest expense and still generates plenty of cash.
The company takes the FCF and gives it out as dividend to shareholders. In the last 2 quarter of '08 and first quarter of '09 the company gave out $.23 per quarter. For CMA, taxwise this works out nicely.
GSL has quite a bit of debt. It has about 550M of debt. The company can easily cover its interest expense on the debt and still has tons of cash flowing in. Although the company's debt has a covenant about debt-to-ship value. If the debt-to-ship value goes over 100% the bank can cause default. Although given that the company can pay the interest expense and generates plenty of cash, the bank is highly unlikely to force bankrupcy. The current situation has caused the company to stop making dividend payout since Feb '09. Since Feb, the company's debt-to-ship value ratio is over 100%, although the bank has still not forced default. (The stop on dividend has forced investors who were holding the stocks for the dividends to sell out and has created an incredibly compelling investment opportunity.)
The company has been working w/ the bank to amend its agreement. The contracts are still in discussion but it is highly likely an amendment will be worked out and the company will start paying out dividend.
The Bank's Perspective
From the bank perspective, it doesn't make sense to force the company into default. First, the company can pay the interest expense (about 4.5M per quarter). Second, by forcing default the banks will be stuck w/ ships in a market where the value of the ships is extremely low. So the banks would take a loss by selling the ship at these depressed values. Third, GSL has a steady stream of cash coming. With the long-term rates, GSL is not exposed to current market rate fluctuations. So I know what this company can make and whether it can keep making the interest payments. Finally, GSL makes plenty of FCF each quarter. So if I'm the banker, I'm thinking how do I force the company to pay me more. If I'm the banker, I work with this company to either increase the interest rate or force the company to make additional principal payments. In either case, it would be a mistake on the banks part to force default. Also since the bank hasn't forced default since Feb, that is clear indication the bank is not interested in bankruptcy.
To understand the bank's perspective, all you need to do is look at whats happening in the commercial real estate market. The big REITs are on the brink on bankruptcy because of the drop in occupancy and asset value. Although the banks have been working w/ the REITs to extend maturity on the loans or forcing the companies to raise equity. In either case, the REITs are surviving and the banks are not stuck w/ having to sell assets in a distressed market or writing down the assets on its balance sheet. In GSL's case, 'occupancy rate' does not drop due to long-term contracts. The asset values also don't drop, since the company is not really looking to sell its assets until after the contracts are over. I think GSL doesn't really need to raise equity, since it is not struggling operationally to meet its operational or interest expense.
CMA CMG Risk
I think GSL's biggest risk comes from what CMA is doing. As long as CMA can keep paying the monthly charter rates, per agreement, GSL will make its steady cash flow. CMA is a private company, so getting data on it is hard. The main concern regarding CMA is that it has tons of CapEx that it has signed agreements for. With the bad credit crisis and already having a ton of debt, people have concerns over CMA's ability to survive. Although CMA can get out of those CapEx agreements by paying a penalty and cutting back on other expenditures. Also, CMA roughly gets a huge dividend from GSL, so CMA would look to cancel lease agreements with other lessors first. CMA is getting the dividends, tax benefit, and has an equity stake in GSL. So CMA cancelling its contracts with GSL would be the last scenario that CMA would consider.
The shares of GSL has dropped substantially for mainly two reasons: the CMA concern (whether GSL's agreements will be honored by CMA) and the temporary hold on dividends payout has dropped the shares dramatically. The CMA concern are valid, although CMA has options to cut or control its CapEx. Also CMA has been buying back its debt in the open market at huge discounts, so management is taking the right steps. As for the hold on dividends, I think this is only temporary. The management definitely wants to pay out those dividends and CMA wants the dividends. Once the bank issues are fixed, I think the dividends will be reinstituted. Also there has been huge selling in GSL shares recently, I think this is because a major holder started unloading once the dividends were put on hold.
Current Valuation
The shares currently trade at $1.40, a market cap of 98M. Remember the company was paying dividends of $.23 per quarter, so you are getting a 70%+ dividend yield if the old dividends are reinstated. Most likely dividends will be cut. It is not clear what type of dividend payout will happen in the future, but you basically get a company making 60M in FCF for less than 100M. Plus the assets don't need to be sold in this distressed market, so GSL can wait until the market recovers to get a fair value on its assets. GSL doesn't have a single contract expiring until 2012, plenty of time for the market to recover and place historical values on the assets.
Source: http://seekingalpha.com/article/155490-global-ship-lease-heads-i-win-tails-i-don-t-lose-much?
4 Reasons Why Banks Will Keep Getting Stronger.
by: myWealth.com August 12, 2009
By Bob O'Brien
You know things have gotten a lot better when one of the biggest concerns in the economy is commercial real estate, because six months ago this was something that was put to the back of the worry list and here it is at the forefront. The regional banks may still have a lot of sweating to do, but do you really think they will be made to suffer? This is the bailout nation where everyone is a winner! Especially the banks!
Banks like JP Morgan Case (JPM), Citigroup (C) and Bank of America (BAC) have all been up quite a bit in the past couple of weeks on heavy volume. They are off Tuesday as I write this, with the Fed meeting over the next couple of days.
Here is why banks will continue to get healthier, but as always do your own analysis:
Real Estate: The homebuilders stocks have rallied significantly (XHB) and what’s good for real estate is good for the banks. As Real Estate continues to stabilize and foreclosures become less and less a problem the banks become more and more attractive.
Consumer: There has been a lot talk about the consumer lately, and yes the consumer is beaten down a bit, but still consuming none the less. Instead of charging things on their credit cards and being in denial about it, they are going out to eat to discuss their finances and charging the meal on their credit card.
Yield curve: The banks still have a great interest rate spread, and “Big Ben” Bernanke is not going to be raising rates anytime in the near future.
Government Back Stop: If the government was going let these banks fail they would have done it already, and they are obviously not. There is a lot of more room for growth now, and the economy is improving significantly.
Sure there may be a double dip recession, and there are a lot of bears that are in denial about the fact that there will be a recovery and growth in the 3rd and 4th quarter of 2009. They have locked themselves into a pattern where all they see are bad things happening.
The (Monthly) Cost of Bankruptcy.
by: Tyler Durden August 12, 2009
Readers have been recently inquiring why it is that so many financial advisors have sprouted all over the place and are scrambling to represent bankrupt companies: after all the company is, well, "bankrupt" - how much money can financial advisors really make on these kinds of deals? The answer may be surprising, especially in light of the proliferation of various splinter financial advisors who had previously been part of larger firms.
I present to you comparable fee schedule, compliments of Miller Buckfire, which itself was recently the target of a gratuitous campaign to demonetize the advisor in its noble (yet definitely not pro bono) cause of representing bankrupt REIT General Growth Properties (GGP). Luckily, the firm managed to convince the Judge and anyone else who cared that the total complete all in cap of $33 million in the event of a successful restructuring (and somehow nobody even jokingly assumed the Obama administration would let this bellweather of everything that is wrong in CRE liquidate) is more than earned: whoever said being proficient with excel macros, making pretty powerpoints and having a (formerly) big rolodex does not pay off.
But back to the matter at hand: below (click to enlarge) are the monthly retainer fees that firms such as Evercore (EVR) ($400,000 a month in its reorganization of nationalized General Motors), Lazard (LAZ), Blackstone (BX) and Rothschild extract out of complacent creditor committees and nationalized entities (in colorful splendor compliments of Miller Buckfire):
So when you wonder next how it is that banks will sustain themselves in the future and expense $1,000 dinners every night, now that IPOs (as much as Cohen and Steers (CNS) would like to invest in the IPO of Simon Property (SPG) for the 2nd time... and 3rd) and M&A are dead, Goldman controls all equity and fixed income markets, and the vertical yield curve is set to flatten, wonder no more: the vultures already are circling and are picking off the meat of their clients to the tune of about $10,000/day.
And speaking of $1,000 dinners, shortly Zero Hedge will analyze the expense report of one Capstone Advisory Group, made famous for employing one Robert Manzo, and how its "investment bankers" tried to slip one too many past the myopic eyes of its dazed, shocked and hypnotized creditors who had already gotten the Vaseline treatment thanks to Stephen Rattner's strikingly convincing negotiating tactics.
Recovery in Asia Begins to Gather Steam.
by Bettina Wassener
Wednesday, August 12, 2009
provided by
Has Asia’s economic recovery reached a turning point?
Recent economic data, some unexpectedly good results from companies around the region, early signs of some new hiring, and a stock market rally that has defied most analysts’ expectations would seem to indicate that perhaps it has.
On Tuesday, economic reports from Singapore, the Philippines, Australia and China provided the latest fuel for hopes that Asia was on track for a recovery that would outpace that of Europe and the United States and give the region more economic and political clout.
Even in Japan, which is mired in its deepest recession in decades, the central bank’s governor, Masaaki Shirakawa, struck an upbeat note after a rate-setting meeting on Tuesday.
“Asian economies seem to be growing at a faster pace,” he said, according to Reuters. “Since the spring, the financial system has also been improving. The overall direction is heading toward improvement.”
Still, Asia has depended heavily on government stimulus projects. Exports remain weak, and a renewed downturn in the West — the primary market for Asian goods — or a turnaround in the rise in Asian stocks, could pose major risks.
But these days, economists see an improved economy. “Things certainly look better than they did three months ago,” said Simon Wong, regional economist at Standard Chartered in Hong Kong.
All through the crisis that engulfed the world financial system and tipped much of the world into recession last year, Asia has had a major advantage: Its banks steered clear of the complex financial instruments that caused some Western banks to collapse. Asian governments and companies were in relatively sound financial health, having repaired their finances only recently after the Asian financial crisis of 1997-98.
Asia’s export-dependent economies suffered badly when consumers and companies in the United States and Europe curtailed purchases, leading to a collapse in Asian exports late last year. But over all, Asia has recovered more rapidly than most analysts had dared to hope, as governments spent heavily to lift their economies.
In recent weeks, companies like Sony, Panasonic and Samsung have reported better — or at least less bad — results for the quarter from April through June. Hyundai Motor even reported a record quarterly profit.
Although many companies are continuing to cut jobs, job recruiters in Asia say they see evidence that some companies are adding staff again. “It’s been a very tough 10 months, but over the past six or seven weeks, we’ve seen a modest upturn in jobs activity in banking — albeit from a very, very low position,” said Nigel Heap, managing director for the recruitment firm Hays in Sydney. “We’re cautiously optimistic that the worst is over in Hong Kong and Singapore.”
China in particular has stood out in Asia. After years of double-digit growth, the Chinese economy stumbled this year. A giant spending package, deep interest-rate cuts and much greater lending by state-controlled banks have pulled the economy back to a healthy level of growth in recent months.
Data for July, released by the statistics office on Tuesday, illustrated the point: Industrial output, an indicator of broader growth, rose 10.8 percent from a year earlier, while retail sales gained 15.2 percent.
Although the rise in output was less than expected, and exports took a further hit, economists at Goldman Sachs say they believe that China could return to growth of more than 10 percent as soon as next year. This week, Goldman raised its forecast for full-year growth for China to 9.4 percent. That was up from the 8.3 percent previously projected and higher than the government’s 8 percent target. For 2010, the economists say they expect China to expand by 11.9 percent.
Not all economists agree that the picture is quite as rosy. For one thing, China’s policy makers now face a delicate balancing act. A spike in property and equities markets —the Shanghai stock index is up about 80 percent this year— has led many to worry that another bubble is in the making. Analysts say the authorities now have to scale back bank lending to deflate price spikes without choking growth.
Data on Tuesday showed that bank lending dropped off sharply in July, but so far most economists remained relaxed.
“We believe that investment in the coming months will continue to be well supported by lending that has already taken place,” Tao Wang, a economist at UBS in Shanghai, said in a note.
Exports, which account for about a third of China’s economy, remain depressed, sinking 23 percent in July from a year earlier. The decline was smaller than economists had expected, and indicated that external demand was steadily recovering, Qing Wang, China economist at Morgan Stanley, said in a note. But it nevertheless showed that overseas demand for Asian-made goods remained well below the level of a year ago.
At the same time, the pace of recovery is uneven across Asia.
In Australia, business confidence is at the highest level in almost two years, and the central bank has indicated that it could raise interest rates.
By contrast, Japan remains in a deep recession. “The global economy has suffered a great shock,” said Mr. Shirakawa, the central bank governor. “We can’t expect to see an impressive recovery.”
The key question now is what happens “beyond the near-term,” said Mr. Wong, the Standard Chartered economist.
“We’ve seen a short-term rebound,” he said. “The question is what happens longer term — how will countries like China and Indonesia switch from export-dependent to something else? There are still lots of uncertainties about that.”
June trade deficit rises to $27B, imports increase.
US trade deficit widens slightly in June to $27B as imports rise for 1st time in 11 months
By Martin Crutsinger, AP Economics Writer
On Wednesday August 12, 2009, 10:53 am EDT
WASHINGTON (AP) -- The U.S. trade deficit edged up slightly in June as imports rose for the first time in 11 months, another sign that the worst recession since World War II is beginning to loosen its grip on the economy.
The Commerce Department said Wednesday that the deficit rose 4 percent to $27 billion, from May's $26 billion. The May imbalance had been the lowest deficit in nearly a decade.
While the politically sensitive deficit with China widened in June, the imbalance so far this year is running below last year's record pace. More good news for American exporters came as the U.S. defeated China in a major case before the World Trade Organization which could provide significant market opportunities for U.S. producers of everything from CDs and DVDs to music downloads and books.
The bigger June deficit reflected an increase in imports for the first time in nearly a year, an indication that demand in the U.S. is starting to revive.
In a good sign for American producers, exports rose for the second straight month. That could be a signal global demand also is starting to rebound.
Imports of goods and services climbed 2.3 percent to $152.8 billion. A 23.8 percent jump in petroleum to $21.5 billion led the increase. That was the largest amount this year, reflecting higher volume and rising oil prices. Imports of other products also rose, led by autos, computers and civilian aircraft.
Exports rose 2 percent to $125.8 billion, good news for America's manufacturing sector, which has seen demand slump domestically and in key foreign markets as the recession that began in the U.S. in December 2007 spread worldwide. Big gains in shipments of semiconductors, civilian aircraft and engines, and telecommunications equipment led the overall export increase.
Meanwhile, the WTO ruled that China had acted improperly by forcing America media producers to route their business in China through Chinese state-owned companies, a decision that could set a larger precedent for U.S. automakers and other American firms.
U.S. Trade Representative Ron Kirk called the ruling a "significant victory for America's creative industries."
On Wall Street, stocks rose in light trading as investors awaited the Federal Reserve's interest rate announcement. The Dow Jones industrial average added more than 115 points in morning trading, reversing their big plunge on Tuesday. Broader indices also gained.
Even with the increase in exports and imports, the overall deficit is running well below last year's levels. Through the first half of this year, the deficit is running at an annual rate of $345.9 billion, about half the $695.9 billion imbalance for all of 2008.
Economists believe the deficit will widen slightly in coming months but will still finish the year far below the 2008 level. They expect the imbalance to begin to rise again in 2010 as the U.S. and global economies start to mend.
The deficit with China increased 5.4 percent to $18.4 billion, the highest level since January. But for the year, that deficit is running 13.1 percent below last year's record pace.
The Obama administration sought to play down trade tensions between the two nations during recent high level meetings. The change in tone partly reflects the growing dependence of the U.S. on the willingness of China, the largest holder of U.S. Treasury securities, to keep buying U.S. debt as the federal budget deficit soars to record levels. The deficit has soared due to massive spending by the administration to jump-start the economy and deal with the worst financial crisis since the Great Depression.
However, U.S. manufacturers have criticized the administration for not pressing the Chinese to do more to alter currency policies they contend are among the major reasons for America's huge trade gap with China, the largest with any country.
The economic troubles have increased political pressure to raise trade barriers to protect domestic industries in both the U.S. and China. A Chinese trade official said Wednesday a U.S. complaint that China's tire imports were harming American tire manufacturers violated trade rules overseen by the World Trade Organization.
"I believe the case is neither supported by facts nor does it have valid legal grounds," a deputy commerce minister, Fu Ziying, said at a Beijing news conference. "It is against basic WTO principles and looks like trade protectionism."
Besides tires, Washington has launched a series of investigations into whether Chinese exporters were dumping goods in the U.S. including wooden bedroom furniture, honey, candles, gift boxes, industrial chemicals and fresh garlic.
Global weakness has been a problem for many American companies, including Caterpillar Inc., Deere & Co. and Boeing Co.
Delayed revivals overseas likely will hinder a broad rebound in the U.S., but most analysts still expect the American economy to grow a bit later this year.
AP Business Writer Joe McDonald in Beijing contributed to this report.
Record home-price fall last quarter.
By Les Christie, CNNMoney.com staff writer
On Wednesday August 12, 2009, 11:52 am EDT
Median home prices fell a record 15.6% during the three months ended June 30, compared to the same period in 2008, according to an industry report.
There is good news though: The survey from the National Association of Realtors reported the median home price rose 4% compared to the first quarter of 2009 -- to $174,100 from $167,300.
The increase in median price was not a surprise, representing, as it did, the traditionally strong spring selling season. But the jump did offer the prospect that the worst of the price declines may be behind us.
"With low interest rates, lower home prices and a first-time buyer tax credit, we've been seeing healthy increases in home sales, which are a hopeful sign for the economy," said Lawrence Yun, NAR's chief economist..
In the vast majority of metro areas -- 129 out of 155 -- median prices dropped year-over-year. Some of the decline can be traced to an increase in the percentage of foreclosures and short sales. They accounted for 36% of all transactions during the quarter.
These "distressed properties" are usually sold at discounts of at least 15% compared with traditional sales.
Patrick Newport, a real estate analyst for IHS Global Insight, while admitting the year-over-year results are still awful, said recent evidence indicates that prices are stabilizing.
"The state sales data show sales picking up across the country," he said.
Newport expects prices and sales to trend down again, especially when the impact of the first-time homebuyers tax credit starts to fade. The credit ends December 1. "Afterward, sales will take a hit," he said.
His forecast is for prices to drop another 5% this year, driven down by added inventory as the foreclosure plague continues to worsen.
Cheapest and priciest areas
The Cape Coral metro area in Florida recorded the largest decline: 52.8% to $84,000. Davenport, Iowa, had the biggest gain: 30.6% to $113,200.
The lowest priced market in the nation is now Saginaw, Mich., where the median home sold for $55,700 during the quarter, a 30.6% drop over last year. The most expensive market was Honolulu, with a median price of $569,500 -- although that's still a 10.5% discount from a year ago. San Jose, Calif. led all mainland cities at $500,000 but that was still down a whopping 33.8% from a year ago.
Condo market
Condo prices have taken an even more severe beating. They fell 19.8% year-over-year, but rose 3.6% quarter-over-quarter.
If you're in the market for a condo in Las Vegas, you may never find a better time. Prices dropped 54.1% compared with the second quarter of 2008 and fell 11.7% between the first and second quarters of 2009. The median price now stands at a bargain basement $66,400.
Condo prices rose year-over-year in only four of 61 metro areas surveyed by NAR. The biggest gain was in Virginia Beach, where prices went up 2.8%. Wichita, Kan. (2%), Dallas (0.7%) and Colorado Springs (0.2%) were the only other gainers.
The most expensive condo market was San Francisco, where the median price was $405,700, down 22.5% from a year ago. Las Vegas was the cheapest condo market by far, with Reno a distant second at $103,100.
As the price continues to appreciate, investors who had originally overlooked Wireless Age Communications, Inc. as a "penny stock" may consider taking a second look. Resultantly, the market will grow liquid. The name change will also attract potential investors, particularly those interested in the technology and sector more than the company itself. There's a distinct difference between investors seeking undervalued securities (Wireless Age Communications, Inc.) and those seeking underrated technology (plasma gasification), imho.
U.S. trade gap widens on oil prices.
On Wednesday August 12, 2009, 8:34 am EDT
WASHINGTON (Reuters) - The U.S. trade deficit widened in June to $27.0 billion, as goods imports increased for the first time in 11 months on the back of higher oil prices, a Commerce Department report said on Wednesday.
Analyst surveyed before the report had expected the monthly trade gap to widen to around $28.5 billion. But stronger foreign demand for U.S. goods and services offset some of the impact of the oil price increase on the deficit.
Both U.S. exports and imports remained sharply below year-ago levels, before the global financial crisis began wreaking a savage toll on international trade.
The trade gap for the first six months of 2009 totaled nearly $173 billion, down more than 50 percent from the same period last year. At the current pace, the U.S. trade deficit for all of 2009 would be the lowest since $265 billion in 1999.
U.S. imports of goods and services rose 2.3 percent in June to $152.8 billion, the highest since January. Higher oil prices accounted for much of increase, and imports of consumer products fell to the lowest since November 2005.
The average price for imported oil rose for the fourth straight month to $59.17 per barrel, helping to widen the U.S. trade gap with the Organization of Petroleum Exporting Countries to the highest since October 2008.
U.S. exports rose 2.0 percent in June to $125.8 billion, led by stronger foreign demand for industrial supplies and materials and capital goods.
Exports of foods, feeds and beverages were the highest since October 2008.
The politically sensitive U.S. trade gap with China widened to $18.43 billion, the largest with any single country. Imports from China were $23.98 billion in June, while U.S. exports to that country totaled $5.55 billion.
(Reporting by Doug Palmer, Editing by Andrea Ricci)
Stocks narrowly mixed ahead of Fed decision.
Stocks trading in narrow range as investors await Federal Reserve announcement
By Stephen Bernard, AP Business Writer
On Wednesday August 12, 2009, 9:36 am EDT
NEW YORK (AP) -- Stocks are trading in a narrow range in the opening moments of trading ahead of the Federal Reserve's interest rate announcement, a day after the market posted its biggest losses in five weeks.
Investors have put a summer rally on hold as they search for fresh signs the economy is strengthening and pulling out of recession. The latest assessment on how the economy is faring will come from the Fed, which ends a two-day meeting Wednesday afternoon with its rate decision and an assessment of the economy.
The Dow Jones industrial average is down 3.63, or 0.04 percent, at 9,237.82. The Standard & Poor's 500 index is down 0.43, or 0.04 percent, at 993.92, while the Nasdaq composite index is up 0.92, or 0.05 percent, at 1,970.65.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
NEW YORK (AP) -- Stock futures were little changed Wednesday ahead of the Federal Reserve's interest rate announcement, and a day after the market posted its biggest losses in five weeks.
Overseas, Asian markets fell amid new worries about the speed of economic recovery in China, while European markets were higher.
U.S. investors have put a summer rally on hold as they search for fresh signs the economy is strengthening and pulling out of its recession. The latest assessment on how the economy is faring will come from the Fed, which ends a two-day meeting Wednesday afternoon with its rate decision and accompanying assessment of the economy.
"Everything still starts and stops with the Fed," said Larry Rosenthal, president at Financial Planning Services in Manassas, Va.
It is widely expected that the central bank will hold the federal funds rate near zero percent. What investors are uncertain about it how the Fed will size up the economy -- whether it sees further signs of strengthening that would justify the gains in stocks since summer. Investors have bid stocks higher on the belief that the economy was pulling out of recession.
Rosenthal said investors also want to see what the Fed says about inflation. Fears of inflation due to an increase in government spending could force the Fed to raise interest rates. That, in turn, could slow down any economic recovery.
Ahead of the opening bell, Dow Jones industrial average futures fell 3, or 0.03 percent, to 9,213. Standard & Poor's 500 index futures declined 1.50, or 0.2 percent, to 991.40, while Nasdaq 100 index futures fell 0.50, or 0.03 percent, to 1,596.00.
A new report showing the nation's trade deficit edged up less than expected in June had little effect on trading. The Commerce Department said the deficit increased to $27 billion from $26 billion in May, which was the lowest level since November 1999.
Economists polled by Thomson Reuters had expected the deficit to increase to $28.5 billion.
In corporate news, Macy's Inc. reported a better-than-expected second-quarter profit. The retailer is also raising its outlook amid benefits from reducing costs.
The market is looking to bounce back a day after posting its biggest loss in five weeks. The Dow fell 1 percent on Tuesday, while the S&P dropped 1.3 percent.
With little new economic or earnings data to spur stocks higher, investors paused in their recent buying to book some gains. Uncertainty around the Fed's meeting also provided a time for investors to pause.
Meanwhile, bond prices were little changed ahead of an auction of $23 billion in 10-year Treasury notes. The Treasury Department is auctioning a record $75 billion in debt this week.
Investors will keep a close eye on demand for the debt because a drop in buyers could force the government to increase the interest it pays, which would drive up borrowing costs for consumers and slow an economic recovery.
The yield on the benchmark 10-year Treasury note, which moves opposite its price, declined to 3.66 percent from 3.67 percent late Tuesday.
Bond prices rose Tuesday as traders moved out of stock and into safer investments like government bonds.
The dollar mostly fell against other major currencies, while gold prices also fell.
Overseas, Japan's Nikkei stock average fell 1.4 percent. In afternoon trading, Britain's FTSE 100 rose 0.3 percent, Germany's DAX index rose 0.7 percent, and France's CAC-40 gained 0.4 percent.
Fed likely to leave rates at lows to aid recovery.
Fed widely expected to leave key interest rate at record lows to nurture economic recovery
By Jeannine Aversa, AP Economics Writer
On Wednesday August 12, 2009, 6:31 am EDT
WASHINGTON (AP) -- Signs are growing that an economic recovery may finally be taking shape, but with dangers still lurking about, Federal Reserve policymakers are all but certain to leave a key interest rate at record lows to make sure any nascent turnaround gains traction.
Fed Chairman Ben Bernanke and his colleagues are slated to wrap up a two-day meeting on Wednesday afternoon, where they will take fresh stock of the nation's economic and financial conditions. So far, barometers suggest the worst recession since World War II is ending, and that the economy has started to grow again -- or will soon.
With the economy turning a corner, the Fed also will weigh whether consumer lending programs intended to ease the recession and stem the financial crisis should be extended.
"I think the Fed will show a bit more confidence in the staying power of the coming economic recovery and indicate that everything is on track," said Mark Zandi, chief economist at Moody's Economy.com.
Still, the Fed has warned that recoveries after financial crises tend to be slow. And dangers remain.
While unemployment dipped to 9.4 percent in July, the Fed says it's likely to top 10 percent this year because companies won't be in a rush to hire. That could restrain the recovery if it crimps spending by already-cautious consumers.
Another risk comes from the troubled commercial real market where defaults on loans are rising. That's a strain on banks holding such loans. The increasing risk is making lenders ever-more stingy about handing out new commercial real-estate loans or refinancing existing ones.
"That's one of the things (Fed policymakers) might want to single out that keeps them worried," said Michael Feroli, economist at JPMorgan Economics.
Against that backdrop, the Fed is widely expected to hold a key bank lending rate at a record low near zero on Wednesday. The central bank also is expected to renew a pledge to hold that rate there for an "extended period." It has leeway to do this because the Fed believes inflation will stay low for a while.
Economists predict the Fed will leave its target range for its banking lending rate between zero and 0.25 percent through the rest of this year. The rationale: super-low lending will spur Americans to spend more, which would support the economy.
If the Fed holds its key rate steady, that means commercial banks' prime lending rate, used to peg rates on home equity loans, certain credit cards and other consumer loans, will stay around 3.25 percent, the lowest in decades.
There have been signs the economy is on the mend.
Factory activity is improving. Home sales are starting to pick up, although much of the activity involves people snapping up bargain-priced foreclosed properties. Companies are cutting far fewer workers.
Some financial stresses also are easing, but lending is not flowing normally and financial markets aren't back to full throttle.
Many analysts believe the economy -- which logged a mild contraction in the second quarter after a dizzying free-fall in the prior six months -- is growing now. That makes it more likely the Fed will consider whether some rescue programs should continue, but any decisions might not come at this week's meeting.
One such program, aimed at driving down interest rates on mortgages and other consumer debt, involves buying U.S. Treasurys. The central bank is on track to buy $300 billion worth of Treasury bonds by the fall; it has bought $253 billion so far.
Some economists think the Fed will let the program expire. They say it's not clear whether the program lowered rates. And, there's been concern that the program makes the Fed look like it is printing money to pay for Uncle Sam's exploding budget deficits.
Meanwhile, the Term Asset-Backed Securities Loan Facility is intended to spark lending to consumers and small businesses. It got off to a slow start in March and is slated to shut down at the end of December. Despite the TALF, many people are having trouble getting loans, analysts say. More recently, the program was expanded to provide relief to the commercial real-estate market.
The Fed isn't expected to launch any new revival efforts or change another existing program that aims to push down mortgage rates. In that venture, the Fed is on track to buy $1.25 trillion worth of securities issued by mortgage finance companies Fannie Mae and Freddie Mac by the end of the year. The central bank's recent purchases have totaled about $542.8 billion.
ETMM bidding $0.145, AUTO asking $0.155.
Time will tell.
I believe all of our current pending events will be accomplished by August's end. I believe we will learn a lot more about the company's plans by then as well...
The National Energy Summit: Speed Dating for the Cleantech Set.
Greentech Media August 11, 2009
By Michael Kanellos
The National Clean Energy Summit takes place today in Las Vegas. Everyone you can think of is there: Al Gore, Arnold, Steve Chu, T. Boone Pickens, Van Jones, John Podesta, Wesley Clark.
You can watch the ongoing proceedings here.
It's not bad, but most of the speakers only have about five minutes to speak, so they aren't getting too deep into the details. A lot of time gets spent thanking everyone else in the room. Some highlights:
Pickens said that if the U.S. could convert the 18 million big rigs rolling down our roads right now from diesel to natural gas, we could cut OPEC shipments by 2.7 million barrels a day. Right now, the U.S. imports 4.5 million barrels a day from OPEC. Pickens claimed he was an oddball a few years ago and was the only one saying the U.S. had to get off foreign oil. If you ignore Nixon, Clinton, Carter, Gore and a few others, he's got a point.
U.S. Senator Maria Cantwell said energy is a $6 billion market and that it could create jobs. "As Nevada goes, so goes the nation," she said. As a native Nevadan, I can explain that: it means summer jobs wearing a silver thing on you waist that spits out quarters. But there could be energy jobs too.
Al Gore likes natural gas 18 wheelers and natural gas coal fired plants to some degree. Natural gas emits less carbon than oil and much less than coal, he said. Batteries just aren't ready to propel big rigs down the road.
"Wind is ready," he added. More wind has been added in the last two years than conventional energy.
Gore also pointed out that the U.S. invented most of the key technologies in renewable energy but we lag in commercial production. It's a good point. PV cells came from Bell Labs. Hybrids got jump started out of the DOE. The Sodium Sulfur battery was invented by Ford (F), he said. The biggest manufacturer is NGK in Japan.
He also swoons over waste heat capture. "But in many jurisidictions... it is effectively against the law," he said. 65 percent of energy in coal in a standard plant is wasted, he said. The problem is that utilities aren't incented to sell heat. Not sure about the nuances of waste heat regulation, but it's a favorite energy source of ours. How do we boost renewable demand: Put a price on carbon and devise renewable power standards.
Source: http://seekingalpha.com/article/155323-the-national-energy-summit-speed-dating-for-the-cleantech-set?
The National Energy Summit: Speed Dating for the Cleantech Set.
Greentech Media August 11, 2009
By Michael Kanellos
The National Clean Energy Summit takes place today in Las Vegas. Everyone you can think of is there: Al Gore, Arnold, Steve Chu, T. Boone Pickens, Van Jones, John Podesta, Wesley Clark.
You can watch the ongoing proceedings here.
It's not bad, but most of the speakers only have about five minutes to speak, so they aren't getting too deep into the details. A lot of time gets spent thanking everyone else in the room. Some highlights:
Pickens said that if the U.S. could convert the 18 million big rigs rolling down our roads right now from diesel to natural gas, we could cut OPEC shipments by 2.7 million barrels a day. Right now, the U.S. imports 4.5 million barrels a day from OPEC. Pickens claimed he was an oddball a few years ago and was the only one saying the U.S. had to get off foreign oil. If you ignore Nixon, Clinton, Carter, Gore and a few others, he's got a point.
U.S. Senator Maria Cantwell said energy is a $6 billion market and that it could create jobs. "As Nevada goes, so goes the nation," she said. As a native Nevadan, I can explain that: it means summer jobs wearing a silver thing on you waist that spits out quarters. But there could be energy jobs too.
Al Gore likes natural gas 18 wheelers and natural gas coal fired plants to some degree. Natural gas emits less carbon than oil and much less than coal, he said. Batteries just aren't ready to propel big rigs down the road.
"Wind is ready," he added. More wind has been added in the last two years than conventional energy.
Gore also pointed out that the U.S. invented most of the key technologies in renewable energy but we lag in commercial production. It's a good point. PV cells came from Bell Labs. Hybrids got jump started out of the DOE. The Sodium Sulfur battery was invented by Ford (F), he said. The biggest manufacturer is NGK in Japan.
He also swoons over waste heat capture. "But in many jurisidictions... it is effectively against the law," he said. 65 percent of energy in coal in a standard plant is wasted, he said. The problem is that utilities aren't incented to sell heat. Not sure about the nuances of waste heat regulation, but it's a favorite energy source of ours. How do we boost renewable demand: Put a price on carbon and devise renewable power standards.
Source: http://seekingalpha.com/article/155323-the-national-energy-summit-speed-dating-for-the-cleantech-set?
What Really Moves the Stock Markets (And How to Take Advantage).
by: Marc Courtenay August 11, 2009
Let's "stir the pot" and challenge both our imaginations and our willingness to look at the stock market in ways that might even make us feel a bit uncomfortable.
What an awesome "Bull Run" we've had since March 9th, 2009. And despite Monday's slight pullback, the stock market of the U.S. is acting like it not only wants to go higher, but is ABSOLUTELY DETERMINED TO GO HIGHER.
So who do you think you are, and who do I think I am, to think the DJIA and S&P 500 can't surprise a lot of people to the upside? I know it sounds like something Harry Dent Jr. might write, but when you understand how the stock markets really work, what drives prices up or down, it is more then plausible to think there's more room for this "bull" to run.
The Wall Street Cheerleading Trio (Jim Cramer, Larry Kudlow and Abby Joseph Cohen) are all doing their utmost to make sure that the average investor's mind is changed, and that instead of mistrust, they engender "full-speed-ahead" confidence that the markets are in "bull-mode" once again.
Last Thursday, during an interview on cable’s popular financial channel, CNBC, Goldman Sachs Group Inc.'s (NYSE:GS) celebrity market strategist, the ever ebullient Ms. Cohen said the S&P 500 Index may rise as high as 1,100 this year, although she warned the move to the top could be rocky.
“We do think that’s achievable, but it doesn’t mean we get there in a straight shot,” Cohen told CNBC. Added Cohen:“Even if this is the new bull market, don’t expect it to look like a ‘V.’ Expect it to look like a series of upward steps.”
According to a forecast put together by the Goldman strategy team, the S&P 500 should trade in a range of 1,050 to 1,100 toward the end of this year. After bouncing back so strongly from its March lows, the S&P 500 is up 12% so far this year.
Cohen told her interviewers:
We do think the new bull market has begun. It may prove that it began in March. Clearly many people were looking for better signs on the economy, and now we’re getting them.
Rebounding corporate profits will be the key catalyst, according to Cohen. She said earnings of $75 a share for the S&P 500 next year are “reasonable” and that the S&P 500 at 1,050 would mean the closely watched index is trading at a Price/Earnings (P/E) ratio of 14.
So from current levels, for the DJIA to hit 10,800 it would "only" have to go up less than 16%, which is about the same percentage the S&P would have to rise in order to reach 1,160. The way the exchange specialists and insiders maneuver the stock exchanges, any experienced trader or investor knows that they won't allow these averages to go straight up.
But the "trend is your friend" in the sense that if "they" want the markets and the market averages to keep going up, "they" will make it happen sooner than later (it will be interested to see what happens when the rest of "them" come back from their summer vacations and August holidays after Labor Day).
The late Richard Ney wrote three books on the nature of the New York Stock Exchange. They are out of print but are a fascinating, illuminating read that opens one's eyes to why stocks and the market go up and down. The more I study his writings the more I experience a "paradigm shift" as to who and what "moves the stock markets".
Ney believed (and remember, this was anywhere from 5 years ago to 45 years ago--Mr. Ney died in 2004) that the exchange specialists, the most powerful bankers (think "The Federal Reserve Bank") and the most influential politicians and legislators all worked together to make sure that the investment markets moved in the direction of their pleasing.
He must have turned over in his grave when the Federal Government under Hank Paulson and the Bush Administration took over Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE), followed by their "leveraged buyout" of the largest insurance company in the world, AIG (NYSE:AIG). And now the government owns and directly controls General Motors, and indirectly the entire automobile industry in America (think "Cash-for-Clunkers").
It is now well known that the Federal Reserve and the Treasury "intervenes" in the bond market, the stock markets, and the treasury markets, and that these prominent powerhouses like Hank Paulson, Timothy Geithner, Ben Bernanke and Larry Summers are or were all powerful investment banking representatives.
The mass media seems to have some conflicts of interest as well, since they are all owned, operated and dictated by humongous multi-national, publicly-traded corporations like GE (NYSE:GE), Disney (NYSE:DIS) Viacom (NYSE:VIA)and Newscorp (NYSE:NWS.A).
When Cramer, Kudow, and Ms. Joseph are ready to pump up the markets or scare the bee-geebers out of investors and thus drive the markets down (why isn't anyone asking the reasons that they would be doing that?), CNBC, ABC, CBS, FOX, and NBC provide them the best coverage, the loudest platforms, and the widest press coverage money can buy.
The late Mr. Ney wrote and spoke on this topic for almost 40 years, and most scoffed at him as being "conspiratorial" and "out-to-lunch", but his words ring truer today than they did even 5 years ago when he passed away:
NEWS AND FINANCIAL REPORTING
It is highly unlikely that we will see news reports critical of U.S. stock exchanges, or of the specialist system. There is a simple reason for this. All news organiztions are corporations and do but reflect their management's views. Corporations that own media have specialists influencing the choice of management. Newspapers, magazines, and television are but extensions of the corporate world.
When Richard Ney's first book, The Wall Street Jungle, came out it was on the New York Times best seller list for 11 months. Yet the New York Times would not review it. The Wall Street Journal refused to take an ad from a New York bookstore that featured The Wall Street Jungle.
All three of the major networks were wary of having Ney appear. NBC banned only two people from appearing on the Tonight show with Johnny Carson: Ralph Nader and Richard Ney. Not only do large banks, brokerage firms, and corporations advertise on television, they also are the largest stock holders.
SPECIALIST STRATEGY
The [stock exchange] specialist should be thought of as a merchant with some rather unique inventory problems and opportunities. His goal, always, is to buy at wholesale prices and to sell at retail. This applies to his actions in the course of the trading day as well as a year of trading.
At the bottom of a slide the specialist will buy heavily for his trading, investment, and omnibus accounts. His goal then becomes to raise the price of his stock with his wholesale inventory intact. In practice, though, he may have to sell shares to meet public demand. This will cause him, then, to lower the price to re-accumulate his inventory before he can proceed to higher levels.
A rally begins while the price of the average stock is still falling. "Major rallies begin and end with the unexpected,".
To stimulate public demand for his stock, near the high the specialist will raise the angle of the rising prices dramatically for the stock. True to one of Ney's axioms that prices beget volume, the public will rush into the market place at the rally high. The specialist can now sell his accumulated inventory to fill the increased demand. Heavy Dow 30 volume at the high is evidence of heavy short sales by the specialists, according to Mr. Ney.
When the specialist has sold all his inventory, and has sold short, he will then begin a downward slide of prices so necessary to his plans.
Slides are a mirror of rallies. Near the bottom, the specialist will increase the angle of price decline, alarming investors, scaring them into selling their shares to the specialist who needs them to cover his short sales, and to build a new inventory at wholesale. The media will remain bullish, or cautiously optimistic throughout a slide, until the last two weeks, when they will turn suddenly bearish (just like Jim Cramer did before the big meltdowns of November 2008 and March 2009]. Mr. Ney kept an eye on all this the rest of his life until his passing at age 87.
Why am I pointing this out instead of talking about the "economic fundamentals" or "corporate earnings" or what the Fed is likely to do with interest rates this week? Because those factors are secondary to the interests and prerogatives of "The Smart Money", "The Movers and Shakers of Wall Street and Pennsylvania Avenue" and the "Real Market Insiders".
It is because of how they move the markets and do their ongoing work (which has been going on for over 200 years) that I'm inclined to believe that over the next 2 or 3 months they will jack the prices of stocks up to surprisingly high levels, followed by some blood-curdling down days and sell-offs.
It will permit them to sell high, then sell short, then cover their short sales, and then buy low. Then when they have purchased all that they intend to purchase, they start this process all over again.
What's my point? It isn't to criticize them or to "expose" them. It is to tell myself, my family, my friends and our readers to "wake up and smell the richly-brewed coffee".
Let us not try to out-smart the Smart Money and the Exchange Specialists. Let's yield to the fact that they know what they're doing and that they are very good at doing it.
Why not follow their lead? Why not do what they do and "piggy-back" on their powerful shoulders. Watch the volume, listen to the rhetoric, educate yourself as to how they signal the short-term, medium-term and longer-term direction of stocks, bonds and commodities. Watch how they influence investor psychology.
It isn't easy to do and takes a great deal of research, digging and re-educating of our minds. One place to start is at The Bear Facts Specialist report. Challenge yourself to read every page of this web site and every report. Work hard to prove what you read is either right or wrong, and become a "Savvy Investor".
It also beats reading endless stock reports and listening to the blithering chatter of the "talking heads" on TV. It will actually give you more time to take walks, smell the roses, and enjoy your loved ones.
Disclosure: I do not own any of the stocks mentioned in this article.
Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it. Please remember investments can fall as well as rise. And they will! - Advanced Investor Technologies LLC accepts no responsibility for any loss or damage resulting directly or indirectly from the use of this content.
Source: http://seekingalpha.com/article/155327-what-really-moves-the-stock-markets-and-how-to-take-advantage?
Wireless Age Communications, Inc. (WLSA) has set a important milestone: they have signed a definitive agreement and ensured shareholder value though non-dilutive terms. The letter of intent was a non-binding contract, whereas the definitive agreement they announced this afternoon governs the terms and conditions they have reached in the acquisition.
WLSA ~ Director, Approvals and Regulatory Affairs, Stein Lal, Sunbay Energy Corp.
http://www.sunbayenergy.com/about_us_management.php
Lal, former Deputy Minister of the Environment for Ontario, occupies a fundamental role ensuring grants and approvals are received in a timely manner. The development of renewable energy solutions is extensively encouraged by the recent Green Energy Act of Ontario as well as numerous as other initiatives across North America.
http://www.greenenergyact.ca/Page.asp?PageID=924&ContentID=1114
Stein Lal is documented in numerous sources sharing a valued opinion on a study, conference, or involving himself in a beneficial organization.
The Associations of Municipalities of Ontario appointed Stein Lal to the Waste Diversion Organization. Lal promptly translates the experience to communications between Sunbay Energy Corp., and Turtle Island Recycling, a principle supplier of feedstock. His understanding of the waste management industry is key to partnerships continent-wide.
Associations of Municipalities of Ontario.
December 1, 1999 - FYI 99/015
AMO Confirms Appointees to the Waste Diversion Organization
Issue: The Board of Directors for the New Waste Diversion Organization (WDO) will undertake program design for waste diversion initiatives for the next year and prepare a longer term plan.
Facts:
AMO, along with the Ministry of the Environment, the Recycling Council of Ontario and various industry groups signed a Memorandum of Understanding (MOU) that establishes and sets out the structure and function of the new WDO.
AMO's representatives to the Board of Directors of the WDO are:
Terry Cassidy, Councillor, City of Quinte West, and Chair, Centre and South Hastings Waste Services Board
Joan King, Councillor, City of Toronto, AMO Vice-President, and Chair, AMO's Recycling Task Force
John Jardine, Commissioner of Environmental Services and City Engineer, City of London with corporate responsibility for waste diversion services and involvement in the London-Middlesex Waste Management Planning Study
Peter Partington, Councillor, Region of Niagara, AMO Board of Directors, and Chair, Niagara Region Corporate and Financial Service Committee.
Each municipal representative offers the necessary knowledge and skills to effectively represent the municipal sector, and they will be supported by a technical advisory group that will draw upon municipal staff experts from across the Province.
Other members of the WDO Board of Directors include:
John Hanson, Executive Director, Recycling Council of Ontario
Andy Brandt, Chair and CEO, Liquor Control Board of Ontario
Ron Hoare, VP Corporate Development, Para Paints
John Honderich, Publisher, Toronto Star Newspapers Ltd
Anthony Eames, President and CEO, Coca-Cola Ltd.
Bill McEwan, President and Chief Merchandising Officer, The Great Atlantic and Pacific Company of Canada
William Apted, President, Crown Cork and Seal Canada Inc.
Peter Elwood, President, Lipton
Stein Lal, Deputy Minister, Ministry of the Environment (non-voting status)
Corporations Supporting Recycling (CSR) is providing the administrative support for the WDO during the one-year term of the organization. CSR's address is 26 Wellington Street East, Suite 601, Toronto, M5E 1S2. http://www.amo.on.ca/AM/Template.cfm?Section=19995&TEMPLATE=/CM/ContentDisplay.cfm&CONTENTID=40663
In 2001, Stein Lal retired as Deputy Minister of the Environment, after having served for over a decade. His professional background is in law.
Communications Forum
Perspectives on the Environment
March 28 2002
STEIN LAL, EX-DM MOE, ON GOVERNMENT
Stien Lal joined the public service of Ontario in 1988 as the Deputy Minister in the Ministry of the Solicitor General and since then has held that position in five other ministries retiring from the public service 2001 as the Deputy Minister of the Ministry of the Environment. During this period, Ontario under went unprecedented political change. As a result, Stien Lal has served in the capacity of Deputy Minister under all three governments. He now heads a consulting practice at the national and international level. Stien is a lawyer by profession, having been first called to the bar in England and subsequently in five other jurisdictions in Canada and abroad. He was appointed a Queen's Counsel in 1983.
Notes
Having worked in six ministries in Ontario, he has had the unique opportunity of seeing and appreciating some of the subtle and sometimes not so subtle differences between them. The OPS has its own culture and each Ministry has its own culture driven sometimes by the nature of their business, sometimes by their mandate or whether they are a regulatory or a non-regulatory Ministry...continued.
http://sustainabilitynetwork.ca/Events/Breakfasts/03282002A.htm
Lal involved himself in a environmental research group promoting education of the subject.
Pollution Probe is a Canadian charitable environmental organization that:
Defines environmental problems through research;
Promotes understanding through education; and,
Presses for practical solutions through advocacy.
Pollution Probe is dedicated to achieving positive and tangible environmental change.
The McLal Group Inc.
Stein Lal
Email: stindarlal@rogers.com
http://www.pollutionprobe.org/managing.shared.waters/organizationlist.pdf
National Environmental Law Section: A Return to Environmental Regulation? Another publication that lists Lal's involvement in Environmental movements.
National Environmental Law Section: A Return to Environmental Regulation?
During Deputy Minister Stein Lal’s visit to the
Ontario Section Executive meeting, we received
welcome assurances, particularly regarding the
improvement of lines of communication. One
of our Branch’s goals will be to pursue efforts to
improve communication. We are once again
hopeful that we can finally address this
longstanding concern on the part of the
environmental Bar in Ontario. http://dev.cba.org/cba/Sections/ELS/Eco_Bulletin/ecobul_99-12.pdf
The Ontario Public Service Employees Union facilitated a study in which Stein Lal took part in. The submission was titled, "Public Interests in Water Facilities Operations".
A Submission to the Walkerton Inquiry: Public Interests in Water Facilities Operations.
July 2001
25. Currently, the MOU names various senior public service employees as the Board Members though
there is no need, either in legislation or Management Board Directives, that the Board be drawn
exclusively from the public service. As of March 1, 2000, the Board consisted of:
John Fleming, Deputy Minister, Ministry of Correctional Services;
Stein Lal, Deputy Minister, Ministry of the Environment;
Donald Obonsawin, Deputy Minister, Ministry of Tourism;
Tony Salerno, Vice-Chair and CEO, Ontario Financing Authority;
Ron Vrancart, Deputy Minister, Ministry of Natural Resources. https://ozone.scholarsportal.info/bitstream/1873/8308/1/10295805.pdf
Sunbay Speakers Series is a program that Sunbay Energy Corp. put together in the discussion and introduction of their plasma gasification project in Port Hope, Ontario. Several newspapers documented Stein Lal as a guest speaker of this program.
Sunbay Energy presented guest speaker Stein Lal, former Deputy Minister of the Environment, in their first of a series at their Info centre on Walton St. Mr. Lal hosted a discussion of The Kyoto Protocol, Carbon Emissions and where Ontario fits in. Jordan Oxley, President of Sunbay Energy, completed the evening with a Q & A session and an update on project plans for the Port Hope Gasification Plant. A very informative evening! For more info drop into the Sunbay Info Ctr at 35 Walton St., Port Hope or call 905-885-0050.
http://www.snapnorthumberland.com/?option=com_sngevents&id%5b%5d=78666
Mr. Stein Lal, former Deputy Minister of the Environment reserves an important role in guiding Sunbay Energy Corp., along the path to success. His thoroughness in law and connections to decisive parties in government will be advantageous to the development of Sunbay's projects as renewable energy solutions.
-------------------------------------------------------------
Wireless Age to Acquire Interest in Renewable Energy Projects.
TORONTO, ONTARIO--(Marketwire - Aug. 11, 2009) - Wireless Age Communications, Inc. (PINK SHEETS:WLSA), ("Wireless Age" or "the Company") announced today that it has entered into a definitive agreement with PowerPlay Energy Corp. ("PowerPlay") and Sunbay Energy Corp. ("Sunbay") through a wholly owned subsidiary of the Company to acquire a 60% interest in a newly formed entity that will hold all of the assets and liabilities of a development stage plasma gasification project proposed to be built in Port Hope, Ontario, Canada and the exclusive rights to participate in plasma gasification projects in the United States of America.
Through its subsidiary Sunbay, PowerPlay is a renewable energy developer specializing in gasification projects, and possesses the intellectual property rights, contracts and licenses necessary for the development of plasma gasification and renewable energy projects. Additionally, Sunbay has entered into an exclusive developer agreement with a world-renowned original equipment manufacturer of plasma torches, as well as a designer and operator of plasma gasification facilities.
Formal closing is subject to various conditions precedent, including drafting certain ancillary legal agreements, regulatory and board of directors' approval.
Pursuant to the agreement the Company has agreed to pay the following consideration: two million five hundred thousand (2,500,000) Newlook Industries Corp. ("Newlook") common shares, one hundred sixty seven thousand US dollars (US$167,000) and a one million two hundred fifty thousand Canadian dollar (CAD$1,250,000) senior secured debenture. The debenture pays interest at 8% per annum, will mature one year from the date of closing and may be fully repaid by the Company at any time with the delivery of five million (5,000,000) Newlook common shares. The debenture will be secured by a general security agreement over all of the assets of the Company including the intellectual property rights of the Port Hope project and the Company's interest in future USA projects. As part of the transaction the Company intends to complete a name change to better reflect the future direction of the Company.
The Company confirms that there is no relationship in this transaction involving any non-arms length party and Wireless Age, its insiders and PowerPlay or Sunbay other than a director of a Newlook insider is also a director and officer of PowerPlay and Sunbay.
Newlook is the Company's controlling shareholder currently holding an ownership percentage of approximately 55%.
For more information, please contact
Wireless Age Communications, Inc.
John G. Simmonds
Chairman & CEO
905-833-2753 ext. 223
Source: http://www.marketwire.com/press-release/Wireless-Age-Communications-Inc-PINK-SHEETS-WLSA-1029072.html
The company has set a important milestone: they have signed a definitive agreement and ensured shareholder value though non-dilutive terms.
WLSA ~ Director, Approvals and Regulatory Affairs, Stein Lal, Sunbay Energy Corp.
http://www.sunbayenergy.com/about_us_management.php
Lal, former Deputy Minister of the Environment for Ontario, occupies a fundamental role ensuring grants and approvals are received in a timely manner. The development of renewable energy solutions is extensively encouraged by the recent Green Energy Act of Ontario as well as numerous as other initiatives across North America.
http://www.greenenergyact.ca/Page.asp?PageID=924&ContentID=1114
Stein Lal is documented in numerous sources sharing a valued opinion on a study, conference, or involving himself in a beneficial organization.
The Associations of Municipalities of Ontario appointed Stein Lal to the Waste Diversion Organization. Lal promptly translates the experience to communications between Sunbay Energy Corp., and Turtle Island Recycling, a principle supplier of feedstock. His understanding of the waste management industry is key to partnerships continent-wide.
Associations of Municipalities of Ontario.
December 1, 1999 - FYI 99/015
AMO Confirms Appointees to the Waste Diversion Organization
Issue: The Board of Directors for the New Waste Diversion Organization (WDO) will undertake program design for waste diversion initiatives for the next year and prepare a longer term plan.
Facts:
AMO, along with the Ministry of the Environment, the Recycling Council of Ontario and various industry groups signed a Memorandum of Understanding (MOU) that establishes and sets out the structure and function of the new WDO.
AMO's representatives to the Board of Directors of the WDO are:
Terry Cassidy, Councillor, City of Quinte West, and Chair, Centre and South Hastings Waste Services Board
Joan King, Councillor, City of Toronto, AMO Vice-President, and Chair, AMO's Recycling Task Force
John Jardine, Commissioner of Environmental Services and City Engineer, City of London with corporate responsibility for waste diversion services and involvement in the London-Middlesex Waste Management Planning Study
Peter Partington, Councillor, Region of Niagara, AMO Board of Directors, and Chair, Niagara Region Corporate and Financial Service Committee.
Each municipal representative offers the necessary knowledge and skills to effectively represent the municipal sector, and they will be supported by a technical advisory group that will draw upon municipal staff experts from across the Province.
Other members of the WDO Board of Directors include:
John Hanson, Executive Director, Recycling Council of Ontario
Andy Brandt, Chair and CEO, Liquor Control Board of Ontario
Ron Hoare, VP Corporate Development, Para Paints
John Honderich, Publisher, Toronto Star Newspapers Ltd
Anthony Eames, President and CEO, Coca-Cola Ltd.
Bill McEwan, President and Chief Merchandising Officer, The Great Atlantic and Pacific Company of Canada
William Apted, President, Crown Cork and Seal Canada Inc.
Peter Elwood, President, Lipton
Stein Lal, Deputy Minister, Ministry of the Environment (non-voting status)
Corporations Supporting Recycling (CSR) is providing the administrative support for the WDO during the one-year term of the organization. CSR's address is 26 Wellington Street East, Suite 601, Toronto, M5E 1S2. http://www.amo.on.ca/AM/Template.cfm?Section=19995&TEMPLATE=/CM/ContentDisplay.cfm&CONTENTID=40663
In 2001, Stein Lal retired as Deputy Minister of the Environment, after having served for over a decade. His professional background is in law.
Communications Forum
Perspectives on the Environment
March 28 2002
STEIN LAL, EX-DM MOE, ON GOVERNMENT
Stien Lal joined the public service of Ontario in 1988 as the Deputy Minister in the Ministry of the Solicitor General and since then has held that position in five other ministries retiring from the public service 2001 as the Deputy Minister of the Ministry of the Environment. During this period, Ontario under went unprecedented political change. As a result, Stien Lal has served in the capacity of Deputy Minister under all three governments. He now heads a consulting practice at the national and international level. Stien is a lawyer by profession, having been first called to the bar in England and subsequently in five other jurisdictions in Canada and abroad. He was appointed a Queen's Counsel in 1983.
Notes
Having worked in six ministries in Ontario, he has had the unique opportunity of seeing and appreciating some of the subtle and sometimes not so subtle differences between them. The OPS has its own culture and each Ministry has its own culture driven sometimes by the nature of their business, sometimes by their mandate or whether they are a regulatory or a non-regulatory Ministry...continued.
http://sustainabilitynetwork.ca/Events/Breakfasts/03282002A.htm
Lal involved himself in a environmental research group promoting education of the subject.
Pollution Probe is a Canadian charitable environmental organization that:
Defines environmental problems through research;
Promotes understanding through education; and,
Presses for practical solutions through advocacy.
Pollution Probe is dedicated to achieving positive and tangible environmental change.
The McLal Group Inc.
Stein Lal
Email: stindarlal@rogers.com
http://www.pollutionprobe.org/managing.shared.waters/organizationlist.pdf
National Environmental Law Section: A Return to Environmental Regulation? Another publication that lists Lal's involvement in Environmental movements.
National Environmental Law Section: A Return to Environmental Regulation?
During Deputy Minister Stein Lal’s visit to the
Ontario Section Executive meeting, we received
welcome assurances, particularly regarding the
improvement of lines of communication. One
of our Branch’s goals will be to pursue efforts to
improve communication. We are once again
hopeful that we can finally address this
longstanding concern on the part of the
environmental Bar in Ontario. http://dev.cba.org/cba/Sections/ELS/Eco_Bulletin/ecobul_99-12.pdf
The Ontario Public Service Employees Union facilitated a study in which Stein Lal took part in. The submission was titled, "Public Interests in Water Facilities Operations".
A Submission to the Walkerton Inquiry: Public Interests in Water Facilities Operations.
July 2001
25. Currently, the MOU names various senior public service employees as the Board Members though
there is no need, either in legislation or Management Board Directives, that the Board be drawn
exclusively from the public service. As of March 1, 2000, the Board consisted of:
John Fleming, Deputy Minister, Ministry of Correctional Services;
Stein Lal, Deputy Minister, Ministry of the Environment;
Donald Obonsawin, Deputy Minister, Ministry of Tourism;
Tony Salerno, Vice-Chair and CEO, Ontario Financing Authority;
Ron Vrancart, Deputy Minister, Ministry of Natural Resources. https://ozone.scholarsportal.info/bitstream/1873/8308/1/10295805.pdf
Sunbay Speakers Series is a program that Sunbay Energy Corp. put together in the discussion and introduction of their plasma gasification project in Port Hope, Ontario. Several newspapers documented Stein Lal as a guest speaker of this program.
Sunbay Energy presented guest speaker Stein Lal, former Deputy Minister of the Environment, in their first of a series at their Info centre on Walton St. Mr. Lal hosted a discussion of The Kyoto Protocol, Carbon Emissions and where Ontario fits in. Jordan Oxley, President of Sunbay Energy, completed the evening with a Q & A session and an update on project plans for the Port Hope Gasification Plant. A very informative evening! For more info drop into the Sunbay Info Ctr at 35 Walton St., Port Hope or call 905-885-0050.
http://www.snapnorthumberland.com/?option=com_sngevents&id%5b%5d=78666
Mr. Stein Lal, former Deputy Minister of the Environment reserves an important role in guiding Sunbay Energy Corp., along the path to success. His thoroughness in law and connections to decisive parties in government will be advantageous to the development of Sunbay's projects as renewable energy solutions.
-------------------------------------------------------------
Wireless Age to Acquire Interest in Renewable Energy Projects.
TORONTO, ONTARIO--(Marketwire - Aug. 11, 2009) - Wireless Age Communications, Inc. (PINK SHEETS:WLSA), ("Wireless Age" or "the Company") announced today that it has entered into a definitive agreement with PowerPlay Energy Corp. ("PowerPlay") and Sunbay Energy Corp. ("Sunbay") through a wholly owned subsidiary of the Company to acquire a 60% interest in a newly formed entity that will hold all of the assets and liabilities of a development stage plasma gasification project proposed to be built in Port Hope, Ontario, Canada and the exclusive rights to participate in plasma gasification projects in the United States of America.
Through its subsidiary Sunbay, PowerPlay is a renewable energy developer specializing in gasification projects, and possesses the intellectual property rights, contracts and licenses necessary for the development of plasma gasification and renewable energy projects. Additionally, Sunbay has entered into an exclusive developer agreement with a world-renowned original equipment manufacturer of plasma torches, as well as a designer and operator of plasma gasification facilities.
Formal closing is subject to various conditions precedent, including drafting certain ancillary legal agreements, regulatory and board of directors' approval.
Pursuant to the agreement the Company has agreed to pay the following consideration: two million five hundred thousand (2,500,000) Newlook Industries Corp. ("Newlook") common shares, one hundred sixty seven thousand US dollars (US$167,000) and a one million two hundred fifty thousand Canadian dollar (CAD$1,250,000) senior secured debenture. The debenture pays interest at 8% per annum, will mature one year from the date of closing and may be fully repaid by the Company at any time with the delivery of five million (5,000,000) Newlook common shares. The debenture will be secured by a general security agreement over all of the assets of the Company including the intellectual property rights of the Port Hope project and the Company's interest in future USA projects. As part of the transaction the Company intends to complete a name change to better reflect the future direction of the Company.
The Company confirms that there is no relationship in this transaction involving any non-arms length party and Wireless Age, its insiders and PowerPlay or Sunbay other than a director of a Newlook insider is also a director and officer of PowerPlay and Sunbay.
Newlook is the Company's controlling shareholder currently holding an ownership percentage of approximately 55%.
For more information, please contact
Wireless Age Communications, Inc.
John G. Simmonds
Chairman & CEO
905-833-2753 ext. 223
Source: http://www.marketwire.com/press-release/Wireless-Age-Communications-Inc-PINK-SHEETS-WLSA-1029072.html
The company has set a important milestone: they have signed a definitive agreement and ensured shareholder value though non-dilutive terms.
WLSA ~ Chairman and CEO, John G. Simmonds, Wireless Age Communications, Inc.
Simmonds carries decades of experience in turning development-stage projects into multi-million dollar ventures. Clublink Inc., as Canada's largest golf course operator with enterprise value of over $1,000,000,000 was founded by Simmonds in 1989.
In 1989, Mr. Simmonds purchased the first of many golf courses, Cherry Downs, a private 18-hole golf course located
just north of Toronto, Canada. Cherry Downs was later sold into a public company, which became Clublink Corporation (TO: LNK) and today is the largest golf course operation in Canada.
http://www.secinfo.com/d13Wqv.z2ap.htm
Simmonds' earlier practice led him into acquiring hopeless operations and restructuring them to sell for multi-millions. Dynacharge was sold to Duracell for $10,000,000 in 1985, after Simmonds had acquired it for $100,000.
In 1981, he began a long career of buying low cost acquisitions and building them up for later resale. He purchased Dynacharge out of bankruptcy for $100,000 and sold it four years later for $10 million.
http://www.321gold.com/editorials/moriarty/moriarty100103.html
In 1996, Simmonds sold Intek Diversified (IDCC) for $500,000,000 to Securicor of Engand. The symbol was later adopted by InterDigital Communications.
"LOS ANGELES, TORONTO, and SURREY, England--(BUSINESS WIRE)--June 18, 1996--INTEK/SIMMONDS(NASDAQ: IDCC ) SECURICOR(TSE: SMM LONDON STOCK EXCHANGE:SECURICOR) In a joint statement, Intek Diversified Corporation ("Intek") of Los Angeles, California, Simmonds Capital Limited ("SCL") of Toronto, Canada, and Securicor plc of Surrey, England, Tuesday announced that definitive agreements have been signed to combine Intek's Roamer One air time services business with the US Land mobile radio business of Midland International Corporation ("Midland"), a wholly owned subsidiary of SCL, and the narrowband wireless technology and manufacturing operations of Securicor Radiocoms Limited ("SRL"), a wholly owned subsidiary of Securicor Communications Limited.
http://www.secinfo.com/dsVS7.932j.c.htm
Simmonds manages numerous other entities and controls intellectual property for future venture consideration.
President and CEO of Newlook Industries Corp. (NLI.V), CEO of Gamecorp Ltd, formerly Eiger Technology, Inc. (GAIMF.OB), Chairman and CEO of Racino Royale, Inc., now InterAmerican Gaming, Inc., TrackPower, Inc., now Gate To Wire Solutions, Inc. (GWIR.OB), and Lumonall, Inc. (LUNL.OB).
http://pinksheets.com/edgar/GetFilingHtml?FilingID=3640627
In 1991, as a director of Glenayre Electronics, Simmonds aided in taking the company public on the Nasdaq for $80,000,000. The company peaked at $3,000,000,000 in the early nineties.
Simmonds recalls the day in late 1987 when he took control of Glenayre Electronics from Klaus Deering, the man who had spent 19 years building the company from an insignificant $300,000 outfit to a $34-million manufacturer of communications equipment. Speaking of those days now, he says: "I don't want to be dishonest, but I don't want to wash a lot of dirty linen in public--there wasn't a lot of it. Actually, Klaus and I got along pretty well," says Simmonds. http://findarticles.com/p/articles/mi_hb3379/is_198902/ai_n8117201/
Synopsis: Simmonds is a seasoned executive with decades of managerial experience in building successful enterprises. His judgment benefits the strong teams he assembles designated for specific ventures. His experience will be critical to launching waste-to-energy power plant projects in cooperation with Sunbay Energy Corp. President, Jordan Oxley, across North America.
WLSA ~ Chairman and CEO, John G. Simmonds, Wireless Age Communications, Inc.
Simmonds carries decades of experience in turning development-stage projects into multi-million dollar ventures. Clublink Inc., as Canada's largest golf course operator with enterprise value of over $1,000,000,000 was founded by Simmonds in 1989.
In 1989, Mr. Simmonds purchased the first of many golf courses, Cherry Downs, a private 18-hole golf course located
just north of Toronto, Canada. Cherry Downs was later sold into a public company, which became Clublink Corporation (TO: LNK) and today is the largest golf course operation in Canada.
http://www.secinfo.com/d13Wqv.z2ap.htm
Simmonds' earlier practice led him into acquiring hopeless operations and restructuring them to sell for multi-millions. Dynacharge was sold to Duracell for $10,000,000 in 1985, after Simmonds had acquired it for $100,000.
In 1981, he began a long career of buying low cost acquisitions and building them up for later resale. He purchased Dynacharge out of bankruptcy for $100,000 and sold it four years later for $10 million.
http://www.321gold.com/editorials/moriarty/moriarty100103.html
In 1996, Simmonds sold Intek Diversified (IDCC) for $500,000,000 to Securicor of Engand. The symbol was later adopted by InterDigital Communications.
"LOS ANGELES, TORONTO, and SURREY, England--(BUSINESS WIRE)--June 18, 1996--INTEK/SIMMONDS(NASDAQ: IDCC ) SECURICOR(TSE: SMM LONDON STOCK EXCHANGE:SECURICOR) In a joint statement, Intek Diversified Corporation ("Intek") of Los Angeles, California, Simmonds Capital Limited ("SCL") of Toronto, Canada, and Securicor plc of Surrey, England, Tuesday announced that definitive agreements have been signed to combine Intek's Roamer One air time services business with the US Land mobile radio business of Midland International Corporation ("Midland"), a wholly owned subsidiary of SCL, and the narrowband wireless technology and manufacturing operations of Securicor Radiocoms Limited ("SRL"), a wholly owned subsidiary of Securicor Communications Limited.
http://www.secinfo.com/dsVS7.932j.c.htm
Simmonds manages numerous other entities and controls intellectual property for future venture consideration.
President and CEO of Newlook Industries Corp. (NLI.V), CEO of Gamecorp Ltd, formerly Eiger Technology, Inc. (GAIMF.OB), Chairman and CEO of Racino Royale, Inc., now InterAmerican Gaming, Inc., TrackPower, Inc., now Gate To Wire Solutions, Inc. (GWIR.OB), and Lumonall, Inc. (LUNL.OB).
http://pinksheets.com/edgar/GetFilingHtml?FilingID=3640627
In 1991, as a director of Glenayre Electronics, Simmonds aided in taking the company public on the Nasdaq for $80,000,000. The company peaked at $3,000,000,000 in the early nineties.
Simmonds recalls the day in late 1987 when he took control of Glenayre Electronics from Klaus Deering, the man who had spent 19 years building the company from an insignificant $300,000 outfit to a $34-million manufacturer of communications equipment. Speaking of those days now, he says: "I don't want to be dishonest, but I don't want to wash a lot of dirty linen in public--there wasn't a lot of it. Actually, Klaus and I got along pretty well," says Simmonds. http://findarticles.com/p/articles/mi_hb3379/is_198902/ai_n8117201/
Synopsis: Simmonds is a seasoned executive with decades of managerial experience in building successful enterprises. His judgment benefits the strong teams he assembles designated for specific ventures. His experience will be critical to launching waste-to-energy power plant projects in cooperation with Sunbay Energy Corp. President, Jordan Oxley, across North America.
Earnings Schedule dated ~ 08/12/09 ~
Company Name Symbol Date Time Estimate YrAgo
Agria Corp GRO 8/12 B 0.15 -0.10
Braskem S A BAK 8/12 B -0.58 0.88
Cameco Corp CCJ 8/12 B 0.26 0.39
China Automotive Sys InCAAS 8/12 B 0.12 0.18
Crown Crafts Inc CRWS 8/12 B n/a 0.06
Ethan Allen Interiors IETH 8/12 B -0.23 0.45
Exact Sciences Corp EXAS 8/12 B n/a -0.08
Firstcity Finl Corp FCFC 8/12 B 0.08 -0.63
Global-Tech Appliances GAI 8/12 B n/a -0.10
Greenman Technologies IGMTIE 8/12 B n/a 0.02
Hillenbrand Inc HI 8/12 B 0.41 0.44
Huaneng Pwr Intl Inc HNP 8/12 B n/a n/a
Ing Group N V ING 8/12 B n/a 1.47
Ituran Location And ConITRN 8/12 B 0.17 0.12
Jacada Ltd JCDA 8/12 B n/a -0.08
Lanxess Ag LXS 8/12 B n/a n/a
Liz Claiborne Inc LIZ 8/12 B -0.40 0.09
Magnetek Inc MAG 8/12 B 0.02 0.07
Maidenform Brands Inc MFB 8/12 B 0.25 0.33
Nexstar Broadcasting GrNXST 8/12 B 0.12 0.14
Occulogix Inc TEAR 8/12 B n/a -0.04
Orckit Communications LORCT 8/12 B -0.37 -0.48
Penn West Energy Tr PWE 8/12 B -0.09 -0.85
Sol Melia Sa SMIZY 8/12 B n/a n/a
Xinhua Fin Media Ltd XSEL 8/12 B 0.08 0.10
Access Integrated TechnCIDM 8/12 D -0.32 -0.16
Acme Communication Inc ACME 8/12 D n/a -0.70
Advanced Battery TechnoABAT 8/12 D 0.08 0.09
Adventrx PharmaceuticalANX 8/12 D n/a -0.07
Allot Communications LtALLT 8/12 D -0.03 -0.09
American Caresource HldANCI 8/12 D 0.01 0.04
American Defense Sys InusADS 8/12 D n/a 0.09
American Dg Energy Inc ADGE 8/12 D n/a -0.02
American Homepatient InAHOM 8/12 D n/a -0.12
American Mtl & Tech IncAMGY 8/12 D n/a 0.13
Barnwell Inds Inc BRN 8/12 D n/a 0.42
Biosante PharmaceuticalBPAX 8/12 D -0.15 -0.22
Biospecifics TechnologiBSTC 8/12 D 0.02 -0.14
Caci Intl Inc CACI 8/12 D 0.93 0.77
Cae Inc CGT 8/12 D n/a 0.18
Camtek Ltd CAMT 8/12 D n/a -0.02
Canterbury Park HoldingCPHC 8/12 D n/a -0.01
Cardiovascular BiotheraCVBTE 8/12 D n/a n/a
Cardium Therapeutics InCXM 8/12 D n/a -0.15
Champion Enterprises InCHB 8/12 D -0.19 0.04
Charles & Colvard Ltd CTHR 8/12 D n/a -0.06
China Transinfo TechnlgCTFO 8/12 D 0.10 0.11
Companhia Paranaense EnELP 8/12 D n/a 0.79
Craft Brewers Alliance HOOK 8/12 D n/a -0.16
Creative Computer AppliAPY 8/12 D n/a -0.10
Cti Industries Corp CTIB 8/12 D 0.10 0.17
Debut Broadcasting CorpDBTB 8/12 D n/a -0.01
F N B Corp N C FNBN 8/12 D -0.26 0.17
Gaming Partners Intl CoGPIC 8/12 D n/a 0.23
Gigoptix Inc GGOX 8/12 D n/a n/a
Global Med TechnologiesGLOB 8/12 D n/a n/a
Globalstar Inc GSAT 8/12 D n/a -0.09
Great Basin Gold Ltd GBG 8/12 D -0.03 -0.16
Gushan Environmental EnGU 8/12 D 0.01 0.21
Heart Tronics Inc SGN 8/12 D n/a n/a
Hemispherx Biopharma InHEB 8/12 D -0.03 -0.04
Hythiam Inc HYTM 8/12 D -0.05 -0.26
Ico Global Comm Hldgs LICOG 8/12 D n/a -0.15
Immersion Corp IMMR 8/12 D -0.25 -0.10
Isecuretrac Corp ISEC 8/12 D n/a n/a
Katy Inds Inc KATY 8/12 D n/a n/a
Kinross Gold Corp KGC 8/12 D 0.12 0.09
Lecroy Corp LCRY 8/12 D 0.04 0.24
Macys Inc M 8/12 D 0.19 0.29
Mad Catz Interactive InMCZ 8/12 D n/a -0.01
Manhattan Bancorp MNHN 8/12 D n/a n/a
Medicinova Inc MNOV 8/12 D -0.39 -0.40
Mips Technologies Inc MIPS 8/12 D 0.03 0.03
Mmr Information Sys IncMMRF 8/12 D n/a -0.95
Nevada Geothermal PowerNGLPF 8/12 D -0.01 n/a
New Concept Energy Inc GBR 8/12 D n/a 7.73
Newtek Business Svcs InNEWT 8/12 D n/a -0.06
Nortech Sys Inc NSYS 8/12 D n/a 0.20
Novelos Therapeutics InNVLT 8/12 D -0.07 -0.24
Nts Rlty Hldgs Ltd PartNLP 8/12 D n/a n/a
Odyssey Marine ExploratOMEX 8/12 D n/a -0.11
Orthologic Corp CAPS 8/12 D n/a -0.07
Phi Inc PHIIK 8/12 D 0.28 0.41
Power Med InterventionsPMII 8/12 D -0.18 -0.67
Procera Networks Inc PKT 8/12 D -0.02 -0.05
Progressive Corp Ohio PGR 8/12 D 0.36 0.36
Prudential Bancorp Inc PBIP 8/12 D 0.05 -0.33
Quest Resource Corp QRCP 8/12 D 0.10 0.52
Response Genetics Inc RGDX 8/12 D -0.27 -0.21
Ricks Cabaret Intl Inc RICK 8/12 D 0.19 0.21
Royal Bancshares Pa IncRBPAA 8/12 D -0.03 0.01
Royal Std Minerals Inc RYSMF 8/12 D n/a n/a
Sara Lee Corp SLE 8/12 D 0.24 0.28
Sifco Inds Inc SIF 8/12 D n/a 0.38
Sun Microsystems Inc JAVAD 8/12 D -0.04 0.18
Tanzanian Royalty Expl TRE 8/12 D n/a n/a
Telanetix Inc TNXI 8/12 D n/a 0.15
Tower Semiconductor LtdTSEM 8/12 D n/a -0.25
Trailer Bridge TRBR 8/12 D 0.00 -0.03
Tri S Sec Corp TRIS 8/12 D n/a -0.35
Ultrapar Participacoes UGP 8/12 D n/a 0.48
Vcg Hldg Corp VCGH 8/12 D n/a n/a
Vestin Realty Mortgage VRTA 8/12 D n/a -0.70
Vestin Rlty Mtg Ii Inc VRTB 8/12 D n/a -1.92
Virtualscopics Inc VSCP 8/12 D -0.02 -0.04
Virtus Invt Partners InVRTS 8/12 D n/a n/a
Whx Corp WXCO 8/12 D n/a 5.30
Yucheng Technologies LtYTEC 8/12 D 0.13 0.15
Advance Auto Parts Inc AAP 8/12 A 0.83 0.79
Aegean Marine PetroleumANW 8/12 A 0.21 0.25
Bally Technologies Inc BYI 8/12 A 0.55 0.54
Combimatrix CorporationCBMXD 8/12 A -0.66 -0.54
Credicorp Ltd BAP 8/12 A 1.31 0.92
Ediets Com Inc DIET 8/12 A -0.09 -0.12
Harris Corp Del HRS 8/12 A 0.82 0.95
Hurray Hldgs Co Ltd HRAY 8/12 A -0.06 0.00
Ldk Solar Co Ltd LDK 8/12 A -0.91 1.29
Lime Energy Co LIME 8/12 A -0.28 -0.57
Netease Com Inc NTES 8/12 A 0.45 0.49
Oncothyreon Inc ONTY 8/12 A -0.14 -0.25
Renesola Ltd SOLA 8/12 A -0.06 0.38
Shoretel Inc SHOR 8/12 A 0.01 0.04
Sra Intl Inc SRX 8/12 A 0.26 0.32
U S Home Sys Inc USHS 8/12 A -0.10 0.09
Ultrapetrol Bahamas LtdULTR 8/12 A 0.08 0.43
Vertro Inc VTRO 8/12 A -0.07 -0.19
White Electr Designs CoWEDC 8/12 A 0.07 0.06
Youbet Com Inc UBET 8/12 A 0.06 0.05
*** A = After market hours B = Before market hours D = During market hours U = Time unknown ***
Chiroman, I sent an email to subscribers this evening pertaining to this topic. I attempted to explain the misunderstood terminology and how it translates to shareholder value above all. Here is the portion that best relates:
Previously, Wireless Age Communications, Inc. issued a letter of intent to acquire a controlling stake in Sunbay Energy Corp., specifically referencing their project in Port Hope, Ontario. Source: http://www.marketwire.com/press-release/Wireless-Age-Communications-Inc-PINK-SHEETS-WLSA-1020384.html
The letter of intent is a non-binding contract, whereas the definitive agreement they announced this afternoon governs the terms and conditions they have reached in the acquisition. Source: http://www.jvmergerhelper.com/Definitive_Agreement.htm
Financing of the acquisition was settled under the following terms, “two million five hundred thousand (2,500,000) Newlook Industries Corp. ("Newlook") common shares, one hundred sixty seven thousand US dollars (US$167,000) and a one million two hundred fifty thousand Canadian dollar (CAD$1,250,000) senior secured debenture.”
The financing is handled through cash and Newlook stock consideration. Notice that they have not granted stock of Wireless Age Communications, Inc. to any party.
Therefore the transaction is non-dilutive. This is key: it will ensure shareholder value. Please do not mistake the senior secured debenture for a “convertible debenture” (convertible debentures are secured by stock of the issuer, therefore dilutive and destructive of shareholder value). A debenture is an unsecured loan granted based on confidence in the issuer’s credit rating. Source: http://finance.mapsofworld.com/debenture/definition.html
In the context of this transaction it means Sunbay Energy Corp. is confident that Wireless Age Communications, Inc. will be able to pay the given amount ($1.25M) in full as well as the occurred interest (8% per annum) in the loan. The terms of the agreement state that this senior debenture is secured by “a general security agreement over all of the assets of the Company including the intellectual property rights of the Port Hope project and the Company's interest in future USA projects”, or simply collateral (as with any loan).
Remember: this debenture is non-stock related. Wireless Age Communications, Inc. had, however, mentioned that it may be “fully repaid by the Company at any time with the delivery of five million (5,000,000) Newlook common shares.” Notice that the agreement does not involve any stock of Wireless Age Communications, Inc.
I will attempt to wrap up the key things I see to this afternoon's press release, this evening. Here it is once more for anyone who may have missed it. Focus on the paragraph in bold.
Wireless Age to Acquire Interest in Renewable Energy ProjectsTORONTO, ONTARIO--(Marketwire - Aug. 11, 2009) - Wireless Age Communications, Inc. (PINK SHEETS:WLSA), ("Wireless Age" or "the Company") announced today that it has entered into a definitive agreement with PowerPlay Energy Corp. ("PowerPlay") and Sunbay Energy Corp. ("Sunbay") through a wholly owned subsidiary of the Company to acquire a 60% interest in a newly formed entity that will hold all of the assets and liabilities of a development stage plasma gasification project proposed to be built in Port Hope, Ontario, Canada and the exclusive rights to participate in plasma gasification projects in the United States of America.
Through its subsidiary Sunbay, PowerPlay is a renewable energy developer specializing in gasification projects, and possesses the intellectual property rights, contracts and licenses necessary for the development of plasma gasification and renewable energy projects. Additionally, Sunbay has entered into an exclusive developer agreement with a world-renowned original equipment manufacturer of plasma torches, as well as a designer and operator of plasma gasification facilities.
Formal closing is subject to various conditions precedent, including drafting certain ancillary legal agreements, regulatory and board of directors' approval.
Pursuant to the agreement the Company has agreed to pay the following consideration: two million five hundred thousand (2,500,000) Newlook Industries Corp. ("Newlook") common shares, one hundred sixty seven thousand US dollars (US$167,000) and a one million two hundred fifty thousand Canadian dollar (CAD$1,250,000) senior secured debenture. The debenture pays interest at 8% per annum, will mature one year from the date of closing and may be fully repaid by the Company at any time with the delivery of five million (5,000,000) Newlook common shares. The debenture will be secured by a general security agreement over all of the assets of the Company including the intellectual property rights of the Port Hope project and the Company's interest in future USA projects. As part of the transaction the Company intends to complete a name change to better reflect the future direction of the Company.
The Company confirms that there is no relationship in this transaction involving any non-arms length party and Wireless Age, its insiders and PowerPlay or Sunbay other than a director of a Newlook insider is also a director and officer of PowerPlay and Sunbay.
Newlook is the Company's controlling shareholder currently holding an ownership percentage of approximately 55%.
http://www.marketwire.com/press-release/Wireless-Age-Communications-Inc-PINK-SHEETS-WLSA-1029072.html
If they hadn't decided or were to "hold back", they wouldn't issue a press release explaining how the financing will work. This is virtually the most important detail to this transaction: how will it affect shareholders?
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=40410325
Wireless Age to Acquire Interest in Renewable Energy Projects
TORONTO, ONTARIO--(Marketwire - Aug. 11, 2009) - Wireless Age Communications, Inc. (PINK SHEETS:WLSA), ("Wireless Age" or "the Company") announced today that it has entered into a definitive agreement with PowerPlay Energy Corp. ("PowerPlay") and Sunbay Energy Corp. ("Sunbay") through a wholly owned subsidiary of the Company to acquire a 60% interest in a newly formed entity that will hold all of the assets and liabilities of a development stage plasma gasification project proposed to be built in Port Hope, Ontario, Canada and the exclusive rights to participate in plasma gasification projects in the United States of America.
Through its subsidiary Sunbay, PowerPlay is a renewable energy developer specializing in gasification projects, and possesses the intellectual property rights, contracts and licenses necessary for the development of plasma gasification and renewable energy projects. Additionally, Sunbay has entered into an exclusive developer agreement with a world-renowned original equipment manufacturer of plasma torches, as well as a designer and operator of plasma gasification facilities.
Formal closing is subject to various conditions precedent, including drafting certain ancillary legal agreements, regulatory and board of directors' approval.
Pursuant to the agreement the Company has agreed to pay the following consideration: two million five hundred thousand (2,500,000) Newlook Industries Corp. ("Newlook") common shares, one hundred sixty seven thousand US dollars (US$167,000) and a one million two hundred fifty thousand Canadian dollar (CAD$1,250,000) senior secured debenture. The debenture pays interest at 8% per annum, will mature one year from the date of closing and may be fully repaid by the Company at any time with the delivery of five million (5,000,000) Newlook common shares. The debenture will be secured by a general security agreement over all of the assets of the Company including the intellectual property rights of the Port Hope project and the Company's interest in future USA projects. As part of the transaction the Company intends to complete a name change to better reflect the future direction of the Company.
The Company confirms that there is no relationship in this transaction involving any non-arms length party and Wireless Age, its insiders and PowerPlay or Sunbay other than a director of a Newlook insider is also a director and officer of PowerPlay and Sunbay.
Newlook is the Company's controlling shareholder currently holding an ownership percentage of approximately 55%.
Note: This press release contains "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on currently available competitive, financial and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain. Wireless Age Communications, Inc. cannot provide assurances that the matters described in this press release will be successfully completed or that the company will realize the anticipated benefits of any transaction. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to: global economic and market conditions; the war on terrorism and the potential for war or other hostilities in other parts of the world; the availability of financing and lines of credit; successful integration of acquired or merged businesses; changes in interest rates; management's ability to forecast revenues and control expenses, especially on a quarterly basis; unexpected decline in revenues without a corresponding and timely slowdown in expense growth; the company's ability to retain key management and employees; intense competition and the company's ability to meet demand at competitive prices and to continue to introduce new products and new versions of existing products that keep pace with technological developments, satisfy increasingly sophisticated customer requirements and achieve market acceptance; relationships with significant suppliers and customers; as well as other risks and uncertainties, including but not limited to those detailed from time to time in Wireless Age Communications, Inc. SEC filings. Wireless Age Communications, Inc. undertakes no obligation to update information contained in this release. For further information regarding risks and uncertainties associated with Wireless Age Communications, Inc.'s business, please refer to the risks and uncertainties detailed from time to time in Wireless Age Communications, Inc.'s SEC filings.
For more information, please contact
Wireless Age Communications, Inc.
John G. Simmonds
Chairman & CEO
905-833-2753 ext. 223
The key is this: the stock used to finance this project is stock of Newlook, not Wireless Age. That makes the transaction non-dilutive for shareholders of Wireless Age Communication, Inc.
Pursuant to the agreement the Company has agreed to pay the following consideration: two million five hundred thousand (2,500,000) Newlook Industries Corp. ("Newlook") common shares, one hundred sixty seven thousand US dollars (US$167,000) and a one million two hundred fifty thousand Canadian dollar (CAD$1,250,000) senior secured debenture. The debenture pays interest at 8% per annum, will mature one year from the date of closing and may be fully repaid by the Company at any time with the delivery of five million (5,000,000) Newlook common shares. The debenture will be secured by a general security agreement over all of the assets of the Company including the intellectual property rights of the Port Hope project and the Company's interest in future USA projects.
Now you formally understand how the Port Hope project is to be financed.
Wireless Age to Acquire Interest in Renewable Energy Projects
TORONTO, ONTARIO--(Marketwire - Aug. 11, 2009) - Wireless Age Communications, Inc. (PINK SHEETS:WLSA), ("Wireless Age" or "the Company") announced today that it has entered into a definitive agreement with PowerPlay Energy Corp. ("PowerPlay") and Sunbay Energy Corp. ("Sunbay") through a wholly owned subsidiary of the Company to acquire a 60% interest in a newly formed entity that will hold all of the assets and liabilities of a development stage plasma gasification project proposed to be built in Port Hope, Ontario, Canada and the exclusive rights to participate in plasma gasification projects in the United States of America.
Through its subsidiary Sunbay, PowerPlay is a renewable energy developer specializing in gasification projects, and possesses the intellectual property rights, contracts and licenses necessary for the development of plasma gasification and renewable energy projects. Additionally, Sunbay has entered into an exclusive developer agreement with a world-renowned original equipment manufacturer of plasma torches, as well as a designer and operator of plasma gasification facilities.
Formal closing is subject to various conditions precedent, including drafting certain ancillary legal agreements, regulatory and board of directors' approval.
Pursuant to the agreement the Company has agreed to pay the following consideration: two million five hundred thousand (2,500,000) Newlook Industries Corp. ("Newlook") common shares, one hundred sixty seven thousand US dollars (US$167,000) and a one million two hundred fifty thousand Canadian dollar (CAD$1,250,000) senior secured debenture. The debenture pays interest at 8% per annum, will mature one year from the date of closing and may be fully repaid by the Company at any time with the delivery of five million (5,000,000) Newlook common shares. The debenture will be secured by a general security agreement over all of the assets of the Company including the intellectual property rights of the Port Hope project and the Company's interest in future USA projects. As part of the transaction the Company intends to complete a name change to better reflect the future direction of the Company.
The Company confirms that there is no relationship in this transaction involving any non-arms length party and Wireless Age, its insiders and PowerPlay or Sunbay other than a director of a Newlook insider is also a director and officer of PowerPlay and Sunbay.
Newlook is the Company's controlling shareholder currently holding an ownership percentage of approximately 55%.
Note: This press release contains "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on currently available competitive, financial and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain. Wireless Age Communications, Inc. cannot provide assurances that the matters described in this press release will be successfully completed or that the company will realize the anticipated benefits of any transaction. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to: global economic and market conditions; the war on terrorism and the potential for war or other hostilities in other parts of the world; the availability of financing and lines of credit; successful integration of acquired or merged businesses; changes in interest rates; management's ability to forecast revenues and control expenses, especially on a quarterly basis; unexpected decline in revenues without a corresponding and timely slowdown in expense growth; the company's ability to retain key management and employees; intense competition and the company's ability to meet demand at competitive prices and to continue to introduce new products and new versions of existing products that keep pace with technological developments, satisfy increasingly sophisticated customer requirements and achieve market acceptance; relationships with significant suppliers and customers; as well as other risks and uncertainties, including but not limited to those detailed from time to time in Wireless Age Communications, Inc. SEC filings. Wireless Age Communications, Inc. undertakes no obligation to update information contained in this release. For further information regarding risks and uncertainties associated with Wireless Age Communications, Inc.'s business, please refer to the risks and uncertainties detailed from time to time in Wireless Age Communications, Inc.'s SEC filings.
For more information, please contact
Wireless Age Communications, Inc.
John G. Simmonds
Chairman & CEO
905-833-2753 ext. 223
Wireless Age to Acquire Interest in Renewable Energy ProjectsTORONTO, ONTARIO--(Marketwire - Aug. 11, 2009) - Wireless Age Communications, Inc. (PINK SHEETS:WLSA), ("Wireless Age" or "the Company") announced today that it has entered into a definitive agreement with PowerPlay Energy Corp. ("PowerPlay") and Sunbay Energy Corp. ("Sunbay") through a wholly owned subsidiary of the Company to acquire a 60% interest in a newly formed entity that will hold all of the assets and liabilities of a development stage plasma gasification project proposed to be built in Port Hope, Ontario, Canada and the exclusive rights to participate in plasma gasification projects in the United States of America.
Through its subsidiary Sunbay, PowerPlay is a renewable energy developer specializing in gasification projects, and possesses the intellectual property rights, contracts and licenses necessary for the development of plasma gasification and renewable energy projects. Additionally, Sunbay has entered into an exclusive developer agreement with a world-renowned original equipment manufacturer of plasma torches, as well as a designer and operator of plasma gasification facilities.
Formal closing is subject to various conditions precedent, including drafting certain ancillary legal agreements, regulatory and board of directors' approval.
Pursuant to the agreement the Company has agreed to pay the following consideration: two million five hundred thousand (2,500,000) Newlook Industries Corp. ("Newlook") common shares, one hundred sixty seven thousand US dollars (US$167,000) and a one million two hundred fifty thousand Canadian dollar (CAD$1,250,000) senior secured debenture. The debenture pays interest at 8% per annum, will mature one year from the date of closing and may be fully repaid by the Company at any time with the delivery of five million (5,000,000) Newlook common shares. The debenture will be secured by a general security agreement over all of the assets of the Company including the intellectual property rights of the Port Hope project and the Company's interest in future USA projects. As part of the transaction the Company intends to complete a name change to better reflect the future direction of the Company.
The Company confirms that there is no relationship in this transaction involving any non-arms length party and Wireless Age, its insiders and PowerPlay or Sunbay other than a director of a Newlook insider is also a director and officer of PowerPlay and Sunbay.
Newlook is the Company's controlling shareholder currently holding an ownership percentage of approximately 55%.
Note: This press release contains "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on currently available competitive, financial and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain. Wireless Age Communications, Inc. cannot provide assurances that the matters described in this press release will be successfully completed or that the company will realize the anticipated benefits of any transaction. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to: global economic and market conditions; the war on terrorism and the potential for war or other hostilities in other parts of the world; the availability of financing and lines of credit; successful integration of acquired or merged businesses; changes in interest rates; management's ability to forecast revenues and control expenses, especially on a quarterly basis; unexpected decline in revenues without a corresponding and timely slowdown in expense growth; the company's ability to retain key management and employees; intense competition and the company's ability to meet demand at competitive prices and to continue to introduce new products and new versions of existing products that keep pace with technological developments, satisfy increasingly sophisticated customer requirements and achieve market acceptance; relationships with significant suppliers and customers; as well as other risks and uncertainties, including but not limited to those detailed from time to time in Wireless Age Communications, Inc. SEC filings. Wireless Age Communications, Inc. undertakes no obligation to update information contained in this release. For further information regarding risks and uncertainties associated with Wireless Age Communications, Inc.'s business, please refer to the risks and uncertainties detailed from time to time in Wireless Age Communications, Inc.'s SEC filings.
For more information, please contact
Wireless Age Communications, Inc.
John G. Simmonds
Chairman & CEO
905-833-2753 ext. 223
Let me clarify.
"excluding the current project underway in Port Hope, Ontario" is a statement Newlook issued. This means Newlook will not be involved in any Wireless Age projects. Following the "debt reduction", Wireless Age will recieve 2,000,000 shares of Newlook stock which they will use to finance their stake in Sunbay Port Hope. Newlook will also return 30,000,000 shares of Wireless Age restricted stock which will be returned to treasury or otherwise cancelled.
Pursuant to the discussions, Newlook, subject to regulatory approval, will transfer approximately 30 million common shares of Wireless Age and 2 million common shares of Newlook to Wireless Age in exchange for debt reduction. Such shares of Wireless Age will be returned to treasury.
The resulting issued and outstanding count will be approx. 27,600,000.
thereby reducing the issued and outstanding from approximately 57.6 million to approximately 27.6 million.