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For anyone who is wise enough to understand how f'ed up our world has become, I have a little something for you. For those who might for some ungodly reason decide to try to take these words as their own, this poem has been previously published in a national book under my name so to do so would be breaking the law.
For him who seeketh light
Light he shall surely find
For him who seeketh darkness
Darkness shall invade his mind
For him who searcheth for love
Love he will surely try
But for him who desireth eternity
His dream will never die
I say look for the eternal love in all that you do. No politics or human endeavors will fill the void that lies in your heart. I have seen the absolute truth in all its glory and none of us will ever cease to exist as we are all a part of the same eternal God. No one, not man, nor beast , nor God can destroy the soul that you are. Remember that when the woes of the world begin to weigh too heavily upon you.
Namaste!
I think that right now political events not to mention religious events are far beyond anything any of us were led to believe. In fact, politics and religion are merging quite nicely on the world stage. World War III has already started it just hasn't been officially declared yet. The lines are already being drawn as we speak. The interesting thing about the whole mess is that everyone involved is trying their best to sugar coat the situation. Forget about weapons of mass destruction and forget about national security. This is about survival and unfortunately everyone involved will not have the luxury of surviving. It is really ironic in a sense because Bin Laden declared holy war a while ago and no one really believed him. The funny thing about it is that one person really can make a difference after all. It's a shame that the difference will be to have such a destructive effect rather than a helpful effect. But unfortunately the whole world seems to be biting at the chomps to kill, destroy, and obliterate the world we have all helped to create. I have always been a person who puts logic before emotion but I guess that logic is no longer valid in a world of high emotion and absolute judgement. But in the spirit of logic, let us break this current situation down. The Arabs are going to either kill us or die trying. We will protect Israel until our last dying breath. So that leaves us in a precarious predicament. Now add Russia and China to the Arab side and France and Germany as aiders and abetors and you begin to see our problem. In a situation like this, the underlying duty is always to do what is right despite the circumstances. Everything has already been written so I guess the truly logical thing to do for those that have the wisdom to see is to watch what happens and do the best they can with what they have. I say let hell and high water come as they will but it is really ashamed that we got so close to enlightenment. In 200-300 years, we might have become a species worth talking about but the idiots and morons rule. What can we do? I, for one, would like to personally beat the crap out of about half the world but unfortunately that action is beyond my power. The alternative is watching the show. As far as I'm concened, that's my final word. The world is going to hell and I'm just a piece of the puzzle. Let God sort the rest out.
For anyone who is wise enough to understand how f'ed up our world has become, I have a little something for you. For those who might for some ungodly reason decide to try to take these words as their own, this poem has been previously published in a national book under my name so to do so would be breaking the law.
For him who seeketh light
Light he shall surely find
For him who seeketh darkness
Darkness shall invade his mind
For him who searcheth for love
Love he will surely try
But for him who desireth eternity
His dream will never die
I say look for the eternal love in all that you do. No politics or human endeavors will fill the void that lies in your heart. I have seen the absolute truth in all its glory and none of us will ever cease to exist as we are all a part of the same eternal God. No one, not man, nor beast , nor God can destroy the soul that you are. Remember that when the woes of the world begin to weigh too heavily upon you.
Namaste!
I think that right now political events not to mention religious events are far beyond anything any of us were led to believe. In fact, politics and religion are merging quite nicely on the world stage. World War III has already started it just hasn't been officially declared yet. The lines are already being drawn as we speak. The interesting thing about the whole mess is that everyone involved is trying their best to sugar coat the situation. Forget about weapons of mass destruction and forget about national security. This is about survival and unfortunately everyone involved will not have the luxury of surviving. It is really ironic in a sense because Bin Laden declared holy war a while ago and no one really believed him. The funny thing about it is that one person really can make a difference after all. It's a shame that the difference will be to have such a destructive effect rather than a helpful effect. But unfortunately the whole world seems to be biting at the chomps to kill, destroy, and obliterate the world we have all helped to create. I have always been a person who puts logic before emotion but I guess that logic is no longer valid in a world of high emotion and absolute judgement. But in the spirit of logic, let us break this current situation down. The Arabs are going to either kill us or die trying. We will protect Israel until our last dying breath. So that leaves us in a precarious predicament. Now add Russia and China to the Arab side and France and Germany as aiders and abetors and you begin to see our problem. In a situation like this, the underlying duty is always to do what is right despite the circumstances. Everything has already been written so I guess the truly logical thing to do for those that have the wisdom to see is to watch what happens and do the best they can with what they have. I say let hell and high water come as they will but it is really ashamed that we got so close to enlightenment. In 200-300 years, we might have become a species worth talking about but the idiots and morons rule. What can we do? I, for one, would like to personally beat the crap out of about half the world but unfortunately that action is beyond my power. The alternative is watching the show. As far as I'm concened, that's my final word. The world is going to hell and I'm just a piece of the puzzle. Let God sort the rest out.
Stocks Set for Flat Open; Jobs Data Looms
Friday May 2, 7:56 AM EDT
By Denise Duclaux
NEW YORK (Reuters) - Stocks are poised for a wary start at Friday's opening bell ahead of an eagerly awaited jobs report for April that could offer more clues on the pace of the U.S. economic rebound.
The report, scheduled for 8:30 a.m. EDT, is expected to show U.S. payrolls lost 53,000 jobs in April after shedding 108,000 jobs in March. The unemployment rate is seen rising to 5.9 percent in April from 5.8 percent in March, according to economists polled by Reuters.
Investors are hoping for signs the economy is picking up steam after they pushed the broad Standard & Poor's 500 up 8 percent last month. Surprisingly strong first-quarter earnings helped fuel the April rally, but this week Wall Street got grim figures on U.S. manufacturing and productivity.
Equity futures pointed to a lackluster start ahead of the jobs report. Standard & Poor's 500 stock index futures for June were down 0.50 of a point at 914.60, while Nasdaq futures for the same month were up 2 points at 1,115.50. Dow Jones Industrial futures eased 2 points to 8,428,
Some market watchers see signs investors are gaining confidence in the market and believe they may be able to shrug off an exceptionally weak jobs report. On Thursday, the market sank on soft economic data and then recovered later in the session. Blue chips ended slightly lower, while technology stocks closed up.
"We are expecting a weak number, but it may not matter what this number is," said Peter Boockvar, an equity strategist at Miller Tabak & Co. "Even if it's weaker the market may not care. The market is looking past the data right now on the assumption the economy will get better in the next three to six months."
Wall Street will get another economic report shortly after the open. U.S. factory orders, set for release at 10:00 a.m. EDT, are estimated to have risen 1.2 percent in March, after a 1.5 percent drop in February, according to economists polled by Reuters.
The jobless report will grab most of the spotlight early in the session, but investors are also eyeing earnings from entertainment giant Walt Disney Co. (DIS).
The Dow member posted an 11 percent drop in quarterly net income as unexpectedly strong box office successes like "Chicago" failed to offset the Iraq war's impact on theme parks and television operations. Shares slipped to $18.50 before the bell after ending at $18.72.
In other corporate news, Starbucks Corp. (SBUX), the world's largest coffee shop chain, reported on Thursday after the close that sales at stores open at least a year rose 7 percent in April from a year earlier. Shares closed at $24.
Nicor Inc. (GAS), parent of Illinois' largest natural gas utility, reported higher first-quarter earnings on Thursday after the close, mainly reflecting a new depreciation accounting method. Nicor closed at $29.25.
The new chief executive of Schering-Plough Corp. (SGP), Fred Hassan, dismissed the idea of seeking a merger with Merck & Co. Inc. (MRK), as some analysts have suggested, the Wall Street Journal reported on Friday. Schering-Plough closed at $18.19, while Merck ended at $58.50.
Health insurer Cigna Corp. (CI) reported higher first-quarter net profit on Friday before the open as a strong performance by its employee benefits businesses mitigated rising health-care costs. Shares closed at $53.65.
Leading European shares were weaker on Friday in very thin trade, with Anglo-Dutch consumer products group Unilever (UL) leading decliners after disappointing quarterly profits.
The FTSE Eurotop 300 index (FTEU3) was down 0.85 percent after seeing its biggest monthly gain in April in almost six years, a climb of 10.4 percent. The DJ Euro Stoxx 50 index <.STOXX50E> shed 1.59 percent.
Tokyo stocks made it three straight days of gains on Friday as investors bid up firms with solid earnings prospects. The benchmark Nikkei average (N225) ended up 0.56 percent, leaving it with gains of nearly 4 percent over the last three sessions and 2.7 percent for the week.
On Thursday, the Dow Jones industrial average (DJI) finished down 25.84 points, or 0.30 percent, at 8,454.25. The broader Standard & Poor's 500 Index (SPX) declined 0.62 of a point, or 0.07 percent, to 916.59. The technology-laced Nasdaq Composite Index (IXIC) advanced 8.25 points, or 0.56 percent, to 1,472.56.
©2003 Reuters Limited.
S.E.C. Chastises Morgan Stanley's Chief for Comments
By FLOYD NORRIS
NYTimes.com
Morgan Stanley's efforts to play down its role in the Wall Street research scandal appeared to backfire yesterday, as the chairman of the Securities and Exchange Commission released a blistering letter addressed to the firm's chief executive.
William H. Donaldson, the commission chairman, said in a letter dated Wednesday that he was "deeply troubled" by comments from Philip J. Purcell, the Morgan Stanley official, which he said "evidence a troubling lack of contrition."
He warned that Morgan Stanley could face further legal action if it continued to deny having acted badly in the research scandal, which was the subject of a $1.4 billion industry settlement.
At a conference of institutional investors on Tuesday, the day after the details of the settlement were announced, Mr. Purcell said: "I don't see anything in the settlement that will concern the retail investor about Morgan Stanley. Not one thing." A reporter from The New York Times attended the conference, and Mr. Purcell's remarks appeared in an article in the paper the next day. Mr. Donaldson's letter began with a reference to the Times article.
Mr. Purcell took a different tone yesterday, responding in writing to Mr. Donaldson. "Obviously, your concerns are troubling to me," Mr. Purcell said. "I deeply regret any public impression that the commission's complaint was not a matter of concern to retail investors."
Before and after the settlement's details were announced, Morgan Stanley sought to establish a public perception that it had behaved better than other major investment banking firms, even though it was required to pay $125 million in the settlement. At the conference on Tuesday, Mr. Purcell argued that Morgan shares were a good investment because "we have maintained our standards, in market share as well as our reputation, in my view."
That effort to differentiate Morgan Stanley from the other firms appears to have angered Mr. Donaldson and Eliot Spitzer, the New York attorney general, who criticized Mr. Purcell's statements on Tuesday.
In part, regulators may be sensitive about any suggestion that the firms, which settled civil but not criminal complaints, were let off easy even though many investors lost money when share prices fell.
But the regulatory criticism also grew out of new disclosures this week. Morgan Stanley was the most prominent of five firms cited in the complaint to have engaged in a practice of paying competitors to write research reports about investment banking clients of the firm. Mr. Purcell's apparent dismissal of this new finding appeared to have angered some regulators.
The public dispute involves two men who have been among the Wall Street elite for decades and who have known each other for many years. Mr. Purcell was chairman and chief executive of Dean Witter Reynolds, a large retail brokerage firm that later merged into Morgan Stanley, when Mr. Donaldson, a founder of the firm of Donaldson, Lufkin & Jenrette, became chairman of the New York Stock Exchange in 1990.
But that long relationship was not visible in the exchange of letters, in which neither man used the other's first name.
A public rebuke of a top brokerage official by an S.E.C. chairman is highly unusual, said Joel Seligman, the dean of law at Washington University in St. Louis and author of a history of the S.E.C. But Mr. Purcell's statement, coming a day after his firm accepted the settlement without admitting or denying the allegations, "was deeply troubling." He added that the commission chairman's letter "is an interesting example of backbone on the part of Donaldson."
Mr. Donaldson is to appear next week before the Senate banking committee to discuss the Wall Street settlement and is likely to be asked about Mr. Purcell's comments.
In his letter, Mr. Donaldson said he had decided to write even though Mr. Purcell had already discussed the article with Stephen M. Cutler, the S.E.C.'s director of enforcement. A senior official at the commission said that Mr. Purcell's remarks had been regarded as cavalier and had provoked anger at the agency.
"First, your statements reflect a disturbing and misguided perspective on Morgan Stanley's alleged misconduct," Mr. Donaldson wrote. "The allegations in the commission's complaint against Morgan Stanley are extremely serious. They include charges that Morgan Stanley paid other firms to provide research coverage, compensated its research analysts, in part, based on the degree to which they helped generate investment banking business, offered research coverage by its analysts as a marketing tool to gain investment banking business and failed to establish adequate procedures to protect research analysts from conflicts of interest.
"In light of these charges," Mr. Donaldson continued, "your reported comments evidence a troubling lack of contrition and lead me to wonder about Morgan Stanley's commitment" to complying with the law.
Mr. Donaldson noted that the settlement required Morgan Stanley not to deny the allegations, and added that that requirement applied to Mr. Purcell. "I caution you that the commission would regard a violation of that obligation as seriously as a failure to comply with any other term of the settlement," the chairman wrote.
In his response, dated yesterday, Mr. Purcell did not dispute the accuracy of the quotes attributed to him, nor did he say he was wrong. "We recognize that the matters addressed in the complaint could have been better structured and managed," he wrote. But he seemed to contradict what he had said on Tuesday by stating in his letter that Morgan Stanley "agrees the allegations are a matter of concern to retail investors."
Morgan Stanley declined to respond yesterday beyond releasing Mr. Purcell's letter.
The settlement with the S.E.C. and Mr. Spitzer and the other states revealed that Morgan paid $2.7 million to other Wall Street firms so that they would provide research on companies whose initial public offerings were underwritten by Morgan.
When asked about that on Tuesday after his presentation at a UBS Warburg conference, Mr. Purcell responded that everything about those payments had been disclosed. "The issuer asked for it so that they could get more coverage," he said. "The $2.7 million went to pay firms for independent research. We didn't make the decision."
On Tuesday, Ray O'Rourke, a spokesman for Mr. Purcell, said that "Mr. Purcell was clearly and only referring to the fact that, as the S.E.C.'s complaint states, the issuers' registration statements and other offering documents disclosed both the other banks as part of the underwriting syndicate and as receiving payments.
"What the complaint charged was that payment for research was not specifically disclosed."
NASD, the nation's largest self-regulatory organization, also expressed concern about Mr. Purcell's comments at the conference on Tuesday. A spokeswoman for NASD said: "Chairman Donaldson's letter is clear. We share his concerns and we're in communication with Morgan Stanley about that meeting."
If the S.E.C. concluded that Morgan Stanley was violating the terms of the settlement, it could go to court to seek to hold the firm in contempt.
In his letter, Mr. Purcell said Morgan Stanley would not violate the agreement by denying the allegations. He did not refer to his comments on payments to other firms.
The other firms that were cited in the settlement for paying other firms for research were Bear, Stearns; J. P. Morgan Chase; UBS Warburg; and US Bancorp Piper Jaffray. The practice evidently did not extend to the other firms that settled the allegations, including some that are Morgan Stanley's most prominent competitors. The firms that faced other allegations in the settlement were Goldman, Sachs; Merrill Lynch; Credit Suisse First Boston; the Salomon Smith Barney unit of Citigroup; and Lehman Brothers.
Definitely. What the SEC is really saying to these firms is "be more discreet."
Just a drop in the bucket. Let me ask you a question. Would it really hurt your feelings if you got fined but were going to pay the fine with other people's money? They need to put the SOBs in jail. That is the only thing that will deter these guys.
Stocks to Ease; Greenspan, Data in Focus
Wednesday April 30, 8:03 AM EDT
By Elizabeth Lazarowitz
NEW YORK (Reuters) - Stocks are poised to tick lower at the start of Wednesday's session as the market pauses for breath after a strong run this month and investors await fresh U.S. economic data and remarks from the nation's top central banker.
Expectation-beating first-quarter earnings have fanned optimism about the corporate profit outlook, putting the broad Standard & Poor's 500 index (SPX) on track to wrap up a gain of 8 percent for April.
"We've had a pretty decent run. The market's shown some resiliency, but we're kind of penned in by the jobs numbers," said Bryan Piskorowski, market commentator at Prudential Securities, referring to a key report on the U.S. labor market scheduled for Friday. "That's why there's a bit of hesitancy."
Investors have a new batch of earnings reports to sort through, including results from JDS Uniphase (JDU) (JDSU), and Duke Energy (DUK), among others.
But Wednesday's economic data may nab the spotlight with a report on the regional manufacturing sector set for release and investors searching for clear signs that the U.S. economy is recovering from its slump.
Wall Street will also be watching out for comments from Federal Reserve Chairman Alan Greenspan, who is scheduled to give his views on monetary policy before the House Financial Services Committee beginning at 10 a.m. (1400 GMT).
Standard & Poor's 500 stock index futures for June were down 1.10 points at 915, while Nasdaq futures for the same month were off 2.50 points at 1,114.
The market could take some of its early cues from the Chicago PMI manufacturing index, due at 10 a.m. (1400 GMT). Some Wall Street experts view this index as an indicator of the national survey, which is due out on Thursday. Economists polled by Reuters estimated, on average, that the Chicago PMI would read 48.9 for April, versus 48.4 in March, pointing to a still stagnant manufacturing sector.
Comments from Greenspan, who recently agreed to accept a fifth term as head of the world's most powerful central bank, will be carefully scrutinized for clues to the Fed's next move on interest rates. U.S. short-term rates stand at a four-decade low of 1.25 percent.
Tyco International Ltd. (TYC) could be in focus after the Wall Street Journal reported Tyco is likely to disclose roughly $1.2 billion in fresh accounting problems when it announces second-quarter earnings on Thursday.
Also among stocks to watch was JDS Uniphase, which late Tuesday reported a quarterly loss amid the spending slowdown in the communications industry. But the supplier of fiber-optics parts said sales rose from the previous quarter for the first time in eight quarters.
U.S. power company Duke said on Wednesday its quarterly earnings fell as a charge for an accounting change offset higher sales due to cold winter weather.
Host Marriott Corp.(HMT) reported a widened quarterly loss as the war in Iraq kept travel slow and the weak economy kept both business and leisure customers at home, the largest U.S. hotel owner said on Wednesday.
Darden Restaurants Inc. (DRI), parent of the Olive Garden chain, on Tuesday said it lowered its sales outlook for the full year and took earnings forecasts below Wall Street's expectations, based in part on a weaker-than-expected April.
In overseas trading, Europe's leading shares were mixed as forecast-busting results from AstraZeneca (AZN) were offset by a fall in Dutch bank ABN Amro (AAH) on the back of a broker downgrade.
The FTSE Eurotop 300 index (FTEU3) of pan-European blue chips rose 0.01 percent to 822 points while the euro zone DJ Euro Stoxx 50 index <.STOXX50E> jumped 0.59 percent to 2,336 points.
Japan's Nikkei average rebounded to post its biggest gain in five months on Wednesday, boosted by a jump in bank shares and strong U.S. consumer data that lifted Honda and other exporters.
The Nikkei average (N225) closed up 2.94 percent at 7,831.42, its biggest one-day percentage gain since November 28, when the Nikkei rallied 3.39 percent.
In Tuesday's U.S. session, stocks ended higher, once again hitting highs not seen since mid-January, as surprisingly strong consumer confidence data and robust earnings reports from companies like Northrop Grumman Corp. (NOC) raised investors' hopes that the U.S. economy can pull out of its slump.
The Dow Jones industrial average (DJI) finished up 31.38 points, or 0.37 percent, at 8,502.99, according to the latest available data. The broader Standard & Poor's 500 Index (SPX) gained 3 points, or 0.33 percent, to 917.84. Tuesday's session marked the highest closes since mid-January for both the Dow and the S&P 500.
The technology-laced Nasdaq Composite Index (IXIC) added 9.06 points, or 0.62 percent, to end at 1,471.30, a closing level not seen since early December.
©2003 Reuters Limited.
Nice uptrend. Looks good. Thanks!
I found this one on a screen a couple of days ago and thought I'd share it. It is trading at $1.20 with three month average volume of 8K. But the ten day average volume is 26K so volume is rising. They have $3.04 per share in cash, and book value is $6.15. The debt to equity ratio is only .14. They did recently eliminate their dividend so caution is in order. It does look like support at current levels is trying to hold.
Business Summary
APT Satellite Holdings Limited is a provider of satellite services throughout the People's Republic of China (PRC) and elsewhere in the Asia-Pacific region, through its subsidiary, APT Satellite Company Limited (APT). The Company's customers include many international broadcasters (including Disney, HBO, Sony Pictures Entertainment, Hallmark Entertainment, Galaxy, MCI Worldcom and Viacom), as well as prominent PRC, Taiwan and Hong Kong broadcasters (including CCTV, China Entertainment, One Leader and Po Hsin). The Company also provides telecommunications services to, among others, the China Telecom Corp. and China United Telecommunications Corp. (Unicom), the two main telecommunication service providers in China.
Company Profile
http://biz.yahoo.com/p/a/ats.html
MSN Company Report
http://moneycentral.msn.com/investor/research/profile.asp?Symbol=ats
Zacks Report
http://my.zacks.com/reports/reports.php3?ticker=ATS&type=100
Company IR Website
http://www.apstar.com/frame4.html
I looked at it a while back and decided not to invest but I can't remember why. They do have a lot of cash. Yahoo has it listed at $3.93 per share. This concerns me, especially the $1B in convertible debt.
http://biz.yahoo.com/djus/030402/0904000745_3.html
Don't listen to rumors. You know where you want to sell, just stick with that. A 30% profit in such a short time is excellent. Take your profits and try to find another 30% gain somewhere else.
I agree that there is ample opportunity for favoritism and outright cheating but it is the same on the Nasdaq, an "electronic exchange". The market makers there serve the same purpose as the specialists, just not on the floor. I would prefer to keep the NYSE the way it is rather than move it towards a system like the Nasdaq. When I think of the stock market, the image of the specialists frantically trying to fill orders on the floor of the NYSE is the first thing that pops into my mind. It gives the market a personality and I am very big on holding onto traditions. In this headlong rush into the age of technology, we have given up a lot. Why call someone on the telephone when you can email them? Why have a meeting when you can video conference? Why interact in person at all when you can easily interact through a computer from home? All the applications that allow for the interaction of human beings so easily and across any distance are great and make our lives much better on the whole but we do give up something in exchange. Some things just require people and I think the NYSE is one of those things. If for no other reason than to give the market a personality and pay homage to those traders who were standing on that same floor 100 years ago.
Big Board’s trading system under scrutiny. Some experts question need for ‘specialists’
By Roland Jones
MSNBC
April 25 — An investigation into possible improper trading activity by specialist firms on the floor of the New York Stock Exchange has raised questions about exactly what type of misconduct that took place, but experts say the probe also raises long-standing questions about the efficiency the Big Board’s trading system.
THE ISSUE CENTERS ON a series of news reports over the last week that said the Big Board is examining whether some of its “specialists” — the middlemen who carry out trading orders on the floor of the exchange on behalf of their clients — have engaged in “front-running,” or trading ahead of their clients in shares these firms oversee under an established agreement with the Exchange.
The Big Board initiated a trading investigation last week after David Finnerty, a floor trader at Fleet Specialists, one of the seven specialist firms operating on the Exchange’s trading floor, was suspended after an investigation was launched into trading in shares of General Electric, a stock for which Fleet is the specialist firm.
Specialists manage markets in individual stocks. They are supposed to buy and sell shares on behalf of their clients — mainly large financial institutions — but are not allowed to take a position in a stock with the knowledge that a large incoming order is likely to significantly change its price, a practice known as “front-running.”
NYSE DENIES ‘FRONT-RUNNING’ REPORTS
In a statement released earlier this week, the Big Board called the media reports of front-running erroneous, countering that its inquiry focuses on possible violations of “negative obligation” on the part of specialists.
Specialists are required to match orders directly whenever possible and “stand out of the way” when a natural match can occur between buyer and seller. The current probe examines whether specialists failed to match their clients’ orders directly, trading instead for themselves, buying from one investor and selling to another, according to the Big Board.
In a hypothetical example of the practices under examination, offered by the NYSE, a specialist may have neglected to pair orders backed up in the Exchange’s electronic trading system. If the stock is bid for $25 and offered at $25.01, the specialist is obligated to pair market orders at $25 or $25.01. Instead, he may have bought from the sellers at $25, and then sold to buyers at $25.01, pocketing the difference and violating Exchange rules.
To the lay person, the distinction between front-running and the violation of a specialist’s negative obligation requirement may be quite small. But Michael Goldstein, a professor of finance at Babson College in Massachusetts, a former visiting economist at the Big Board and a member of the Nasdaq’s economic advisory board, says front-running is a significantly more egregious infraction.
A violation of negative obligation can occur because of a deliberate action, but also because of simple negligence, given the sheer volume of trades that flow through the Exchange in any given day, Goldstein explained.
In the case of front-running, by contrast, a specialist uses information about pending share orders to trade for his own account for profit ahead of his clients. “It’s a case of you told me to do something and I made a conscious decision not to do it,” said Goldstein.
SPECIALIST SYSTEM QUESTIONED
Stock-trading scandals are not new, and most are quickly forgotten. But the current front-running hubbub has raised the question of whether the Big Board’s practice of using a mixture of floor brokers and technology to handle trades is the best trading method for investors.
The seven specialist firms operating on the trading floor of the Big Board — including firms like FleetBoston Financial, LaBranche and Goldman Sachs subsidiary Spear, Leeds & Kellogg — are responsible for making and maintaining a fair market in each of the stocks they supervise.
To achieve this, specialists are sometimes required to make unprofitable trades in order to ensure an adequate supply and demand of each stock. They also make money trading for their own accounts, which some critics say represents a conflict of interest.
The Nasdaq Stock Market — the NYSE’s main competitor that runs an automated marketplace that does not use specialists to match trades — has long argued that electronic trading is the fairest and most efficient way to trade stocks.
“From our perspective, the Nasdaq’s fully-automated trading system provides a very competitive environment that removes the opportunity for misdeeds,” said Steve Swanson, CEO and president of Automated Trading Desk, a trading company and developer of trading technologies.
“If you leave it up to human beings to follow the rules, they are fallible and will break them. It’s better to remove that opportunity,” Swanson added.
Michael Goldstein argues that there are benefits to each system.
When trades are matched electronically, there is little room for error or wrongdoing. In the specialist system, however, investors can benefit from the trader’s expert knowledge of the market, which may mean the specialist can pass on a new trading opportunity to a client — something that is impossible on an electronic trading system, Goldstein said.
“It’s a little like dating,” explained Goldstein. “On the floor of the Exchange, someone lets the specialist know that someone else might be interested in buying stocks, so the specialist calls you up and lets you know,” he said. “It gets the game going a little bit.”
CREDIBILITY ISSUE FOR BIG BOARD
The probe at the Big Board looks unlikely to significantly boost the Nasdaq, analysts say. The NYSE still retains about 80 percent of its market share in trading, while the Nasdaq has lost about half its trading to electronic networks, or ECNs.
But given the corporate scandals that have shaken investor confidence in recent years, a more pressing concern for the Big Board may simply be the possibility of improper trading activity at the world’s leading stock exchange, according to Kenneth Froewiss, professor of finance at New York University Stern School of Business.
“The reason the Exchange has been so successful is the perception it projects of a market with a good deal of integrity, so companies want to list their stock there,” said Froewiss.
“The Exchange isn’t about to wither and die; it’s a system that has worked for a very long time. The question is does the occasional alleged abuse . . . overturn the orderly market that it keeps,” Froewiss said.
Reuters contributed to this story.
The yield for SLE is up to about 3.48% on the big drop after their earnings release. Any thoughts?
I think the job market will be very slow to improve. A lot of jobs were created by the technology boom and when the boom turned into an explosion, a good portion of the jobs ceased to exist. Technology by nature is meant to replace man in doing the most tedious tasks and is slowly taking over other tasks as well. In a way, you could say that we are building our own replacements in the workplace. As more and more automation filters into the market, there will be less and less demand for human oversight. I would like to live 200 or 300 more years just to see what humans do when computers/machines do everything for them.
I think he over manages. He moved rates too high in response to the big bull market and he has basically done the same thing in the opposite direction now. Extremes with interest rates like that cause extremes in the market and therefore uncertainty for long term investors. I would like to see someone stabilize interest rates at a reasonable level and let the market take care of itself.
E poll suggests sub-2% U.S. growth in first half. Economists group sees sub-2% growth in first half
By Rachel Koning, CBS.MarketWatch.com
Last Update: 8:05 AM ET Apr 25, 2003
WASHINGTON (CBS.MW) -- Hesitation on the part of business and consumers continues to stifle the domestic economy and will probably hold first-half growth to a tepid rate of less than 2 percent, according to the latest survey of a business economists group.
More than half of those taking part in the survey conducted by the National Association for Business Economics believe that the single-most important factor to get the economy back on track would be a boost in consumer and business confidence.
Federal Reserve Governor Ben Bernanke echoed this view in a Thursday speech to another group of economists.
Among other survey findings, capital spending is believed to have fallen for an eighth consecutive quarter -- the longest stretch in the NABE's survey 21-year history.
About 20 percent of panelists thought lower oil prices would help the most, followed by a sizable increase in business investment and a rally in equity and corporate bond markets.
The survey was given to more than 100 members of the NABE and completed between March 27 and April 11, during the early days of the Iraq war.
The quarterly industry survey doesn't poll members on Fed interest-rate expectations.
"Firms remain reluctant to hire new employees and undertake new capital-investment projects because of weak product demand, poor profit momentum and, perhaps, remnants of the uncertainty associated with the Iraqi conflict," said Tim O'Neill, NABE president and chief economist with BMO Financial Group.
However, the restraint from these forces has moderated to some extent since the group's January survey.
"At the same time, price pressures accelerated, including a sharp upswing in material costs," he said. Still, businesses are largely unable to pass the costs of higher energy and other inputs on to consumers.
The majority of NABE panelists expect 1 to 2 percent real gross domestic product growth over the first half of the year, a range that's down from forecasts in last quarter's survey.
Only 23 percent of the panel expects growth of greater than 2 percent in the first half of 2003, down sharply from the 56 percent who expected stronger growth when polled last quarter.
The latest reading on U.S. GDP will come out at 8:30 a.m. ET.
Capital spending
The outlook for capital spending over the next 12 months remains positive, particularly for computers and communications equipment, the NABE said.
The exception to this are the transportation, utilities and communications industries, where total capital-spending reductions are still anticipated, and no increase in expenditures for high-tech equipment is expected over the next 12 months.
Firms don't feel restricted by credit conditions, the survey found.
The latest survey also found that employment has contracted at panelists' firms for a ninth straight quarter. Falling employment is cited more often than rising employment in virtually every industry, according to NABE.
Profit margins stumbled in the first quarter. The decline was particularly noticeable at goods-producers, where 53 percent of respondents reported falling margins -- the highest percentage of goods-producers reporting falling profit margins since the end of the 1991 recession.
Inflation
While corporate profits remain constrained, price pressures in the economy accelerated to reach the highest reading for the survey in almost three years. Higher material costs were cited by 40 percent of the panel, with only 10 percent reporting lower costs.
Still, most firms felt that rising energy prices have not been a significant hindrance for most firms, despite the fact that fewer than 20 percent of firms have been able to pass some portion of these cost increases onto their customers, and a slightly larger percentage have not been able to pass on these costs increases.
Rachel Koning is a reporter for CBS.MarketWatch.com in Washington.
Anadarko Earnings Jump Four-Fold
Friday April 25, 8:41 AM EDT
NEW YORK (Reuters) - Anadarko Petroleum Corp. (APC), the largest independent U.S. exploration and production company, on Friday said first-quarter profit more than quadrupled on the strength of higher oil and natural gas prices.
The Houston-based company also forecast higher-than-expected earnings for the full year, with oil and gas output increasing 5 percent. It said output would surge by up to 12 percent in 2004.
First-quarter net income rose to $418 million, or $1.63 per share, from $88 million, or 34 cents, a year earlier.
Profit from operations, excluding a one-time benefit from an accounting change, was $371 million, or $1.45 a share. That exceeded analysts' average estimate of $1.43 as compiled by Thomson First Call.
Higher prices and increased production boosted revenue to $1.26 billion, up 59 percent from $790 million in the year-ago period.
Anadarko forecast earnings of $1.15 a share for the second quarter, below analysts' average forecast of $1.24.
It said earnings for the full year would be $5.51 a share, exceeding First Call's $5.03 average estimate.
Shares of Anadarko closed at $46.40 on Thursday on the New York Stock Exchange.
©2003 Reuters Limited.
OPEC Cuts Output to Stabilize Oil Prices
Apr 25, 6:04 AM (ET)
By BRUCE STANLEY
VIENNA, Austria (AP) - OPEC countries agreed Thursday to reduce oil output by 2 million barrels a day, tightening the taps they had opened when the Iraq war threatened to create a shortage.
Member countries also pledged to try to erase the gap between what they say they will produce and the amount - significantly higher - that they are actually producing.
The agreement sets a ceiling of 25.4 million barrels a day effective June 1. That is up 900,000 barrels from the existing target. But to meet it members will have to cut actual production by 2 million barrels.
OPEC abandoned the existing target of 24.5 million barrels before the U.S.-led invasion of Iraq, when Saudi Arabia and several other members boosted output to head off a feared shortage.
The rapid end of the conflict has left them facing a surplus that drove down prices from almost $40 a barrel to $25.
The decision announced Thursday was a muddled message that initially sent markets reeling, with crude prices plunging by around $1 a barrel. U.S. prices later rebounded and closed higher.
"I think the message was hopelessly mismanaged," said Jan Stuart of investment bank ABN Amro in New York. "They took a tremendous risk."
OPEC, whose 11 members pump about a third of the world's oil, reached its decision after three hours of emergency talks. Crude prices have tumbled in recent weeks, and OPEC feared a further decline if it didn't act as demand reached a seasonal low.
The group announced its agreement at its headquarters in Vienna at a news conference that left some analysts bewildered.
"It's an incredibly complicated way of saying you're taking oil off the market," said Raad Alkadiri of The Petroleum Finance Co., a consulting firm based in Washington.
The potential resumption of Iraqi oil exports made OPEC's job harder. OPEC timed its talks to reassess output levels in the wake of the war. As OPEC representatives arrived in Vienna, oil began flowing again in Iraq for the first time since the war.
OPEC based its production cut largely on what it said was sluggish global demand during the second quarter. The slowdown has been exacerbated by the outbreak of severe acute respiratory syndrome, which cartel President Abdullah bin Hamad Al-Attiyah said dampened crude demand by 300,000 barrels a day.
OPEC would review its decision when it meets again June 11 in Doha, Qatar.
"We feel we may need another cut in June," Al-Attiyah said. "We will watch the market very carefully. We will see how the market reacts."
The market's initial reaction was to shave almost a dollar off the price of a barrel, as traders apparently concluded that OPEC was making more crude available than expected. June contracts of U.S. light, sweet crude later rallied to $26.72 in New York, up 8 cents a barrel.
OPEC aims to maintain a price of $25 a barrel, with $22 as its acceptable minimum. In the days leading up to the war in Iraq, U.S. crude prices peaked at almost $40 a barrel.
Several OPEC members boosted production before the war, hoping to head off a possible shortage. The rapid end of the conflict has left a surplus of 2 million barrels a day - the exact amount they decided to cut from actual output.
"I think they're hitting it just right," said Edward Morse of Hess Energy Trading Co. in New York said.
Stuart of ABN Amro suggested that the main reason for raising the quota is to make it easier for OPEC to trim output when its members meet again in June.
"It's really internal politics that dictated this whole thing. For that reason I see this as a sign of weakness," he said.
OPEC is ready to welcome Iraq back as a participating member, Al-Attiyah said. Iraq hasn't taken part in the group's production agreements since April 1991, after the first Gulf War.
"I hope Iraq comes back tomorrow," he said.
Copyright 2003 Associated Press
Economy Grows Slightly in 1st Quarter
Apr 25, 8:38 AM (ET)
By MARTIN CRUTSINGER
WASHINGTON (AP) - The U.S. economy, frozen at the start of the year by war anxieties, still managed to eke out growth at an annual rate of 1.6 percent in the first three months, easing fears that the country could be headed for a double-dip recession.
The Commerce Department reported that the increase in output of the gross domestic product - the broadest measure of economic health - in the first quarter was slightly better than the 1.4 percent rate of growth turned in during the October-December period last year.
The strength in the first three months came from a narrowing of the nation's trade deficit, strong housing construction and consumer purchases of clothing, food and other nondurable items which offset a further drop in sales of cars and other durable goods.
In the weeks leading up to the war, consumer and business confidence plunged as fears increased over what a U.S. invasion of Iraq might do in terms of disrupting global oil supplies or generating new terrorist attacks. Economic activity came to a near standstill in February as the country was also hit by severe winter snowstorms.
Copyright 2003 Associated Press.
The last two articles I posted highlight the problem right now. The job market is not good but business spending is picking up. Two conflicting reports but I still think the employment numbers take precedence. Perhaps if business spending continues to trend up, some companies will need to begin rehiring. The durable goods data may indicate a beginning to something good but until the jobs data improves we will not know for sure.
Durable Goods Orders Rise Unexpectedly
Thursday April 24, 8:37 AM EDT
WASHINGTON (Reuters) - Orders for big-ticket U.S. manufactured items rose unexpectedly in March, buoyed by healthy demand across most categories, the government said on Thursday in a report showing badly needed improvement in the hard-hit factory sector.
The Commerce Department said new orders for durable goods -- goods designed to last three years or more -- rose 2.0 percent after declining 1.5 percent in February. It was the second increase in the last three months and a far better showing than the 0.5 percent decline economists in a Reuters poll had forecast.
Excluding demand for defense goods as the U.S. went to war with Iraq, durable goods orders still rose a solid 1.3 percent. Stripping out the volatile transportation sector, orders rose 1.8 percent, the biggest monthly gain since July of last year.
The report will no doubt be welcome news to Federal Reserve officials who have highlighted a pickup in business spending as the key ingredient for a strong economic recovery. In further evidence businesses may indeed be picking up their spending, demand for computers and electronic products rose 4.0 percent in March.
©2003 Reuters Limited.
Jobless Claims Climb More Than Expected
Thursday April 24, 8:40 AM EDT
WASHINGTON (Reuters) - The number of Americans lining up for state unemployment benefits last week climbed more than expected to the highest level in over a year, the government said on Thursday, suggesting a deteriorating labor market.
First-time jobless claims rose by 8,000 to 455,000 for the week ended April 19, the Labor Department said. It was the highest level since the week ended March 30, 2002 and the tenth straight week that claims held above the key 400,000 level, regarded by economists as a sign of an unhealthy labor market. The gain far exceeded expectations. In a Reuters poll, economists forecast that jobless claims would fall to 425,000.
A Labor Department official said there was nothing specific behind the increase in claims.
©2003 Reuters Limited.
I read an article this morning saying that President Bush intends to nominate him for another term and that Greenspan said he would accept. But to answer your question, I am certain there are a few who would like to see him retire, me being one of them. But in general, I think that people find comfort in him because he is a well known factor. A new Fed Chairman would throw some uncertainty into predicting Fed moves, his competentcy, etc. So if Greenspan did retire, I would think the market would not like it too much but that dislike could be somewhat mitigated by a great new appointment. But don't ask me who that person would be. I don't have a clue! LOL.
Toyota looks pretty good. Its trading at about $44.00 with book value at $34.70. They have a ton of cash ($20.5B) with $11.58 per share and are trading near the low end of the 52 week trading range with record numbers expected in the upcoming earnings report. I would be willing to go out on a limb and speak for the market when I say that the forward guidance in that earnings release will be more consequential than the current data. With most companies out there bad mouthing to keep the estimates low and thereby make them easier to beat next quarter, the outlook released by Toyota management over the next year may not be positively glowing.
Company profile
http://biz.yahoo.com/p/t/tm.html
It looks like the U.S. consumer still has an auto appetite. How long can it last? One thing to consider. If the economy heats up, auto sales should remain strong. But what happens if the economy remains stagnate? I think the strong sales figures in the auto industry can't last without more economic growth especially in the job market. Some are calling this a jobless recovery but I say that until jobs are being created and a high unemployment rate begins to decline, it in no true recovery. The housing and auto markets have been strong for a while now but it will be a slow and painful quasi-recovery without job creation and some industries that have been on a strong run like housing and auto may begin to falter. Any thoughts on the risk to reward ratio associated with auto stocks? It would seem to me that wagering on these auto stocks right now would basically be betting on the U.S. economy to recover and that may be a pretty good bet, but until the jobs market picks up some steam, there is no way to be certain.
Nissan Revival Accelerates
Wednesday April 23, 6:23 AM EDT
By Chang-Ran Kim
TOKYO (Reuters) - Japan's Nissan Motor Co said on Wednesday it extended its dramatic revival in the just-ended business year, posting a 51 percent rise in operating profit and forecasting further growth powered by U.S. launches.
Most of Japan's other major carmakers are also expected to report record results in the coming weeks, with industry leader Toyota Motor Corp expected to rack up a $12 billion profit, driven by sales gains in the crucial U.S. market.
But with consumer sentiment at a near-decade low there and the dollar at the mercy of a slippery economy, analysts expect a tougher environment for Japanese automakers this year. Nissan, for one, expects profit growth to slow to 11 percent this year.
Still, Japan's third-largest automaker is expecting the U.S. market to be the key driver of growth this year, with the launch of high-margin models like the Murano sport utility vehicle, Quest minivan and Infiniti FX45 luxury crossover.
"The numbers are strong...but at the same time, we are not done," President Carlos Ghosn told Reuters in an interview.
"There's no room to say 'Let's stop and take a pause'," he said.
Nissan, the first major Japanese car maker to report results for last business year, said it expected operating profit to rise to 820 billion yen ($6.8 billion) in 2003/04 from a record 737 billion in the year to March 31.
The results, which are preliminary, were roughly in line with the market's consensus forecast of 744 billion yen for operating profit and above the company's projection of 720 billion yen.
Revenues in the latest year rose 11 percent to 6.85 trillion yen, thanks to strong sales of its new March sub-compact in Japan and its Altima sedans in North America.
That helped Nissan eliminate its net automotive debt by the end of March, two years ahead of schedule. In 1999, before France's Renault hauled Nissan back from the brink of collapse, its debt stood at a whopping 2.1 trillion yen.
PROFITABILITY NOT VOLUME GROWTH
Nissan said profits were driven by its launch of 12 new models in 2002/03, which led to sales volume growth in every major region excluding Europe.
"I think it's a great set of earnings numbers," said Marc Desmidt, director of the equities fund management team at Merrill Lynch Investment Managers.
"There's plenty of upside. These are just very, very solid results, and with the share trading at around eight times earnings it looks pretty cheap."
Nissan's global vehicle sales rose 6.7 percent to 2.77 million units in 2002/03, but fell slightly short of its estimate made in October due in part to weaker sales in the United States and Europe in the latter half of the year.
In the current business year, Nissan expects global vehicle sales to grow 9.7 percent to 3.04 million units and sees sales in the United States alone growing by 17 percent to 852,000 units.
Ghosn acknowledged Nissan had fallen short of sales targets, including in the United States, but repeated his mantra that profitability was what mattered, not volume growth.
"Our sales were made on the merits of our products themselves. They were not inflated by additional incentives," Ghosn said in a thinly veiled swipe at the U.S. Big Three, which have used heavy discounts to lure buyers.
"2002 was the year of Japan, and it was successful," he said. "2003 will be the year of the United States, and we will give our best to ensure its success as well."
RISKS IN THE U.S.
But analysts said the success of Nissan's plans hinges on the doubtful health of the U.S. economy.
A downturn could drag down demand for cars as well as the dollar, creating bigger risks for Nissan as it expands its product line-up and output capacity for that critical market.
Worries have already begun to surface, with Nissan's U.S. sales down about six percent so far this calendar year.
Nissan aims to boost its operating profit margin -- already the highest in the industry -- to 11 percent this business year, from 10.8 percent last year and just 1.4 percent three years ago.
Still, profits could also be vulnerable to a stronger yen, since Nissan is assuming a stable dollar rate of 120 yen for this year. Nissan said foreign exchange fluctuations slashed its operating profit by 35 billion yen in 2002/03.
Nissan, owned 44.4 percent by Renault, is due to announce official results on May 21 but little change is expected.
Nissan shares closed at 888 yen on Wednesday, down around 10 percent over the last year, but outperforming the wider Tokyo market by over 30 percent.
(Additional reporting by David McMahon)
©2003 Reuters Limited.
I like regional banks right now too. The market environment is good for them going forward. At some point, the Fed will begin raising rates and that is good for most banks. Dividends are usually fairly high with stable stock prices.
JPM is moving up on stronger than expected earnings today. They earned .69 per share. I think the estimate was .51 or .52.
One of DividendPlays.com's recent picks released earnings yesterday. I think this one has a good opportunity for earnings growth going forward as interest rates will likely not go any lower and may soon begin to rise as deficits grow and the economy begins to recover. Most banking stocks should perform well in this type of environment.
MONTGOMERY, Ala., Apr 15, 2003 (BUSINESS WIRE) -- The Colonial BancGroup, Inc. (CNB) Chairman and CEO, Robert E. Lowder, announced net income for the first quarter ended March 31, 2003 of $35.6 million, a 3% increase over the $34.7 million recorded for the fourth quarter of 2002, and a 4% increase over the same period of the previous year. Diluted earnings per share for the quarter ended March 31, 2003 were $0.29 per share compared to $0.29 for the quarter ended March 31, 2002 and $0.28 for the quarter ended December 31, 2002.
Colonial experienced marked improvement in asset quality with non-performing assets for the first quarter of 2003 totaling $78 million or 0.68% of loans and other real estate compared to $91.3 million or 0.78% at December 31, 2002. The Company also had net charge-offs of 0.20% of average loans for the first quarter compared to 0.44% for the fourth quarter 2002 and 0.25% for the first quarter of 2002. For banks with assets over $10 billion, the most recent FDIC Quarterly Banking Profile reports the average net charge-off ratio was 1.28%. Colonial's ratio compares favorably with this average. The $18.9 million credit that went on non-accrual status, previously mentioned in the Company's fourth quarter 2002 earnings announcement, has been paid current and returned to accrual status. "Colonial continues to compare favorably with peers on asset quality statistics. We believe this is due to sound underwriting standards, the involvement of our local directors and the collateralized structure of our credits," said Mr. Lowder. Loan provision expense for the quarter was $8,060,000 compared to $11,203,000 in the fourth quarter of 2002.
The impact of the November 2002 reduction in the Fed Funds rate was felt mostly in the fourth quarter of 2002 when the net interest margin declined to 3.35% and mortgage backed investments experienced significant prepayments. During the first quarter of 2003 the net interest margin increased seven basis points to 3.42% as prepayments on mortgages decreased and more liabilities were repriced at lower rates.
Total loans declined $188 million from December 31, 2002 to March 31, 2003, primarily reflecting a decrease of $203 million in the Company's mortgage warehouse lending unit. This unit's loan volume has a high degree of correlation with mortgage prepayments. Colonial's non-residential bank loans increased $45 million while residential loans retained in the Company's loan portfolio decreased $45 million. Additionally, the Company began a program during the first quarter emphasizing consumer equity lines and experienced 23% annualized growth in equity line loan balances.
Colonial experienced strong core (non-time) deposit growth of $281 million, or 23% annualized during the first quarter with core deposits reaching $5.2 billion at March 31, 2003. In Colonial's growing Florida franchise, core deposits increased 37% annualized from the fourth quarter of 2002. These deposits also increased 37% from the first quarter of 2002, including the impact of the acquisition of Palm Beach National, without which Florida deposits increased 27% over March 31, 2002. Colonial now has $4.2 billion, or 45%, of its total bank deposits in the Sunshine State. As of the quarter ended December 31, 2002, Colonial was the sixth largest bank in the state as measured by both total deposits and number of branches.
Total noninterest income, excluding securities gains, increased 29%, annualized, or $1.9 million for the March 31, 2003 quarter compared to the December 31, 2002 quarter and 21%, or $4.9 million for the first quarter 2003 compared to the first quarter 2002. "Our first quarter results reflect our commitment to provide outstanding service to our customers through our retail banking franchise," said Mr. Lowder. "We are achieving record results in mortgage origination income, financial planning services and electronic banking." For the quarter, mortgage origination income increased $2,435,000 or 113% over the first quarter 2002 and financial planning services increased $1,596,000, or 60%. "In addition to the licensed personnel we are adding to our branches, we are also licensing our commercial loan officers to support the platform annuity program through referrals." Colonial's annuity agents achieved 65% sales penetration during the first quarter of 2003 versus an industry average of 32%. Electronic banking revenues increased $560,000, or 30%, for the quarter ended March 31, 2003, compared to the same period of the previous year. "We achieved our target of 15% penetration of internet banking to total households and we fully expect to exceed our year-end goal of increasing our cross sell ratio by 13%," Lowder added.
Noninterest expense increased $3.1 million, or 15% annualized in the first quarter 2003 compared to the fourth quarter 2002, primarily related to production incentive pay, advertising as a result of the Company's emphasis on deposit growth, as well as increases in other items such as pension and health benefits, insurance costs, and technology enhancements partially offset by cost savings from the Palm Beach acquisition.
During the fourth quarter of 2002, Colonial announced plans to open over 40 new offices in the next three years focusing on the fast growing states of Florida, Nevada and Texas. Since that time six new offices have opened in the Cape Coral, Ft. Myers, Orlando and St. Augustine areas of Florida and two new offices in the Dallas area.
Colonial BancGroup currently operates 272 offices with $15.8 billion in assets in Alabama, Florida, Georgia, Nevada, Tennessee and Texas and is traded on the New York Stock Exchange under the symbol CNB. In most newspapers the stock is listed as ColBgp.
More detailed information on Colonial BancGroup's quarterly earnings is available on the company's website at www.colonialbank.com or in the Current Report on Form 8-K filed today with the Securities and Exchange Commission.
This release and the above referenced Current Report on Form 8-K of which this release forms a part contain "forward-looking statements" within the meaning of the federal securities laws. The forward-looking statements in this release are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, among other things, the following possibilities: (i) an inability of the company to realize elements of its strategic plans for 2003 and beyond; (ii) increases in competitive pressure in the banking industry; (iii) general economic conditions, either internationally, nationally or regionally, that are less favorable than expected; (iv) expected cost savings from recent acquisitions are not fully realized; (v) changes in the interest rate environment which may reduce margins; (vi) management's assumptions regarding allowance for loan losses may not be borne by subsequent events; (vii) changes which may occur in the regulatory environment and (viii) other factors more fully discussed in our periodic reports filed with the Securities and Exchange Commission. When used in this Report, the words "believes," "estimates," "plans," "expects," "should," "may," "might," "outlook," and "anticipates" and similar expressions as they relate to BancGroup (including its subsidiaries) or its management are intended to identify forward-looking statements. Forward-looking statements speak only as to the date they are made. BancGroup does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.
THE COLONIAL BANCGROUP, INC. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS (Unaudited)
% Change
Statement of Condition Summary March December March March
31, 31, 31, 31,
(Dollars in millions, except '02 to '03
per share amounts) 2003 2002 2002
-------- ---------- -------- ----------
Total Assets $15,754 $15,822 $13,184 19%
Loans 11,504 11,692 10,236 12%
Total earning assets 14,682 14,716 12,290 19%
Deposits 9,377 9,320 8,598 9%
Shareholders' equity 1,080 1,071 951 14%
Book value per share $8.72 $8.66 $7.92 10%
Three Months Ended % Change
-------------------
Earnings Summary March 31, March 31, March 31,
(In thousands, except per share '02 to '03
amounts) 2003 2002
--------- --------- ----------
Net interest income
(taxable equivalent) $121,724 $110,368 10%
Provision for loan losses 8,060 9,478 -15%
Noninterest income 29,557 22,927 29%
Noninterest expense 88,614 70,507 26%
Income from continuing operations $35,630 $34,178 4%
Net income $35,630 $34,178 4%
EARNINGS PER SHARE:
-------------------
Income from continuing operations
Basic $0.29 $0.30 -3%
Diluted $0.29 $0.29 0%
Net Income
Basic $0.29 $0.30 -3%
Diluted $0.29 $0.29 0%
Average shares outstanding 123,735 115,382
Average diluted shares outstanding 124,367 116,530
March 31, December 31, March 31,
Nonperforming Assets 2003 2002 2002
-------------------- --------- ------------ ---------
Total non-performing assets ratio 0.68% 0.78% 0.66%
Allowance as a percent of
nonperforming loans 240% 191% 281%
Net charge-offs ratio (annualized):
Quarter to date 0.20% 0.44% 0.25%
Year to date 0.20% 0.29% 0.25%
The Colonial BancGroup, Inc., Montgomery
Investors:
Glenda Allred, 334/240-5064
or
Flake Oakley, 334/240-5061
or
Media:
Bob Howell, 334/240-5025
www.colonialbank.com
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The article made a lot of good points and I doubt we are going to war with Syria or Iran. The media is in a war frenzy right now and is making a bigger deal of the administration rhetoric that they should. We will milk the Iraq war for all it is worth with other Middle Eastern countries and a few cryptic threats may cause some change for the good, but there would be little support for another war on an Arabian country. If we did decide to strike militarily we truly would be alone this time and I don't think anyone in the admin. is ready to go that far.
GM Profits Rise but Warns for Weaker Year
Tuesday April 15, 8:35 AM EDT
By Michael Ellis
DETROIT (Reuters) - General Motors Corp. (GM) on Tuesday reported stronger quarterly profits of $1.48 billion, but warned that it may not meet its earnings target for the full year due to uncertain global economic conditions.
Detroit-based GM, the world's largest automaker, said its earnings rose to $2.71 per share, up from $228 million or 57 cents per share in the year-ago quarter. Results were boosted by a one-time gain of $505 million from the sale of its defense unit and stronger results from its automotive operations.
Last year, GM took several one-time charges totaling $417 million, most resulting from job cuts and write-downs at its European automotive operations.
Despite the gains, GM warned that its full year target of $5.00 per share, excluding results from its Hughes Electronics Corp. (GMH) unit, was now uncertain. GM's U.S. market share fell during the first quarter, and margins have been hit by escalating incentive costs. Earnings have also been hurt by increasing costs for its massive U.S. pension, which ended 2002 underfunded by $19.3 billion.
Analysts' forecasts for GM's 2003 earnings range between $3.49 and $6.19 per share, with a mean estimate of $4.63 per share, according to research firm Thomson First Call.
The automaker, which over the past two years has staged a strong comeback and consistently beat Wall Street earnings estimates, said it would not provide an new target for its 2003 earnings.
Excluding the one-time gain, GM earned $978 million or $1.81 per share in the first quarter. That result was on the high side of Wall Street forecasts for earnings per share between $1.00 and $1.85, with an average forecast of $1.54, according to Thomson First Call.
In January, GM said it expected first-quarter earnings of $1.45 per share, including a loss of 5 cents per share from its Hughes Electronics Corp. (GMH) unit.
GM's automotive operations earned $546 million in the first quarter, down from $496 million last year. However, earnings from its core North American automotive operations fell to $548 million in the first quarter from $654 million a year earlier after Detroit's price war, higher pension costs and currency exchange losses offset cost cuts.
GM said it expected second quarter earnings, excluding Hughes and special items, of "at least" $1.00 per share, at the low end of Wall Street forecasts. Analysts' forecasts, including Hughes, range between $1.00 and $2.36 per share, with a mean estimate of $1.37 per share, according to First Call.
Ford Motor Co. (F), scheduled to report its first quarter results on Tuesday, is expected to return to profitability as cost cuts from its ongoing restructuring offset lower car and truck sales.
©2003 Reuters Limited.
Yes, it was an error to use such evidence. I am not saying that is untrue. Fabricated evidence was presented to to U.N. That is a fact. We don't know who did the fabricating though and you said in the post that I was responding to that the administration forged documents. That is an opinion and not a fact. You are right, we will likely never know the truth of it despite the FBI investigation of which you speak. But I think it is important for us to try to make sure that what we say is based on fact and if it isn't, it should be stated clearly that it is our opinion. From your post, one would read it and think the administration forged the documents. But after reading the article, it doesn't say that at all. Now if we were to speculate, we might come to the conclusion that the administration had a hand in it, due to the fact that it suppported their position, but that is now and most likely will always be speculation with no way to prove or disprove.
I am hopeful that the coalition will let UN inspectors in soon. I think it is a bad idea to let them in until things settle down. It is still a pretty dangerous situation. From what I could tell from your article, it wasn't claimed that the U.S. actually forged anything. The IAEA said the evidence appered to be fabricated but it didn't lay blame on the U.S. or Britian and went further to say that they had shared the information in good faith.
Things seem to be settling down now and I hope order is restored soon. I am still waiting on the WMD issue and will wait for a while yet. I don't see any reason to form an opinion until they can get down to some serious searching by experts, hopefully UN experts. While I have some problems with the UN, I think that they are the best organization to do the searches. If U.S. troops find something, people could always say they planted it. It would be more legitimate if the UN was in charge of searching for WMD. And if none are found, then the coalition will have some very hard questions to answer. I am a bit concerned that some U.S. officials are talking about Syria and WMD. I think they would do well to concentrate of proving their accusations against Iraq before accusing others.
I just think it is too early to say at this point. I am willing to wait and see if they find something. But if they do not find WMD then I agree that the coalition will have some explaining to do. But from my personal point of view, I am just happy that Iraq now has the opportunity to moved to a more democratic type government. Maybe at long last they can have some peace and that is the thing I think most people want for the whole world.
I think it is possible to solve even that if you make Jerusalem a neutral city as it doesn't just have meaning to the Jews and Arabs but also to the Christians).
That is my opinion as well. A neutral designation should appease all parties. In regards to Sharon's statements being political in nature, you may well be right but it is up to interested nations, the U.S. mainly, making him back up the statements. I am not suprised that Israel is looking to make changes to the roadmap and I would expect the Palestinians to want changes too. It will be a long process with many concessions on both sides if there is to be real peace. I am thinking that Arafat is not wanting the PM to have control over the security forces and that is the major problem with that, but I noticed that there were some objections to some of the cabinet members as well because they are mostly reformists. I think that they would do well to have reformists involved as thus far, the current politicians have not done the job. I had really hoped that Sharon would be voted out in the last elections too but I guess that was just wishful thinking on my part. His dubious past makes it difficult for the Palestinians to believe his intentions are good I would imagine.
Whether or not Sadaam got rid of his WMD has yet to be determined. Yes, the U.S. wanted to get rid of WMD but the government has its own reasons for doing what it did and I had my own reasons for supporting the actions. I wanted the Iraqi people free of Sadaam's brutal regime. I was very disappointed that he was left in power after the first war. I think that ousting dictators like Sadaam is not arrogance if the following actions are honorable. Before, the Iraqi people had no say in the matter. Now they should have the right to self determination. Democracy is important because it gives the people the ability to be heard and to choose.
I have never heard of sanctions actually getting rid of a dictator before. Of course I don't know about all the sanctions ever imposed. I am basing this on the Iraq situation and Cuba. Anything less than getting rid of the dictator is not enough in my opinion. From what I understand, a lot of anti-American sentiment from the Arab world is based on past and in some cases present U.S. support for Arab dictators and until there are no more dictators in the Arab world and widespread poverty is eradicated, we will have problems. Of course, if the dictator in question actually thinks of his people first and takes care of them, then I guess it would be a different situation. I just don't know of any like that.