The more assumptions you have to make, the more unlikely an explanation is.
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new category of crime: Home Equity Theft
no gov. $ for oil refining, it's going to grass refining.
finally, an excuse to grow some grass:
Grass Makes Better Ethanol than Corn Does
Midwestern farms prove switchgrass could be the right crop for producing ethanol to replace gasoline
By David Biello
GRASS GAS: Turning fields of switchgrass like this one in northeastern Nebraska into ethanol produces 540 percent more energy than the amount consumed growing the native perennial.
COURTESY OF USDA-ARS
Farmers in Nebraska and the Dakotas brought the U.S. closer to becoming a biofuel economy, planting huge tracts of land for the first time with switchgrass—a native North American perennial grass (Panicum virgatum) that often grows on the borders of cropland naturally—and proving that it can deliver more than five times more energy than it takes to grow it.
Working with the U.S. Department of Agriculture (USDA), the farmers tracked the seed used to establish the plant, fertilizer used to boost its growth, fuel used to farm it, overall rainfall and the amount of grass ultimately harvested for five years on fields ranging from seven to 23 acres in size (three to nine hectares).
Once established, the fields yielded from 5.2 to 11.1 metric tons of grass bales per hectare, depending on rainfall, says USDA plant scientist Ken Vogel. "It fluctuates with the timing of the precipitation,'' he says. "Switchgrass needs most of its moisture in spring and midsummer. If you get fall rains, it's not going to do that year's crops much good."
But yields from a grass that only needs to be planted once would deliver an average of 13.1 megajoules of energy as ethanol for every megajoule of petroleum consumed—in the form of nitrogen fertilizers or diesel for tractors—growing them. "It's a prediction because right now there are no biorefineries built that handle cellulosic material" like that which switchgrass provides, Vogel notes. "We're pretty confident the ethanol yield is pretty close." This means that switchgrass ethanol delivers 540 percent of the energy used to produce it, compared with just roughly 25 percent more energy returned by corn-based ethanol according to the most optimistic studies.
The U.S. Department of Energy (DOE) is partially funding the construction of six such cellulosic biorefineries, estimated to cost a total of $1.2 billion. The first to be built will be the Range Fuels Biorefinery in Soperton, Ga., which will process wood waste from the timber industry into biofuels and chemicals. The DOE is providing an initial $50 million to start construction.
"Cost competitive, energy responsible cellulosic ethanol made from switchgrass or from forestry waste like sawdust and wood chips requires a more complex refining process but it's worth the investment," Energy Secretary Samuel Bodman said at the Range Fuels facility groundbreaking in November. "Cellulosic ethanol contains more net energy and emits significantly fewer greenhouse gases than ethanol made from corn."
In fact, Vogel and his team report this week in Proceedings of the National Academy of Sciences USA that switchgrass will store enough carbon in its relatively permanent root system to offset 94 percent of the greenhouse gases emitted both to cultivate it and from the derived ethanol burned by vehicles. Of course, this estimate also relies on using the leftover parts of the grass itself as fuel for the biorefinery. "The lignin in the plant cell walls can be burned," Vogel says.
The use of native prairie grasses is meant to avoid some of the other risks associated with biofuels such as reduced diversity of local animal life and displacing food crops with fuel crops. "This is an energy crop that can be grown on marginal land," Vogel argues, such as the more than 35 million acres (14.2 million hectares) of marginal land that farmers are currently paid not to plant under the terms of USDA's Conservation Reserve Program.
But even a native prairie grass needs a helping hand from scientists and farmers to deliver the yields necessary to help ethanol become a viable alternative to petroleum-derived gasoline, Vogel argues. "To really maximize their yield potential, you need to provide nitrogen fertilization," he says, as well as improved breeding techniques and genetic strains. "Low input systems are just not going to be able to get the energy per acre needed to provide feed, fuel and fiber."
http://www.sciam.com/article.cfm?id=grass-makes-better-ethanol-than-corn
awesome call tina. Shero Tina!
seriously, bids up now.....
sellllll! lol
green cleaning products are like ff cheese...you have to ask yourself if it's worth it.
selllllll lol
sold egmi for mini weeeeee.
tied for #3...cool
our store director was told ANY ot in the entire store (all departments) will get him his walking papers. he has worked for the company for 25 yrs.
http://business.timesonline.co.uk/tol/business/law/article3155677.ece
January 9, 2008
Banks set to fight back against sub-prime law suits
Investment banks are facing a wave of litigation bigger than the Enron scandal but are unlikely to roll over this time, lawyers saidMichael Herman
The wave of lawsuits arising from the credit crunch will be worse than the fallout from the Enron scandal or the dot-com collapse, lawyers close to the industry predicted – but this time investment banks are set to fight all the way.
"In terms of the potential numbers of lawsuits, the sub-crime crisis could be bigger than Enron,” Tim House, a banking litigation partner at Allen & Overy, said. "But this time we can expect banks to be much less willing to simply settle quickly.”
During other financial crises, banks readily settled major claims in order to avoid costly and lengthy legal action. Lawyers believe this policy has led to a perception that the banks are “easy targets”, which could exacerbate the tide of sub-prime-related law suits.
But tougher market conditions this time will make the banks inclined to defend most claims aggressively rather than settle.
Lawsuits soar as investors try to recoup losses
Calum Burnett, a litigation partner at Allen & Overy, said: “There is a feeling that banks probably overpaid to settle litigation following the big corporate collapses, such as Enron.”
But the banks are now keen to rid themselves of any suggestion that they are soft in defending litigation.
“In a rising market there is a rational business argument to settle cases in order to put the matter behind you and move on and focus your resources elsewhere,” Mr Burnett said. “But with general economic prospects the way they are, that incentive may disappear.”
There have been signs recently that claims arising from the credit crunch will not be limited to class actions, filed on behalf of small investors. They will also include major financial institutions taking each other on.
Barclays, the UK bank, has already filed a lawsuit in New York accusing Bear Stearns of fraud, conspiracy and breach of fiduciary duty in relation to the way it managed a failed hedge fund invested in sub-prime mortgages.
According to Mr House: "A lot of banks believed they would be shielded from litigation because they sold complex products to sophisticated institutional investors who knew what they were getting into and could not claim to have been misled. They are, nonetheless, beginning to see claims from investors seeking to recoup losses."
Citigroup, Merrill Lynch and UBS have all been hit with US class-action lawsuits relating to sub-prime losses.
Claimant lawyers, who typically act for small investors seeking compensation, predict this is just the beginning.
Fred Fox, a partner at Kaplan Fox, a securities law firm in New York, said: “This [the credit crunch] is a big deal. We are looking at all sorts of possible cases. We are examining them from various different angles and some could potentially result in payouts of billions and billions of dollars.”
In the UK, where it is much harder for investors to recoup losses via litigation, lawyers said that banks have been put on the back foot by a recent court ruling relating to the legal validity of sales pitches.
Traditionally, an investment bank selling a complex financial instrument to a sophisticated investor will include a non-reliance clause in any deal, which says the investor can only rely on the information given in the final contract rather than anything said during the sales process.
This has led to accusations that commission-based sales staff have exaggerated the safety or suitability of products, safe in the knowledge that their employers cannot be held liable for what they have said.
But in a recent landmark case, a judge ruled that the institution selling a financial product can invoke a non-reliance clause only if it can prove the buyer did not rely on anything said by sales staff up to the point it signed the contract.
Lawyers believe the case — Quest 4 Finance Limited v John Maxfield and Others — has opened up a new front for investors to sue banks that could leave the banks facing vast losses.
too bad nobody is filing criminal charges...rec9rys
awesome drink...and saves $ on juice!
Benda Enters Into Complementary Financial Advisory Agreements with CRT Capital Group LLC and EastGate Financial, Inc.
Friday January 11, 1:03 pm ET
HUBEI PROVINCE, China--(BUSINESS WIRE)--Benda Pharmaceutical, Inc. (“Benda” or the “Company”) (OTCBB: BPMA - News), a China-based pharmaceutical company producing traditional Chinese and conventional medicines, as well as Gendicine®, the world’s first commercialized gene therapy medicine for the treatment of cancer, announced today that it has entered into a financial advisory agreement with CRT Capital Group LLC (“CRT”) to assist the Company in evaluating its strategic and financial alternatives, including M&A, joint venture, divestiture, spin-off, financing or other capital market transactions.
ADVERTISEMENT
The Company also entered into a financial advisory agreement with EastGate Financial, Inc. (“EastGate”), engaging EastGate to provide consulting and advisory services with respect to establishing an office in New York, advise the Company in applying for listing on the American Stock Exchange (“AMEX”) and assist in identifying and choosing an AMEX specialist firm. The agreement with EastGate is in coordination with and complementary to Benda’s strategic relationship with CRT.
“Entering into these new strategic relationships with CRT and EastGate is a watershed moment in our development into a leading pharmaceutical company, both in China and beyond,” stated Yiqing Wan, Benda Chairman and CEO. “CRT and EastGate both have deep experience in our space, and CRT’s demonstrated success in helping evolve one of our closest peer companies, American Oriental Bioengineering (NYSE: AOB - News), gives us the utmost confidence that the relationship will help us achieve each of our operational and financial goals.”
About Benda Pharmaceutical, Inc.
Benda Pharmaceutical, Inc. (www.bendapharma.com), a China-based pharmaceutical company, is a pure play on explosive Chinese pharmaceutical spending and the global search for a cancer cure. Benda produces traditional Chinese and conventional medicines, as well as Gendicine®, the world’s first commercialized gene therapy medicine for the treatment of cancer.
About CRT Capital Group LLC
CRT Capital Group LLC (www.crtllc.com) is a full-service institutional securities firm that provides capital markets, research and investment banking services to its corporate and institutional clients. CRT's professionals have significant experience assisting middle-market companies and institutional investors with a wide range of financial products and services.
About EastGate Financial, Inc.
EastGate Financial, Inc. (www.eastgatefinancial.com) is a financial services firm dedicated to providing advisory services for Corporate Growth Alternatives, for Funding and Financing Alternatives, and assessing Industry-specific opportunities to support companies, management teams and investors throughout the global business community. EastGate’s professionals specialize in providing clients the unique bridge between the United States and China.
Benda Investor Resources
Fact Sheet: http://files.shareholder.com/downloads/BPMA/151228937x
4452657x111082/95430c49-a77a-43c9-89ad-d6cc75cffc59/FactSheet.pdf
PowerPoint Presentation: http://files.shareholder.com/downloads/
BPMA/151228937x4452657x111087/35a10e95-f328-45ad-81ab-529f6cc1af6d/
Bendapresentation061107.pdf
Gendicine® Video: http://play.rbn.com/play.asx?url=shareholder/
shareholder/wmdemand/bendavideo.wmv&proto=mms?mswmext=.asx
FORWARD-LOOKING STATEMENTS
The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward looking statements if they comply with the requirements of the Act.
Contact:
After Market Support, LLC
Justin K. Davis, 888-221-BPMA (2762)
Justin.Davis@aftermarketsupport.com
--------------------------------------------------------------------------------
Source: Benda Pharmaceutical, Inc.
http://biz.yahoo.com/bw/080111/20080111005472.html?.v=1
Benda Enters Into Complementary Financial Advisory Agreements with CRT Capital Group LLC and EastGate Financial, Inc.
Friday January 11, 1:03 pm ET
HUBEI PROVINCE, China--(BUSINESS WIRE)--Benda Pharmaceutical, Inc. (“Benda” or the “Company”) (OTCBB: BPMA - News), a China-based pharmaceutical company producing traditional Chinese and conventional medicines, as well as Gendicine®, the world’s first commercialized gene therapy medicine for the treatment of cancer, announced today that it has entered into a financial advisory agreement with CRT Capital Group LLC (“CRT”) to assist the Company in evaluating its strategic and financial alternatives, including M&A, joint venture, divestiture, spin-off, financing or other capital market transactions.
ADVERTISEMENT
The Company also entered into a financial advisory agreement with EastGate Financial, Inc. (“EastGate”), engaging EastGate to provide consulting and advisory services with respect to establishing an office in New York, advise the Company in applying for listing on the American Stock Exchange (“AMEX”) and assist in identifying and choosing an AMEX specialist firm. The agreement with EastGate is in coordination with and complementary to Benda’s strategic relationship with CRT.
“Entering into these new strategic relationships with CRT and EastGate is a watershed moment in our development into a leading pharmaceutical company, both in China and beyond,” stated Yiqing Wan, Benda Chairman and CEO. “CRT and EastGate both have deep experience in our space, and CRT’s demonstrated success in helping evolve one of our closest peer companies, American Oriental Bioengineering (NYSE: AOB - News), gives us the utmost confidence that the relationship will help us achieve each of our operational and financial goals.”
About Benda Pharmaceutical, Inc.
Benda Pharmaceutical, Inc. (www.bendapharma.com), a China-based pharmaceutical company, is a pure play on explosive Chinese pharmaceutical spending and the global search for a cancer cure. Benda produces traditional Chinese and conventional medicines, as well as Gendicine®, the world’s first commercialized gene therapy medicine for the treatment of cancer.
About CRT Capital Group LLC
CRT Capital Group LLC (www.crtllc.com) is a full-service institutional securities firm that provides capital markets, research and investment banking services to its corporate and institutional clients. CRT's professionals have significant experience assisting middle-market companies and institutional investors with a wide range of financial products and services.
About EastGate Financial, Inc.
EastGate Financial, Inc. (www.eastgatefinancial.com) is a financial services firm dedicated to providing advisory services for Corporate Growth Alternatives, for Funding and Financing Alternatives, and assessing Industry-specific opportunities to support companies, management teams and investors throughout the global business community. EastGate’s professionals specialize in providing clients the unique bridge between the United States and China.
Benda Investor Resources
Fact Sheet: http://files.shareholder.com/downloads/BPMA/151228937x
4452657x111082/95430c49-a77a-43c9-89ad-d6cc75cffc59/FactSheet.pdf
PowerPoint Presentation: http://files.shareholder.com/downloads/
BPMA/151228937x4452657x111087/35a10e95-f328-45ad-81ab-529f6cc1af6d/
Bendapresentation061107.pdf
Gendicine® Video: http://play.rbn.com/play.asx?url=shareholder/
shareholder/wmdemand/bendavideo.wmv&proto=mms?mswmext=.asx
FORWARD-LOOKING STATEMENTS
The information contained herein includes forward-looking statements. These statements relate to future events or to our future financial performance, and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. You should not place undue reliance on forward-looking statements since they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could, and likely will, materially affect actual results, levels of activity, performance or achievements. Any forward-looking statement reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. We assume no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The safe harbor for forward-looking statements contained in the Securities Litigation Reform Act of 1995 protects companies from liability for their forward looking statements if they comply with the requirements of the Act.
Contact:
After Market Support, LLC
Justin K. Davis, 888-221-BPMA (2762)
Justin.Davis@aftermarketsupport.com
--------------------------------------------------------------------------------
Source: Benda Pharmaceutical, Inc.
convertibles are a death blow, however sometimes companies find better financing as they fix their problems. just watching for now.
September 30,
September 30,
2007
2006
(Unaudited)
(Unaudited)
Revenue
$
15,796,295
$
12,365,423
Cost of goods sold
(8,105,852
)
(6,908,404
)
Gross profit
7,690,443
5,457,019
Selling expenses
(675,013
)
(421,646
)
General and administravive expenses
(12,355,921
)
(1,427,465
)
Research and development expenses
(310,084
)
(33,138
)
Total operating expenses
(13,341,018
)
(1,882,249
)
Operating income / (loss)
(5,650,575
)
3,574,770
Interest expenses
(2,207,878
)
(118,674
)
Other income (expenses)
104,966
(249,643
)
Government subsidies / grants
1,690,974
-
Income / (loss) before minority interest and income taxes
(6,062,513
)
3,206,453
Income taxes
-
-
Minority interest
(1,509,564
)
(221,703
)
Net Income / (loss)
$
(7,572,077
)
$
2,984,750
Earnings / (loss) per share - basic
$
(0.08
)
$
0.04
Weighted average shares outstanding - basic
96,872,524
70,259,331
Earnings / (loss) per share - diluted
$
(0.06
)
$
0.04
Weighted average shares outstanding - diluted
125,103,425
70,259,331
this is on my watch list, i am not in any hurry...125mm os is still very low for a pharmaceutical. don't normally have interest in china stocks, we shall see.
Benda Dramatically Expands Largest Plant's Capacity and Product Mix; First of Five New Products Expected to Add $1.8 MM to 2008 Revenue
9:07a ET January 11, 2008 (Business Wire)
Benda Pharmaceutical, Inc. ("Benda" or the "Company") (OTCBB:BPMA), a China-based pharmaceutical company producing traditional Chinese and conventional medicines, as well as Gendicine(R), the world's first commercialized gene therapy medicine for the treatment of cancer, announced today that its Ebei plant received Good Manufacturing Practices (GMP) certification for its new tablets product line on November 26, 2007. The GMP certification clears the tablets for mass production and sale, marking the official conclusion of the plant's dramatic capacity expansion and beginning its significant product line growth.
The Ebei plant is currently Benda's most significant revenue contributor and forms the solid base upon which Benda is launching next generation biopharmaceuticals like Gendicine(R). Ebei achieved $11.8 MM in revenue during the first nine months of 2007, a 55% increase over the same period a year ago. The Ebei plant has been primarily engaged in producing and distributing conventional medicines in injection vial form.
To both grow and diversify the plant's business, Benda began in September 2006 the construction of an addition to the plant intended to house multiple new production lines. The Company completed construction in September 2007. The new addition adds to the product mix five new production lines, with respective annual capacities of 40 million oral liquid vials, 230 million capsules, 758 million tablets, 500 tons of pills and 20 million bags of granules.
On November 26, 2007 the tablets line became the first to receive GMP certification, valid for a 5-year period. The Ebei plant will initiate the full production and sale of tablets in late December 2007; Benda expects the new tablets line alone to contribute approximately $1.8 million in revenue in 2008. The four remaining product lines are all under GMP review and the Company expects each to be certified in early 2008.
"This capacity expansion and addition to Ebei's product mix has been long-anticipated and represents an important milestone for Benda," commented Mr. Yiqing Wan, Benda Chairman & CEO. "Gendicine(R) has deservedly garnered most of the public's attention of late, but much of the drug's future growth will be made possible by the continued success of our stable, profitable product lines. Our investment in the Ebei plant will ultimately yield an even stronger base from which to launch Gendicine(R) into India and beyond."
Benda Dramatically Expands Largest Plant's Capacity and Product Mix; First of Five New Products Expected to Add $1.8 MM to 2008 Revenue
9:07a ET January 11, 2008 (Business Wire)
Benda Pharmaceutical, Inc. ("Benda" or the "Company") (OTCBB:BPMA), a China-based pharmaceutical company producing traditional Chinese and conventional medicines, as well as Gendicine(R), the world's first commercialized gene therapy medicine for the treatment of cancer, announced today that its Ebei plant received Good Manufacturing Practices (GMP) certification for its new tablets product line on November 26, 2007. The GMP certification clears the tablets for mass production and sale, marking the official conclusion of the plant's dramatic capacity expansion and beginning its significant product line growth.
The Ebei plant is currently Benda's most significant revenue contributor and forms the solid base upon which Benda is launching next generation biopharmaceuticals like Gendicine(R). Ebei achieved $11.8 MM in revenue during the first nine months of 2007, a 55% increase over the same period a year ago. The Ebei plant has been primarily engaged in producing and distributing conventional medicines in injection vial form.
To both grow and diversify the plant's business, Benda began in September 2006 the construction of an addition to the plant intended to house multiple new production lines. The Company completed construction in September 2007. The new addition adds to the product mix five new production lines, with respective annual capacities of 40 million oral liquid vials, 230 million capsules, 758 million tablets, 500 tons of pills and 20 million bags of granules.
On November 26, 2007 the tablets line became the first to receive GMP certification, valid for a 5-year period. The Ebei plant will initiate the full production and sale of tablets in late December 2007; Benda expects the new tablets line alone to contribute approximately $1.8 million in revenue in 2008. The four remaining product lines are all under GMP review and the Company expects each to be certified in early 2008.
"This capacity expansion and addition to Ebei's product mix has been long-anticipated and represents an important milestone for Benda," commented Mr. Yiqing Wan, Benda Chairman & CEO. "Gendicine(R) has deservedly garnered most of the public's attention of late, but much of the drug's future growth will be made possible by the continued success of our stable, profitable product lines. Our investment in the Ebei plant will ultimately yield an even stronger base from which to launch Gendicine(R) into India and beyond."
added today
f those f'ing f'ers
Indium (pronounced /ˈɪndiəm/) is a chemical element with chemical symbol In and atomic number 49. This rare, soft, malleable and easily fusible poor metal is chemically similar to aluminium or gallium but more closely resembles zinc (zinc ores are also the primary source of this metal).
***Its current primary application is to form transparent electrodes from indium tin oxide in liquid crystal displays.****
It is widely used in thin-films to form lubricated layers (during World War II it was widely used to coat bearings in high-performance aircraft). It's also used for making particularly low melting point alloys, and is a component in some lead-free solders.
http://en.wikipedia.org/wiki/Indium
wow etfc below $3.
can't argue that...although i'd like to grrrrr.
selling at .43, not sure they will be able to buy lower. anything is possible i suppose.
he would only need to hear aufstehen! (stand up!) once tee hee
and now perhaps they say, "why, why, why didn't i wait?" (gnawing and gnashing of teeth) :)
tina, i think you might like this...talented AND cute...
a gem of a find! :)
nice to see some good size buys...
Remodeling business is booming
Area contractors don’t feel pinch of industry downturn
By David Fisher / The Bulletin
Published: December 26. 2007 5:00AM PST
It’s the heart of the holiday season, but Stephen Herbert’s crews have two Central Oregon homes torn up in the midst of remodeling projects.
Mike Davis’ TMT Home Remodelers crews are just finishing up their last project of the year, too, and next year’s contract schedule, he says, is filling up fast.
The pace of new-home building may have fallen off by 60 percent or more this year in Central Oregon, as it has in most of the country. But remodelers say they’re having no trouble finding work, and the jobs they are doing — along with the crews they are hiring and the materials they are buying — may be helping to slide a floor under the region’s construction, labor and building supply markets.
“As far as remodeling is concerned, we were very busy when the production housing thing was going nuts, and we have been very busy since it has fallen down,” Davis said Friday. “Based on the inquiries we’re getting, my guess right now is that 2008 could be a record year for us.”
It’s difficult to gauge the size of the region’s remodeling market, since separate local statistics on it aren’t kept.
Nationwide, though, spending on home remodeling is estimated to account for about $180 billion in construction spending every year — enough to account for almost 40 percent of every dollar spent on residential construction and improvement, and about 2 percent of the total U.S. economy, according to an April report by Harvard University’s Joint Center for Housing Studies.
Statistics indicate that the national remodeling industry has slipped a bit as home sales and new-home construction have fallen. Relatively speaking, though, it seems to be holding up well.
The National Association of Home Builders’ Remodeling Market Index, an indicator of current market conditions, stood at 46.2 in the third quarter this year, down a bit from the third quarter of 2006 but up slightly from the second quarter that ended in June.
The market index measures remodeler perceptions of market demand. Any number above 50 indicates that the majority believes the market is improving. The index, the NAHB says, has remained slightly below 50 since the fourth quarter of 2005.
“The RMI is consistent with our forecasts for the remodeling market,” NAHB Chief Economist David Seiders said earlier this month. “We expect activity to contract in 2008 but to resume positive growth in 2009 and beyond.”
Harvard’s Joint Center for Housing Studies is a little less sanguine, predicting remodeling spending to drop 2.3 percent this year under 2006 levels, with continued declines expected through 2008 as consumers experience greater difficulty in getting cash-out mortgages to pay for the work. Altogether, it’s predicting that its rolling 12-month measure of remodeling spending will drop from $180.6 million in the second quarter of 2007 to about $173.1 million in the second quarter of 2008, a fall of about 4.2 percent.
Local outlook sunny
A bit of weakness in the national numbers may be reflected in the local market as well, depending on whom you ask. But at least some builders and suppliers say they are either expecting a strong year for their existing remodeling businesses here, or they are devoting more resources to it to make up for shortfalls in the new-home construction market.
Brian’s Cabinets, the largest manufacturer of home cabinets in Central Oregon, isn’t seeing as much of an uptick in remodeling sales as it expected this year, General Manager Mark Kramer said, but that’s largely because the biggest increases it has seen have come from lower-dollar-volume closet and garage cabinet sales, rather than from high-end custom kitchen cabinetry.
The garage and closet market is only about 10 percent of the company’s business, Kramer said, but it plans to pump up its production of those lines next year. It also plans to highlight the closet and garage lines in its new northeast Bend showroom, once the building is finished, Kramer said, and it may take to doing catalogue marketing to boost sales faster.
The growth in lower-cost, space-saving cabinetry sales could be a byproduct of people trying to squeeze more use out of an existing house without trying to move in a slow housing market, Kramer said. Or it could be, as Brian’s is betting, a trend that will last even when new-home sales and higher-end remodeling sales build again.
Whatever the case, “it complements what we are already doing,” Kramer said. “And it gives us the opportunity to grow in what looks like it might be kind of a down market.”
Whether there’s more or less money, overall, going into local remodels than there has been in recent years is hard to say, but companies that have specialized in remodels for years say they are seeing little drop-off in activity.
Classic market is key
Like TMT’s Davis, Herbert said he sees a strong year coming next year. A fair amount of his business, he said, is coming from out-of-the-area people who want to convert former vacation homes into their retirement homes. Some have shopped around for new homes, Herbert said, but most like their current locations, and most ultimately find that it’s less expensive to rearrange bedrooms, kitchens and garages to accommodate full-time living than it is to opt for a whole new home.
Vacation-home conversions may be a growth segment of the remodel market, said Pacwest Homes’ director of sales, Gary May, but the classic remodeling market — people who like the lots they are on, but need to update an aging house — continues to provide a steady stream of demand that is encouraging businesses like Pacwest to reach out for a bigger chunk of it.
Remodels still account for a fairly small portion of Pacwest’s business, compared with its custom home, production home and commercial construction segments, May said, but he hopes to grow its remodeling revenues by 60 percent to 70 percent next year, aided by a marketing push planned for the first of the year through the company’s Bend design center.
Even if that happens, remodeling would account for far less than half of the company’s revenues, May noted, adding that it takes a lot of $50,000 kitchen remodeling jobs to make up for a single $2.5 million custom home.
Still, the remodeling market remains relatively strong despite — and in some ways, because of — the downturn in production home building, May said. That’s partly because homeowners who want to remodel have generally lived in their homes long enough to build up equity, which means they still have a relatively easy time securing loans, in May’s estimation, and partly because the price of labor and materials has plunged since the general housing market cooled down.
The price of framing, for example, has plunged from $20 to $25 per foot at the peak of the labor-short housing boom to around $10 to $11 per foot now, May said. Some materials, like concrete and tile, have retained the prices they hit at the peak of the boom, but others, like framing timber and cedar, have come down.
The consumer wins
Pacwest laid off its in-house tile setters and drywallers at the beginning of the year, reacting, along with most home builders, to the slide in new-home construction, May said. But it has kept its project managers, finish crews and painters working, and it’s hiring subcontractors to fill in the gaps as work comes in.
Which is apparently keeping at least some of them working, despite the drawdown in new- home construction, albeit at lower prices.
“Our subs provide great service to us, especially now that they are a little slower as well,” May said. “They jump through hoops for us. And if it means the difference between working for a couple of weeks or being idle for a couple of weeks, for the sake of a couple of hundred dollars in price, we’re finding that the subs are being a little more flexible in that. So, at the end of the day, it’s the consumer who wins.”
David Fisher can be reached at 617-7862 or at dfisher@bendbulletin.com.
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Published daily in Bend, Oregon, by Western Communications, Inc. Copyright 2007.
http://www.bendbulletin.com/apps/pbcs.dll/article?AID=/20071226/BIZ0102/712260389/0/FRONTPAGE
how about this, homeowners will be doing more of their own fixin' uppin' around the house. i recommend e-z fold... http://investorshub.advfn.com/boards/board.asp?board_id=10478
my crew at work loved the herculeshooks they received for christmas! i have 10 people right now, 8 are homeowners and all are holding onto their homes through this downturn. most are involved in home improvement projects.
maybe dow 13700 was the time to be careful :)
scratchers w/ chips allow for endless variation, egmi is on cutting edge...
“The strong sales performance of Scratchers is the result of several new initiatives such as offering a greater array of themes and play styles to appeal to a larger player population, preventing out-of-inventory situations among retailers and keeping fresh new games flowing through the pipeline,” Romero said.
when will these guys stop getting paid to fail?
smart lotterys investing in upgrading scratchers:
Scratchers Help Offset Powerball ® Slump
In fiscal year 2007, Scratcher games accounted for 62 percent of all lottery sales. Scratcher sales totaled $91.4 million, up $6.6 million from last year’s sales of $84.8 million.
“The strong sales performance of Scratchers is the result of several new initiatives such as offering a greater array of themes and play styles to appeal to a larger player population, preventing out-of-inventory situations among retailers and keeping fresh new games flowing through the pipeline,” Romero said.
Big sellers during the year included the nostalgic “$10,000 Betty Boop™” and “Magic 8 Ball™” games and the “Deal or No Deal™” ticket based on the hit TV show. A series of crossword puzzle Scratchers developed a loyal player following statewide. In fiscal year 2007, Scratcher players won more than $60 million in prizes, up from $56 million in the previous year.
Hot Lotto, which was introduced in October, generated sales of $3.5 million. Together, Scratchers and Hot Lotto helped offset a yearlong slump in Powerball sales. The Powerball game generated sales of $42.6 million, down $11.5 million from the previous year when jackpot run-ups reaching as high as $300 million stimulated unprecedented player enthusiasm.
http://www.nmlottery.com/News/Press_Releases/FY07_Sales_&_Returns.htm
coop, thanks! great medicine.
ot, for good health in the coming year...