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Seems like it. I haven't had to do any trading lately. I set up a good portfolio a while back and made a few adjustments over time and now just watch it steadily rise. 43% last year and 28% this year. Not astronimical but considering the low risk nature of the issues in the portfolio, it is a very nice return.
As much as I can Tim. The market still seems a bit choppy to me. Mostly trading range so I have just been holding dividend payers, which have been very steady for me.
Been away for a while. How ya been?
Doing fine Tim. Just been away for a while. I hope all is well with you and yours!
As I was updating the Ibox today, I noticed that the company's IR page has been revamped. It is an excellent place to retrieve information. I am suprised that they are using IRconnect for it though. That service is expensive for a company that neds to save every penny.
GDP Roars Ahead at 8.2 Percent in Q3
Dec 23, 8:40 AM (ET)
By MARTIN CRUTSINGER
(AP) WASHINGTON (AP) - The U.S. economy, propelled by tax cuts and low interest rates, roared ahead at an 8.2 percent annual rate in the third quarter, the best showing in nearly 20 years, while Americans' incomes and spending both showed healthy gains in November.
The government reports Tuesday on the gross domestic product, the country's broadest measure of economic health, and personal incomes and spending provided further evidence that the economy was convincingly shaking off a prolonged period of lethargy and beginning to fire on all cylinders.
The Commerce Department report that the GDP grew at an 8.2 percent rate in the third quarter, propelled by a surge in consumer spending, was identical to the preliminary estimate made a month ago and represented the strongest growth since an 8.4 percent rate of increase in the fourth quarter of 1983.
In a separate report, the government said consumers were remaining active in the current quarter with consumer spending rising by 0.4 percent in November, the best showing since August, and incomes, helped by rising employment levels, posted an increase of 0.5 percent last month, the best gain since May.
Many analysts believe that GDP growth in the current quarter could well top 5 percent, representing the best back-to-back growth rates since the boom years of the 1990s.
The economy began the year growing at much slower rates of 2 percent in the first quarter and 3.1 percent in the second quarter before the jolt from a new round of tax cuts propelled consumer spending in the third quarter.
Growth has also been helped this year by the Federal Reserve's decision to keep a key interest rate at the lowest level in 45 years, providing strength to such interest rate-sensitive sectors as housing and auto sales.
All of the GDP figures released Tuesday reflected a comprehensive revision that the government does every five years to make sure the measurement of total output keeps up with the times. With the changes, the GDP grew by 2.2 percent for all of 2002, down slightly from the previous estimate of 2.4 percent.
The benchmark revisions and the changes to third quarter GDP showed a number of crosscutting revisions that basically offset each other to make little impact on the bottom-line number.
For the third quarter, consumer spending was revised up to an even-stronger 6.9 percent rate of growth, the best showing since the third quarter of 1986, compared to last month's estimate of 6.4 percent.
But private investment, which covers housing construction and business spending on plants and equipment, was revised down to a 14.8 percent rate of increase, reflecting slightly less business investment which offset a bigger increase in housing construction.
Even with the strong growth, inflation remained under control with a price gauge tied to the GDP rising at an annual rate of just 1.8 percent in the third quarter.
The monthly incomes and spending report showed that 0.4 percent November jump in consumer spending, which accounts for two-thirds of total economic activity, followed a tiny 0.1 percent rise in October and no change at all in September. However spending had soared by 0.9 percent in August, reflecting the burst of activity spurred by the tax cuts which went into effect in July.
The 0.5 percent rise in personal incomes followed much smaller increases of 0.2 percent in October and 0.3 percent in September. The strength last month came from a big wages and salaries, which rose by $16 billion in November compared to an October gain of $8.2 billion.
After an extended period of layoffs, employers have begun adding workers to their payrolls, which should help bolster incomes even more in coming months.
This Management Wants Investors' Money, Not Their Opinions
Published: December 12, 2003
Call it shareholder democracy, Chinese style.
The hottest initial public offering in three years hit the market this week, with many features to stir nostalgia in those who miss the bubble.
It's an Internet company, whose buyers think it is destined for great wealth from selling things online. And it even has some profits.
But this company has more. It is a China play, whose underwriters at Merrill Lynch had the good timing to take it public on the day President Bush greeted Wen Jiabao, China's prime minister, at the White House and sided with the Chinese government in its opposition to allowing Taiwan's voters to express their opinions in a referendum.
The company is Ctrip.com International, the largest consolidator of hotel rooms and airline tickets in China. Its share price leaped 89 percent in Nasdaq trading on Tuesday. Thomson Financial reported that was the best first-day showing for an initial public offering in three years.
Ctrip's contribution to convenient democracy is detailed in its prospectus. Buyers of the American depository shares are told they "may instruct the depositary of our A.D.S.'s to vote the shares underlying your A.D.S.'s but only if we ask the depositary to ask for your instructions.''
"Otherwise," it adds, "you will not be able to exercise your right to vote unless you withdraw the shares. However, you may not know about the meeting enough in advance to withdraw the shares. If we ask for your instructions, the depositary will notify you of the upcoming vote and arrange to deliver our voting materials to you. We cannot assure you that you will receive the voting materials in time to ensure that you can instruct the depositary to vote your shares. In addition, the depositary and its agents are not responsible for failing to carry out voting instructions or for the manner of carrying out voting instructions. This means that you may not be able to exercise your right to vote and there may be nothing you can do if the shares underlying your A.D.S.'s are not voted as you requested."
There is not even a promise that the company intends to try to ask for votes from foreigners.
On second thought, it may be unfair to blame the Chinese for this approach to democracy. After all, China Life, a pending offering from the country's largest life insurance company, has no such undemocratic provision.
Ctrip, by contrast, does all its business in China but is incorporated in the Cayman Islands. And its largest shareholder is a fund run by the Carlyle Group, the Washington-based private equity firm known for hiring former government officials who understand how inconvenient democracy can be. Former President George H. W. Bush resigned as a senior adviser in October, but Carlyle's masthead still includes James Baker, the former secretary of state, and John Major, the former British prime minister.
A Carlyle spokeswoman declined to discuss the voting arrangements at Ctrip. And a spokesman for the Nasdaq stock market said that the exchange yields to foreign laws when evaluating whether to list overseas companies.
In a less enthusiastic market environment, investors might wonder why Carlyle was willing to sell some of its stock in September for half the public offering price and more shares at the offering itself. All told, Carlyle has taken out $12.5 million, plus stock, in a hotel company. And even with the share price slipping a bit since the first day, its remaining stake in Ctrip is worth $100 million.
Carlyle, by the way, is assured of being able to vote its remaining stake. And so are the company's other insiders. Only those who paid the most may not get to vote.
Yes, gov't spending must be curtailed for the economic recovery to continue. I am sure that the Iraq reconstruction has something to do with the job numbers but I should think that we are a long way from finished there. That project will take a decade at least. I also realize that the timing for Bush is good but once the economy sparks, it catches fire. Somewhat like a train picking up speed. It is very hard to stop once it gets going.
Looks like I was wrong. The last number I saw was 5.9%. We are finally seeing a turn around in the job market. The economy is really starting to heat up now. Good timing for President Bush.
How do you tell the difference between Liberals, Conservatives and Southerners?
Pose the following question:
You're walking down a deserted street with your wife
and two small children. Suddenly, a dangerous looking man with a
huge knife comes around the corner, locks eyes with you, screams obscenities, raises the knife, and charges.
You are carrying a Glock .40, and you are an expert shot. You have mere seconds before he reaches you and your family.
What do you do?
Liberal Answer:
Well, that's not enough information to answer the
question! Does the man look poor or oppressed? Have I ever done anything to him that would inspire him to attack? Could we run away? What does my wife think? What about the kids? Could I possibly swing the gun like a club and knock the knife out of his hand? What does the law say about this situation? Does the Glock have an appropriate safety built into it?
Why am I carrying a loaded gun anyway, and what kind of message does this send to society and to my children? Is it possible he'd be happy with just killing me?
Does he definitely want to kill me, or would he be content just to wound me? If I were to grab his knees and hold on, could my
family get away while he was stabbing me?
Should I call 9-1-1?
Why is this street so deserted? We need to raise taxes, have a paint and weed day and make this a happier, healthier street that would discourage such behavior.
This is all so confusing! I need to debate this with some friends for a few days and try to come to a consensus.
Conservative Answer:
BANG!
Southerner's Answer :
BANG! BANG! BANG! BANG! BANG! BANG! BANG! BANG! BANG!
click...
(sounds of reloading).
Wife: "Hun, he looks like he's still moving, whadda
y'all kids think?"
Son: "Mama's right Daddy, I saw it, too."
BANG! BANG! BANG! BANG! BANG! BANG! BANG! BANG! BANG!
click.
Daughter: "Nice group, Daddy! Were those the
Winchester Silver Tips?"
Here is a chart of LMIA. It ran up to over $3.00 for a bit but is pretty much where it started at now.
http://finance.yahoo.com/q/bc?s=LMIA
The balance sheet shows that net tangible asset value has been dropping every quarter so that really isn't a good sign. But it does seem to have pretty solid support around $2. As far as the results of the screen go, I am not certain. I should have copied and pasted the results of the screen so we could check them later. Using this strategy with dividend paying stocks, I am up 32% this year but most of those stocks are mid to large cap companies.
Buffett Sees Little to Invest In
Sunday October 26, 4:32 PM EST
NEW YORK (Reuters) - Warren Buffett sees very few attractive investments at the moment, and is sitting tight on a $24 billion war chest.
The billionaire investor and chief executive of Berkshire Hathaway said in an interview with Barron's that he is not impressed with the current opportunities in stocks, Treasury bonds or junk debt.
"We've got more cash than ideas. The question is whether that will prevail for an unduly long time," he told Barron's.
In fact, Berkshire sold $9 billion of long-term Treasury bonds this year, and Buffett said buying at current levels is not a wise move, according to the report, which appeared in the Oct. 27 edition of the newspaper.
Buffett expressed regret about not selling shares of big companies like Coca-Cola Co. and Gillette Co. when those stocks crested in the late 1990s.
He added that such sales would have been complicated by the fact that he sat on both companies' boards at the time, raising possible red flags about insider trading.
He said he erred in not buying shares of Wal-Mart Stores Inc. years ago, because he viewed the stock as overvalued. That miscalculation cost Berkshire $8 billion, he told Barron's.
Buffett was upbeat about the insurance businesses that make up the most important part of his company. Those units include auto insurer Geico and global reinsurer General Re Corp.
He also complimented rival car insurers Progressive Corp. and Mercury General Corp., praising Progressive's strong systems and Mercury's CEO George Joseph, according to Barron's.
©2003 Reuters Limited.
Yes. Goodwill doesn't count for anything in a buyout. And even if the company in question doesn't get acquired, goodwill will eventually be written off so it is really just a way to inflate book value as far as I am concerned.
U.S. Posts First Job Gains in 8 Months
Friday October 3, 8:50 AM EDT
By Glenn Somerville
WASHINGTON (Reuters) - U.S. employers added new jobs in September for the first time in eight months, the Labor Department said on Friday in a surprise twist for financial markets, which had been braced for more losses.
The number of workers on U.S. payrolls outside the farm sector grew by 57,000 last month, the first time since January that jobs were created and sharply contrary to Wall Street economists' forecasts for a 30,000-job loss. The unemployment rate was unchanged at 6.1 percent in September.
On another hotly awaited statistic, Labor said a preliminary measure indicated it will revise down its estimate of payroll employment by about 145,000, or 0.1 percent, for the March 2003 reference year when it issues benchmark revisions next February. That is smaller than the average 0.3 percent revisions it has made over the past 10 years.
The pickup in September employment, coming in the face of recent data that painted a mixed picture of economic activity, was certain to be welcomed by Bush administration officials anxious for some signs of turnaround ahead of presidential elections next year. Democrats have been zeroing in on the drain in jobs and sharp escalation in budget deficits since President Bush took office in 2001.
Millions of jobs have been shaved from payrolls in the past few years, but there were nonetheless a few promising signs in the September report.
While 29,000 more manufacturing jobs were lost -- the 38th straight month in which factory jobs were cut -- it was the smallest monthly decline since 25,000 in July 2002.
As well, the Labor Department revised its estimate for August job performance to show 41,000 jobs were lost instead of 93,000.
The average workweek in September was unchanged at 33.7 hours, but in the manufacturing sector alone the workweek increased to 40.4 hours from 40.2. In another indication that factories might be growing busier, overtime hours were expanded to an average 4.2 a week from 4 in August.
©2003 Reuters Limited.
I was speaking in a Macroeconomic sense. With the latest GDP data, I would expect that the job market will soon begin to pick up, at least a little. Unemployment numbers always lag so the tale has yet to be completed. We are fortunate in Alabama. Our unemployment rate is 5.7% and has been significantly lower than the national average during the entire recession.
GDP Revised Up, Spending Strong
Friday September 26, 9:05 AM EDT
By Glenn Somerville
WASHINGTON (Reuters) - Healthy consumer spending nudged U.S. economic growth ahead at a slightly faster second-quarter pace than previously thought, the Commerce Department said on Friday, setting the stage for a second-half surge in growth.
Gross domestic product, or GDP, grew at a revised 3.3 percent annual rate in the three months from April to June, up from a 3.1 percent rate reported a month ago that Wall Street economists had expected to be unchanged.
The second-quarter pace of expansion was more than double the 1.4 percent posted in each of the two preceding quarters and was the strongest since a 4 percent advance in the third quarter last year.
Many forecasters anticipate GDP growth is set to accelerate to rates of four percent or higher in the third and fourth quarters, supported by a buoyant housing market and by lean inventories that imply businesses have more incentive to make new investments.
Exceptionally robust defense spending -- up 45.8 percent in the second quarter for the strongest quarterly growth since 1951 in the Korean War era -- added impetus to growth in the spring and may last for some time as U.S. involvement in Iraq and elsewhere continues.
Consumer spending increased at a 3.8 percent annual rate in the second quarter, nearly double the first quarter's 2 percent -- significant since spending by consumers on goods and services fuels two-thirds of national economic activity.
Analysts said the upwardly revised GDP report buttressed predictions for a continuing pickup in activity.
"This is again very positive and it suggests there's good forward momentum in the economy," said economist John Silvia of Wachovia Securities in Charlotte, N.C.
Silvia added that good growth and low inflation suggested no need for the U.S. Federal Reserve to raise interest rates before next year -- further undergirding the pace of expansion.
The dollar strengthened after the report on GDP -- a gauge of total goods and services produced within U.S. borders -- in the apparent belief the U.S. economy will continue to outperform Europe and Japan.
The report contained one sour note, as Commerce reported corporate profits after taxes shrank 5.0 percent in the second quarter, deeper than the 3.4 percent drop reported a month ago and a contrast with the first quarter's 3.8 percent rise.
Non-residential investment, generally taken as a measure of businesses' willingness to expand, grew at a 7.3 percent pace in the second quarter -- not quite as strong as the 8 percent increase estimated a month ago but a major improvement from the first quarter when it contracted at a 4.4 percent rate.
Most key indicators support a view expressed by private forecasters, as well as by Bush administration officials including Treasury Secretary John Snow, that GDP growth will top four percent during the final six months of this year.
Sales of new and existing homes in August, reported on Thursday, were strong and interest rates remain relatively low, while manufacturing has been showing tentative signs of revival from a deep slump.
The GDP report showed businesses drew down inventories at a $17.6 billion a year rate in the second quarter compared with a $4.8-billion increase in the first three months of the year. This was a solid indication that companies can safely ramp up production or consider investment in new production operations once they feel certain demand will remain firm.
©2003 Reuters Limited.
I guess it is all in the eyes of the beholder. I am beginning to think that a 6% unemployment rate is the new norm instead of 5%. Increased Productivity may mean that some of the jobs lost are not going to return. I especially think this is true for the manufacturing sector, which was the hardest hit in regards to job losses. More efficient means of manufacturing and cheap overseas labor have resulted in what I believe to be permanent job losses. This being the case, one could look at the economic indicators and say that we are in a true bull market. The unemployment numbers, which are a lagging indicator, are the reason most analysts are not ready to believe in a full bull. If you were to suppose that 6% unemployment is the new norm, I think that you would have to say that the economy looks pretty darned good.
It seems the strategy to offset the declining revenues from the Sprint and Cingular expirations is this product.
http://www.infone.com/infone-intro.html
If the product catches on, it will probably do well. If not, then they are in trouble. In the last earnings release, they say they have already signed up 20,000 customers.
This, most likely. Looking into it a little more. Revs have been declining due to this and a Cingular Wireless contract expiration. I am trying to determine what the end result will be as far as revenues are concerned.
In October 2002, Sprint PCS notified us that they would not be signing a new contract with us upon expiration of the existing one. Sprint PCS accounted for approximately 32% and 33%, respectively, of our revenue in the three and nine month periods ended September 30, 2002 and approximately 32% in both the three and nine month periods ended September 30, 2001. We expect that the call volume from Sprint PCS will transition away from us during 2003, although no transition agreement has been made as of the date of this filing. The lack of a contract with Sprint PCS will likely have a material adverse effect on our financial position and future operating results, as well as our operations, although it is not possible to determine the exact nature of those effects, their magnitude or timing at this time.
Can't seem to post a candle chart but it looks like maybe the intraday low set on the 5th may represent the bottom as that day resulted in a hammer. Not a sure sign but promising.
Taking a look at this one. Well under book with the last trade at about $3.90. $2.63 in cash. Short interest is fairly high and rising so I am looking for a bottom. It is a Telco so a bit risky as that industry really doesn't have any legs under it yet but this one didn't overload itself with debt so they seem to be holding up O.K.
Profile
http://biz.yahoo.com/p/M/MTON.html
Chart
I got your PM but haven't had time to stop by and say hello.
Good Morning!
Fed Unlikely to Move on Interest Rates
Aug 12, 7:49 AM (ET)
By JEANNINE AVERSA
WASHINGTON (AP) - Scattered signs of the economy's revival, especially the hope that a long freeze on business investment is finally beginning to thaw, give Federal Reserve policy-makers ample reasons to stay the course and hold a major short-term interest rate at a 45-year low.
Fed Chairman Alan Greenspan and private economists believe the economy, which limped through the first six months of this year, will gain speed in the final six. Some are estimating that growth in the second half will clock in at an annual rate of 3.5 percent to 4 percent or more.
Near rock-bottom short-term interest rates, with President Bush's third round of tax cuts, should motivate consumers and businesses to spend and invest more, thus strengthening economic growth in the second half, economists said.
Fed policy-makers are "taking solace in the better economic data and believe their forecasts for a second half rebound are on track," said Mark Zandi, chief economist at Economy.com.
There have been promising signs lately. A report from the Institute for Supply Management this month showed that manufacturing activity expanded in July for the first time in five months, further evidence that this part of the economy is on the mend. Manufacturing has had a more difficult recovery from the 2001 recession than any other sector.
Last week, the nation's largest retailers reported strong sales for July, a promising sign for consumer spending, which has been a key force keeping the economy moving.
Especially encouraging to economists, however, were some budding signs in the government's recent report on second-quarter gross domestic product that business investment may be coming back to life.
Businesses, which cut spending on equipment and software in the first three months of this year, boosted such investment in the second quarter at a sizable 7.5 percent rate. That marked the biggest increase in three years. A sustained turnaround in capital investment by businesses is a crucial ingredient to the economy's ability to get back to full throttle, economists said.
Against this backdrop, economists widely expected Greenspan and his Federal Open Market Committee colleagues to hold the main short-term interest rate, called the federal funds rate, at 1 percent, the lowest rate in 45 years, at their meeting Tuesday. An afternoon announcement was expected.
"I do not think that they will move. I think they will be able to breath a sigh of relief that the data show some improvement and some growth," said Clifford Waldman, economist at the Manufacturers Alliance/MAPI, a research group.
Even if the economy rebounds in the second half, the job market is likely to remain sluggish, economists said. The nation's unemployment rate dipped to 6.2 percent in July, mainly because many people left the civilian work force. Businesses cut jobs for the sixth month in a row. Business will want to be certain about the recovery's vigor before going on a hiring spree, economists said.
"I don't see a distinct improvement in the labor market until 2004," said Richard Yamarone, economist with Argus Research Corp. "I think there is plenty of pain if you don't have a job."
The last time the Fed cut the funds rate, the interest banks charge each other on overnight loans, was at its previous meeting on June 25. The Fed sliced the rate by one-quarter percentage point, marking the 13th cut since January 2001, when the central bank's credit-easing campaign began.
In response, commercial banks lowered their prime lending rates for many consumer and business loans, to 4 percent, the lowest level since 1959.
Rates on longer-term loans, however, rose after the Fed's June 25 action. Disappointment on Wall Street that the Federal Reserve didn't make a bolder cut to short-term rates pushed bond rates up, which caused long-term mortgage rates to rise. More recent signs that the economy is gaining traction was another factor behind rising rates.
Rising mortgage rates has slowed refinancing activity, an important force underpinning consumer spending. Economists, however, are hopeful that fatter paychecks and other incentives coming from Bush's latest tax cut will move in to support spending as refinancing cools.
Economists said rising mortgage rates also probably will slow home sales in the second half of this year, but they still are on track to set record highs this year.
---
On the Net:
Federal Reserve: http://www.federalreserve.gov
Copyright 2003 Associated Press. All right reserved.
Citigroup lifts Dow futures as financials kick off earnings
By Steve Gelsi, CBS.MarketWatch.com
Last Update: 8:16 AM ET Jul 14, 2003
NEW YORK (CBS.MW) - Stronger-than-expected earnings from Citigroup helped lift Dow futures in pre-market trades on Monday as second-quarter earnings season kicked off with a hit from the financial sector.
Citigroup (C: news), a component of the Dow Jones Industrial Average, said its credit card and mortgage lending lifted quarterly earnings above Wall Street estimates.
Dow Jones futures are up 70 points as the bulls remain in charge on the heels of last week's runup. Citigroup shares rose 2.4 percent to $47.25 in pre-market trades on Instinet.
Citigroup posted income from operations of $4.30 billion, or 83 cents per share, up 12 percent and 14 percent respectively from year-ago levels.
The earnings per share were 3 cents ahead of the analysts consensus estimate compiled by Reuters Research.
"Citigroup's performance this year continues to be outstanding, with 12 percent income growth in the second quarter driven by an 8 percent increase in our total revenues. We also reached an important milestone this quarter, as our total stockholders' equity and trust preferred securities exceeded $100 billion," Sanford Weill, Chairman and Chief Executive Officer said in a press release.
Revenue rose 8 percent to $19.4 billion, amid revenue growth of 24 percent in retail banking, 7 percent in capital markets and 21 percent in private banking.
The banking giant said credit quality indicators have remained stable for both the consumer and corporate portfolios.
Shares of Citigroup rose 95 cents to $46.15 on Friday.
Bank of America outperforms
Meanwhile, Bank of America (BAC: news) said second quarter earnings rose to $2.74 billion, or $1.80 per share, up 23 percent from $2.22 billion, or $1.40 per share, a year ago. A survey of analysts by Thomson First Call forecasted earnings of $1.57 per share.
The bank said revenue grew 12 percent to $9.78 billion. It said credit losses declined from the prior quarter and year and were at their lowest level since first quarter 2001.
Provision for credit losses was $772 million, down 7 percent from the first quarter. In investment banking, it said: Global Corporate and Investment Banking earned $440 million, down 14 percent from a year ago. Revenue decreased 2 percent to $2.26 billion.
Bank of American's chief financial officer Jim Hance said in an interview on CBNC that the company has no interest in buying Sears' credit card business.
Bank of America shares rose $1.28 to $82.88 on Friday.
BB&T matches forecast
BB&T Corp. (BBT: news) said second quarter net income fell to $316.2 million, or 67 cents per share, compared to $328 million, or 68 cents per share last year on merger-related and other nonrecurring charges.
The Winston-Salem, N.C. bank reported operating earnings of $336.9 million, or 71 cents per share, up from 68 cents. The figure matched the forecast of 71 cents per share in a survey of analysts by Thomson First Call.
The company is forecasting 2003 EPS of $2.75 to $2.85 vs. $2.84 expected by Wall Street.
Shares rose 19 cents to $34.94 on Friday.
American Home Mortgage buys firm
On top of blockbuster earnings, the financial sector is also seeing a merger on Monday.
American Home Mortgage (AHMH: news) said it'll buy Apex Mortgage Capital (AXM: news) in a stock deal valued at $186 million, or $6.21 per share.
Under terms of the deal, each outstanding Apex share will be exchanged for 0.32 American Home shares.
Based on Friday's closing price of $21.19 for American Home's stock, the deal represents an 11 percent premium to Apex's closing price.
American Home expects the deal to be accretive to 2003 and 2004 earnings.
Steve Gelsi is a reporter for CBS.MarketWatch.com in New York.
June Unemployment Rate Highest in 9 Years
By LEIGH STROPE, AP Labor Writer
WASHINGTON - The nation's unemployment rate shot up to 6.4 percent in June, the highest in more than nine years, in an economic slump that has cost nearly a million jobs in the last three months.
Businesses slashed 30,000 jobs just last month, with cuts heavily concentrated on factory assembly lines, the Labor Department (news - web sites) reported Thursday.
Last month's 6.4 percent rate — the highest since the aftershocks of the September 11, 2001 terror attacks — was up 0.3 percentage point from May. That surprised analysts who had predicted a slight rise to 6.2 percent. The last time the rate was higher was in April 1994.
While recent economic indicators point to an economy struggling toward recovery, the latest report demonstrated that America's job market was still very much in a state of recession last month.
Partially, along with consumer spending.
Cendant to Start Paying Dividend in 2004
Monday June 30, 8:47 AM EDT
NEW YORK (Reuters) - Travel and real estate services company Cendant Corp. (CD) on Monday said it plans to start paying a dividend on its common stock in 2004 as its acquisition pace slows, and it said it expects to meet or beat its second-quarter earnings forecast.
The New York-based company said it intends to pay a quarterly dividend of 7 cents a share beginning in the first quarter of 2004. It also said it expects to generate both net cash flow and free cash flow of $2 billion or more per year, and expects to increase its dividend as earnings and free cash flow grow.
Cendant, the owner of the Avis and Budget car-rental brands, said it plans to use the balance of its free cash flow for common stock repurchases and dividends, as well as incremental debt reduction.
The company, whose travel-related brands also include the Days Inn and Ramada hotel/motel chains, said it expects to meet or beat its previous second-quarter earnings forecast of 35 cents per share.
Cendant, which also owns the real estate business Century 21, said it still plans to continue cutting its debts, targeting a reduction of about $1 billion per year.
Shares of Cendant rose to $18.75 in pre-open trade on Instinet, up from a Friday close of $18.06 on the New York Stock Exchange. The shares are up 72 percent so far this year.
©2003 Reuters Limited.
I think the market was hoping for a half point. Plus we need a correction. I am not interested in buying into a 52 week high and after screening the market, there are a lot of those out there. We should pull back a bit then gear up for another run. I have been selling over the last couple of weeks and will wait a bit to buy back in.
So you would wait for the 64 bit chip? Isn't it supposed to come out in September? If so, I think it should be worth the wait but I would like to get some more info on it. Do they have some info about the chip on the AMD website?
The competition is basically Intel and Mac and I am not fond of either. A 64 bit chip should be better than a 32 bit chip simply because it can process double the data in each chunk. I have never had a problem with my PCs equipped with AMD chips so I would have no reason to switch to Intel or Mac.
Isn't AMD coming out with a 64 bit chip soon? If so, will it be for home PCs? I am looking to get a new PC and have always bought PCs with AMD chips and wondered if I should hold off a while to get the new 64 bit chip. Any thoughts?
Fed Set to Lower Rates for Economic Push
Jun 25, 6:22 AM (ET)
By JEANNINE AVERSA
WASHINGTON (AP) - Federal Reserve policy-makers appeared ready to ratchet down a key short-term interest rate to its lowest level in 45 years in the hope it will energize consumer spending and business investment and help the economy snap out of a funk.
The quick, postwar economic boom that some economists had hoped for hasn't materialized. For the most part, businesses have been reluctant to ramp up capital spending and hiring, major factors holding back the economy's ability to return to full health.
Consumers, meanwhile, have been the main force keeping the economy afloat. Even they, however, have been more inclined to spend cautiously than to splurge amid the muddled economic climate and sluggish job market.
"It's hard to escape the feeling that the economy is just barely treading water," said Carl Tannenbaum, chief economist at LaSalle Bank. "There isn't a lot of energy out there."
The economy grew at a mediocre 1.9 percent annual rate in the first three months of 2003. Economists don't believe the economy fared much better in the current April-June quarter and may have done worse. Forecasts of the second-quarter economic growth rate range from 1 percent to more than 2 percent. In the last quarter of 2002, economic growth clocked in at a poky 1.4 percent annual rate.
Economic activity needs to crank up to a growth of around 3 percent or higher to get back into a more normal growth pattern and get companies to really start hiring, economists say.
Against this backdrop, economists widely expected Federal Reserve Chairman Alan Greenspan and his Federal Open Market Committee colleagues to slice the federal funds rates - now at 1.25 percent, the lowest since President Kennedy's first term - by either one-quarter of a percentage point or a bolder one-half point when they wrap up a two-day meeting Wednesday. An afternoon announcement was expected.
The funds rate is the Fed's main lever for influencing the economy. The last time the Fed cut the funds rate, the interest banks charge each other on overnight loans, was Nov. 6.
Reducing the funds rate to either 1 percent or 0.75 percent would push that rate down to a level since 1958.
"A rate reduction is all about taking out some insurance against the risks that the economy will be weaker than the Fed actually expects," said Bill Cheney, chief economist at John Hancock Financial Services.
Commercial banks probably would match any reduction in the funds rate with the same-sized cut to their prime lending rates, a benchmark for many consumer and small-business loans.
The prime rate, which generally moves in lockstep with the funds rate, currently stands at 4.25 percent, the lowest level since 1959. At either 4 percent or 3.75 percent, the prime would be at its lowest point since 1958.
A reduction to the funds rate also would be aimed at warding off the economically dangerous threat of deflation, a widespread decline in prices, something that could emerge from a stagnant economy, economists said.
Although Greenspan and his colleagues say the chance of deflation is remote, the central bank still must be alert because of deflation's potential to wreck the economy, they said. Fed policy-makers raised the specter of deflation at their last meeting on May 6 and have talked about it since then, raising expectations the Fed would cut rates at its June meeting.
"If deflation is really the concern, it is better to attack full out than piddle around," said Joel Naroff, president of Naroff Economic Advisors. "Thus don't be surprised if the rate cut is more aggressive than many think it will be."
The United States' last serious deflation occurred during the Great Depression. A bad case of deflation can lead not only to widespread price declines, from goods and services to real-estate and stocks, but also to job losses and pay cuts.
Economists are hopeful the economy will pick up more speed in the second half of this year, with some predicting a growth rate of around 4 percent. A new round of tax cuts signed into law by President Bush last month should help on that front, analysts say.
Even so, economists aren't expecting a quick turnaround in the job market. The nation's unemployment rate climbed to a nine-year high of 6.1 percent in May as businesses cut 17,000 jobs. Depending on the strength of economic growth in coming quarters, the jobless rate could hover in that range or move higher, economists say.
There have been a few encouraging signs for the economy's revival. Manufacturing activity, which has throttled back production and laid off workers, improved in May. New claims for jobless benefits, while still at high levels, have gone down for two weeks in a row, raising hopes that the pace of layoffs might be stabilizing.
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On the Net: Federal Reserve: http://www.federalreserve.gov
Copyright 2003 Associated Press.
FedEx 4th Quarter Profit Rises 19 Percent
Tuesday June 24, 8:31 AM EDT
CHICAGO (Reuters) - FedEx Corp (FDX), the air express specialist, on Tuesday reported a 19 percent jump in quarterly earnings as it made gains in U.S. ground deliveries and international shipments.
The Memphis, Tennessee-based transport group said profits for the fiscal fourth-quarter ended in May rose to $280 million, or 92 cents a share. In the year earlier period, profits totaled $236 million, or 78 cents a share.
Wall Street had forecast the company on average would earn 90 cents a share, according to research firm Thomson First Call. Profit forecasts ranged from 86 cents a share to 95 cents a share.
The results were in were in line with company guidance issued in March, when FedEx executives said they saw earnings for the quarter between 88 cents and 95 cents a share.
Overall revenue at the company best known for overnight deliveries rose 8 percent to $5.83 billion from $5.42 billion a year earlier.
FedEx said it sees fiscal first-quarter earnings in a range of 52 cents to 60 cents per diluted share, although it remains concerned about the economy and said June volume trends at Ground and Freight are tracking slightly below management's expectations.
Earnings for the year are expected to be $3.00 to $3.15 per diluted share, as previously forecast, it said. Both earnings ranges exclude the net impact from the company's early retirement and severance programs.
FedEx shares closed on Monday at $61.99 on the New York Stock Exchange.
©2003 Reuters Limited.
Biotech Companies Agree to Merge in $6.79 Billion Deal
By ANDREW POLLACK
The pharmaceutical company merger spree has produced corporate names like GlaxoSmithKline and AstraZeneca. Now the biotechnology industry is getting its own combination nameplate —Biogen Idec.
Biogen and Idec Pharmaceuticals announced a merger yesterday that seemed to be taken from the Big Pharma playbook — an effort to cut costs and broaden product pipelines, in part because each company could not develop products fast enough on its own to sustain rapid growth.
"It is sort of the first deal we've seen that has more of a pharmaceutical bent," said Eric Schmidt, a biotechnology analyst at SG Cowen.
The deal is also one of the few prominent ones amid a deep slump in the market for mergers and acquisitions. Technically, Idec will acquire Biogen in a stock swap valued at $6.8 billion before the deal was announced. That would make it the second-largest acquisition involving two biotechnology companies, after Amgen's acquisition of Immunex, which was worth $16 billion when announced late in 2001.
Executives said that Biogen Idec would be the third-largest biotechnology company, after Amgen and Genentech, with annual revenue of $1.55 billion based on 2002 results and a research budget of $550 million. They said earnings would grow 20 percent a year, helped by cost savings of $300 million over four years.
"Biogen Idec really becomes an incredible powerhouse," William H. Rastetter, the chairman and chief executive of Idec, said in a conference call with analysts.
Analysts and investors said that the merger of biotechnology companies made some sense because the industry has too many small companies. Biogen, based in Cambridge, Mass., and Idec, based in San Diego, are two of a relative handful of biotechnology companies that are consistently profitable.
Still, many analysts and fund managers questioned the rationale of this merger, finding it disappointing that the biotechnology companies would so quickly be imitating the strategies of the slower-growing pharmaceutical companies.
"Investors want to see great products coming out of this industry, not synergies and cost-cutting," said Linda I. Miller, manager of the John Hancock Health Sciences Fund. The deal, she said, seemed to be "in lieu of" such products.
Shares of both companies fell about 5 percent on a day when the market was down over all. Shares of Biogen fell $2.25, to $41.55, while Idec dropped $2.01, to $36.96.
Each company has a billion-dollar drug — Idec's Rituxan for non-Hodgkin's lymphoma and Biogen's Avonex for multiple sclerosis. Each also has a second drug on the market. But those products — Idec's Zevalin, also for lymphoma, and Biogen's Amevive, for psoriasis — are off to somewhat slow starts and some analysts doubt they will become big sellers.
Another similarity to big pharmaceutical companies is that the big biotechnology companies themselves are looking to license products from smaller biotechnology companies to spur their growth. Biogen and Idec executives said they expected half the products in Biogen Idec's pipeline in 2010 would be licensed from others, and a reason for the merger was to be able to better compete for such deals.
Under the terms of the deal, each Biogen share will be exchanged for 1.15 shares of Idec. Based on Friday's closing prices, there was no premium being paid to Biogen shareholders.
Idec shareholders will own 50.5 percent of the combined company, which will be based in Biogen's hometown, Cambridge. James C. Mullen, chairman and chief executive of Biogen, will be chief executive of Biogen Idec, while Dr. Rastetter of Idec will be executive chairman. The board will be split evenly between the two companies.
The companies said the savings would come not from layoffs but by avoiding duplication and new hiring in the future for activities like manufacturing.
Biogen, founded in 1978, is one of the oldest biotechnology companies. It was founded by, among others, Walter Gilbert of Harvard and Phillip Sharp of the Massachusetts Institute of Technology, both Nobel Prize winners. But it has not been valued by investors as highly as some other big biotechnology companies because Avonex, a form of beta interferon, is facing new competition from Rebif, a beta interferon sold by Serono and Pfizer.
Idec, founded in 1985, is still experiencing rapid growth of Rituxan, a drug it shares with Genentech. Rituxan is now in advanced testing to determine whether it works as a treatment for rheumatoid arthritis, which could open a new market for it.
Still, Dr. Rastetter said combining product portfolios with Biogen would allow Idec to "avoid the growing pains and fits and starts of organic growth, which is an arduous process."
The companies do have somewhat complementary products. Idec has specialized in cancer and was moving into autoimmune diseases. Biogen started with drugs for autoimmune diseases and was moving into cancer. Indeed, merger talks began earlier this year after Biogen licensed some of its cancer drug candidates to Idec.
"Where we were going with Biogen was to build things that Idec already had and where Idec was going was to build things that Biogen already had," Mr. Mullen said in an interview.
Still, some analysts questioned the savings that would be achieved, saying that unlike big pharmaceutical companies, Biogen and Idec do not have overlapping sales forces. Moreover, some said, mergers of equals can be difficult to manage, especially when the companies are on opposite coasts.
"I don't get it," said Michael G. King Jr., an analyst with Banc of America Securities. "The sector needs to consolidate, but this is not what I had in mind."
The companies said they expected the deal, which has been approved by both boards, to close late in the third quarter or early in the fourth.
Some analysts and investors say it is not out of the question that the deal could fall apart like a similar unpopular merger announced earlier this year by NPS Pharmaceuticals and Enzon Pharmaceuticals.
One factor that could change Biogen's valuation are the results, expected this summer, of a late-stage clinical trial for its experimental drug Antegren, for Crohn's disease, a bowel inflammation. Antegren could be Biogen's next product.
There is also a possibility that another company might now make a bid for one of the companies and perhaps offer a premium to shareholders. "Are these companies in play? Yes they are," said Ms. Miller of John Hancock.
Indeed, one reason the stocks dropped yesterday, analysts said, was that some investors had been hoping Biogen would be acquired for a premium by a big pharmaceutical company and that Genentech would acquire Idec to gain full control of Rituxan.
Eyes will now be on Genentech. But Genentech executives in the past have expressed skepticism about mergers, and analysts said it would be unlikely for Genentech to make a hostile bid. Moreover, Genentech has its hands full with product introductions. Xolair, its asthma drug, was approved Friday, and two more drugs might be approved by the end of the year.
Dr. Rastetter of Idec discounted any speculation, saying "neither company is for sale."
Eric Roberts, former co-head of health care banking at Lehman Brothers, said he expected more mergers as more companies in biotechnology become profitable. Buying unprofitable companies can dilute the value of shares in the acquiring company, he said.
Still, analysts said there were not that many big biotechnology companies that might seek to join forces with each other like Biogen and Idec are. As with Genentech, Amgen, MedImmune and Gilead seem to have high growth prospects based on their own products. Chiron recently announced it would buy the British vaccine maker PowderJect Pharmaceuticals.
Copyright 2003 The New York Times Company
http://www.nytimes.com
It might be worth a shot. They have an interesting product but the creditor problem is worrisome. I would assume that it why the price is at a 52 week low. Also the low volume will mean volitile price swings and maybe an inability to buy or sell as much as you want.
Thanks DB!
Thanks Mach!
Here is one that is slightly interesting. At its 52 week low and not a ton of shares according to Yahoo. Very low volume though and some creditor problems as evidenced by the latest 8-K. Might be worth a peek.
http://biz.yahoo.com/p/t/tchl.ob.html
Wulf International LTD Announces New Primary Business and Intentions to Comply with SEC Reporting This Month
Tuesday June 17, 8:40 am ET
AUSTIN, Texas--(BUSINESS WIRE)--June 17, 2003--Wulf International, LTD (OTCBB:WLFO - News) announced a new management team and business plan, and the relocation of its corporate office to Austin, Texas from Grand Prairie, Texas.
The Board has approved an ambitious restructuring plan, changing its focus of operation from international real estate development to mortgage banking and loan servicing. The company will file an SEC 10k (annual) report this month, while taking dramatic steps towards operating as an income-producing business within ninety days, and by the end of the 4Q have a functional business platform, and ground work for the company's first profitable quarter in over five years.
Through equity participation, the company has acquired the business plans and partnerships of First Southern Capital Group. Through a joint venture, the company will have a virtual monopoly position in the origination and selling of government insured (FHA) Title 1 home improvement loans to over 2, 700 Title 1 licensees
Wulf will also acquire "Net Branch" mortgage companies which have operations in several states; last month (May), the companies soon to be part of Wulf, had volume exceeding $140,000,000 in FHA, VA, conventional, and sub-prime mortgages- for that 30 day period. These mostly autonomous mortgage companies will be co-managed in some financial functions, but all secondary marketing (the sale of the closed loans) will fall under the umbrella of Wulf International.
Combined production from the three companies, Wulf, First Southern Capital Group and only the first few of dozens of Net Branches, has the potential to exceed the nearly $1.7 billion (annualized) in closed loans. Revenue realized through loan services and management fees will begin within 90 days, and the company expects to begin selling the Title 1 product parallel to the advent of normal (retail) mortgage operations.
Progress in the Philippine low-cost housing project has been hampered by the financial distress of the Philippine banking and housing community. The country's (national) mortgage insurance agency became an unfortunate victim of illiquid capital markets, political and civil unrest, and certainly- restrictions applying to foreign investors that are penned within the Philippine constitution, itself. Several avenues of communication, however, were opened in the past year and the relationships will continue to be fostered by Executive Director, C. Lee Bruner, until he deems the project's fruition as either imminent or unobtainable.
Mr. Damien Cota, has accepted an appointment to return as President and will serve on the Board of Directors. Mr. Cota, residing in Austin, Texas and managing the new office- has 12 years of mortgage banking and underwriting experience with savings and commercial banks, and wholesale mortgage bankers. Key underwriting and origination offices will be opened in the next several months (internally or through partnerships) in other states such as Georgia, California, Arizona, and Michigan.
For more information, please refer to the new, official website: http://www.wulfintl.com or contact Wulf International at (512) 219-4053.
Forward-Looking Statements: Statements in this press release other than the statement of historical fact, including statements regarding the company's plans, beliefs, and estimates are "forward looking statements." Such statements are subject to certain risks and uncertainties, including factors listed from time to time in the company's SEC filings, and actual results could differ materially from the expected results. These forward-looking statements represent the company's judgment as of the date of this release.
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Contact:
Wulf International, LTD
Damien Cota, 512/219-4053
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Source: Wulf International LTD