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<p>It's been a tough decade for bank stocks, leaving a lot of investors, including me, disappointed with the whole industry. As we approach the 10-year anniversary of the industry's pre-crisis high-water mark, I decided to undertake the cathartic exercise you see here, lamenting my 12 reasons investors should hate bank stocks.</p>
<p>Continue Reading Below</p>
<p>In 2015,&#160;Citigroup&#160;( <a href="http://www.fool.com/quote/nyse/citigroup/c" type="external">NYSE:C Opens a New Window.</a>)&#160;reported full-year net income of $17.2 billion according to generally accepted accounting practices. However, adjusting for the attributions of noncontrolling interests, Citigroup's comprehensive net income was $11.1 billion. However, again, the company's taxable net income was $20.4 billion for the year, based on its $6.1 billion in income taxes and stated 30% effective tax rate.</p>
<p>So how much net income did Citigroup, or any other bank for that matter, actually earn in a given period of time?</p>
<p>The truth is that no one really knows. The answer depends on which accounting rules you use, how management decided to value the trillions of dollars of assets and liabilities on its balance sheet, and which number you choose to believe to be most accurate within a certain margin of error.</p>
<p>Citi's total assets were $1.7 trillion at year end. What's a reasonable margin of error for an entity with that much stuff on its book? Your guess is as good as mine, and I hate that about bank stocks.</p>
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<p>If you think a bank's income statement is hard to pin down, then you're going to really hate its balance sheet. Take&#160;JPMorgan Chase&#160;( <a href="http://www.fool.com/quote/nyse/jpmorgan-chase/jpm" type="external">NYSE:JPM Opens a New Window.</a>), for example. At the end of the second quarter, JPMorgan reported total assets of $2.47 trillion, total liabilities of $2.2 trillion, and total equity of $252 billion. That's all straightforward enough, even if it's the only time you'll have to consider a trillion of anything this week.</p>
<p>However, when you go one level deeper, things get murky. Very murky.</p>
<p>There's the $216 billion in "trading assets -- debt instruments," the $102 billion in "securities borrowed," and $192 billion in "all other noninterest-earning assets." Then there's the $123 billion in combined derivatives exposure -- or at least the derivatives exposure explicitly labeled as such. The off-balance-sheet risks are even harder to find and even more impossible to figure out.</p>
<p>This is a good place to pause for a moment and reflect. Remember that we're talking aboutbillions&#160;and&#160;trillions&#160;of dollars of things -- contracts, mostly -- neatly labeled and presented in such generic terms that it's&#160;really&#160;easy to just gloss over.</p>
<p>With a team of several hundred accountants and several months to work on it, you could probably figure out what all these neatly labeled accounts actually represent. Short of that, I'm not sure it's possible.</p>
<p>Bank accounting, in general, is miserable. The alphabet soup of abbreviations alone is enough to make even the most seasoned accountant walk out on the job.</p>
<p>There's HQLA (high-quality liquid assets), the CET 1 ratio (not even worth explaining here, much less the other four commonly used capital ratios), DVA/CVA/FVA (debit, credit, and funding valuation adjustments), the SLR (supplementary leverage ratio), and... you get the idea. I could go on. But I won't, because I hate the specialized jargon in bank accounting.</p>
<p>My first three reasons to hate bank stocks are all about how hard it is to make sense of their financial statements. No. 4 is much easier to understand, but it may be even scarier: Banks use a ton of leverage.</p>
<p>Most banks in today's market have about $10 in assets for every $1 in equity. That means that if the bank's assets lose just 10% of their value, then the bank's entire equity base will be wiped clean out.</p>
<p>That's a lot of risk, and I hate that about bank stocks.</p>
<p>You'd think that with all that leverage, a bank would have no problem posting impressive returns on equity. It turns out that's not exactly the case. According to the most recent data available from the FDIC, the average U.S. bank earned just 8.62% on its equity as of March 31. That's not even enough to cover a bank's theoretical cost of capital, generally considered to be 10%.</p>
<p>Even the very best bank stocks, such as&#160;U.S. Bancorp&#160;( <a href="http://www.fool.com/quote/nyse/us-bancorp/usb" type="external">NYSE:USB Opens a New Window.</a>)&#160;or&#160;Wells Fargo( <a href="http://www.fool.com/quote/nyse/wells-fargo/wfc" type="external">NYSE:WFC Opens a New Window.</a>), leave much to be desired in their returns on equity. Compared with leaders in other industries, even these high performers come up short.</p>
<p><a href="http://ycharts.com/companies/USB/return_on_equity" type="external">USB RETURN ON EQUITY (TTM) Opens a New Window.</a>&#160;DATA BY&#160; <a href="http://ycharts.com/" type="external">YCHARTS Opens a New Window.</a></p>
<p>When consumers love a company, it makes it that much easier to sell products, open new markets, and build the kind of public-relations buzz that can drive strong investment performance. Unfortunately, banks don't have this advantage.</p>
<p>Bank of America&#160;( <a href="http://www.fool.com/quote/nyse/bank-of-america/bac" type="external">NYSE:BAC Opens a New Window.</a>)&#160;is a great example. In a Zogby poll last year, one in four B of A customers who responded to the survey rated the bank's customer service as poor. That's not good.</p>
<p>Last year, a Harris Poll asked over 27,000 people to name their most loved and most hated brands. No bank made it into the 20 most loved brands, as you probably could have guessed. The bottom 20, though, was full of banks, led by&#160;Goldman Sachs&#160;as&#160;the most hated brand&#160;in the entire survey.&#160;Bank of America was 10th worst, Citigroup was 12th from the bottom, and JPMorgan came in just behind at 14th worst.</p>
<p>Having a bad reputation doesn't necessarily mean a bank stock is a good or bad investment. But I still hate it that so many consumers dislike their bank.</p>
<p>More than any other thing, the financial crisis and Great Recession are what most people point to as the reason why they hate their banks.</p>
<p>Banks lent money to borrowers who couldn't afford to repay it. Sometimes those borrowers lacked even the basic financial acumen to understand the terms of the loan. Other times, banks didn't bother verifying a borrower's income, net worth, or creditworthiness. It was, at best, a grossly irresponsible situation.</p>
<p>The easy money, alongside a plethora of other factors, fueled the bubble in the real estate market, which we all know nearly brought down the entire global financial system.</p>
<p>I hate that this happened, and I hate how the banks of that era failed their customers, their communities, and their shareholders.</p>
<p>If the complexity of a single bank's financial statements weren't bad enough, investors also have to deal with the even more complex interconnectedness of the overall financial system.</p>
<p>The best and most terrifying example is the failure of Lehman Brothers in 2008. Lehman's failure didn't just harm the company's own shareholders and employees; it catalyzed the panic that froze capital markets, saw the&#160;Dow Jones Industrial Average&#160;plummet 5,000 points, and even caused the government of Iceland to collapse.</p>
<p>The financial world, while better protected than it was in 2008, is still as interconnected as ever. Global regulators require 30 bank holding companies to maintain elevated capital ratios because they are "global systemically important banks." Led by JPMorgan, all four of the U.S. megabanks are on the list.</p>
<p>For an investor, buying shares in one bank is, in a way, buying a share in the interconnected web of the global financial system.</p>
<p>To the uninitiated, learning that a bank is "too big to fail" may sound like a great thing. If the bank can't fail, then my stock can't either, right?</p>
<p>Wrong.</p>
<p>Being too big to fail just means the government won't allow the bank's operations to stop doing business. The lights will stay on, but shareholders will be left outside in the dark.</p>
<p>Don't believe me? Just ask investors in Citigroup or&#160;American International Group&#160;who were around for their bailouts during the crisis.</p>
<p><a href="http://ycharts.com/companies/C" type="external">C Opens a New Window.</a>&#160;DATA BY&#160; <a href="http://ycharts.com/" type="external">YCHARTS</a></p>
<p>Too-big-to-fail's cousin, "too big to jail," is another thing I really hate about bank stocks. Over the past 10 years, regulators, legislators, and even the Department of Justice have levied fines, settlements, accusations, and charges against a whole host of banks around the globe. These banks were guilty of misleading borrowers, rigging interest-rate benchmarks, self-dealing, and more illegal activities.</p>
<p>Yet there have been no significant legal consequences for the executives responsible for the activities at these banks. Yes, some bank executives lost their jobs and perhaps even their reputations, but more often than not they were able to land softly with huge severance packages while sidestepping personal legal culpability.</p>
<p>Consider the 2012 investigation of&#160;HSBC&#160;( <a href="http://www.fool.com/quote/nyse/hsbc-holdings/hsbc" type="external">NYSE:HSBC Opens a New Window.</a>). The bank was caught laundering money for Mexican drug cartels and countries under U.N. sanctions. Under pressure from financial regulators, the Justice Department accepted a $1.2 billion fine, instead of pursing prosecutions of individual bankers.</p>
<p>The drug money was laundered in the bank's Mexican business. The executive in charge of that business retired in 2012, collecting 782,000 pounds in pay plus 4.2 million pounds' worth of HSBC stock as part of his bonus plan. I&#160;really&#160;hate that.</p>
<p>Since the financial crisis, new regulations have swamped banks with more changes, rules, reports, and oversight than ever before. There's Dodd-Frank, the Basel Accords, qualified mortgage rules, changes to existing real estate regulations, Federal Reserve stress testing, and more.</p>
<p>To be fair, I don't necessarily hate that banks are so highly regulated. Given what we've discussed here, I think many of these regulations are necessary. But as a bank stock investor, I hate that banks are having to devote so many resources into compliance, instead of innovation and investments for future growth.</p>
<p>Banks have been around for thousands of years, and for much of that time the business model hasn't really changed. In simple terms, banks collect deposits from customers and then reinvest that cash into higher-yielding loans and debts. Throw in some fee income from other financial services, subtract out the costs to keep the lights on, and whatever is left over is profit. It's pretty simple, and it's worked for ages.</p>
<p>Today, though, banks are facing challenges previously unheard of. On one hand, bitcoin and other digital payment technologies are challenging banks in the transaction business. Marketplace lenders such as&#160;Lending Club&#160;( <a href="http://www.fool.com/quote/nyse/lendingclub/lc" type="external">NYSE:LC Opens a New Window.</a>)&#160;are using the internet to cut banks out of the lending process, giving customers easier access to capital and paying investors much higher yields than a bank ever could. Artificial intelligence and machine learning are also changing the wealth-management business, while foot traffic at bank branches has been declining for years, replaced first with online banking and, more recently, mobile banking.</p>
<p>As an investor, would you rather own shares of the company doing the disrupting, or the one being disrupted?</p>
<p>Me, too. And I hate that about bank stocks.</p> | true | 0 | tough decade bank stocks leaving lot investors including disappointed whole industry approach 10year anniversary industrys precrisis highwater mark decided undertake cathartic exercise see lamenting 12 reasons investors hate bank stocks continue reading 2015160citigroup160 nysec opens new window160reported fullyear net income 172 billion according generally accepted accounting practices however adjusting attributions noncontrolling interests citigroups comprehensive net income 111 billion however companys taxable net income 204 billion year based 61 billion income taxes stated 30 effective tax rate much net income citigroup bank matter actually earn given period time truth one really knows answer depends accounting rules use management decided value trillions dollars assets liabilities balance sheet number choose believe accurate within certain margin error citis total assets 17 trillion year end whats reasonable margin error entity much stuff book guess good mine hate bank stocks advertisement think banks income statement hard pin youre going really hate balance sheet take160jpmorgan chase160 nysejpm opens new window example end second quarter jpmorgan reported total assets 247 trillion total liabilities 22 trillion total equity 252 billion thats straightforward enough even time youll consider trillion anything week however go one level deeper things get murky murky theres 216 billion trading assets debt instruments 102 billion securities borrowed 192 billion noninterestearning assets theres 123 billion combined derivatives exposure least derivatives exposure explicitly labeled offbalancesheet risks even harder find even impossible figure good place pause moment reflect remember talking aboutbillions160and160trillions160of dollars things contracts mostly neatly labeled presented generic terms its160really160easy gloss team several hundred accountants several months work could probably figure neatly labeled accounts actually represent short im sure possible bank accounting general miserable alphabet soup abbreviations alone enough make even seasoned accountant walk job theres hqla highquality liquid assets cet 1 ratio even worth explaining much less four commonly used capital ratios dvacvafva debit credit funding valuation adjustments slr supplementary leverage ratio get idea could go wont hate specialized jargon bank accounting first three reasons hate bank stocks hard make sense financial statements 4 much easier understand may even scarier banks use ton leverage banks todays market 10 assets every 1 equity means banks assets lose 10 value banks entire equity base wiped clean thats lot risk hate bank stocks youd think leverage bank would problem posting impressive returns equity turns thats exactly case according recent data available fdic average us bank earned 862 equity march 31 thats even enough cover banks theoretical cost capital generally considered 10 even best bank stocks as160us bancorp160 nyseusb opens new window160or160wells fargo nysewfc opens new window leave much desired returns equity compared leaders industries even high performers come short usb return equity ttm opens new window160data by160 ycharts opens new window consumers love company makes much easier sell products open new markets build kind publicrelations buzz drive strong investment performance unfortunately banks dont advantage bank america160 nysebac opens new window160is great example zogby poll last year one four b customers responded survey rated banks customer service poor thats good last year harris poll asked 27000 people name loved hated brands bank made 20 loved brands probably could guessed bottom 20 though full banks led by160goldman sachs160as160the hated brand160in entire survey160bank america 10th worst citigroup 12th bottom jpmorgan came behind 14th worst bad reputation doesnt necessarily mean bank stock good bad investment still hate many consumers dislike bank thing financial crisis great recession people point reason hate banks banks lent money borrowers couldnt afford repay sometimes borrowers lacked even basic financial acumen understand terms loan times banks didnt bother verifying borrowers income net worth creditworthiness best grossly irresponsible situation easy money alongside plethora factors fueled bubble real estate market know nearly brought entire global financial system hate happened hate banks era failed customers communities shareholders complexity single banks financial statements werent bad enough investors also deal even complex interconnectedness overall financial system best terrifying example failure lehman brothers 2008 lehmans failure didnt harm companys shareholders employees catalyzed panic froze capital markets saw the160dow jones industrial average160plummet 5000 points even caused government iceland collapse financial world better protected 2008 still interconnected ever global regulators require 30 bank holding companies maintain elevated capital ratios global systemically important banks led jpmorgan four us megabanks list investor buying shares one bank way buying share interconnected web global financial system uninitiated learning bank big fail may sound like great thing bank cant fail stock cant either right wrong big fail means government wont allow banks operations stop business lights stay shareholders left outside dark dont believe ask investors citigroup or160american international group160who around bailouts crisis c opens new window160data by160 ycharts toobigtofails cousin big jail another thing really hate bank stocks past 10 years regulators legislators even department justice levied fines settlements accusations charges whole host banks around globe banks guilty misleading borrowers rigging interestrate benchmarks selfdealing illegal activities yet significant legal consequences executives responsible activities banks yes bank executives lost jobs perhaps even reputations often able land softly huge severance packages sidestepping personal legal culpability consider 2012 investigation of160hsbc160 nysehsbc opens new window bank caught laundering money mexican drug cartels countries un sanctions pressure financial regulators justice department accepted 12 billion fine instead pursing prosecutions individual bankers drug money laundered banks mexican business executive charge business retired 2012 collecting 782000 pounds pay plus 42 million pounds worth hsbc stock part bonus plan i160really160hate since financial crisis new regulations swamped banks changes rules reports oversight ever theres doddfrank basel accords qualified mortgage rules changes existing real estate regulations federal reserve stress testing fair dont necessarily hate banks highly regulated given weve discussed think many regulations necessary bank stock investor hate banks devote many resources compliance instead innovation investments future growth banks around thousands years much time business model hasnt really changed simple terms banks collect deposits customers reinvest cash higheryielding loans debts throw fee income financial services subtract costs keep lights whatever left profit pretty simple worked ages today though banks facing challenges previously unheard one hand bitcoin digital payment technologies challenging banks transaction business marketplace lenders as160lending club160 nyselc opens new window160are using internet cut banks lending process giving customers easier access capital paying investors much higher yields bank ever could artificial intelligence machine learning also changing wealthmanagement business foot traffic bank branches declining years replaced first online banking recently mobile banking investor would rather shares company disrupting one disrupted hate bank stocks | 1,048 |
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<p>Xiaomi, which overtook Samsung as China's <a href="http://www.fool.com/investing/general/2014/08/09/why-is-xiaomi-crushing-samsung-and-apple-in-china.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">top smartphone maker Opens a New Window.</a> in 2014, recently lost that title to its domestic rival Huawei. IDC reports that Xiaomi's shipments in China fell 38% annually to 10.5 million during the second quarter, and that its market share declined from 16.1% to 9.5%. During the same period, Huawei's shipments rose 15% to 19.1 million, while its market share grew from 15.6% to 17.2%.</p>
<p>Continue Reading Below</p>
<p>Huawei wasn't the only Chinese smartphone maker to surpass Xiaomi last quarter. Oppo's shipments surged 124% to 18 million, which boosted its share from 7.6% to 16.2%. Vivo's shipments jumped 75% to 14.7 million, helping it claim 13.2% of the market.</p>
<p>Let's take a closer look at these three challengers and how their growth could marginalize Xiaomi.</p>
<p>Ren Zhengfei, a former engineer in the People's Liberation Army, founded Shenzhen-based Huawei in 1987 as a phone switch vendor. But over the past three decades, Huawei expanded into telecommunications equipment, consulting services and equipment for enterprise customers, and mobile devices.</p>
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<p>Huawei's new P9. Image source: Huawei.</p>
<p>Huawei is the third largest mobile equipment vendor inthe world with a 20% share, and also its third largest smartphone vendor with an 8% slice of the market. Huawei's revenue rose 37% to 395 billion yuan ($59.6 billion) last year as its net profit grew 33% to 36.9 billion yuan ($5.8 billion). Much of that growth was fueled by its consumer device business, which sells smartphones and tablets. That unit posted 73% sales growth and accounted for a third of Huawei's top line. Huawei also has a growing presence in Western markets, and it created Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) well-received Nexus 6P flagship phone.</p>
<p>Huawei's new P9 is a 5.5" flagship device that stands out from the competition with a dual-lens camera co-developed with German optics and camera maker Leica. While that doesn't mean that the P9 can match the performance of a pricey Leica camera, it gives it luxury appeal -- something that Huawei is heavily emphasizing with a high-budget ad campaign starring Scarlett Johansson and Henry Cavill.</p>
<p>Tony Chen founded Oppo in 2001. The Dongguan-based company initially manufactured MP3 and MP4 players before pivoting toward mobiledevices. Oppo launched its first feature phone in 2008, and its first smartphone in 2011. It first established an overseas presence in Thailand, then throughout Asia, the Middle East, and Africa -- resulting in nearly 20% of its sales coming from outside of China in 2015. Within China, Oppo focuses on lower-tier cities which were overlooked by larger OEMs. Xiaomi, by comparison, still generates about 90% of its sales from China.</p>
<p>Oppo's smartphone shipments surged 67% in 2015 to 50 million units, thanks to robust demand for its metal-cased R7 series, the Mirror 5, which has a sparkling diamond glass panel, and the iPhone-like Neo 7. By comparison, Xiaomi's shipments rose just 15% to 70 million.</p>
<p>It's unclear how much revenue Oppo generates, but its competitive prices and quirky designs are clearly winning over customers. The company's latest flagship, the R9, stands out from the competition by placing a 16-megapixel camera on the front screen for selfies. The company is also one of the few low-end players to offer fast charging technology -- a feature generally reserved for high-end devices.</p>
<p>Oppo's R9. Image source: Oppo.</p>
<p>Vivo, which is also based in Dongguan, was founded in 2009 by Shen Wei as a subsidiary of BBK Electronics. Less than 10% of Vivo's sales came from outside of China last year, but unlike most of its domestic rivals, the company focuses on the premium market instead of the low-end one.</p>
<p>To appeal to those customers, Vivo sold phones with beefier premium specs. Its X1 was the world's thinnest smartphone at 6.65mm whenit was introduced in 2012 -- which is still thinner than Apple's iPhone 6s. The X1 was also the first to use a Hi-Fi audio chip developed by Cirrus Logic (NASDAQ: CRUS) for clearer audio. The Xplay 3s was theworld's first 2K-resolution phone when it arrived in 2013, and its latest flagship, the Xplay 5 Elite, is theworld's first smartphone with 6GB of RAM.</p>
<p>Vivo's Xplay 5 Elite. Image source: Vivo.</p>
<p>It's unclear how much revenue Vivo generated in 2015, but its market share growth over the past year indicates that there's a growing appetite for homegrown premium devices in China.</p>
<p>The rise of Huawei, Oppo, and Vivo is bad news for Xiaomi, but it's even worse news for Apple (NASDAQ: AAPL) and Samsung. Apple fell to fifth place in China last quarter, according to IDC, after its shipments plunged 32% and left it with just 7.8% of the market. Samsung was bumped off the top five into the "others" category. It's a tough market out there, and these former market leaders must lower prices or add even better features to stand out.</p>
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<p>Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. <a href="http://my.fool.com/profile/TMFSunLion/info.aspx" type="external">Leo Sun Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Apple. The Motley Fool has the following options: long January 2018 $90 calls on Apple and short January 2018 $95 calls on Apple. The Motley Fool recommends Cirrus Logic. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=isiedilnk018048&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://wiki.fool.com/Motley" type="external">considering a diverse range of insights Opens a New Window.</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | xiaomi overtook samsung chinas top smartphone maker opens new window 2014 recently lost title domestic rival huawei idc reports xiaomis shipments china fell 38 annually 105 million second quarter market share declined 161 95 period huaweis shipments rose 15 191 million market share grew 156 172 continue reading huawei wasnt chinese smartphone maker surpass xiaomi last quarter oppos shipments surged 124 18 million boosted share 76 162 vivos shipments jumped 75 147 million helping claim 132 market lets take closer look three challengers growth could marginalize xiaomi ren zhengfei former engineer peoples liberation army founded shenzhenbased huawei 1987 phone switch vendor past three decades huawei expanded telecommunications equipment consulting services equipment enterprise customers mobile devices advertisement huaweis new p9 image source huawei huawei third largest mobile equipment vendor inthe world 20 share also third largest smartphone vendor 8 slice market huaweis revenue rose 37 395 billion yuan 596 billion last year net profit grew 33 369 billion yuan 58 billion much growth fueled consumer device business sells smartphones tablets unit posted 73 sales growth accounted third huaweis top line huawei also growing presence western markets created alphabets nasdaq goog nasdaq googl wellreceived nexus 6p flagship phone huaweis new p9 55 flagship device stands competition duallens camera codeveloped german optics camera maker leica doesnt mean p9 match performance pricey leica camera gives luxury appeal something huawei heavily emphasizing highbudget ad campaign starring scarlett johansson henry cavill tony chen founded oppo 2001 dongguanbased company initially manufactured mp3 mp4 players pivoting toward mobiledevices oppo launched first feature phone 2008 first smartphone 2011 first established overseas presence thailand throughout asia middle east africa resulting nearly 20 sales coming outside china 2015 within china oppo focuses lowertier cities overlooked larger oems xiaomi comparison still generates 90 sales china oppos smartphone shipments surged 67 2015 50 million units thanks robust demand metalcased r7 series mirror 5 sparkling diamond glass panel iphonelike neo 7 comparison xiaomis shipments rose 15 70 million unclear much revenue oppo generates competitive prices quirky designs clearly winning customers companys latest flagship r9 stands competition placing 16megapixel camera front screen selfies company also one lowend players offer fast charging technology feature generally reserved highend devices oppos r9 image source oppo vivo also based dongguan founded 2009 shen wei subsidiary bbk electronics less 10 vivos sales came outside china last year unlike domestic rivals company focuses premium market instead lowend one appeal customers vivo sold phones beefier premium specs x1 worlds thinnest smartphone 665mm whenit introduced 2012 still thinner apples iphone 6s x1 also first use hifi audio chip developed cirrus logic nasdaq crus clearer audio xplay 3s theworlds first 2kresolution phone arrived 2013 latest flagship xplay 5 elite theworlds first smartphone 6gb ram vivos xplay 5 elite image source vivo unclear much revenue vivo generated 2015 market share growth past year indicates theres growing appetite homegrown premium devices china rise huawei oppo vivo bad news xiaomi even worse news apple nasdaq aapl samsung apple fell fifth place china last quarter according idc shipments plunged 32 left 78 market samsung bumped top five others category tough market former market leaders must lower prices add even better features stand secret billiondollar stock opportunity worlds biggest tech company forgot show something wall street analysts fool didnt miss beat theres small company thats powering brandnew gadgets coming revolution technology think stock price nearly unlimited room run early intheknow investors one click opens new window suzanne frey executive alphabet member motley fools board directors leo sun opens new window position stocks mentioned motley fool owns shares recommends alphabet shares alphabet c shares apple motley fool following options long january 2018 90 calls apple short january 2018 95 calls apple motley fool recommends cirrus logic try foolish newsletter services free 30 days opens new window fools may hold opinions believe considering diverse range insights opens new window makes us better investors motley fool disclosure policy opens new window | 649 |
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<p>When AbbVie (NYSE: ABBV) split off from Abbott Laboratoriesat the beginning of 2013, the result was a company that combines some risk and appreciation potential with a high dividend. That unique combination could have a place in your dividend portfolio alongside more conservative holdings.</p>
<p>Continue Reading Below</p>
<p>The AbbVie split was the inverse of the strategy taken by other large healthcare companies such as Johnson &amp; Johnsonand GlaxoSmithKline, where steadier consumer businesses balance against the ups and downs of the riskier pharmaceuticals segments. Abbott management, however, felt that the risks inherent in pharmaceuticals were weighing down the valuation of its more stable businesses such as nutrition and diagnostics, and that the units would be worth more apart than together. The pharma business was launched as the separate company AbbVie, taking with it the risks and potential growth inherent in its drug portfolio and pipeline, along with a generous cash flow to support dividend payments.</p>
<p>Image source: AbbVie.</p>
<p>Since the split, AbbVie has received the most love from investors of the two, with the stock gaining 81% as compared with 60% for the S&amp;P 500 and just 34% for Abbott. Despite this gain, AbbVie still sports a generous dividend yield of nearly 4% and a reasonable valuation, with a forward PE of just under 12.</p>
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<p>AbbVie has a strong history of dividend raises and should have no trouble continuing that into the future. When the history of the parent company is taken into account, it has raised its dividend annually for over 25 years, landing it on the <a href="https://www.fool.com/knowledge-center/what-is-a-dividend-aristocrat.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Dividend Aristocrat Opens a New Window.</a> list. Since the spinoff, the dividend has increased 60%, including 12% last year. The payout ratio -- the percentage of company net profit that is paid out in dividends -- was a reasonable 63% in the last 12 months, a good indication that the company will be able to continue rewarding its shareholders generously.</p>
<p>AbbVie's drug portfolio and pipeline hold the potential for good capital appreciation to go along with that dividend as well. Since 2013,AbbVie has grown revenue by 36% and earnings per share by 42%. Last year, adjusted revenue grew 13.3% to $25.6 billion, and adjusted EPS gained 12.4%. That kind of growth is hard to find in an established pharma company, and management expects earnings growth in 2017 to be even better, guiding to an increase of 13% to 15%. A growth component like this is a nice feature for a high-yielding stock like AbbVie, especially with a price of only 12 times analyst expectations for 2017 earnings.</p>
<p>There's more in the works, too, with a lot of promise in the development pipeline. AbbVie has made a big push into oncology in recent years, positioning itself to take a big slice of the hottest segment of the drug market. Imbruvica and Venclexta are recently approved blood cancer drugs that have the potential to address as much as 65% of what will be a $50 billion market by 2022. The company believes the eight most important near-term growth assets in its pipeline could bring in $25 billion to $30 billion in peak sales when they come to market.</p>
<p>If a stock today yields 4%, is growing in double digits, and yet is selling below the market's typical valuation multiple, you know investors are pricing in some downside risk, and that is exactly the case for AbbVie. The big issue is AbbVie's anti-inflammatory drug Humira, currently the world's top-selling drug, with $16 billion in sales in 2016. This drug alone was the source of 63% of the company's revenue in 2016 and a good chunk of its growth. Key patents on the drug for arthritis, psoriasis, and Crohn's disease expired in the U.S. last year, and European patents will fall away in 2018.</p>
<p>Amgenalready has a <a href="https://www.fool.com/knowledge-center/what-is-a-biosimilar.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">biosimilar Opens a New Window.</a> developed and approved by the FDA, but AbbVie is staving off the threat with a legal challenge. Amgen can start shipping the drug before the issue is resolved in the courts, but if it does, it will be liable for damages if it loses the suit, which it may not want to risk. The court date is set for November 2019, so AbbVie may succeed in delaying that threat for a long time, if not defeating it altogether, given management's confidence in its portfolio of 110 unexpired patentsit could use for defense.</p>
<p>Challenges for Humira also exist in the marketplace, with newer drugs from other drug companies coming on the scene. But AbbVie is also moving forward with late-stage pipeline drugs taking these new approaches -- called JAK1 inhibitors and anti-IL23 antibodies -- in position to take up slack from Humira losses.</p>
<p>AbbVie has a generous dividend that it has no trouble paying and will likely continue to increase, current growth above the rate of its peers, and a decent chance of capital appreciation. Dependence on Humira makes the stock more risky than the typical position in a conservative dividend portfolio, but with the risk already priced into the stock and the strong possibility that the company can navigate the transition to new drugs to replace the Humira business over time, the stock is a good candidate to fill a legitimate, albeit a bit aggressive, role in an income portfolio.</p>
<p>10 stocks we like better than AbbVieWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*</p>
<p>David and Tom just revealed what they believe are the <a href="http://infotron.fool.com/infotrack/click?url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=51aef7ec-1532-45a5-9992-b7bae58cf7aa&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now... and AbbVie wasn't one of them! That's right -- they think these 10 stocks are even better buys.</p>
<p><a href="http://infotron.fool.com/infotrack/click?url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=51aef7ec-1532-45a5-9992-b7bae58cf7aa&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Click here Opens a New Window.</a> to learn about these picks!</p>
<p>*Stock Advisor returns as of April 3, 2017</p>
<p><a href="http://my.fool.com/profile/TMFSpeyside/info.aspx" type="external">Jim Crumly Opens a New Window.</a> owns shares of AbbVie and Johnson &amp; Johnson. The Motley Fool owns shares of and recommends Johnson &amp; Johnson. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | abbvie nyse abbv split abbott laboratoriesat beginning 2013 result company combines risk appreciation potential high dividend unique combination could place dividend portfolio alongside conservative holdings continue reading abbvie split inverse strategy taken large healthcare companies johnson amp johnsonand glaxosmithkline steadier consumer businesses balance ups downs riskier pharmaceuticals segments abbott management however felt risks inherent pharmaceuticals weighing valuation stable businesses nutrition diagnostics units would worth apart together pharma business launched separate company abbvie taking risks potential growth inherent drug portfolio pipeline along generous cash flow support dividend payments image source abbvie since split abbvie received love investors two stock gaining 81 compared 60 sampp 500 34 abbott despite gain abbvie still sports generous dividend yield nearly 4 reasonable valuation forward pe 12 advertisement abbvie strong history dividend raises trouble continuing future history parent company taken account raised dividend annually 25 years landing dividend aristocrat opens new window list since spinoff dividend increased 60 including 12 last year payout ratio percentage company net profit paid dividends reasonable 63 last 12 months good indication company able continue rewarding shareholders generously abbvies drug portfolio pipeline hold potential good capital appreciation go along dividend well since 2013abbvie grown revenue 36 earnings per share 42 last year adjusted revenue grew 133 256 billion adjusted eps gained 124 kind growth hard find established pharma company management expects earnings growth 2017 even better guiding increase 13 15 growth component like nice feature highyielding stock like abbvie especially price 12 times analyst expectations 2017 earnings theres works lot promise development pipeline abbvie made big push oncology recent years positioning take big slice hottest segment drug market imbruvica venclexta recently approved blood cancer drugs potential address much 65 50 billion market 2022 company believes eight important nearterm growth assets pipeline could bring 25 billion 30 billion peak sales come market stock today yields 4 growing double digits yet selling markets typical valuation multiple know investors pricing downside risk exactly case abbvie big issue abbvies antiinflammatory drug humira currently worlds topselling drug 16 billion sales 2016 drug alone source 63 companys revenue 2016 good chunk growth key patents drug arthritis psoriasis crohns disease expired us last year european patents fall away 2018 amgenalready biosimilar opens new window developed approved fda abbvie staving threat legal challenge amgen start shipping drug issue resolved courts liable damages loses suit may want risk court date set november 2019 abbvie may succeed delaying threat long time defeating altogether given managements confidence portfolio 110 unexpired patentsit could use defense challenges humira also exist marketplace newer drugs drug companies coming scene abbvie also moving forward latestage pipeline drugs taking new approaches called jak1 inhibitors antiil23 antibodies position take slack humira losses abbvie generous dividend trouble paying likely continue increase current growth rate peers decent chance capital appreciation dependence humira makes stock risky typical position conservative dividend portfolio risk already priced stock strong possibility company navigate transition new drugs replace humira business time stock good candidate fill legitimate albeit bit aggressive role income portfolio 10 stocks like better abbviewhen investing geniuses david tom gardner stock tip pay listen newsletter run decade motley fool stock advisor tripled market david tom revealed believe 10 best stocks opens new window investors buy right abbvie wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns april 3 2017 jim crumly opens new window owns shares abbvie johnson amp johnson motley fool owns shares recommends johnson amp johnson motley fool disclosure policy opens new window | 580 |
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<p>Image source: Pixabay.</p>
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<p>The numbers are finally out from Colorado's Department of Revenue for calendar year 2015, and marijuana sales (both recreational and medicinal) came in at $996,184,788, a 42% increase from the previous year's $699 million in cumulative sales.</p>
<p>With Colorado generating more than $100 million in marijuana sales in August alone for the first month ever, there had been speculation that sales for the budding industry would top the $1 billion mark in 2015, but it appears we'll have to wait to 2016 for Colorado's marijuana industry to officially hit the billion-dollar mark.</p>
<p>Nonetheless, this is quite the achievement for Colorado, which only began selling marijuana recreationally just over two years ago. The Denver Post points out that the real surge in sales came on the recreational side of the equation. Following nearly $386 million in medical marijuana sales in 2014, medicinal marijuana sales jumped by only 5.8% in 2015 to $408.4 million. Recreational sales, though, rose from $313.2 million in 2014 to a whopping $587.8 million in 2015, an 87.7% increase. This also included a record $62.9 million worth of recreational marijuana sold in December.</p>
<p>As noted by The Huffington Post, the nearly $1 billion in sales also led to $135 million in taxes and licensing revenue being raised, of which at least $35 million has been earmarked for schools within the state. The education system, law enforcement, and drug programs seem to be the biggest financial beneficiaries of the tax revenue being generated from retail marijuana in the early going.</p>
<p>Image source: Flickr user FutureAtlas.com.</p>
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<p>Other states want in The revenue being successfully generated by Colorado highlights the primary reason why certain states are tinkering with the idea of legalizing marijuana at the state level. Although marijuana's legalization isn't going to fill large budget gaps, the tax revenue being raised is focused solely on those using the product and involved within the industry, and it's helping out a very costly education system in select states.</p>
<p>Coming up in November, Nevada has already collected enough signatures to get a marijuana initiative in front of its residents. California and Ohio are also expected to collect enough signatures to get a recreational (or in Ohio's case, a recreational and medicinal) initiative in front of voters. Legislators in Vermont has been so pleased with the performance of the marijuana industry in states like Colorado that they're tinkering with the idea of bypassing a ballot initiative altogether and just using the legislative process to legalize recreational marijuana.</p>
<p>In short, the marijuana legalization movement appears unstoppable in Colorado and around the country -- or so it seems.</p>
<p>Image source: Office of Public Affairs via Flickr.</p>
<p>Colorado's success masks major issuesWhile it's hard to ignore the initial successes of Colorado, Washington, and even to some degree Oregon in the early going (Oregon only began selling recreational marijuana legally in October), these successes only mask the many challenges that constrain growth within the marijuana industry.</p>
<p>The state of Colorado offers numerous examples of these challenges. To begin with, even though voters approved legal marijuana in November 2012, nearly three-quarters of Colorado's jurisdictions still ban the substance. Drug enforcement of marijuana, even when it's decriminalized, can be a nightmare scenario that creates a Swiss cheese pattern of legal and illegal jurisdictions throughout the state.</p>
<p>Another concern is the use of marijuana edibles. Although packaging regulations are toughening in Colorado, edibles still present a unique challenge for regulators. It's not too tough to regulate a green plant or buds, but when the drug is infused into food it can be potentially tricky to track. Regulators worry about edible marijuana products falling into the hands of minors, and they're also often concerned about the consistency of THC content (THC is the psychoactive component of marijuana) from one batch of product to the next.</p>
<p>Another major issue we've seen unfold is that banks are mostly unwilling to work with marijuana-based businesses. In the few states where recreational marijuana has been legalized, work-arounds have been put in place for financial institutions to do business with marijuana shops, but most banks don't want to deal with the hassle of the work-arounds, or the potential legal implications of assisting a business that markets a substance still considered illegal by the federal government. This leaves most marijuana businesses to deal mostly in cash, which presents major security concerns.</p>
<p>Financially, marijuana businesses are also drawing the short straw. Even though the federal government views the marijuana plant as illegal, it still requires businesses that sell marijuana products to pay federal income taxes. Yet, according to U.S. tax code 280E, these same businesses are not allowed to take normalized business deductions, such as rent, because they're selling a federally illegal substance. The end result is marijuana businesses are being overtaxed.</p>
<p>Image source: White House on Flickr.</p>
<p>An even bigger issue at playOf course, there's the granddaddy of all dilemmas that the marijuana industry still has to contend with: the inaction of the federal government regarding the issue. As long as there are no changes made to the scheduling of marijuana on Capitol Hill, then marijuana-based businesses will likely continue to deal with the same inherent disadvantages they've coped with over the past couple of years.</p>
<p>Why won't Congress move on marijuana? Look no further than its safety. From its long-term psychological impact on the brain to what it might do to consumers when they're behind the wheel of a vehicle, legislators on Capitol Hill worry about making too rash of a judgment call on marijuana before substantive long-term data is at their disposal.</p>
<p>So what's next for the marijuana industry? In 2016 it could be looking at its best year yet in terms of state-level expansion, but with President Obama signaling that marijuana isn't on his agenda in 2016, you can probably chalk up another year of inaction at the federal level.</p>
<p>The reality is that there is no timetable on when, or if, lawmakers will ever seriously take up marijuana legislation in Washington, D.C. While that may not stop marijuana from expanding to new states, it most definitely puts hurdles in place that dramatically slows the industry's growth prospects. I believe this gives investors all the more reason to steer clear of this industry for the time being.</p>
<p>The article <a href="http://www.fool.com/investing/general/2016/02/20/colorados-marijuana-sales-narrowly-miss-a-major-mi.aspx" type="external">Colorado's Marijuana Sales Narrowly Miss a Major Milestone in 2015 Opens a New Window.</a> originally appeared on Fool.com.</p>
<p><a href="http://my.fool.com/profile/TMFUltraLong/info.aspx?source=eptfxblnk0000004" type="external">Sean Williams Opens a New Window.</a>has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name <a href="http://caps.fool.com/player/tmfultralong.aspx?source=eptfxblnk0000004" type="external">TMFUltraLong Opens a New Window.</a>, track every pick he makes under the screen name <a href="http://caps.fool.com/player/trackultralong.aspx?source=eptfxblnk0000004" type="external">TrackUltraLong Opens a New Window.</a>, and check him out on Twitter, where he goes by the handle <a href="http://twitter.com/#%21/TMFUltraLong" type="external">@TMFUltraLong Opens a New Window.</a>.The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=eptfxblnk0000004" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://wiki.fool.com/Motley?source=eptfxblnk0000004" type="external">considering a diverse range of insights Opens a New Window.</a>makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?source=eptfxblnk0000004" type="external">disclosure policy Opens a New Window.</a>.</p>
<p>Copyright 1995 - 2016 The Motley Fool, LLC. All rights reserved. The Motley Fool has a <a href="http://www.fool.com/help/index.htm?display=about02" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | image source pixabay continue reading numbers finally colorados department revenue calendar year 2015 marijuana sales recreational medicinal came 996184788 42 increase previous years 699 million cumulative sales colorado generating 100 million marijuana sales august alone first month ever speculation sales budding industry would top 1 billion mark 2015 appears well wait 2016 colorados marijuana industry officially hit billiondollar mark nonetheless quite achievement colorado began selling marijuana recreationally two years ago denver post points real surge sales came recreational side equation following nearly 386 million medical marijuana sales 2014 medicinal marijuana sales jumped 58 2015 4084 million recreational sales though rose 3132 million 2014 whopping 5878 million 2015 877 increase also included record 629 million worth recreational marijuana sold december noted huffington post nearly 1 billion sales also led 135 million taxes licensing revenue raised least 35 million earmarked schools within state education system law enforcement drug programs seem biggest financial beneficiaries tax revenue generated retail marijuana early going image source flickr user futureatlascom advertisement states want revenue successfully generated colorado highlights primary reason certain states tinkering idea legalizing marijuana state level although marijuanas legalization isnt going fill large budget gaps tax revenue raised focused solely using product involved within industry helping costly education system select states coming november nevada already collected enough signatures get marijuana initiative front residents california ohio also expected collect enough signatures get recreational ohios case recreational medicinal initiative front voters legislators vermont pleased performance marijuana industry states like colorado theyre tinkering idea bypassing ballot initiative altogether using legislative process legalize recreational marijuana short marijuana legalization movement appears unstoppable colorado around country seems image source office public affairs via flickr colorados success masks major issueswhile hard ignore initial successes colorado washington even degree oregon early going oregon began selling recreational marijuana legally october successes mask many challenges constrain growth within marijuana industry state colorado offers numerous examples challenges begin even though voters approved legal marijuana november 2012 nearly threequarters colorados jurisdictions still ban substance drug enforcement marijuana even decriminalized nightmare scenario creates swiss cheese pattern legal illegal jurisdictions throughout state another concern use marijuana edibles although packaging regulations toughening colorado edibles still present unique challenge regulators tough regulate green plant buds drug infused food potentially tricky track regulators worry edible marijuana products falling hands minors theyre also often concerned consistency thc content thc psychoactive component marijuana one batch product next another major issue weve seen unfold banks mostly unwilling work marijuanabased businesses states recreational marijuana legalized workarounds put place financial institutions business marijuana shops banks dont want deal hassle workarounds potential legal implications assisting business markets substance still considered illegal federal government leaves marijuana businesses deal mostly cash presents major security concerns financially marijuana businesses also drawing short straw even though federal government views marijuana plant illegal still requires businesses sell marijuana products pay federal income taxes yet according us tax code 280e businesses allowed take normalized business deductions rent theyre selling federally illegal substance end result marijuana businesses overtaxed image source white house flickr even bigger issue playof course theres granddaddy dilemmas marijuana industry still contend inaction federal government regarding issue long changes made scheduling marijuana capitol hill marijuanabased businesses likely continue deal inherent disadvantages theyve coped past couple years wont congress move marijuana look safety longterm psychological impact brain might consumers theyre behind wheel vehicle legislators capitol hill worry making rash judgment call marijuana substantive longterm data disposal whats next marijuana industry 2016 could looking best year yet terms statelevel expansion president obama signaling marijuana isnt agenda 2016 probably chalk another year inaction federal level reality timetable lawmakers ever seriously take marijuana legislation washington dc may stop marijuana expanding new states definitely puts hurdles place dramatically slows industrys growth prospects believe gives investors reason steer clear industry time article colorados marijuana sales narrowly miss major milestone 2015 opens new window originally appeared foolcom sean williams opens new windowhas material interest companies mentioned article follow caps screen name tmfultralong opens new window track every pick makes screen name trackultralong opens new window check twitter goes handle tmfultralong opens new windowthe motley fool position stocks mentioned try foolish newsletter services free 30 days opens new window fools may hold opinions believe considering diverse range insights opens new windowmakes us better investors motley fool disclosure policy opens new window copyright 1995 2016 motley fool llc rights reserved motley fool disclosure policy opens new window | 726 |
<p>Picking solid high-yield dividend stocks can be tricky. Most companies that offer an elevated yield, after all, tend to do so because of a fundamental weakness in their underlying business.</p>
<p>Our Motley Fool investors, however, think that healthcare stalwarts Sanofi (NYSE: SNY), GlaxoSmithKline (NYSE: GSK), and Welltower (NYSE: HCN) are three high-yield dividend stocks worth considering right now. Read on to find out more.</p>
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<p><a href="https://my.fool.com/profile/TMFGBudwell/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=16ff8806-ab85-11e7-8d44-0050569d4be0&amp;utm_source=foxbusiness" type="external">George Budwell</a>&#160;(Sanofi): Healthcare stocks generally aren't a great place to look for above-average yields. Developing new medical products, after all, is a cost-intensive process that tends to cut deeply into a company's free cash flow.</p>
<p>The French biopharma titan Sanofi, however, is arguably one of the few names in healthcare worth considering as a high-yield play. Sanofi offers a yield of 3.34%, which is above the average of the broader field of healthcare stocks.</p>
<p>As a bonus, the drugmaker also sports a trailing payout ratio of 79.2% -- fairly modest relative to its immediate big-pharma peer group. And with its top line projected to grow at a compound annual growth rate of 3% over the next six years, Sanofi should continue to easily be able to cover its top-flight dividend.</p>
<p>Even so, Sanofi does have its risks. The company is currently reeling from the loss of exclusivity for its top-selling diabetes drug, Lantus. Sanofi's U.S. diabetes franchise, for example, saw a whopping 19% drop in sales during the first half of 2017 compared with the same period a year ago, thanks to Lantus's loss of patent protection.</p>
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<p>The good news is that Sanofi's pipeline appears to be up to the task of restocking the cupboard, so to speak. In the past year, for example, the drugmaker gained three major drug approvals that included the anti-inflammatory medicine&#160; <a href="https://www.fool.com/investing/2017/10/03/3-high-yield-international-stocks.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=16ff8806-ab85-11e7-8d44-0050569d4be0&amp;utm_source=foxbusiness" type="external">Dupixent</a>, which is forecast to quickly become the company's next megablockbuster product.</p>
<p>While Sanofi is in the process of pivoting to its next generation of products, the company and its top-notch dividend do appear to be on solid footing.</p>
<p><a href="http://my.fool.com/profile/TMFUltraLong/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=16ff8806-ab85-11e7-8d44-0050569d4be0&amp;utm_source=foxbusiness" type="external">Sean Williams</a> (GlaxoSmithKline): When it comes to the King Kong of all dividends in the healthcare sector, we're talking about U.K.-based drug giant GlaxoSmithKline. Currently sporting a 4.9% yield, GlaxoSmithKline's payout is more than two times that of the average yield of the S&amp;P 500.</p>
<p>As recently as last year, there was uncertainty over whether this payout would be sustainable. The company's prized respiratory blockbuster, Advair, was set to face generic competition and had lost significant pricing power, while its new line of COPD and asthma therapies had struggled to gain insurer approval and physician awareness following their approval. However, we've seen a marked improvement in sales of new therapeutics for GlaxoSmithKline over the past year, which offers strong evidence that this <a href="https://www.fool.com/investing/2017/05/01/3-bargain-bin-high-yield-dividend-stocks-youve-ove.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=16ff8806-ab85-11e7-8d44-0050569d4be0&amp;utm_source=foxbusiness" type="external">high-yield dividend is sustainable</a>.</p>
<p>An obvious bright spot was the turnaround in new product respiratory sales. Both Breo Ellipta and Anoro Ellipta, which had struggled to get the OK for formulary inclusion from insurers following their launch, have put those demons in the rearview mirror. Through the first half of fiscal 2017, sales of Breo and Anoro were up a respective 89% to $642 million and 67% to $195 million on a constant currency basis.&#160;Growth from new drugs has eclipsed the sales being lost from mature products.</p>
<p>Also helping Glaxo are its fast-growing HIV drugs, Tivicay and Triumeq. Glaxo has a majority stake in ViiV Healthcare, which developed these therapies. On a constant currency basis, sales for its HIV segment have risen 18% year to date, with Tivicay and Triumeq up a respective 39% and 44%. Since HIV has no cure, these long-term-use antivirals should continue to be core medicines used to fight the disease.</p>
<p>Income investors looking for a nearly guaranteed dividend in the healthcare sector should give GlaxoSmithKline a closer look.</p>
<p><a href="http://my.fool.com/profile/TMFTypeoh/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=16ff8806-ab85-11e7-8d44-0050569d4be0&amp;utm_source=foxbusiness" type="external">Brian Feroldi</a> (Welltower):&#160;Healthcare advances are enabling Americans to live longer than ever. As a result, the number of people aged 85 and over is expected to double between now and 2036. That's a heck of a tailwind for healthcare investors in general, but one of my favorite ways to profit from the trend is with Welltower.</p>
<p>Welltower is one of the largest healthcare-focused&#160; <a href="https://www.fool.com/knowledge-center/reit.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=16ff8806-ab85-11e7-8d44-0050569d4be0&amp;utm_source=foxbusiness" type="external">REITs</a>&#160;in the world, owning a broad portfolio of 1,384 healthcare properties spread throughout the U.S., U.K., and Canada. While the company owns a handful of outpatient medical buildings and acute-care properties, the bulk of its facilities are dedicated to the housing needs of seniors. As of the end of June, Welltower's properties counted 192,000 seniors as residents.</p>
<p>One risk that comes with catering to the needs of seniors is that the government is often the payer of choice. Given the endless rhetoric in Washington related to the future of U.S. healthcare, Welltower's management team decided a few years ago to sell its properties that depend heavily on government payments. While this decision has muted growth, 93% of the company's revenue now comes from private payers, up from just 69% in 2010. In my view, this transition has done wonders to reduce the company's risk profile.</p>
<p>While Welltower's portfolio transition is still&#160; <a href="https://www.fool.com/investing/2017/07/28/asset-sales-continue-to-impact-welltower-incs-resu.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=16ff8806-ab85-11e7-8d44-0050569d4be0&amp;utm_source=foxbusiness" type="external">weighing on its profit growth</a>, I think the company's focus on risk reduction will lay a strong foundation for future growth in the years ahead. With a dividend yield of 5.1% and major demographics trend at its back, Welltower is a great high-yield stock for healthcare investors to get to know.</p>
<p>10 stocks we like better than SanofiWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*</p>
<p>David and Tom just revealed what they believe are the <a href="http://infotron.fool.com/infotrack/click?url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-static%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=cd0f46b1-6893-4835-b5f8-f3ff20995056&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=16ff8806-ab85-11e7-8d44-0050569d4be0&amp;utm_source=foxbusiness" type="external">10 best stocks</a> for investors to buy right now... and Sanofi wasn't one of them! That's right -- they think these 10 stocks are even better buys.</p>
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<p>*Stock Advisor returns as of September 5, 2017</p>
<p><a href="http://my.fool.com/profile/TMFTypeoh/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=16ff8806-ab85-11e7-8d44-0050569d4be0&amp;utm_source=foxbusiness" type="external">Brian Feroldi</a> has no position in any of the stocks mentioned. <a href="http://my.fool.com/profile/TMFGBudwell/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=16ff8806-ab85-11e7-8d44-0050569d4be0&amp;utm_source=foxbusiness" type="external">George Budwell</a> has no position in any of the stocks mentioned. <a href="http://my.fool.com/profile/TMFUltraLong/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=16ff8806-ab85-11e7-8d44-0050569d4be0&amp;utm_source=foxbusiness" type="external">Sean Williams</a> has no position in any of the stocks mentioned. The Motley Fool recommends Welltower. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=16ff8806-ab85-11e7-8d44-0050569d4be0&amp;utm_source=foxbusiness" type="external">disclosure policy</a>.</p> | true | 0 | picking solid highyield dividend stocks tricky companies offer elevated yield tend fundamental weakness underlying business motley fool investors however think healthcare stalwarts sanofi nyse sny glaxosmithkline nyse gsk welltower nyse hcn three highyield dividend stocks worth considering right read find continue reading george budwell160sanofi healthcare stocks generally arent great place look aboveaverage yields developing new medical products costintensive process tends cut deeply companys free cash flow french biopharma titan sanofi however arguably one names healthcare worth considering highyield play sanofi offers yield 334 average broader field healthcare stocks bonus drugmaker also sports trailing payout ratio 792 fairly modest relative immediate bigpharma peer group top line projected grow compound annual growth rate 3 next six years sanofi continue easily able cover topflight dividend even sanofi risks company currently reeling loss exclusivity topselling diabetes drug lantus sanofis us diabetes franchise example saw whopping 19 drop sales first half 2017 compared period year ago thanks lantuss loss patent protection advertisement good news sanofis pipeline appears task restocking cupboard speak past year example drugmaker gained three major drug approvals included antiinflammatory medicine160 dupixent forecast quickly become companys next megablockbuster product sanofi process pivoting next generation products company topnotch dividend appear solid footing sean williams glaxosmithkline comes king kong dividends healthcare sector talking ukbased drug giant glaxosmithkline currently sporting 49 yield glaxosmithklines payout two times average yield sampp 500 recently last year uncertainty whether payout would sustainable companys prized respiratory blockbuster advair set face generic competition lost significant pricing power new line copd asthma therapies struggled gain insurer approval physician awareness following approval however weve seen marked improvement sales new therapeutics glaxosmithkline past year offers strong evidence highyield dividend sustainable obvious bright spot turnaround new product respiratory sales breo ellipta anoro ellipta struggled get ok formulary inclusion insurers following launch put demons rearview mirror first half fiscal 2017 sales breo anoro respective 89 642 million 67 195 million constant currency basis160growth new drugs eclipsed sales lost mature products also helping glaxo fastgrowing hiv drugs tivicay triumeq glaxo majority stake viiv healthcare developed therapies constant currency basis sales hiv segment risen 18 year date tivicay triumeq respective 39 44 since hiv cure longtermuse antivirals continue core medicines used fight disease income investors looking nearly guaranteed dividend healthcare sector give glaxosmithkline closer look brian feroldi welltower160healthcare advances enabling americans live longer ever result number people aged 85 expected double 2036 thats heck tailwind healthcare investors general one favorite ways profit trend welltower welltower one largest healthcarefocused160 reits160in world owning broad portfolio 1384 healthcare properties spread throughout us uk canada company owns handful outpatient medical buildings acutecare properties bulk facilities dedicated housing needs seniors end june welltowers properties counted 192000 seniors residents one risk comes catering needs seniors government often payer choice given endless rhetoric washington related future us healthcare welltowers management team decided years ago sell properties depend heavily government payments decision muted growth 93 companys revenue comes private payers 69 2010 view transition done wonders reduce companys risk profile welltowers portfolio transition still160 weighing profit growth think companys focus risk reduction lay strong foundation future growth years ahead dividend yield 51 major demographics trend back welltower great highyield stock healthcare investors get know 10 stocks like better sanofiwhen investing geniuses david tom gardner stock tip pay listen newsletter run decade motley fool stock advisor tripled market david tom revealed believe 10 best stocks investors buy right sanofi wasnt one thats right think 10 stocks even better buys click learn picks stock advisor returns september 5 2017 brian feroldi position stocks mentioned george budwell position stocks mentioned sean williams position stocks mentioned motley fool recommends welltower motley fool disclosure policy | 603 |
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<p>As the plot thickens in the <a href="http://freedomoutpost.com/?s=San+Bernardino+massacre" type="external">San Bernardino massacre</a>, the FBI is trying to decipher several issues from abuse of the marriage to the immigration system and whether these <a href="" type="internal">terrorists</a> had Jihadi brides.</p>
<p>Also, who are these Russian girls involved in the marriage scheme?</p>
<p>The FBI also believes that Farook had ties to a group of jihadists in California who were arrested in 2012 (which caused a previous attack to be thwarted that Farook was planning) for attempting to travel to Afghanistan to join al Qaeda.</p>
<p>Then we have the possible main ringleader, second man Mohamed Abdullahi Hassan (aka Miski, Malik John, Abdul Malik Jones, Abdimalik Jones), who is a Somalian-born permanent resident from Minnesota who was in contact with San Bernardino shooters Syed Farook and Tashfeen Malik over social media.</p>
<p>Hassan was indicted by the federal government for attempting to recruit people in Minnesota to join <a href="" type="internal">al-Shabaab</a>. If this link is proven, here we have another American Muslim citizen involved in a huge <a href="" type="internal">massacre that killed over 143 Christians in Kenya</a>. He has <a href="http://www.bbc.com/news/world-africa-35027621?utm_source=Sailthru&amp;utm_medium=email&amp;utm_campaign=New%20Campaign&amp;utm_term=%2ASituation%20Report" type="external">admitted to being involved</a> with the Garissa massacre. The attack on Garissa College is one of the worst in Sub-Saharan Africa in recent memory, with reports <a href="http://time.com/3768749/kenya-alshabaab-garissa/" type="external">that the attackers freed Muslim hostages and executed Christians</a>.</p>
<p>In addition, as Shoebat.com <a href="http://shoebat.com/2015/05/04/the-attack-in-garland-texas-was-carried-out-by-isis-lone-wolves/" type="external">reported,</a> an “attack in Garland Texas was carried out by ISIS lone wolves” with one named “Elton Simpson,” reportedly one of the two gunmen responsible for the <a href="http://freedomoutpost.com/?s=shooting+in+Garland" type="external">shooting in Garland</a>, Texas, was indeed a homegrown ISIS lone wolf and a convert to Islam, who, in 2010, had links to Hassan.</p>
<p>Simpson and his unidentified friend received their orders from an Islamic al-Shabaab terrorist Hassan.</p>
<p>And then we have four men who were arrested in the 2012 case, Sohiel Kabir. Kabir, who was convicted and sentenced to 25 years in prison, was the recruiter who helped radicalize others, and Farook was in the social circle of Kabir, which explains why, in 2012, Farook and friends abandoned a plan to carry out a massacre.</p>
<p>This is a huge ring of terror.</p>
<p>That 2012 cancelled massacre involves what the FBI found were several exterior photos of Rialto’s Carter High School, which has 2500 students, on Farook’s <a href="http://www.amazon.com/s/ref=as_li_ss_tl?_encoding=UTF8&amp;camp=1789&amp;creative=390957&amp;field-keywords=cellphone&amp;linkCode=ur2&amp;tag=freedomoutpos-20&amp;url=search-alias%3Daps&amp;linkId=NKBVTNRM23U6HMEC" type="external">cellphone</a>. Farook was an ISIS terrorist and a county health inspector at the same time.</p>
<p>“Our inspectors do typically take photos in the food-servicing environment, but it’s very unusual for any of our inspectors to take exterior photos,” Susan Klein-Rothschild at Santa Barbara Public Health Department said.</p>
<p>“We do not, in our county, have that experience,” she said. “Typically you only take photos if there are violations. I asked around to our director and supervisor and both gave me the same response – and they have years and years of experience.”</p>
<p>Had such an attack been executed, it would have been a greater massacre than San Bernardino and most likely a replica of Garissa.</p>
<p>Besides Syed Farook, we have his brother, Raheel Farook, the man who was being taunted as a patriotic American, Navy veteran, serving from 2003 to 2007 and earning the Expeditionary Medal and the Global War on Terrorism Service Medal, among other awards. As it turns out, all the hoopla meant little. The National Defense Service Medal is awarded when you sign on the dotted line, enlisting in a time of war. But everyone who signed got it for simply showing up. He <a href="http://dailycaller.com/2015/12/08/farook-brother-not-a-decorated-navy-veteran/" type="external">was not</a> “decorated,” as many say. He married Tatiana Chernykh (aka Tatiana Gigliotti) in 2011, only to have a reported domestic disturbance and police-conducted follow-up interviews, and the Riverside County District Attorney’s office filed charges for domestic battery.</p>
<p>Then this ‘supposed hero’ involvement created further questions regarding his involvement with a Green-Card scam. In Muslim terrorism operations, there are two elements necessary. The first is the die-hard Muslim fanatic who can dodge every attempt to reveal his cover, and the second is the local town liberal idiot who can easily be converted to whatever he is told about how great Islam is.</p>
<p>We have the unresolved question on how Tatiana’s sister, Mariya Chernykh, was introduced to Enrique Marquez, the mule, Syed Farook’s neighbor, and a Mexican-American convert to Islam who was used to do two things: to purchase the guns under his name to be used by Farook and his wife, Tashfeen Malik, in their shooting spree, and to marry Raheel’s sister-in-law, Tatiana’s sister, Mariya Chernykh, 25, to help give her the green card. Mariya entered from Voronezh Oblast, Russia, to the United States in 2009. The last name Chernykh from Voronezh is usually Subbotnik Jews or a spin-off from Ottoman Empire, Muslim Tatars in Crimea, which has many links to Muslim community of Tatars in Crimea, Kiev, Ukraine, and Tatarstan in Russia. Is this another Jihadi-bride plot? Only time will tell.</p>
<p>This could have been done as a favor for Raheel’s wife. When Chernykh submitted a citizenship application after she and Marquez signed their marriage license, it was Syed Raheel Farook (the navy guy) who stepped in lying and vouched for Marquez, saying he would have the financial means to support his new wife. So Raheel, as it seems, was in close contact with his brother’s neighbor and with his brother.</p>
<p>The <a href="http://abcnews.go.com/topics/news/whitehouse/james-b.-comey.htm" type="external">FBI</a> is investigating the marriage between the San Bernardino killers and have reason to suspect a cover for long-planned jihad, as other questions have been raised about another suspect nuptial and the potential abuse of the government’s visa program.</p>
<p>The whole mess reveals more troubling issues than terrorism. It shows the vulnerability of the immigration system, the ability for ISIS to recruit Americans through Da’wa and the untrustworthy Muslim community who instead of coming forth, would collectively deny and hide, even use the tragedy to attack and promote that Americans are infected with Islamophobia.</p>
<p>In 2008, as Farook was becoming more devoted to his Muslim faith, Marquez converted to Islam and began attending Friday prayers at a Corona mosque. Marquez never seemed terribly pious, according to Azmi Hasan, manager at the Islamic Society of Corona-Norco.</p>
<p>This, of course, is part of the Muslim collective-denial. Right after the attack, Shoebat.com revealed the Corona-Norco mosque was listed on Raheel Farook’s Facebook (the navy guy) before it was scrubbed. But the Islamic Society of Corona-Norco is two-faced (so much for needing the Muslim community). On the one hand, it has a peaceful- <a href="http://profileengine.com/groups/profile/436039352/islamic-society-of-coronanorco" type="external">mission</a>:</p>
<p>to assist Muslims in America to preserve their religious heritage and customs and to create a sense of community amongst the followers of Islam. ISCN members shall contribute peacefully and democratically to the diversity and pluralism of the American society.</p>
<p>But the mosque also calls to <a href="http://thecooltable.org/2014/08/11/statement-by-american-muslim-organizations-end-israeli-aggression-and-occupation-uphold-american-principles/" type="external">end tax money to Israel</a>, tells how to <a href="http://www.coronamuslims.com/index.php/media/iscntv/main?mvvpage=2" type="external">raise the generation of Saladin (Jihad),</a> and raises awareness of the <a href="http://www.coronamuslims.com" type="external">plight of Muslims in Syria</a>. While the Jihadi titles were obvious, <a href="http://www.coronamuslims.com/index.php/media/iscntv/video/38/ISCN---Generation-of-Salahuddin-12" type="external">the access was not allowed</a>. The Islamists are aware that folks like us are on their tail. To see the center below, it would make an American apple-pie wonder–this is not Saudi Arabia, Qatar, or Bahrain. No, its Corona, California, so why did these Muslims never assimilate?</p>
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<p>So much for such testimony from CAIR and the Muslim community, especially since Marquez confessed to federal investigators that he and Farook had planned an attack (possibly the school) of their own in 2012, but abandoned it.</p>
<p>Raheel Farook and his wife, Tatiana, were witnesses at Marquez’s nuptials with Mariya Chernykh, Tatiana’s sister, according to Riverside County records. The ceremony took place at the <a href="http://www.coronamuslims.com/" type="external">Islamic Society of Corona-Norco</a>, according to the marriage license; yet the mosque’s facility manager covered that up and denied that it had occurred there. Azmi Hasan said that he understood Marquez had converted to Islam, but said he was not a member of that mosque. It is now obvious that Azmi Hasan should stand in line with millions of Muruna-inspired Muslim liars.</p>
<p>The conclusion of this whole fiasco is what <a href="" type="internal">Donald Trump</a> stated: “No Muslim should be allowed, until we figure it all out.”</p>
<p>But you have a whole system that is geared to <a href="" type="internal">attack Trump’s statement</a>.</p>
<p>I could imagine if Trump dare suggest profiling. It matters nothing to this system how many people die, and, as I argued, this will never be resolved until the U.S. deals with a massive death toll.</p>
<p>While profiling (so they argue) is not 100% fool-proof, it is at least 80-90% successful, and yes, shootings are common in the U.S., but why do Americans insist on importing additional shootings?</p>
<p>Even from among the so-called conservatives, Bill O’Reilly argues with Trump that we need Muslims to combat ISIS.</p>
<p>No, we don’t, Mr. O’Reilly. You’re a loon.</p>
<p>Bashar Al-Assad, the King of Jordan, and Al-Sisi of Egypt could care less how much we insult Islam. In fact, they truly welcome it privately while they would condemn it publicly. In Syria, the anti-ISIS and anti-Isamists have the slogan “Allah and Bashar,” instead of “Allah and Muhammad.”</p>
<p>ISIS is a Muslim problem for Saudi Arabia, Jordan, Egypt, and Libya. All the U.S. has to do is re-install dictators (who truly hate Islam) in the Middle East, and they will make mince-meat out of ISIS. Yet, in the U.S., the word “dictatorship” has become politically incorrect. Here is another idiot I met (out of thousands) from the so-called conservatives. He used to be the head of the CIA (how funny):</p>
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<p>I sat and spoke with Woolsey in the past and found the man to be very stupid: he knew nothing on how the Middle East functions. “Libya,” “Iraq,” and “Egypt” ended up with his policy “to make them nervous,” and the result was ISIS.</p>
<p>Sitting in the back is Frank Gaffney, another conservative-idiot from the Center For Security Policy, whom I also knew.</p>
<p>As I always say, the West only learns in two ways: stop being polite and politically correct (become like me, crude and un-polite), or be politically correct and learn through high-death toll.</p>
<p>Anyone else with a better suggestion, have at it.</p>
<p>In order to catch the terrorists, an FBI agent has to know Islam; they must know how to conduct such discussion in Arabic and know about various religious edicts to terrorist incidents and to specific battles in order to infiltrate.</p>
<p>Theodore John “Ted” Kaczynski, also known as the “Unabomber,” was not caught for two years.</p>
<p>With the ISIS lone-wolf program, we are talking about tracking tens of thousands of unabombers or unabomber wannabes. Keep in mind, Farook was a bomb maker.</p>
<p>These days, pre-emptive strikes carried out by the security apparatus are useless in preventing thousands of Muslim unabombers, who “go dark” and use encrypted chatting platforms where intelligence agencies trying to track their communications with 16,000 members and who are growing in numbers by the thousands every day.</p>
<p>We have <a href="http://shoebat.com/2015/12/03/88800/" type="external">explained before these revelations,</a> even before the FBIs discovery into Farook’s mission, how this had all the hallmark of an ISIS terror ring and also why it was <a href="http://shoebat.com/2015/12/03/88784/" type="external">impossible to detect</a> which will cross the eyes of any seasoned FBI agent. We explained all this to police officials on November 13, just prior to the Paris and San Bernardino massacres to no avail, as you can see. The District Attorney of New Jersey <a href="http://bo-ne.ws/forum/read.php?21,502016" type="external">cancelled all training</a> by “Islamophobes” like myself, out of pressure from CAIR.</p>
<p>As we learned from you: you can take the horse to the water, but you can’t make him drink.</p>
<p>Until the next massacre, Merry Christmas.</p>
<p><a href="http://shoebat.com/2015/12/10/89194/" type="external">Source</a></p>
<p>Walid Shoebat is a former member of the Muslim Brotherhood who was converted to Christianity, and author of the book, <a href="http://www.amazon.com/gp/product/B00C0UQGLU/ref=as_li_ss_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=B00C0UQGLU&amp;linkCode=as2&amp;tag=freedomoutpos-20" type="external">God’s War on Terror</a>.</p>
<p>Courtesy of <a href="http://freedomoutpost.com/2015/12/as-the-plot-thickens-in-the-san-bernardino-massacre-fbi-discovers-a-massive-network-of-terrorists-involved-showing-how-the-system-is-completely-broken/" type="external">Freedom Outpost</a>.</p>
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<p /> | true | 0 | plot thickens san bernardino massacre fbi trying decipher several issues abuse marriage immigration system whether terrorists jihadi brides also russian girls involved marriage scheme fbi also believes farook ties group jihadists california arrested 2012 caused previous attack thwarted farook planning attempting travel afghanistan join al qaeda possible main ringleader second man mohamed abdullahi hassan aka miski malik john abdul malik jones abdimalik jones somalianborn permanent resident minnesota contact san bernardino shooters syed farook tashfeen malik social media hassan indicted federal government attempting recruit people minnesota join alshabaab link proven another american muslim citizen involved huge massacre killed 143 christians kenya admitted involved garissa massacre attack garissa college one worst subsaharan africa recent memory reports attackers freed muslim hostages executed christians addition shoebatcom reported attack garland texas carried isis lone wolves one named elton simpson reportedly one two gunmen responsible shooting garland texas indeed homegrown isis lone wolf convert islam 2010 links hassan simpson unidentified friend received orders islamic alshabaab terrorist hassan four men arrested 2012 case sohiel kabir kabir convicted sentenced 25 years prison recruiter helped radicalize others farook social circle kabir explains 2012 farook friends abandoned plan carry massacre huge ring terror 2012 cancelled massacre involves fbi found several exterior photos rialtos carter high school 2500 students farooks cellphone farook isis terrorist county health inspector time inspectors typically take photos foodservicing environment unusual inspectors take exterior photos susan kleinrothschild santa barbara public health department said county experience said typically take photos violations asked around director supervisor gave response years years experience attack executed would greater massacre san bernardino likely replica garissa besides syed farook brother raheel farook man taunted patriotic american navy veteran serving 2003 2007 earning expeditionary medal global war terrorism service medal among awards turns hoopla meant little national defense service medal awarded sign dotted line enlisting time war everyone signed got simply showing decorated many say married tatiana chernykh aka tatiana gigliotti 2011 reported domestic disturbance policeconducted followup interviews riverside county district attorneys office filed charges domestic battery supposed hero involvement created questions regarding involvement greencard scam muslim terrorism operations two elements necessary first diehard muslim fanatic dodge every attempt reveal cover second local town liberal idiot easily converted whatever told great islam unresolved question tatianas sister mariya chernykh introduced enrique marquez mule syed farooks neighbor mexicanamerican convert islam used two things purchase guns name used farook wife tashfeen malik shooting spree marry raheels sisterinlaw tatianas sister mariya chernykh 25 help give green card mariya entered voronezh oblast russia united states 2009 last name chernykh voronezh usually subbotnik jews spinoff ottoman empire muslim tatars crimea many links muslim community tatars crimea kiev ukraine tatarstan russia another jihadibride plot time tell could done favor raheels wife chernykh submitted citizenship application marquez signed marriage license syed raheel farook navy guy stepped lying vouched marquez saying would financial means support new wife raheel seems close contact brothers neighbor brother fbi investigating marriage san bernardino killers reason suspect cover longplanned jihad questions raised another suspect nuptial potential abuse governments visa program whole mess reveals troubling issues terrorism shows vulnerability immigration system ability isis recruit americans dawa untrustworthy muslim community instead coming forth would collectively deny hide even use tragedy attack promote americans infected islamophobia 2008 farook becoming devoted muslim faith marquez converted islam began attending friday prayers corona mosque marquez never seemed terribly pious according azmi hasan manager islamic society coronanorco course part muslim collectivedenial right attack shoebatcom revealed coronanorco mosque listed raheel farooks facebook navy guy scrubbed islamic society coronanorco twofaced much needing muslim community one hand peaceful mission assist muslims america preserve religious heritage customs create sense community amongst followers islam iscn members shall contribute peacefully democratically diversity pluralism american society mosque also calls end tax money israel tells raise generation saladin jihad raises awareness plight muslims syria jihadi titles obvious access allowed islamists aware folks like us tail see center would make american applepie wonderthis saudi arabia qatar bahrain corona california muslims never assimilate much testimony cair muslim community especially since marquez confessed federal investigators farook planned attack possibly school 2012 abandoned raheel farook wife tatiana witnesses marquezs nuptials mariya chernykh tatianas sister according riverside county records ceremony took place islamic society coronanorco according marriage license yet mosques facility manager covered denied occurred azmi hasan said understood marquez converted islam said member mosque obvious azmi hasan stand line millions murunainspired muslim liars conclusion whole fiasco donald trump stated muslim allowed figure whole system geared attack trumps statement could imagine trump dare suggest profiling matters nothing system many people die argued never resolved us deals massive death toll profiling argue 100 foolproof least 8090 successful yes shootings common us americans insist importing additional shootings even among socalled conservatives bill oreilly argues trump need muslims combat isis dont mr oreilly youre loon bashar alassad king jordan alsisi egypt could care less much insult islam fact truly welcome privately would condemn publicly syria antiisis antiisamists slogan allah bashar instead allah muhammad isis muslim problem saudi arabia jordan egypt libya us reinstall dictators truly hate islam middle east make mincemeat isis yet us word dictatorship become politically incorrect another idiot met thousands socalled conservatives used head cia funny sat spoke woolsey past found man stupid knew nothing middle east functions libya iraq egypt ended policy make nervous result isis sitting back frank gaffney another conservativeidiot center security policy also knew always say west learns two ways stop polite politically correct become like crude unpolite politically correct learn highdeath toll anyone else better suggestion order catch terrorists fbi agent know islam must know conduct discussion arabic know various religious edicts terrorist incidents specific battles order infiltrate theodore john ted kaczynski also known unabomber caught two years isis lonewolf program talking tracking tens thousands unabombers unabomber wannabes keep mind farook bomb maker days preemptive strikes carried security apparatus useless preventing thousands muslim unabombers go dark use encrypted chatting platforms intelligence agencies trying track communications 16000 members growing numbers thousands every day explained revelations even fbis discovery farooks mission hallmark isis terror ring also impossible detect cross eyes seasoned fbi agent explained police officials november 13 prior paris san bernardino massacres avail see district attorney new jersey cancelled training islamophobes like pressure cair learned take horse water cant make drink next massacre merry christmas source walid shoebat former member muslim brotherhood converted christianity author book gods war terror courtesy freedom outpost | 1,057 |
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<p>Image source: Getty Images.</p>
<p>Continue Reading Below</p>
<p>Investors appreciate the value of dividend income, and many people look closely at the list of Dividend Aristocrats to guide their decision-making about which stocks to buy for their own portfolios. Before you simply copy the Dividend Aristocrats list, however, you should know that just because a stock is a Dividend Aristocrat doesn't mean that it will meet your needs as an income investor. In particular, what many people don't realize is that becoming a Dividend Aristocrat has nothing to do with how much of a dividend a stock pays. That can lead to some surprising results when you look more closely at the list.</p>
<p>In order to become a member of the Dividend Aristocrats, a stock has to develop a long track record of successfully growing its dividend over time. The threshold for membership is 25 straight years of higher dividend payments. There are roughly 50 Dividend Aristocrats in the S&amp;P 500, and each year, new stocks that meet the requirements get added to the list, while those that failed to sustain their dividend-increase streaks are eliminated.</p>
<p>The problem with the Dividend Aristocrats is that there's no minimum dividend yield requirement. As long as a company boosted its payout, the relative size of that payout isn't important for purposes of membership. The three stocks that you'll see below have extremely low dividend yields. That doesn't mean that they're terrible stocks overall, but it does make unsuitable for income investors who want to concentrate on getting above-average levels of income from their investment portfolios.</p>
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<p>The worst-yielding Dividend Aristocrat by far is C.R. Bard . The medical instrument maker has a dividend yield of less than 0.5%, which is less than half the yield of the next-lowest Dividend Aristocrats. Even with that low yield, though, Bard has a long 45-year track record of increasing its payout, and that's enough to get it on the list.</p>
<p>Fundamentally, however, Bard has plenty of earnings power, and that has produced double-digit returns over the long haul for shareholders. For instance, in its most recent quarterly results, Bard said that it expects full-year earnings in excess of $10 per share. In that light, even the just-boosted $0.26 per share quarterly payout that Bard makes amounts to barely 10% of the company's earnings. Retained profits have driven success in terms of capital appreciation, producing average annual total returns of more than 15% since 1996. Bard has been a great investment even if it has been the worst Dividend Aristocrat in terms of dividend yield.</p>
<p>Next up is uniform specialist Cintas . The company pays an annual dividend, and its most recent $1.05 per share distribution last November represents a 1.1% yield at current prices. To be fair, the boost represented a more than 20% jump from last year's regular dividend, accelerating from what used to be minimal annual increases to satisfy the Dividend Aristocrat requirements. The company has a 33-year history of delivering rising dividends to investors.</p>
<p>For Cintas, a recovering job market has helped power its results. With the company's "Ready for the Workday" branding campaign, Cintas hopes to grow every aspect of its business, ranging from its well-known uniform offerings to its first aid, safety, and fire-protection equipment. Average 20-year returns of about 10% aren't quite as attractive as other Aristocrats. But understanding that Cintas pays out less than a fifth of its earnings in the form of dividends shows that income investors aren't getting everything that the uniform specialist could afford to pay points toward the potential for long-term share-price growth.</p>
<p>Finally, Sherwin-Williams has a long history as a Dividend Aristocrat, with 38 years of consecutive annual dividend increases. Yet the paint specialist's yield is less than 1.2%, making some income investors feel like Sherwin-Williams doesn't get the job done from an income standpoint.</p>
<p>As with C.R. Bard, Sherwin-Williams has put up strong total returns in excess of 15% over the past 20 years and 30 years. However, Sherwin-Williams pays a larger proportion of its earnings as dividends, with a payout ratio approaching 30%. Now that the company is seeking to expand through the acquisition of rival Valspar, Sherwin-Williams hopes that it will be able to accelerate its own organic growth and take full advantage of both its own paint-store sales and its partnerships with other retail outlets to maximize overall revenue. Despite global economic headwinds, Sherwin-Williams has growth prospects -- even if its dividend hasn't kept up with its share price.</p>
<p>Dividend Aristocrats are often strong stocks, but with some, current yields can leave something to be desired. If you're strictly looking for maximum income from dividends, then Sherwin-Williams, Cintas, and C.R. Bard aren't the ideal Dividend Aristocrats for your portfolio.</p>
<p>The article <a href="http://www.fool.com/investing/2016/06/22/the-3-worst-dividend-aristocrats-for-income-hungry.aspx" type="external">The 3 Worst Dividend Aristocrats for Income-Hungry Investors Opens a New Window.</a> originally appeared on Fool.com.</p>
<p><a href="http://my.fool.com/profile/TMFGalagan/info.aspx?source=eptfxblnk0000004" type="external">Dan Caplinger Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool recommends Cintas and Sherwin-Williams. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=eptfxblnk0000004" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://wiki.fool.com/Motley?source=eptfxblnk0000004" type="external">considering a diverse range of insights Opens a New Window.</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?source=eptfxblnk0000004" type="external">disclosure policy Opens a New Window.</a>.</p>
<p>Copyright 1995 - 2016 The Motley Fool, LLC. All rights reserved. The Motley Fool has a <a href="http://www.fool.com/help/index.htm?display=about02" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | image source getty images continue reading investors appreciate value dividend income many people look closely list dividend aristocrats guide decisionmaking stocks buy portfolios simply copy dividend aristocrats list however know stock dividend aristocrat doesnt mean meet needs income investor particular many people dont realize becoming dividend aristocrat nothing much dividend stock pays lead surprising results look closely list order become member dividend aristocrats stock develop long track record successfully growing dividend time threshold membership 25 straight years higher dividend payments roughly 50 dividend aristocrats sampp 500 year new stocks meet requirements get added list failed sustain dividendincrease streaks eliminated problem dividend aristocrats theres minimum dividend yield requirement long company boosted payout relative size payout isnt important purposes membership three stocks youll see extremely low dividend yields doesnt mean theyre terrible stocks overall make unsuitable income investors want concentrate getting aboveaverage levels income investment portfolios advertisement worstyielding dividend aristocrat far cr bard medical instrument maker dividend yield less 05 less half yield nextlowest dividend aristocrats even low yield though bard long 45year track record increasing payout thats enough get list fundamentally however bard plenty earnings power produced doubledigit returns long haul shareholders instance recent quarterly results bard said expects fullyear earnings excess 10 per share light even justboosted 026 per share quarterly payout bard makes amounts barely 10 companys earnings retained profits driven success terms capital appreciation producing average annual total returns 15 since 1996 bard great investment even worst dividend aristocrat terms dividend yield next uniform specialist cintas company pays annual dividend recent 105 per share distribution last november represents 11 yield current prices fair boost represented 20 jump last years regular dividend accelerating used minimal annual increases satisfy dividend aristocrat requirements company 33year history delivering rising dividends investors cintas recovering job market helped power results companys ready workday branding campaign cintas hopes grow every aspect business ranging wellknown uniform offerings first aid safety fireprotection equipment average 20year returns 10 arent quite attractive aristocrats understanding cintas pays less fifth earnings form dividends shows income investors arent getting everything uniform specialist could afford pay points toward potential longterm shareprice growth finally sherwinwilliams long history dividend aristocrat 38 years consecutive annual dividend increases yet paint specialists yield less 12 making income investors feel like sherwinwilliams doesnt get job done income standpoint cr bard sherwinwilliams put strong total returns excess 15 past 20 years 30 years however sherwinwilliams pays larger proportion earnings dividends payout ratio approaching 30 company seeking expand acquisition rival valspar sherwinwilliams hopes able accelerate organic growth take full advantage paintstore sales partnerships retail outlets maximize overall revenue despite global economic headwinds sherwinwilliams growth prospects even dividend hasnt kept share price dividend aristocrats often strong stocks current yields leave something desired youre strictly looking maximum income dividends sherwinwilliams cintas cr bard arent ideal dividend aristocrats portfolio article 3 worst dividend aristocrats incomehungry investors opens new window originally appeared foolcom dan caplinger opens new window position stocks mentioned motley fool recommends cintas sherwinwilliams try foolish newsletter services free 30 days opens new window fools may hold opinions believe considering diverse range insights opens new window makes us better investors motley fool disclosure policy opens new window copyright 1995 2016 motley fool llc rights reserved motley fool disclosure policy opens new window | 539 |
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<p>Back in December, a Reuters <a href="http://www.reuters.com/investigates/special-report/college-charities/" type="external">report Opens a New Window.</a> surfaced claiming that New Oriental Education (NYSE: EDU) had engaged in fraud by having teachers and tutors complete college application materials for students.The stock dipped 14% on the news. While the allegations are certainly alarming, most of it is just noise: Years ago, New Oriental pivoted from the test prep business for students who wanted to study abroad to the after-school tutoring business for K-12 students.</p>
<p>Continue Reading Below</p>
<p>Keeping that crucial distinction in mind is important, because as far as what is now the "core" business goes, the company's earnings release this past week was glowing with good news.</p>
<p>Image source: Getty Images.</p>
<p>I'll dive into what made the quarter such a great one below, but first, let's look at the headline numbers the company reported</p>
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<p>Data source: New Oriental.</p>
<p>It's important to note that while the 23% bump in revenue was impressive, it would have been even better if not for currency headwinds. In local currencies, the company's sales were up 30.2%. Either way, this came in well ahead of expectations set by management last quarter -- as it predicted a top-end revenue figure of $335 million.</p>
<p>But when it comes to education companies -- which <a href="http://my.fool.com/profile/TMFCheesehead/info.aspx" type="external">I have been Opens a New Window.</a> very wary of over the years I have been covering them for The Motley Fool -- nothing is more important than enrollment numbers. It is here where we can get a true feeling for where the company is headed and what kind of value it might be adding for its students.</p>
<p>And on this front, New Oriental is performing exceptionally well: Enrollment in the company's programs -- the controversial test prep and the core tutoring programs -- was up 56% from the same period in 2015. The full roster count ended at 1,312,300 students.</p>
<p>Let's put this in context: In one year's time, New Oriental grew its enrollments by adding over 470,000 new students.</p>
<p>It's worth looking at where that growth came from. The company had a total of 789 learning centers and schools throughout China at the end of the quarter, up from 720 the year before. Clearly, added capacity helped.</p>
<p>But that's not all. Enrollment in the company's after-school programs was up 78%, while revenue increased 45%. Some might be concerned about long-term discounting when revenue growth can't keep pace with enrollment growth. I, however, don't think it's anything to worry about. The company offers steep discounts to new students to get them entered into the system. After families test run New Oriental's schools, they have the choice of taking their children out or continuing to enroll them while paying full fees. I think that's a smart long-term strategy to win over students and their parents.</p>
<p>Chairman and founder Michael Yu touted the results in the company's press release, saying,"We are experiencing increased student satisfaction as we bring together the best learning experiences to help students achieve more, which in turn boosts retention rate and new student enrollment and also contributes to strengthening our brand reputation."</p>
<p>He's basically hitting all the points that are helping the company build its sustainable competitive advantage. And that widening moat has many facets.</p>
<p>First, the company has the advantage of scale. As it grows ever larger, some of the overhead costs -- like teacher payment systems, software, and technology -- will eat up less and less of the revenue brought in.</p>
<p>Second, with each new location, the company is building a stronger brand. Admittedly, that brand is only as powerful as the instruction each local school provides. And this can work both ways. If evidence of fraud popped up in the tutoring programs, serious questions might be raised about the strength of the brand. But for the time being, this is an advantage for the company.</p>
<p>And finally, it has a very unique form of high switching costs. Students become accustomed to the physical locations, teachers, and classmates at these locations, and parents know that switching kids out of a tutoring program can create real headaches. Schools have a personal touch in that respect, and -- if executed with care -- this can provide an additional advantage for New Oriental.</p>
<p>Looking forward to the next quarter, management expects revenue to come in between $409 million and $422 million. That represents 18% to 22% growth in dollars and an even more impressive 25% to 29% growth in local currencies.</p>
<p>Even with positive business momentum, shares are trading hands for only 15 times trailing free cash flow.</p>
<p>10 stocks we like better than New Oriental Education &amp; Technology Group When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*</p>
<p>David and Tom just revealed what they believe are the <a href="http://infotron.fool.com/infotrack/click?url=http%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=bd976fb2-a898-490d-924f-0d4635a25616&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now... and New Oriental Education &amp; Technology Group wasn't one of them! That's right -- they think these 10 stocks are even better buys.</p>
<p><a href="http://infotron.fool.com/infotrack/click?url=http%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=bd976fb2-a898-490d-924f-0d4635a25616&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Click here Opens a New Window.</a> to learn about these picks!</p>
<p>*Stock Advisor returns as of January 4, 2017</p>
<p><a href="http://my.fool.com/profile/TMFCheesehead/info.aspx" type="external">Brian Stoffel</a> has no position in any stocks mentioned. The Motley Fool recommends New Oriental Education &amp; Technology Group. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | back december reuters report opens new window surfaced claiming new oriental education nyse edu engaged fraud teachers tutors complete college application materials studentsthe stock dipped 14 news allegations certainly alarming noise years ago new oriental pivoted test prep business students wanted study abroad afterschool tutoring business k12 students continue reading keeping crucial distinction mind important far core business goes companys earnings release past week glowing good news image source getty images ill dive made quarter great one first lets look headline numbers company reported advertisement data source new oriental important note 23 bump revenue impressive would even better currency headwinds local currencies companys sales 302 either way came well ahead expectations set management last quarter predicted topend revenue figure 335 million comes education companies opens new window wary years covering motley fool nothing important enrollment numbers get true feeling company headed kind value might adding students front new oriental performing exceptionally well enrollment companys programs controversial test prep core tutoring programs 56 period 2015 full roster count ended 1312300 students lets put context one years time new oriental grew enrollments adding 470000 new students worth looking growth came company total 789 learning centers schools throughout china end quarter 720 year clearly added capacity helped thats enrollment companys afterschool programs 78 revenue increased 45 might concerned longterm discounting revenue growth cant keep pace enrollment growth however dont think anything worry company offers steep discounts new students get entered system families test run new orientals schools choice taking children continuing enroll paying full fees think thats smart longterm strategy win students parents chairman founder michael yu touted results companys press release sayingwe experiencing increased student satisfaction bring together best learning experiences help students achieve turn boosts retention rate new student enrollment also contributes strengthening brand reputation hes basically hitting points helping company build sustainable competitive advantage widening moat many facets first company advantage scale grows ever larger overhead costs like teacher payment systems software technology eat less less revenue brought second new location company building stronger brand admittedly brand powerful instruction local school provides work ways evidence fraud popped tutoring programs serious questions might raised strength brand time advantage company finally unique form high switching costs students become accustomed physical locations teachers classmates locations parents know switching kids tutoring program create real headaches schools personal touch respect executed care provide additional advantage new oriental looking forward next quarter management expects revenue come 409 million 422 million represents 18 22 growth dollars even impressive 25 29 growth local currencies even positive business momentum shares trading hands 15 times trailing free cash flow 10 stocks like better new oriental education amp technology group investing geniuses david tom gardner stock tip pay listen newsletter run decade motley fool stock advisor tripled market david tom revealed believe 10 best stocks opens new window investors buy right new oriental education amp technology group wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns january 4 2017 brian stoffel position stocks mentioned motley fool recommends new oriental education amp technology group motley fool disclosure policy opens new window | 519 |
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<p>RUSH: You know, I meant to mention this yesterday. Let me mention it now and get it out of the way, because this video has gone viral. It reminds me, I got another email today when the president and his entourage arrived via helicopter at the tarmac in Tel Aviv to split for Rome, the helicopter doors open and the president was the first out. The email said, “This guy… You know, after yesterday, I would think this guy would know better! He doesn’t let his wife get off first!</p>
<p>“He storms out, says, ‘Look at me, look at me,’ and his wife comes out meekly a little bit later. It’s unreal the way Trump treats his wife.” I said, “I’d better address this.” Ladies and gentlemen, there is a protocol rule that the president of the United States is always the first through any doorway, including wives, spouses, mistresses, daughters, any other women. The president goes through every doorway first. You know who told me this? Trump! You know how I know this? It’s because he was apologizing for going before my wife through a doorway one day.</p>
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<p>He said, “It’s a rule. Presidents have to go through the door first.” I looked into it, and I found out it’s true. It is official presidential protocol. There are reasons for it. (sigh) I don’t have enough time to get into them now, but there’s a reason why presidents are first through any door, particularly in public. The president’s the first off Air Force One, the first off the helicopter. Now, the reference to, “After what Trump did yesterday with Melania, I don’t think he should ever be the first off! He should always show deference to her!”</p>
<p>They’re walking on a red carpet. They just arrived somewhere. I don’t know where this was. They’d arrived… Maybe it… (interruption) Was it Israel? It wasn’t Saudi Arabia. Okay, so they’d arrived in Israel, and Melania is trailing Trump on his left side and catches up and he reaches back, and she touches his hand and draws even with him, and then they continue on to wherever they were going. When this video happened, I first saw it on one of my tech blogs filled with obscenities about what a reprobate Trump is.</p>
<p>“Now his marriage is falling apart! Now his wife doesn’t respect him. Look what she did! She slapped his hand away. I mean, right there in Israel when the world’s cameras are on him, she just slapped his hand away!” That’s not what happened. (interruption) Is that what you think happened? She did not! It did not… That is not what happened. He was reaching back to make sure… (interruption) She’s in heels! Everybody’s moving past. He reached back to make sure she was there, and she gave what was the equivalent of a fist bump. He reaches back, “Are you there?”</p>
<p>She touches his hand to let him know she’s there; everything’s fine. She did not slap his hand away. It was a modified fist bump. My wife hates fist bumps. When I give her a fist bump, you know, she kind of slaps my hand away. She’s not slapping my hand away; she’s doing a fist bump without making a fist. That’s what that was! Do not doubt me. There is no way that that’s what happened. But the anti-Trump corps wants to make it look like, “Everybody hates Trump, including his wife, who knows what a pig he is and who knows what a reprobate he is.</p>
<p><a href="" type="internal" />“Here he was reaching back, trying to drag her along because she wasn’t keeping up — because she doesn’t want to be there because she’s smart enough to know she should never be anywhere with Trump because Trump’s a pig — and she was lagging behind! He reached back to yank her forward like a caveman, and she slapped his hand away.” That’s not what happened. If you look at it and if you know these two (as I happen to) he’s reaching back. Presidents also walk ahead of everybody else, including going through doors first.</p>
<p>And if you paid attention to other video on this trip, you would have seen evidence of that. She’s either a full yard and a half behind or a step or two. It’s the protocol. But that was not her slapping his hand away. But it has gone viral, and that’s what everybody thinks it was, because — and look at what they’re imagining. “Yeah, he’s just a PIG! She regrets marrying the guy, and she wanted to publicly humiliate him for all of us! She knows he’s hated, and she knows it’s justified. She was doing it for us.” I mean, some of the stuff that’s out there? I’m tired of the insanity. I’m tired of it.</p>
<p>BREAK TRANSCRIPT</p>
<p>RUSH: Right there. There’s Trump holding Melania’s hand off the helicopter in Tel Aviv today, walking to Air Force One to leave. You people… You are just full of it out there. Stupid. (impression) “She’s slapping his hand away! She knows he’s a pig. Ew! I would too.” That’s exactly how you sounded. (interruption) That’s exactly how you sounded!</p>
<p>BREAK TRANSCRIPT</p>
<p>RUSH: Here’s Felicia in Tulsa. Felicia, I’m glad you called. Great to have you here. Hello.</p>
<p>CALLER: Thank you, Mr. Limbaugh. May I call you Rush?</p>
<p>RUSH: Sure! Absolutely.</p>
<p>CALLER: Oh, absolutely, sir. This is an honor. I know you know that I know this is an honor to talk to you. (chuckles) So what I was calling in about was everybody’s making a big deal about how Trump is treating Melania. But nobody said anything about Obama completely ignoring and not acknowledging Michelle when he won the Illinois state Senate seat.</p>
<p>RUSH: Oh, no, you know what it was? Felicia, you’re exactly right. I’ll tell you what this was. Oh, my gosh, this is exactly… I remember commenting on this the next day. This was, I think, the 2004 Democrat convention, and Obama was the keynote speaker. He was the guy the Democrats wanted to showcase for the future, and they had Michelle (My Belle) introduce him., and she just did a bang-up job.</p>
<p>I mean, she made it sound like this is the only man on earth anybody ought to like, look at, pay attention to. She made herself sound like the luckiest woman on earth to have had his babies (and what had to happen for that to happen). She made it sound like this guy was the closest thing to divinity on earth. She just went on and on and on. She kept referring to, “My man! My hero! My one and only! Barack Obama,” and he walked out and ignored her. I will never forget it.</p>
<p>This was one of the best introductions of anybody I have ever seen, and he flat-out walked out there, and it was as though the Chamber of Commerce had introduced him and the person was off the stage. She was still on the stage, and when he spoke, he barely even referenced her. (impression) “Thank you, Michelle. I appreciate that.” And I said, “My God, this guy expected it. He probably wrote it!” I thought it was one of the greatest disconnects I had ever seen. I’m not kidding you, folks.</p> | true | 0 | rush know meant mention yesterday let mention get way video gone viral reminds got another email today president entourage arrived via helicopter tarmac tel aviv split rome helicopter doors open president first email said guy know yesterday would think guy would know better doesnt let wife get first storms says look look wife comes meekly little bit later unreal way trump treats wife said id better address ladies gentlemen protocol rule president united states always first doorway including wives spouses mistresses daughters women president goes every doorway first know told trump know know apologizing going wife doorway one day said rule presidents go door first looked found true official presidential protocol reasons sigh dont enough time get theres reason presidents first door particularly public presidents first air force one first helicopter reference trump yesterday melania dont think ever first always show deference theyre walking red carpet arrived somewhere dont know theyd arrived maybe interruption israel wasnt saudi arabia okay theyd arrived israel melania trailing trump left side catches reaches back touches hand draws even continue wherever going video happened first saw one tech blogs filled obscenities reprobate trump marriage falling apart wife doesnt respect look slapped hand away mean right israel worlds cameras slapped hand away thats happened interruption think happened happened reaching back make sure interruption shes heels everybodys moving past reached back make sure gave equivalent fist bump reaches back touches hand let know shes everythings fine slap hand away modified fist bump wife hates fist bumps give fist bump know kind slaps hand away shes slapping hand away shes fist bump without making fist thats doubt way thats happened antitrump corps wants make look like everybody hates trump including wife knows pig knows reprobate reaching back trying drag along wasnt keeping doesnt want shes smart enough know never anywhere trump trumps pig lagging behind reached back yank forward like caveman slapped hand away thats happened look know two happen hes reaching back presidents also walk ahead everybody else including going doors first paid attention video trip would seen evidence shes either full yard half behind step two protocol slapping hand away gone viral thats everybody thinks look theyre imagining yeah hes pig regrets marrying guy wanted publicly humiliate us knows hes hated knows justified us mean stuff thats im tired insanity im tired break transcript rush right theres trump holding melanias hand helicopter tel aviv today walking air force one leave people full stupid impression shes slapping hand away knows hes pig ew would thats exactly sounded interruption thats exactly sounded break transcript rush heres felicia tulsa felicia im glad called great hello caller thank mr limbaugh may call rush rush sure absolutely caller oh absolutely sir honor know know know honor talk chuckles calling everybodys making big deal trump treating melania nobody said anything obama completely ignoring acknowledging michelle illinois state senate seat rush oh know felicia youre exactly right ill tell oh gosh exactly remember commenting next day think 2004 democrat convention obama keynote speaker guy democrats wanted showcase future michelle belle introduce bangup job mean made sound like man earth anybody ought like look pay attention made sound like luckiest woman earth babies happen happen made sound like guy closest thing divinity earth went kept referring man hero one barack obama walked ignored never forget one best introductions anybody ever seen flatout walked though chamber commerce introduced person stage still stage spoke barely even referenced impression thank michelle appreciate said god guy expected probably wrote thought one greatest disconnects ever seen im kidding folks | 590 |
<p>Solar energy is taking the world by storm, and that's created an opportunity that could be <a href="https://www.fool.com/investing/2017/05/27/solar-energys-potential-28-trillion-prize.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=cdd04740-b81f-11e7-b78d-0050569d32b9&amp;utm_source=foxbusiness" type="external">worth trillions of dollars to investors Opens a New Window.</a>. But with panel prices plunging and fierce competition among installers, there hasn't been a lot of value generated by the companies who you would think are at the forefront of the industry.</p>
<p>One area that has generated value comprises inverters, the device that turns direct current (DC) electricity from a solar panel into the alternating (AC) current the grid uses today. Here's a look at why these devices are so powerful in the industry and who to watch in the future.</p>
<p>Continue Reading Below</p>
<p>The inverter is where DC power from solar systems large and small are collected and turned into the AC current the grid can use. In that respect, it's essentially the brains of the solar system.</p>
<p>For utility-scale solar systems, the inverter acts as a hub before power is sent to the grid. Big electric infrastructure players like General Electric, Schneider Electric, and ABB&#160;have built large inverter businesses, but solar inverters are a small percentage of their overall sales and none of them are market leaders. According to GTM Research, that title belongs to Huawei and Sungrow, which are Chinese suppliers and rely on their home market for most of their demand.</p>
<p>On the distributed side of the market -- which includes residential and commercial solar systems -- SolarEdge (NASDAQ: SEDG), ABB's products from the acquisition of PowerOne, and Enphase Energy (NASDAQ: ENPH) are the three biggest suppliers that are publicly traded. They play a key role in the operation of solar energy systems around the world. They'll often be the interface customers use when they monitor their solar systems and they are the point at which energy is sent to devices in the&#160;home or business or sent back to the meter and then the electric grid.</p>
<p>The fact that the inverter acts as the brains of a solar system helps commoditize the other components, as you can see in the net income chart below.</p>
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<p>It doesn't matter if a Canadian Solar, Trina Solar, or SunPower (NASDAQ: SPWR) module is connected to a SolarEdge inverter, so it makes the panel itself less important in any given solar installations. Once an inverter manufacturer has a product or platform that becomes popular, it can tap into the installer market. After all, it's the installers that make the decisions as to which components they want to use for any particular job.&#160;That's why inverters hold the power they do today.</p>
<p>To combat their weak strategic position in the solar installation, some manufacturers have tried to develop their own inverter solutions and tie them to panel sales. SunPower is one of the most notable doing this with its X-Series panels that include micro-inverters attached directly to the panel. In both commercial and residential applications, these panels are part of fully engineered solutions called Helix and Equinox, respectively, allowing SunPower to hold the power of the panel and inverter supplier.</p>
<p>In larger-scale systems, panel makers are moving to vertically integrate as well. First Solar's (NASDAQ: FSLR) Series 6 module is part of what it calls a "medium voltage DC Plant architecture," which includes panels, inverters, and even energy storage.</p>
<p>This is a relatively new strategy, but it may be successful in moving the power in solar to vertically integrated manufacturers, especially if energy storage becomes a bigger part of the industry.</p>
<p>As the solar industry grew over the past decade, installers would piece together the components they needed. One solar panel didn't work better with an inverter or racking, so why not just choose what has the&#160;lowest cost with the capabilities needed to make a sale?</p>
<p>But the solar industry is moving toward more solar plus storage applications as residential and commercial customers face <a href="https://www.fool.com/investing/2017/09/23/why-energy-storage-will-be-a-boon-for-residential.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=cdd04740-b81f-11e7-b78d-0050569d32b9&amp;utm_source=foxbusiness" type="external">lower net metering rates that give them an incentive to use more Opens a New Window.</a> of their energy production on-site. As a result, everyone from installers to solar module manufacturers are moving to become the "brains" of the solar system. I mentioned SunPower's offerings and Sunrun (NASDAQ: RUN) and Vivint Solar (NYSE: VSLR) are moving to control the energy storage system and inverter through their own developments or partnerships.</p>
<p>If customers and suppliers have an incentive to develop their own control solutions that include energy storage, they could reduce the power and profitability of inverter manufacturers. SolarEdge and Enphase Energy are trying to hold their positions by developing their own storage solutions, but they're not vertically integrated so they'll face a new level of competition as energy storage grows.</p>
<p>Solar inverters have been where a lot of the investor value has been generated over the past decade, but that may not be true for the next decade. I think we'll see more vertically integrated offerings like what First Solar and SunPower are launching, selling directly to installers and pushing out other inverter manufacturers. Current inverter manufacturers may need to move upstream into panel manufacturing to keep up or develop partnerships with other manufacturers.</p>
<p>10 stocks we like better than First SolarWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*</p>
<p>David and Tom just revealed what they believe are the <a href="http://infotron.fool.com/infotrack/click?url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-static%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=ee24869c-c964-4619-900b-edabbabc77a2&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=cdd04740-b81f-11e7-b78d-0050569d32b9&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now... and First Solar wasn't one of them! That's right -- they think these 10 stocks are even better buys.</p>
<p><a href="http://infotron.fool.com/infotrack/click?url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-static%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=ee24869c-c964-4619-900b-edabbabc77a2&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=cdd04740-b81f-11e7-b78d-0050569d32b9&amp;utm_source=foxbusiness" type="external">Click here Opens a New Window.</a> to learn about these picks!</p>
<p>*Stock Advisor returns as of October 9, 2017</p>
<p><a href="http://my.fool.com/profile/TMFFlushDraw/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=cdd04740-b81f-11e7-b78d-0050569d32b9&amp;utm_source=foxbusiness" type="external">Travis Hoium Opens a New Window.</a> owns shares of First Solar, General Electric, and SunPower. The Motley Fool recommends First Solar. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=cdd04740-b81f-11e7-b78d-0050569d32b9&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | solar energy taking world storm thats created opportunity could worth trillions dollars investors opens new window panel prices plunging fierce competition among installers hasnt lot value generated companies would think forefront industry one area generated value comprises inverters device turns direct current dc electricity solar panel alternating ac current grid uses today heres look devices powerful industry watch future continue reading inverter dc power solar systems large small collected turned ac current grid use respect essentially brains solar system utilityscale solar systems inverter acts hub power sent grid big electric infrastructure players like general electric schneider electric abb160have built large inverter businesses solar inverters small percentage overall sales none market leaders according gtm research title belongs huawei sungrow chinese suppliers rely home market demand distributed side market includes residential commercial solar systems solaredge nasdaq sedg abbs products acquisition powerone enphase energy nasdaq enph three biggest suppliers publicly traded play key role operation solar energy systems around world theyll often interface customers use monitor solar systems point energy sent devices the160home business sent back meter electric grid fact inverter acts brains solar system helps commoditize components see net income chart advertisement doesnt matter canadian solar trina solar sunpower nasdaq spwr module connected solaredge inverter makes panel less important given solar installations inverter manufacturer product platform becomes popular tap installer market installers make decisions components want use particular job160thats inverters hold power today combat weak strategic position solar installation manufacturers tried develop inverter solutions tie panel sales sunpower one notable xseries panels include microinverters attached directly panel commercial residential applications panels part fully engineered solutions called helix equinox respectively allowing sunpower hold power panel inverter supplier largerscale systems panel makers moving vertically integrate well first solars nasdaq fslr series 6 module part calls medium voltage dc plant architecture includes panels inverters even energy storage relatively new strategy may successful moving power solar vertically integrated manufacturers especially energy storage becomes bigger part industry solar industry grew past decade installers would piece together components needed one solar panel didnt work better inverter racking choose the160lowest cost capabilities needed make sale solar industry moving toward solar plus storage applications residential commercial customers face lower net metering rates give incentive use opens new window energy production onsite result everyone installers solar module manufacturers moving become brains solar system mentioned sunpowers offerings sunrun nasdaq run vivint solar nyse vslr moving control energy storage system inverter developments partnerships customers suppliers incentive develop control solutions include energy storage could reduce power profitability inverter manufacturers solaredge enphase energy trying hold positions developing storage solutions theyre vertically integrated theyll face new level competition energy storage grows solar inverters lot investor value generated past decade may true next decade think well see vertically integrated offerings like first solar sunpower launching selling directly installers pushing inverter manufacturers current inverter manufacturers may need move upstream panel manufacturing keep develop partnerships manufacturers 10 stocks like better first solarwhen investing geniuses david tom gardner stock tip pay listen newsletter run decade motley fool stock advisor tripled market david tom revealed believe 10 best stocks opens new window investors buy right first solar wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns october 9 2017 travis hoium opens new window owns shares first solar general electric sunpower motley fool recommends first solar motley fool disclosure policy opens new window | 562 |
<p>When it comes to entertainers, there’s a common expression: “Shut up and sing.” The meaning, of course, is if we want a political diatribe we’ll flip to Chris Matthews or Rush Limbaugh. What we want from performers is to show us your stuff in the arena for which your talents are well-known. You write gripping homages to life in the grittier parts of the Jersey Shore? Cool. Sing Rosalita. You’re a gifted actor? Wonderful, dazzle us with your perfectly nuanced Sophie Zawitowski. You write best-sellers? Great. Tell us all about Hogwarts.</p>
<p>And … if you play football and are the seventeenth-best quarterback in the NFL, as Gerald Griggs of the Atlanta NAACP reminded Tucker Carlson last week seven times in a five-minute segment, then excel for us on the gridiron.</p>
<p>Now, I’m not so sure I fall totally in line with this court jester view of our contemporary artists and sportsman. They’re human beings — sometimes thoughtful, if often misguided — who have every right to think about the world and express their views accordingly, no doubt aware of their unusually visible podium from which to project their opinions. But putting yourself out there beyond the realm of why you’re famous in the first place comes with risks. To force throngs of strangers to endure your political point of view, but then deny them the right to react as they see fit should they find them objectionable, is misguided and arrogant.</p>
<p>Those who support Colin Kaepernick and insist that, simply by virtue of talent alone, he must be given work in the NFL fail to understand the nature of the beast. The NFL is not a sports business per se. It’s an entertainment business, whose brand of entertainment is pro football. It’s a model that relies on viewership and attendance to generate advertising and merchandising dollars and result in marketing/licensing deals. Without fans, it has no business. Thus the owners search out and hire top athletes so satisfied customers will consume their product.</p>
<p>In other words, the athletes are a simply a means to an end.</p>
<p>No matter how good a player, if you’re more of a repellent than attractant to the league’s customer base, you become a liability. Your talents are negated. There is no God-given right to play professional sports just because you’re very good at it. When you suit up you become part of a business concern, and your job is ultimately to display your talents on the field to prompt people to tune in … not tune out as Kaepernick has done. The NAACP fails to understand this. Or maybe they do, but the corporate charter of Shake-Downs “R” US (a wholly-owned subsidiary of Grievance, Inc.) requires they take up the cause. They, too, have a franchise to protect.</p>
<p>Maybe the NAACP should consider this analogy: Imagine you’re running an auto-repair shop. You employ one particular mechanic who’s gifted with engines. But he also routinely insults your customers. Suddenly you notice your business is sagging and your patrons tell you point blank that, yes your man did a great job on their transmissions, but the guy’s constant bitching about being mistreated — even as he makes more money in one year than most of your clientele will earn in a lifetime of hard work — is just so obnoxious and off-putting that they won’t come to the shop anymore. So, what do you do? Does this mechanic have a civil right to work for you simply because he’s very good with engines?</p>
<p>Personally, I don’t care about Colin Kaepernick’s politics one way or the other. I have my opinions, of course, but to me this story isn’t really about melanin count so much as business. I will say if some are trying to raise awareness of racial injustice, I think a more sympathetic poster-child for oppression courtesy of The Man might be in order. Kaepernick is 29, has no Super Bowl rings, and yet was paid $19 million per year by the Forty-Niners — which is a member of a league whose players are 70% African-American. Yet NAACP activists are now accusing the NFL of racism because that same quarterback took their traditionally apolitical and escapist product and tried to turn it into the 1968 Olympic Games. As Meryl Streep so smugly reminded us a while back, people who watch pro football usually tend to lean to the right of Che Guevara. And even if they don’t, they tune in to be entertained, to forget their troubles for a while, not lectured to by a twenty-something who’s been so oppressed he has enough money to change the weather.</p>
<p>When confronted with Kaepernick’s swollen bankbook, Mr. Griggs shifted the topic to the broader issue of lack of Black ownership in the NFL as evidence of the league’s inherent racism. But is it really conscious bigotry at work here or does it have more to do with indifferent economics and the reality of the cost of owning a professional sports franchise in 2017? My guess is green is the only color one needs to get a seat at the table — one whose lofty entrance fees is the exclusive domain of the uber-rich these days. Scan the latest Forbes 400 and tell me how many African-Americans you find. Therein lies part of the answer.</p>
<p>One can reasonably expect that as top athletes today are paid far more than their predecessors, some more than most CEOs, owners of color — familiar and respected members of the firm who paid their dues on the field — will emerge as they cobble together the ungodly sums to buy into such billion-dollar enterprises. Still, if the NAACP is impatient to see proportionate racial representation in the NFL now, then perhaps they would be open to whittling down the player rosters to be in-line with the nation’s 13% African-American population to properly reflect demographics, in return for four black owners among 32 teams? Food for thought, but I digress.</p>
<p>What Kaepernick supporters need to get their heads around is the NFL is a company. If a member of its staff fails to draw in patrons and instead turns them away — in short, fails to do the job he’s been hired to do — then that organization’s owners have every right to say, yes, you throw a wicked spiral, but a cost/benefit analysis leads us to conclude that your services are no longer required. The Bill of Rights codifies many rights. But the right to play professional football and earn tens of millions in the process is not one of them. As far as Colin Kaepernick’s continued unemployment goes, this is not a civil rights matter at all. It’s a business decision.</p>
<p>Ah, don’t worry, football fans. I think the game will survive, even without the contributions of a malcontent seventeenth-best quarterback in the league, already on the down-slope of his career.</p> | true | 0 | comes entertainers theres common expression shut sing meaning course want political diatribe well flip chris matthews rush limbaugh want performers show us stuff arena talents wellknown write gripping homages life grittier parts jersey shore cool sing rosalita youre gifted actor wonderful dazzle us perfectly nuanced sophie zawitowski write bestsellers great tell us hogwarts play football seventeenthbest quarterback nfl gerald griggs atlanta naacp reminded tucker carlson last week seven times fiveminute segment excel us gridiron im sure fall totally line court jester view contemporary artists sportsman theyre human beings sometimes thoughtful often misguided every right think world express views accordingly doubt aware unusually visible podium project opinions putting beyond realm youre famous first place comes risks force throngs strangers endure political point view deny right react see fit find objectionable misguided arrogant support colin kaepernick insist simply virtue talent alone must given work nfl fail understand nature beast nfl sports business per se entertainment business whose brand entertainment pro football model relies viewership attendance generate advertising merchandising dollars result marketinglicensing deals without fans business thus owners search hire top athletes satisfied customers consume product words athletes simply means end matter good player youre repellent attractant leagues customer base become liability talents negated godgiven right play professional sports youre good suit become part business concern job ultimately display talents field prompt people tune tune kaepernick done naacp fails understand maybe corporate charter shakedowns r us whollyowned subsidiary grievance inc requires take cause franchise protect maybe naacp consider analogy imagine youre running autorepair shop employ one particular mechanic whos gifted engines also routinely insults customers suddenly notice business sagging patrons tell point blank yes man great job transmissions guys constant bitching mistreated even makes money one year clientele earn lifetime hard work obnoxious offputting wont come shop anymore mechanic civil right work simply hes good engines personally dont care colin kaepernicks politics one way opinions course story isnt really melanin count much business say trying raise awareness racial injustice think sympathetic posterchild oppression courtesy man might order kaepernick 29 super bowl rings yet paid 19 million per year fortyniners member league whose players 70 africanamerican yet naacp activists accusing nfl racism quarterback took traditionally apolitical escapist product tried turn 1968 olympic games meryl streep smugly reminded us back people watch pro football usually tend lean right che guevara even dont tune entertained forget troubles lectured twentysomething whos oppressed enough money change weather confronted kaepernicks swollen bankbook mr griggs shifted topic broader issue lack black ownership nfl evidence leagues inherent racism really conscious bigotry work indifferent economics reality cost owning professional sports franchise 2017 guess green color one needs get seat table one whose lofty entrance fees exclusive domain uberrich days scan latest forbes 400 tell many africanamericans find therein lies part answer one reasonably expect top athletes today paid far predecessors ceos owners color familiar respected members firm paid dues field emerge cobble together ungodly sums buy billiondollar enterprises still naacp impatient see proportionate racial representation nfl perhaps would open whittling player rosters inline nations 13 africanamerican population properly reflect demographics return four black owners among 32 teams food thought digress kaepernick supporters need get heads around nfl company member staff fails draw patrons instead turns away short fails job hes hired organizations owners every right say yes throw wicked spiral costbenefit analysis leads us conclude services longer required bill rights codifies many rights right play professional football earn tens millions process one far colin kaepernicks continued unemployment goes civil rights matter business decision ah dont worry football fans think game survive even without contributions malcontent seventeenthbest quarterback league already downslope career | 599 |
<p>Canadian oil sands giant Suncor Energy (NYSE: SU) doesn't get the credit it deserves. The company is on pace to expand output by a 10% compound annual rate per share through 2019. That's remarkable growth for a company of its size and compares favorably to shale drillers, which grab most of the headlines these days because of how fast they can increase output.</p>
<p>That said, when we dig into how Suncor compares to some of the top shale drillers, it becomes evident that the company is actually a better growth stock than that group. Here are two reasons why that's the case.</p>
<p>Continue Reading Below</p>
<p>One thing that sets Suncor Energy apart from most shale drillers is its stable production profile due to the nature of oil sands assets. Once Suncor Energy brings an&#160;oil sands asset on line, that facility will deliver a relatively steady pace of production for years to come. For example, after taking a year to ramp up, the company's upcoming Fort Hills mine should produce an average of 194,000 barrels per day for the next 50 years.</p>
<p>Contrast this with tight oil wells from shale drillers, which peak within the first year and then decline at a rapid pace after that and often stop producing altogether within a couple of decades. Because of this, shale producers need to continually drill more wells to replace the declining and depleting production of legacy wells.</p>
<p>Because the bulk of Suncor Energy's production consists of low-decline oil sands assets, it has consistently generated free cash flow on every barrel it produces since these assets require minimal capital to keep the oil flowing. Contrast that with leading shale drillers Cimarex Energy (NYSE: XEC), Continental Resources (NYSE: CLR), Pioneer Natural Resources (NYSE: PXD), and EOG Resources (NYSE: EOG), which as the chart on the left-hand side of the following slide shows, have been heavy cash consumers:</p>
<p>Suncor Energy's ability to consistently generate excess cash flow has allowed it to continue growing production during the recent oil market downturn -- not to mention paying dividends and buying back stock -- while most of those shale-focused rivals have not. For example, Continental Resources' production fell from 221,715 barrels of oil equivalent per day (BOE/d) in 2015 to 216,912 BOE/d last year because it didn't generate the cash flow needed to drill enough new wells so it could maintain its production rate. Likewise, Cimarex' production fell last year by an average of 2% from 2015's average because it couldn't keep up with the decline rate. Even output at the mighty EOG Resources fell last year, going from 572,200 BOE/d in 2015 to an average rate of 560,000 BOE/d in 2016 due to underinvestment. Of that quartet, only Pioneer Natural Resources managed to boost output last year, though it outspent cash flow to do so.</p>
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<p>Meanwhile, Suncor Energy's ability to generate free cash flow should increase over the next year even if oil prices don't because it's <a href="https://www.fool.com/investing/2017/07/17/heres-why-the-best-is-yet-to-come-for-suncor-energ.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=49b61de8-827f-11e7-91e4-0050569d32b9&amp;utm_source=foxbusiness" type="external">putting the finishing touches on two major growth projects Opens a New Window.</a>, which should deliver first oil later this year. Once that occurs, those facilities will pivot from cash consumers to cash flow generators as the company begins monetizing the production. Meanwhile, the completion of those two projects will lock in the company's ability to achieve its promised growth rate.</p>
<p>There's minimal risk that Suncor won't hit that target since it's already 90% finished with Fort Hills and recently reached a significant milestone at Hebron. Meanwhile, it has the financial resources to complete both even if oil prices crashed. About the only potential speed bumps are operational issues during the ramp-up of either project or at one of its other facilities.</p>
<p>Contrast that with shale, which carries a higher risk that promised growth won't come to fruition if oil prices fizzle out or if some other issue pops up. For example, Pioneer Natural Resources initially expected that its output would rise 15% to 18% this year. However, after <a href="https://www.fool.com/investing/2017/08/02/pioneer-natural-resources-blows-past-expectation-2.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=49b61de8-827f-11e7-91e4-0050569d32b9&amp;utm_source=foxbusiness" type="external">running into a drilling issue last quarter Opens a New Window.</a>, the&#160;company had to defer 30 well completions until 2018, which will cause growth to come in at the low end of its forecast. Furthermore, Pioneer needs oil to average $55 a barrel in the future so it can finance its growth plan while remaining cash flow neutral. As a result, the company might need to cut back on its drilling plans next year to avoid outspending cash flow, which could cause it to grow at less than the 15% compound annual rate it currently anticipates.</p>
<p>EOG Resources, on the other hand, has a more flexible forecast, with the company expecting 15% compound annual oil growth through 2020 at $50 oil and 25% annual growth if crude averages $60. Meanwhile, Continental Resources said that it would not take on any more debt, meaning it will no longer outspend cash flow to chase growth if oil prices fall. Given these issues and forecasts, shale drillers might not grow as fast as anticipated if crude doesn't cooperate.</p>
<p>Suncor Energy can grow at a much more consistent pace than shale drillers simply because of the nature of its assets, which have ultra-low decline rates, giving it an easier hurdle to step over. As a result, the company shouldn't have any problems achieving its plan to deliver 10% annual growth per share through 2019 since it has nearly finished the two projects that will push it over the top. That's why investors who are looking for a low-risk oil growth stock should consider Suncor -- its growth is in the bag even if oil prices bounce around.</p>
<p>10 stocks we like better than Suncor EnergyWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*</p>
<p>David and Tom just revealed what they believe are the <a href="http://infotron.fool.com/infotrack/click?url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-static%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=f6d786bd-2d0c-44be-8588-a7d1a53c7653&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=49b61de8-827f-11e7-91e4-0050569d32b9&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now... and Suncor Energy wasn't one of them! That's right -- they think these 10 stocks are even better buys.</p>
<p><a href="http://infotron.fool.com/infotrack/click?url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-static%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=f6d786bd-2d0c-44be-8588-a7d1a53c7653&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=49b61de8-827f-11e7-91e4-0050569d32b9&amp;utm_source=foxbusiness" type="external">Click here Opens a New Window.</a> to learn about these picks!</p>
<p>*Stock Advisor returns as of August 1, 2017</p>
<p><a href="http://my.fool.com/profile/TMFmd19/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=49b61de8-827f-11e7-91e4-0050569d32b9&amp;utm_source=foxbusiness" type="external">Matt DiLallo Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool owns shares of EOG Resources. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=49b61de8-827f-11e7-91e4-0050569d32b9&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | canadian oil sands giant suncor energy nyse su doesnt get credit deserves company pace expand output 10 compound annual rate per share 2019 thats remarkable growth company size compares favorably shale drillers grab headlines days fast increase output said dig suncor compares top shale drillers becomes evident company actually better growth stock group two reasons thats case continue reading one thing sets suncor energy apart shale drillers stable production profile due nature oil sands assets suncor energy brings an160oil sands asset line facility deliver relatively steady pace production years come example taking year ramp companys upcoming fort hills mine produce average 194000 barrels per day next 50 years contrast tight oil wells shale drillers peak within first year decline rapid pace often stop producing altogether within couple decades shale producers need continually drill wells replace declining depleting production legacy wells bulk suncor energys production consists lowdecline oil sands assets consistently generated free cash flow every barrel produces since assets require minimal capital keep oil flowing contrast leading shale drillers cimarex energy nyse xec continental resources nyse clr pioneer natural resources nyse pxd eog resources nyse eog chart lefthand side following slide shows heavy cash consumers suncor energys ability consistently generate excess cash flow allowed continue growing production recent oil market downturn mention paying dividends buying back stock shalefocused rivals example continental resources production fell 221715 barrels oil equivalent per day boed 2015 216912 boed last year didnt generate cash flow needed drill enough new wells could maintain production rate likewise cimarex production fell last year average 2 2015s average couldnt keep decline rate even output mighty eog resources fell last year going 572200 boed 2015 average rate 560000 boed 2016 due underinvestment quartet pioneer natural resources managed boost output last year though outspent cash flow advertisement meanwhile suncor energys ability generate free cash flow increase next year even oil prices dont putting finishing touches two major growth projects opens new window deliver first oil later year occurs facilities pivot cash consumers cash flow generators company begins monetizing production meanwhile completion two projects lock companys ability achieve promised growth rate theres minimal risk suncor wont hit target since already 90 finished fort hills recently reached significant milestone hebron meanwhile financial resources complete even oil prices crashed potential speed bumps operational issues rampup either project one facilities contrast shale carries higher risk promised growth wont come fruition oil prices fizzle issue pops example pioneer natural resources initially expected output would rise 15 18 year however running drilling issue last quarter opens new window the160company defer 30 well completions 2018 cause growth come low end forecast furthermore pioneer needs oil average 55 barrel future finance growth plan remaining cash flow neutral result company might need cut back drilling plans next year avoid outspending cash flow could cause grow less 15 compound annual rate currently anticipates eog resources hand flexible forecast company expecting 15 compound annual oil growth 2020 50 oil 25 annual growth crude averages 60 meanwhile continental resources said would take debt meaning longer outspend cash flow chase growth oil prices fall given issues forecasts shale drillers might grow fast anticipated crude doesnt cooperate suncor energy grow much consistent pace shale drillers simply nature assets ultralow decline rates giving easier hurdle step result company shouldnt problems achieving plan deliver 10 annual growth per share 2019 since nearly finished two projects push top thats investors looking lowrisk oil growth stock consider suncor growth bag even oil prices bounce around 10 stocks like better suncor energywhen investing geniuses david tom gardner stock tip pay listen newsletter run decade motley fool stock advisor tripled market david tom revealed believe 10 best stocks opens new window investors buy right suncor energy wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns august 1 2017 matt dilallo opens new window position stocks mentioned motley fool owns shares eog resources motley fool disclosure policy opens new window | 658 |
<p>Teleprompter Trump is the best Trump.</p>
<p>That’s what we’ve learned over the past three weeks, as Trump has shelved his freewheeling, on-the-fly routine in favor of a more planned attack strategy on Hillary Clinton and the legacy of Barack Obama. He did it again with aplomb on Wednesday, speaking in Philadelphia about national security.</p>
<p>Trump led off by attempting to seize the mantle of Ronald Reagan – part of a broader attempt to effect a rapprochement with disaffected conservatives. He invoked Reagan’s “Peace Through Strength,” then added, “I am proposing a new foreign policy focused on advancing America’s core national interests, promoting regional stability, and producing an easing of tensions in the world. This will require rethinking the failed policies of the past.”</p>
<p>Disavowing Bush-esque nation-building, Trump instead said that “our actions in the Middle East will be tempered by realism. The current strategy of toppling regimes, with no plan for what to do the day after, only produces power vacuums that are filled by terrorists.” This is correct, of course – but it is a shift from his statements in support of Hillary Clinton’s Libyan war, for example.</p>
<p>Trump went on to declare that while he has no current plan to defeat ISIS, his generals – the same ones about whom he said, “I know more about ISIS than the generals do” – would devise a plan to rid the world of ISIS within thirty days. Speaking in broad generalities, Trump said he would disown Obama’s “apology tour,” instead working to “proudly promote our system of government and our way of life as the best in the world – just like we did in our campaign against communism during the Cold War. We will show the whole world how proud we are to be American.”</p>
<p>This is the sort of language that originally drew Republicans to Trump – the patriotic verbiage so disdained by President Obama and his post-patriotic order. It’s a departure for Trump, who said in the recent past that American exceptionalism was an offensive term to other countries. But it’s good material, nonetheless. His speechwriters have been doing their best to shave off Trump’s sharper edges, and it’s working well.</p>
<p>Then Trump turned left. Attempting to outflank Hillary Clinton from both sides – right on patriotism, left on warfare – Trump said, “Unlike my opponent, my foreign policy will emphasize diplomacy, not destruction. <a href="http://thehill.com/people/hillary-clinton" type="external">Hillary Clinton</a>’s legacy in Iraq, Libya, and Syria has produced only turmoil and suffering…. Sometimes it has seemed like there wasn’t a country in the Middle East that Hillary Clinton didn’t want to invade, intervene or topple. She is trigger-happy and unstable when it comes to war.”</p>
<p>This is patent nonsense. Hillary’s legacy has produced turmoil and suffering, but except in Libya, that isn’t the result of militarism – it’s the result of diplomacy. Assad is still in power. Iraq is a disaster zone because of a precipitous pullout. Afghanistan received a fake surge from Obama, but that’s about it. Hillary was Secretary of State, not Secretary of Defense, meaning that her diplomacy was the problem. But Trump’s foreign policy is an odd combination of Pat Buchanan-esque isolationism and brash bellicosity, so presumably it makes sense to him.</p>
<p>Trump was at his best, as always, while attacking Hillary head-on. He bashed her for her recklessness regarding her private server, quoted last Friday’s devastating FBI document dump, and concluded, “Her conduct is simply disqualifying.” All true.</p>
<p>But again as always, Trump’s diagnosis may be correct but his prescription is spotty. He slammed the Obama administration for cutting the defense budget, then said he would attempt to eliminate the defense sequester – a solid idea, but one that would come with a blowout budget that the Democrats would negotiate on the other end. To cover the cost of additional defense spending, Trump blithely assured Americans that he would “ask Congress to fully offset the costs of increased military spending. In the process, we will make government leaner and more responsive to the public.” Where would such offsets come from? From waste and fraud, of course! That means nothing, other than increased deficits.</p>
<p>Trump’s policy on NATO is similarly incoherent. He stated that he’d be “requesting that all NATO nations promptly pay their bills,” including leveraging additional cash from Germany, Japan, South Korea and Saudi Arabia. He didn’t say what he’d do to leverage that cash, but presumably he’d threaten to abandon them to the whims of America’s enemies, as he’s stated before.</p>
<p>Trump did get highly specific about his proposed defense budget, however:</p>
<p>We will build an active Army of around 540,000, as the Army’s chief of staff has said he needs. We now have only 31 Brigade Combat Teams, or 490,000 troops, and only one-third of combat teams are considered combat-ready. We will build a Marine Corps based on 36 battalions, which the Heritage Foundation notes is the minimum needed to deal with major contingencies – we have 23 now. We will build a Navy of 350 surface ships and submarines, as recommended by the bipartisan National Defense Panel – we have 276 ships now. And we will build an Air Force of at least 1,200 fighter aircraft, which the Heritage Foundation has shown to be needed to execute current missions – we have 1,113 now. We will also seek to develop a state of the art missile defense system.</p>
<p>This is excellent. And Trump was similarly specific about cybersecurity, classification rules (“Nothing threatens the integrity of our Democracy more than when government officials put their public office up for sale”), and assessment of strategic vulnerabilities.</p>
<p>Finally, he concluded with a veiled reference to Colin Kaepernick and Barack Obama’s support for him: “And we will follow their example of unity. We will work across all racial and income lines to create One American Nation. Together, we will have one great American future. We will be one people, under one God, saluting one American flag.”</p>
<p>Overall, it was another excellent speech from Trump. Whoever has been keeping him on a leash is doing a spectacular job of it, especially given what we know about Trump’s pathological inability to control himself. The polls reflect a tightening race. While Trump still has a steep hill to climb, he’s at least trying to climb it publicly. He still hasn’t built the campaign infrastructure necessary to prevail, but he’s becoming the more disciplined candidate so many people have been seeking for months.</p> | true | 0 | teleprompter trump best trump thats weve learned past three weeks trump shelved freewheeling onthefly routine favor planned attack strategy hillary clinton legacy barack obama aplomb wednesday speaking philadelphia national security trump led attempting seize mantle ronald reagan part broader attempt effect rapprochement disaffected conservatives invoked reagans peace strength added proposing new foreign policy focused advancing americas core national interests promoting regional stability producing easing tensions world require rethinking failed policies past disavowing bushesque nationbuilding trump instead said actions middle east tempered realism current strategy toppling regimes plan day produces power vacuums filled terrorists correct course shift statements support hillary clintons libyan war example trump went declare current plan defeat isis generals ones said know isis generals would devise plan rid world isis within thirty days speaking broad generalities trump said would disown obamas apology tour instead working proudly promote system government way life best world like campaign communism cold war show whole world proud american sort language originally drew republicans trump patriotic verbiage disdained president obama postpatriotic order departure trump said recent past american exceptionalism offensive term countries good material nonetheless speechwriters best shave trumps sharper edges working well trump turned left attempting outflank hillary clinton sides right patriotism left warfare trump said unlike opponent foreign policy emphasize diplomacy destruction hillary clintons legacy iraq libya syria produced turmoil suffering sometimes seemed like wasnt country middle east hillary clinton didnt want invade intervene topple triggerhappy unstable comes war patent nonsense hillarys legacy produced turmoil suffering except libya isnt result militarism result diplomacy assad still power iraq disaster zone precipitous pullout afghanistan received fake surge obama thats hillary secretary state secretary defense meaning diplomacy problem trumps foreign policy odd combination pat buchananesque isolationism brash bellicosity presumably makes sense trump best always attacking hillary headon bashed recklessness regarding private server quoted last fridays devastating fbi document dump concluded conduct simply disqualifying true always trumps diagnosis may correct prescription spotty slammed obama administration cutting defense budget said would attempt eliminate defense sequester solid idea one would come blowout budget democrats would negotiate end cover cost additional defense spending trump blithely assured americans would ask congress fully offset costs increased military spending process make government leaner responsive public would offsets come waste fraud course means nothing increased deficits trumps policy nato similarly incoherent stated hed requesting nato nations promptly pay bills including leveraging additional cash germany japan south korea saudi arabia didnt say hed leverage cash presumably hed threaten abandon whims americas enemies hes stated trump get highly specific proposed defense budget however build active army around 540000 armys chief staff said needs 31 brigade combat teams 490000 troops onethird combat teams considered combatready build marine corps based 36 battalions heritage foundation notes minimum needed deal major contingencies 23 build navy 350 surface ships submarines recommended bipartisan national defense panel 276 ships build air force least 1200 fighter aircraft heritage foundation shown needed execute current missions 1113 also seek develop state art missile defense system excellent trump similarly specific cybersecurity classification rules nothing threatens integrity democracy government officials put public office sale assessment strategic vulnerabilities finally concluded veiled reference colin kaepernick barack obamas support follow example unity work across racial income lines create one american nation together one great american future one people one god saluting one american flag overall another excellent speech trump whoever keeping leash spectacular job especially given know trumps pathological inability control polls reflect tightening race trump still steep hill climb hes least trying climb publicly still hasnt built campaign infrastructure necessary prevail hes becoming disciplined candidate many people seeking months | 590 |
<p>TOP STORIES</p>
<p>Value Meals Drive McDonald's Sales - 2nd Update</p>
<p>Continue Reading Below</p>
<p>McDonald's Corp. gained sales again by luring core customers to its cheapest meals and drinks.</p>
<p>The burger giant attributed U.S. sales growth in the fourth quarter to a "McPick 2" meal deal and low-price beverages, as well as to higher-priced Buttermilk Crispy Tenders. The chain introduced a new nationwide value menu this month with items priced at $1, $2 and $3, hoping consumers drawn in for cheap sodas and burgers will also order more expensive items.</p>
<p>STORIES OF INTEREST</p>
<p>Food Union Hails USDA Move on Chicken Plants -- Market Talk</p>
<p>12:06 ET -- United Food and Commercial Workers International Union, which represents meat plant employees, claims victory after the U.S. Department of Agriculture rejected a U.S. chicken industry petition to eliminate poultry processing line speed caps in meat plants. The organization and other consumer groups opposed the request, saying it could make food less safe and pose risks to meat plant workers, who already deal with higher rates of injury than other industries. The union says it remains "concerned" that the USDA plans to let some chicken plants apply to run processing lines at speeds up to 175 birds a minute, with most currently capped at 140. ([email protected]; @jacobbunge)</p>
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<p>USDA Pumps Brakes on Faster Chicken Processing -- Market Talk</p>
<p>12:01 ET -- The U.S. Department of Agriculture denies a request by the National Chicken Council to lift all limits on how fast poultry plants can process birds--but the agency says it does plan to let some plants speed up. USDA's Food Safety and Inspection Service says the chicken industry group's Sept. 1 petition to eliminate speed limits in chicken plants didn't demonstrate that inspectors could effectively check each carcass for safety at speeds beyond 175 birds a minute--nearly three chickens a second. But FSIS said that the agency plans to lay out criteria for poultry plants, most of which are limited to processing 140 chickens each minute, to run at speeds up to 175, as long as they demonstrate how they will assess food safety and meet other criteria. ([email protected]; @jacobbunge)</p>
<p>Wheat Futures Pop on Plains Drought</p>
<p>A drought in the Great Plains sparked a rally in wheat prices on Tuesday.</p>
<p>The U.S. Department of Agriculture said that the condition of the hard red winter wheat crop, primarily grown in southern Plains states like Kansas, dropped sharply as farmers in the region struggle through dry conditions.</p>
<p>FUTURES MARKETS</p>
<p>Live Cattle Futures Ease</p>
<p>Cattle futures were mixed on Tuesday, easing off multimonth highs.</p>
<p>The futures market started the week by hitting a two-month high, after cash prices for physical cattle rose more than expected. But analysts say futures bumped up against selling pressure after falling from those highs, with chart signals suggesting to traders that prices were headed lower.</p>
<p>CASH MARKETS</p>
<p>Zumbrota, Minn Hog Steady At $44.00 - Jan 30</p>
<p>Barrow and gilt prices at the Zumbrota, Minn., livestock market today are steady at $44.00 a hundredweight. Sow prices are steady. Sows weighing 400-450 pounds are at $43.00, 450-500 pounds are $43.00 and those over 500 pounds are $45.00-$47.00.</p>
<p>The day's total run is estimated at 180 head.</p>
<p>Prices are provided by the Central Livestock Association.</p>
<p>Estimated U.S. Pork Packer Margin Index - Jan 30</p>
<p>This report reflects U.S. pork packer processing margins. The margin indices</p>
<p>are calculated using current cash hog or carcass values and wholesale pork</p>
<p>cutout values and may not reflect actual margins at the plants. These</p>
<p>estimates reflect the general health of the industry and are not meant to</p>
<p>be indicative of any particular company or plant.</p>
<p>Source: USDA, based on Wall Street Journal calculations</p>
<p>All figures are on a per-head basis.</p>
<p>Date Standard Margin Estimated margin</p>
<p>Operating Index at vertically -</p>
<p>integrated operations</p>
<p>*</p>
<p>Jan 30 +$20.58 +$ 45.01</p>
<p>Jan 29 +$20.88 +$ 45.57</p>
<p>Jan 26 +$22.51 +$ 45.96</p>
<p>* Based on Iowa State University's latest estimated cost of production.</p>
<p>A positive number indicates a processing margin above the cost of</p>
<p>production of the animals.</p>
<p>Beef-O-Meter</p>
<p>This report compares the USDA's latest beef carcass composite</p>
<p>values as a percentage of their respective year-ago prices.</p>
<p>Beef</p>
<p>For Today Choice 108.5</p>
<p>(Percent of Year-Ago) Select 108.2</p>
<p>USDA Boxed Beef, Pork Reports</p>
<p>Wholesale choice-grade beef prices Tuesday rose 58 cents per hundred pounds, to $209.69, according to the USDA. Select-grade prices rose 24 cents per hundred pounds, to $204.37. The total load count was 109. Wholesale pork prices fell 26 cents, to $81.34 a hundred pounds, based on Omaha, Neb., price quotes.</p>
<p>(END) Dow Jones Newswires</p>
<p>January 30, 2018 17:31 ET (22:31 GMT)</p> | true | 0 | top stories value meals drive mcdonalds sales 2nd update continue reading mcdonalds corp gained sales luring core customers cheapest meals drinks burger giant attributed us sales growth fourth quarter mcpick 2 meal deal lowprice beverages well higherpriced buttermilk crispy tenders chain introduced new nationwide value menu month items priced 1 2 3 hoping consumers drawn cheap sodas burgers also order expensive items stories interest food union hails usda move chicken plants market talk 1206 et united food commercial workers international union represents meat plant employees claims victory us department agriculture rejected us chicken industry petition eliminate poultry processing line speed caps meat plants organization consumer groups opposed request saying could make food less safe pose risks meat plant workers already deal higher rates injury industries union says remains concerned usda plans let chicken plants apply run processing lines speeds 175 birds minute currently capped 140 jacobbungewsjcom jacobbunge advertisement usda pumps brakes faster chicken processing market talk 1201 et us department agriculture denies request national chicken council lift limits fast poultry plants process birdsbut agency says plan let plants speed usdas food safety inspection service says chicken industry groups sept 1 petition eliminate speed limits chicken plants didnt demonstrate inspectors could effectively check carcass safety speeds beyond 175 birds minutenearly three chickens second fsis said agency plans lay criteria poultry plants limited processing 140 chickens minute run speeds 175 long demonstrate assess food safety meet criteria jacobbungewsjcom jacobbunge wheat futures pop plains drought drought great plains sparked rally wheat prices tuesday us department agriculture said condition hard red winter wheat crop primarily grown southern plains states like kansas dropped sharply farmers region struggle dry conditions futures markets live cattle futures ease cattle futures mixed tuesday easing multimonth highs futures market started week hitting twomonth high cash prices physical cattle rose expected analysts say futures bumped selling pressure falling highs chart signals suggesting traders prices headed lower cash markets zumbrota minn hog steady 4400 jan 30 barrow gilt prices zumbrota minn livestock market today steady 4400 hundredweight sow prices steady sows weighing 400450 pounds 4300 450500 pounds 4300 500 pounds 45004700 days total run estimated 180 head prices provided central livestock association estimated us pork packer margin index jan 30 report reflects us pork packer processing margins margin indices calculated using current cash hog carcass values wholesale pork cutout values may reflect actual margins plants estimates reflect general health industry meant indicative particular company plant source usda based wall street journal calculations figures perhead basis date standard margin estimated margin operating index vertically integrated operations jan 30 2058 4501 jan 29 2088 4557 jan 26 2251 4596 based iowa state universitys latest estimated cost production positive number indicates processing margin cost production animals beefometer report compares usdas latest beef carcass composite values percentage respective yearago prices beef today choice 1085 percent yearago select 1082 usda boxed beef pork reports wholesale choicegrade beef prices tuesday rose 58 cents per hundred pounds 20969 according usda selectgrade prices rose 24 cents per hundred pounds 20437 total load count 109 wholesale pork prices fell 26 cents 8134 hundred pounds based omaha neb price quotes end dow jones newswires january 30 2018 1731 et 2231 gmt | 529 |
<p><a href="/topics/atlanta/" type="external">ATLANTA</a>&#160;— Gun rights backers need to make sure that election victories translate into action on Capitol Hill and expanded support in the states, the <a href="/topics/national-rifle-association/" type="external">National Rifle Association</a>’s legislative chief said Thursday, a day ahead of President <a href="/topics/donald-trump/" type="external">Trump</a>’s speech at the <a href="/topics/national-rifle-association/" type="external">NRA</a>’s annual convention.</p>
<p>Enacting concealed-carry reciprocity, which would allow permit holders from one state to carry their weapons anywhere else in the U.S., is a top priority for the <a href="/topics/national-rifle-association/" type="external">NRA</a> now that the organization has a friendly <a href="/topics/congress/" type="external">Congress</a> and a president it eagerly backed.</p>
<p>But <a href="/topics/chris-w-cox/" type="external">Chris W. Cox</a>, executive director of the NRA Institute for Legislative Action, told The Washington Times that <a href="/topics/national-rifle-association/" type="external">NRA</a> members can’t become complacent in the post-Obama era.</p>
<p>“We’ll leave <a href="/topics/atlanta/" type="external">Atlanta</a> with a determination to make sure that November wasn’t a temporary moment but a permanent political red line,” he said. “American freedom and individual freedom is too important to suffer due to apathy. <a href="/topics/national-rifle-association/" type="external">NRA</a> members know that, and I think you’re going to see a reflection of that this weekend.”</p>
<p><a href="/topics/chris-w-cox/" type="external">Mr. Cox</a> said the <a href="/topics/national-rifle-association/" type="external">NRA</a> is excited to have <a href="/topics/donald-trump/" type="external">Mr. Trump</a> in the White House but that the work isn’t done.</p>
<p>“This is an important time in Second Amendment history,” he said. “It was a critical battle that was won, but the war rages on and we’re still getting up and fighting every day to protect the rights of our members, and it’s going to be a big celebration of that this weekend in <a href="/topics/atlanta/" type="external">Atlanta</a>.”</p>
<p><a href="/topics/chris-w-cox/" type="external">Mr. Cox</a> said executive actions such as the selection of Neil Gorsuch for the U.S. Supreme Court and rolling back an Obama-era rule on Social Security and gun background checks give <a href="/topics/donald-trump/" type="external">Mr. Trump</a> a solid A thus far.</p>
<p>“Across the board, we are seeing measurables and deliverables from President <a href="/topics/donald-trump/" type="external">Trump</a> as it relates to the Second Amendment,” he said.</p>
<p>“Now, does that mean everything’s done and we need to all stop worrying? Of course not. The fight’s still there; we have to continue to push the ball forward,” he said.</p>
<p>At the top of the list at the federal level is getting the national concealed carry reciprocity bill through <a href="/topics/congress/" type="external">Congress</a> and onto <a href="/topics/donald-trump/" type="external">Mr. Trump</a>’s desk.</p>
<p>“The expansion of self-defense will remain our No. 1 legislative priority until the rights of law-abiding Americans are respected,” <a href="/topics/chris-w-cox/" type="external">Mr. Cox</a> said.</p>
<p>“We’re working hard to educate and encourage co-sponsorship and work through the appropriate legislative process, and at the same time leveraging our greatest asset in this fight, which are <a href="/topics/national-rifle-association/" type="external">NRA</a> members all across this country,” he said.</p>
<p>“So we feel good about our chances, but there’s a lot of work to do, obviously,” he said.</p>
<p>All 50 states allow some kind of concealed carry, but they have different rules and requirements about how people obtain permits and which out-of-state permits are recognized.</p>
<p>Gun rights advocates say a national standard should be set, but opponents of such a move say a federal bill could undermine states that have imposed stricter rules.</p>
<p>“Get it passed — I don’t care how they do it,” said Paul Heimbach, 78, a retired Air Force officer from Florida. “The Democrats are going to be against it regardless.”</p>
<p>Erich Pratt, executive director of Gun Owners of America, said he has no doubt that concealed carry reciprocity will pass the House but not necessarily the Senate.</p>
<p>Republicans control 52 of the 100 Senate seats but would have to attract some Democratic support to meet the 60-vote threshold needed to thwart any filibuster.</p>
<p>“Getting the bill through the Senate will be a little bit tougher,” Mr. Pratt said. “We have a clear majority of senators supporting the bill, and we are working to make sure there are enough to break a filibuster.”</p>
<p>Beyond <a href="/topics/congress/" type="external">Congress</a>, though, <a href="/topics/chris-w-cox/" type="external">Mr. Cox</a> said the <a href="/topics/national-rifle-association/" type="external">NRA</a> is engaged at the state level as well.</p>
<p>“We saw in Iowa a comprehensive pro-Second Amendment bill signed into law,” he said. “We’ve seen in state after state more pro-gun laws. No anti-gun legislation has been signed into law this year, but obviously we’re working hard to make sure that holds.</p>
<p>“Whether it takes us into the <a href="/topics/congress/" type="external">Congress</a> or onto the airwaves or into state legislatures or into courtrooms, that’s where you’ll find us,” he said.</p>
<p>The <a href="/topics/national-rifle-association/" type="external">NRA</a> endorsed <a href="/topics/donald-trump/" type="external">Mr. Trump</a> at its convention last year in Louisville, Kentucky, months before the he formally accepted the Republican presidential nomination. <a href="/topics/chris-w-cox/" type="external">Mr. Cox</a> said the president’s attendance this year indicates that he knows how critical that support was.</p>
<p>On Friday, <a href="/topics/donald-trump/" type="external">Mr. Trump</a> will become the first sitting U.S. president to speak at the convention since Ronald Reagan.</p>
<p>“We made that commitment early,” <a href="/topics/chris-w-cox/" type="external">Mr. Cox</a> said. “We were consistent. It was a lonely summer. There were times when we were the only group in America with the guts to support him.”</p>
<p>“But we never wavered because the stakes of the election and consequences of [the] election never changed,” he said.</p>
<p>Gun control activists are planning to protest in <a href="/topics/atlanta/" type="external">Atlanta</a> this weekend after <a href="/topics/donald-trump/" type="external">Mr. Trump</a>’s appearance and have tried to organize aggressively on lobbying efforts in recent years as well.</p>
<p><a href="/topics/chris-w-cox/" type="external">Mr. Cox</a> said the <a href="/topics/national-rifle-association/" type="external">NRA</a> can’t go “dollar for dollar” with someone like former New York City Mayor Michael R. Bloomberg, who helped found the group Everytown for Gun Safety.</p>
<p>“But what we’ve been able to do is beat him vote by vote,” he said. “So if he wants to engage in this issue, we welcome the fight.”</p>
<p>Copyright © 2018 The Washington Times, LLC. <a href="http://license.icopyright.net/3.7280?icx_id=/news/2017/apr/27/nra-got-election-wins-now-wants-action/" type="external">Click here for reprint permission</a>.</p>
<p>&#160;</p> | true | 0 | atlanta160 gun rights backers need make sure election victories translate action capitol hill expanded support states national rifle associations legislative chief said thursday day ahead president trumps speech nras annual convention enacting concealedcarry reciprocity would allow permit holders one state carry weapons anywhere else us top priority nra organization friendly congress president eagerly backed chris w cox executive director nra institute legislative action told washington times nra members cant become complacent postobama era well leave atlanta determination make sure november wasnt temporary moment permanent political red line said american freedom individual freedom important suffer due apathy nra members know think youre going see reflection weekend mr cox said nra excited mr trump white house work isnt done important time second amendment history said critical battle war rages still getting fighting every day protect rights members going big celebration weekend atlanta mr cox said executive actions selection neil gorsuch us supreme court rolling back obamaera rule social security gun background checks give mr trump solid thus far across board seeing measurables deliverables president trump relates second amendment said mean everythings done need stop worrying course fights still continue push ball forward said top list federal level getting national concealed carry reciprocity bill congress onto mr trumps desk expansion selfdefense remain 1 legislative priority rights lawabiding americans respected mr cox said working hard educate encourage cosponsorship work appropriate legislative process time leveraging greatest asset fight nra members across country said feel good chances theres lot work obviously said 50 states allow kind concealed carry different rules requirements people obtain permits outofstate permits recognized gun rights advocates say national standard set opponents move say federal bill could undermine states imposed stricter rules get passed dont care said paul heimbach 78 retired air force officer florida democrats going regardless erich pratt executive director gun owners america said doubt concealed carry reciprocity pass house necessarily senate republicans control 52 100 senate seats would attract democratic support meet 60vote threshold needed thwart filibuster getting bill senate little bit tougher mr pratt said clear majority senators supporting bill working make sure enough break filibuster beyond congress though mr cox said nra engaged state level well saw iowa comprehensive prosecond amendment bill signed law said weve seen state state progun laws antigun legislation signed law year obviously working hard make sure holds whether takes us congress onto airwaves state legislatures courtrooms thats youll find us said nra endorsed mr trump convention last year louisville kentucky months formally accepted republican presidential nomination mr cox said presidents attendance year indicates knows critical support friday mr trump become first sitting us president speak convention since ronald reagan made commitment early mr cox said consistent lonely summer times group america guts support never wavered stakes election consequences election never changed said gun control activists planning protest atlanta weekend mr trumps appearance tried organize aggressively lobbying efforts recent years well mr cox said nra cant go dollar dollar someone like former new york city mayor michael r bloomberg helped found group everytown gun safety weve able beat vote vote said wants engage issue welcome fight copyright 2018 washington times llc click reprint permission 160 | 521 |
<p />
<p>Image source: Ritchie Bros.</p>
<p>Continue Reading Below</p>
<p>Ritchie Bros. Auctioneers is the world's largest auctioneer of heavy equipment, with auction sitesaround the world. Selling used gear has been a good business lately, with Ritchie's top line heading higher each year since the end of the recession. But before you get too excited, here are three of the biggest challenges facing Ritchie Bros. today.</p>
<p>1. We need an upgradePerhaps one of the most impressive things about Ritchie Bros. is that nearly half of purchases are made by bidders outside of the region of its auctions. These bids are coming from the company's Internet sites. So, in many ways, Ritchie Bros. is well versed in technology. But the company has been around since 1958, and some of its internal systems haven't kept up with the times.</p>
<p>In fact, the company's strategic road map includes the item "Modernize legacy systems." It's using Salesforce.com as a "unifying platform" as it expands. Investing in the core systems to support growth is a good move, but there are risks that the transition won't work as smoothly as planned. And, perhaps more notable for the top and bottom line, there are costs associated with this.</p>
<p>For example, CFO Sharon R. Driscoll explained during the fourth-quarter conference call that, "Related to our recent IT initiatives in the fourth quarter approximately $1 million of expense items are associated with software license fees, for new CRM tools, that have been deployed and are now operational. These are new expenses, and are aligned with our commitment to strengthening our IT platform." And that's assuming everything continues to go smoothly. If the transition to new technology doesn't go as planned, day-to-day operations could be disrupted, hampering results and adding even more costs to the picture, as the company tries to fix the mess.</p>
<p>It's the right move to make, but it's also more expensivefor the business on an ongoing basis. You don't need to be hugely concerned, but technology changes can be trouble spots. At the very least, Ritchie Bros. is looking at higher costs.</p>
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<p>Image source: Ritchie Bros.</p>
<p>2. Taking some risksThe bulk of Ritchie Bros. business is structured as simple auctions. It just gets a percentage of the sales price for doing the auctioning. However, the company also handles what it calls "at risk" auctions. In these situations, the auctioneer guarantees the seller a price for its equipment regardless of the final outcome of the auction. Although this results in higher commissions for Ritche Bros., it also means there's a chance of taking a loss, too.</p>
<p>"At risk" sales, which are also known as underwritten transactions, made up about 30% of the company's revenue in 2014 and 2015. That's been a roughly consistent figure for that last few years, with numbers as low as 24% in 2010 and reaching into the low 30% area a few times. However, that means that somewhere between a quarter and a third of its revenue could become problematic if used equipment auction sales don't live up to expectations.</p>
<p>Again, it's not something to be overly concerned about. Ritchie Bros. has an extensive database of completed auctions to use as benchmarks as it inks "at risk" deals. But it is something to keep in the back of your mind, because a swift drop in the prices customers were willing to pay for used equipmentcould quickly explain why the word "risk" is used to describe this side of the business. So keep an eye on this segment of the pie to make sure margins don't suddenly start shrinking, as that could be a warning sign of potential trouble.</p>
<p>Image source: Ritchie Bros.</p>
<p>3. An improving global economyThere's always going to be stuff to auction, so it's highly unlikely that Ritchie Bros. hits a period where it just has nothing to sell. However, the world has been in something of a funk since the deep recession. Some of the negatives include a still-recovering U.S. housing market, declining growth in China, and global weakness in the oil patch. But all of these are really positives for Ritchie Bros. because it increases the likelihood that they'll see more equipment sold at auction. So, right now, this auction house has been operating in a pretty good environment, at least for its business.</p>
<p>But what happens if the world goes into a robust growth phase? Sure, investors appear far more concerned that we're heading for a downturn than an upturn today. But you should still be thinking about what would happen to Ritchie Bros. if robust good times arrive.</p>
<p>The problem for Ritchie Bros. is that, as a middle man, it has no control over how much equipment is available, the age and quality of that equipment, or how much demand there is from buyers. And since many of the industries it deals with are subject to boom and bust cycles, there's some complicated dynamics going on. For example, in good times demand for equipment may be so robust in some industries that there's virtually no equipment available for auction because it's all being put to work. At other times, say after a series of large projects have been completed or a major company is refreshing its fleet, there could be a flood of equipment. If there's solid demand at that point, the prices Ritchie Bros. fetches will be good and there's no problem. But if demand is weak, the prices could be less desirable and the auctioneer won't do as well.</p>
<p>So while a strong global economy will likely result in good things for Ritchie at first, it could lead to a spell of stagnant results if the auction market starts to slow down. But you'll need to watch the underlying trends, to get a feel for how Ritchie Bros. is faring. Keep an eye on things like the supply of used gear, equipment age, and auction prices--all of which Ritchie discusses regularly.</p>
<p>Now, based on Ritchie Bros. Auctioneering's global presence and leadership position in the industry, that could be a temporary setback that leads to a buying opportunity for investors. But don't dismiss this big-picture problem just because times are good (for Ritchie Bros.) today.</p>
<p>Food for thoughtNo investment is perfect, so you have to accept a few warts when you buy any company's shares. But that doesn't mean you shouldn't think about the negatives, even if you are willing to accept them.</p>
<p>For Ritchie Bros., the three biggest challenges it faces aren't all that daunting today. But problems with technology upgrades and the ongoing costs associated with them could be a lingering issue that drags results down. The company's "at risk" business is a net positive today, but it could turn into a negative if the market for used gear slows and margins compress.And while there's plenty of stuff to auction right now, what would happen if the used inventory dried up in a global economic upturn? Don't dismiss this auctioneer because of any of these potential problems, but don't ignore them, either.</p>
<p>The article <a href="http://www.fool.com/investing/general/2016/04/18/3-biggest-challenges-facing-ritchie-bros-auctionee.aspx" type="external">The 3 Biggest Challenges Facing Ritchie Bros. Auctioneers Incorporated Stock Opens a New Window.</a> originally appeared on Fool.com.</p>
<p><a href="http://my.fool.com/profile/ReubenGBrewer/info.aspx?source=eptfxblnk0000004" type="external">Reuben Brewer Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool recommends Salesforce.com. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=eptfxblnk0000004" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://wiki.fool.com/Motley?source=eptfxblnk0000004" type="external">considering a diverse range of insights Opens a New Window.</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?source=eptfxblnk0000004" type="external">disclosure policy Opens a New Window.</a>.</p>
<p>Copyright 1995 - 2016 The Motley Fool, LLC. All rights reserved. The Motley Fool has a <a href="http://www.fool.com/help/index.htm?display=about02" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | image source ritchie bros continue reading ritchie bros auctioneers worlds largest auctioneer heavy equipment auction sitesaround world selling used gear good business lately ritchies top line heading higher year since end recession get excited three biggest challenges facing ritchie bros today 1 need upgradeperhaps one impressive things ritchie bros nearly half purchases made bidders outside region auctions bids coming companys internet sites many ways ritchie bros well versed technology company around since 1958 internal systems havent kept times fact companys strategic road map includes item modernize legacy systems using salesforcecom unifying platform expands investing core systems support growth good move risks transition wont work smoothly planned perhaps notable top bottom line costs associated example cfo sharon r driscoll explained fourthquarter conference call related recent initiatives fourth quarter approximately 1 million expense items associated software license fees new crm tools deployed operational new expenses aligned commitment strengthening platform thats assuming everything continues go smoothly transition new technology doesnt go planned daytoday operations could disrupted hampering results adding even costs picture company tries fix mess right move make also expensivefor business ongoing basis dont need hugely concerned technology changes trouble spots least ritchie bros looking higher costs advertisement image source ritchie bros 2 taking risksthe bulk ritchie bros business structured simple auctions gets percentage sales price auctioning however company also handles calls risk auctions situations auctioneer guarantees seller price equipment regardless final outcome auction although results higher commissions ritche bros also means theres chance taking loss risk sales also known underwritten transactions made 30 companys revenue 2014 2015 thats roughly consistent figure last years numbers low 24 2010 reaching low 30 area times however means somewhere quarter third revenue could become problematic used equipment auction sales dont live expectations something overly concerned ritchie bros extensive database completed auctions use benchmarks inks risk deals something keep back mind swift drop prices customers willing pay used equipmentcould quickly explain word risk used describe side business keep eye segment pie make sure margins dont suddenly start shrinking could warning sign potential trouble image source ritchie bros 3 improving global economytheres always going stuff auction highly unlikely ritchie bros hits period nothing sell however world something funk since deep recession negatives include stillrecovering us housing market declining growth china global weakness oil patch really positives ritchie bros increases likelihood theyll see equipment sold auction right auction house operating pretty good environment least business happens world goes robust growth phase sure investors appear far concerned heading downturn upturn today still thinking would happen ritchie bros robust good times arrive problem ritchie bros middle man control much equipment available age quality equipment much demand buyers since many industries deals subject boom bust cycles theres complicated dynamics going example good times demand equipment may robust industries theres virtually equipment available auction put work times say series large projects completed major company refreshing fleet could flood equipment theres solid demand point prices ritchie bros fetches good theres problem demand weak prices could less desirable auctioneer wont well strong global economy likely result good things ritchie first could lead spell stagnant results auction market starts slow youll need watch underlying trends get feel ritchie bros faring keep eye things like supply used gear equipment age auction pricesall ritchie discusses regularly based ritchie bros auctioneerings global presence leadership position industry could temporary setback leads buying opportunity investors dont dismiss bigpicture problem times good ritchie bros today food thoughtno investment perfect accept warts buy companys shares doesnt mean shouldnt think negatives even willing accept ritchie bros three biggest challenges faces arent daunting today problems technology upgrades ongoing costs associated could lingering issue drags results companys risk business net positive today could turn negative market used gear slows margins compressand theres plenty stuff auction right would happen used inventory dried global economic upturn dont dismiss auctioneer potential problems dont ignore either article 3 biggest challenges facing ritchie bros auctioneers incorporated stock opens new window originally appeared foolcom reuben brewer opens new window position stocks mentioned motley fool 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<p>During the height of the Great Recession, shareholders in bank stocks were taken for quite the ride. Bank of America (NYSE: BAC), which is one of the largest banks by deposits in the U.S., saw its shares dip by more than 90% from peak to trough. The company's acquisition of the troubled lender Countrywide Financial, coupled with numerous settlements with the Justice Department, really weighed on Bank of America's stock.</p>
<p>Continue Reading Below</p>
<p>However, times have changed, and BofA has done a complete 180. Since hitting its lows in 2009, Bank of America shares have rallied more than 500%, and practically all facets of the company's business are trending in a positive direction.</p>
<p>In many ways -- 10 to be more precise -- Bank of America could be the world's most perfect stock.</p>
<p>Image source: Bank of America.</p>
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<p>Arguably the biggest factor working in Bank of America's favor at the moment is the Federal Reserve's ongoing monetary tightening. Since Dec. 2015, the Fed has increased its federal funds target rate by 25 basis points on three occasions. Its latest increase pushed the fed funds target rate to a range of 0.75% to 1%.</p>
<p>Banks with variable loans thrive when interest rates increase because it means an immediate boost to variable loan rates, while increases to savings account rates lag. This is a recipe for higher net interest income and net interest margin for Bank of America.</p>
<p>In its fourth-quarter earnings presentation, Bank of America said that a further 100 basis point increase in short- and long-term lending rates would lead to $3.4 billion in added net interest income.</p>
<p>Bank of America has done an exceptional job cutting its costs in order to operate more efficiently. A good chunk of these reduced costs resulted from branch closures.</p>
<p>Before the financial crisis, B of A had more than 6,000 physical branches. By the third-quarter of 2016, its physical presence had reduced to a little more than 4,600 branches. The rise of mobile banking has allowed Bank of America to reduce some of the high overhead costs of maintaining a physical branch presence.</p>
<p>For example, data released from JPMorgan Chase (NYSE: JPM) back in 2015 showed that depositing money with one of its tellers ($0.65) cost over 20 times more than a mobile banking transaction ($0.03). Though these figures may have changed a bit since 2015, and B of A's statistics could be a tad bit different that those of JPMorgan Chase, this gap is still an incentive for banks to cut their expenses by reducing their physical presence in favor of online and mobile banking.</p>
<p>Image source: Bank of America.</p>
<p>Bank of America's Q4 presentation pointed out that it ranked as the top dog in mobile-banking functionality and digital-sales functionality in separate reports from Forrester Research. Digital sales now represent about 20% of Bank of America's total sales, and growth in active mobile users has actually accelerated in each of the past four quarters in percentage terms. In short, consumers crave convenience, and Bank of America has no qualms about providing that convenience since it's considerably cheaper over the long run. It's a win-win for everyone.</p>
<p>Breathe a big sigh of relief long-term shareholders -- the litigation and settlements that Bank of America faced because of it or Countrywide's lending practices before and during the Great Recession are firmly in the rearview mirror.</p>
<p>No bank took it on the chin more than BofA. A report released last year from national policy resource center Good Jobs First found that BofA paid $56 billion of the more than $160 billion in fines issued since 2010. These fines regularly weighed on the bank's bottom line, and it really constrained any type of reinvestment. With large settlements a thing of the past, Bank of America has thrived with a clearer outlook, higher net income, and the ability to reinvest in faster growing business segments.</p>
<p>Image source: Getty Images.</p>
<p>Investors may not think about debt as being a problem for big banks, but it can be just as much of a financial constraint as in any other industry. At the end of 2009, Bank of America was lugging around $523 billion in debt on its balance sheet.</p>
<p>According to its Q4 report, it's now reduced its long-term debt to just $217 billion. There's still work to do, and the fact that it's cutting costs and seeing higher net interest income as interest rates rise is helping. But falling long-term debt levels should reduce Bank of America's cost of funds and thereby increase its profitability.</p>
<p>Let's not forget that the bread-and-butter growth engine for all banks, small and large, are their loan and deposit growth. While a bank the size of B of A isn't going to deliver double-digit loan and deposit growth, steady growth is nonetheless a good sign -- and that's exactly what we're seeing.</p>
<p>Bank of America ended the fourth quarter with $1.26 trillion in deposits, up from just shy of $1.2 trillion in the fourth quarter of 2015, while total loans and leases, including non-U.S. consumer credit cards, rose to $916 billion from $897 billion in the prior-year period. To see both deposits and loans growing with interest rates on the rise is great news for BofA.</p>
<p>Image source: Bank of America.</p>
<p>It's just not that Bank of America is making more loans, it's also seeing the quality of its loans improve as net charge-offs for both its consumer and commercial businesses have improved on a year-over-year basis. Commercial net charge-offs have fallen by nearly half -- $186 million in Q4 2015 to $105 million in Q4 2016 -- while consumer net charge-offs have dipped to $775 million from $958 million over the same period.</p>
<p>Best of all, as the number of nonperforming loans and leases has fallen, it's reduced the need to set aside allowances for delinquent loans and leases, resulting in higher profitability.</p>
<p>Bank of America's reduced costs and improved net interest income, coupled with the fact that it retains more of its earnings each year than most other big banks, have led to a considerably better capitalized bank. Its tier 1 common tangible equity ratio has improved 80 basis points, to 11%, over the past year, and it has two times the coverage for annualized net charge-offs, meaning that it's safer than it's been in years.</p>
<p>Image source: Getty Images.</p>
<p>Bank of America's new-found success hasn't been lost on its management team. Its improved capital position and higher interest rates have allowed it to begin sharing the wealth with its patient shareholders. Since mid-2014, B of A has increased its quarterly dividend from $0.01 per quarter to $0.075 per quarter as of its latest payout. The possibility of the Trump administration deregulating the banking industry, including easing the Federal Reserve's veto power over big bank capital plans, could wind up pushing this payout even higher in the years to come.</p>
<p>Last but not least, Bank of America is still a fundamentally attractive bank, even after returning more than 500% from its March 2009 closing lows. Based on its $16.95 tangible book value (TBV) as of the end of Q4 2016, Bank of America is currently valued at 1.36 times its TBV. Historically, this is still on the inexpensive side for a major bank. It's also lower than many of B of A's banking peers.</p>
<p>On an earnings basis, Wall Street is expecting the bank to earn $2.10 in earnings per share (EPS) in 2018, yet it's surpassed Wall Street's EPS consensus in each of the past seven quarters. This makes its forward P/E of 11 even more enticing.</p>
<p>I may be biased as a long-term shareholder, but Bank of America may very well be the market's most perfect stock.</p>
<p>10 stocks we like better than Bank of AmericaWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*</p>
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<p><a href="http://my.fool.com/profile/TMFUltraLong/info.aspx" type="external">Sean Williams Opens a New Window.</a> owns shares of Bank of America. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | height great recession shareholders bank stocks taken quite ride bank america nyse bac one largest banks deposits us saw shares dip 90 peak trough companys acquisition troubled lender countrywide financial coupled numerous settlements justice department really weighed bank americas stock continue reading however times changed bofa done complete 180 since hitting lows 2009 bank america shares rallied 500 practically facets companys business trending positive direction many ways 10 precise bank america could worlds perfect stock image source bank america advertisement arguably biggest factor working bank americas favor moment federal reserves ongoing monetary tightening since dec 2015 fed increased federal funds target rate 25 basis points three occasions latest increase pushed fed funds target rate range 075 1 banks variable loans thrive interest rates increase means immediate boost variable loan rates increases savings account rates lag recipe higher net interest income net interest margin bank america fourthquarter earnings presentation bank america said 100 basis point increase short longterm lending rates would lead 34 billion added net interest income bank america done exceptional job cutting costs order operate efficiently good chunk reduced costs resulted branch closures financial crisis b 6000 physical branches thirdquarter 2016 physical presence reduced little 4600 branches rise mobile banking allowed bank america reduce high overhead costs maintaining physical branch presence example data released jpmorgan chase nyse jpm back 2015 showed depositing money one tellers 065 cost 20 times mobile banking transaction 003 though figures may changed bit since 2015 b statistics could tad bit different jpmorgan chase gap still incentive banks cut expenses reducing physical presence favor online mobile banking image source bank america bank americas q4 presentation pointed ranked top dog mobilebanking functionality digitalsales functionality separate reports forrester research digital sales represent 20 bank americas total sales growth active mobile users actually accelerated past four quarters percentage terms short consumers crave convenience bank america qualms providing convenience since considerably cheaper long run winwin everyone breathe big sigh relief longterm shareholders litigation settlements bank america faced countrywides lending practices great recession firmly rearview mirror bank took chin bofa report released last year national policy resource center good jobs first found bofa paid 56 billion 160 billion fines issued since 2010 fines regularly weighed banks bottom line really constrained type reinvestment large settlements thing past bank america thrived clearer outlook higher net income ability reinvest faster growing business segments image source getty images investors may think debt problem big banks much financial constraint industry end 2009 bank america lugging around 523 billion debt balance sheet according q4 report reduced longterm debt 217 billion theres still work fact cutting costs seeing higher net interest income interest rates rise helping falling longterm debt levels reduce bank americas cost funds thereby increase profitability lets forget breadandbutter growth engine banks small large loan deposit growth bank size b isnt going deliver doubledigit loan deposit growth steady growth nonetheless good sign thats exactly seeing bank america ended fourth quarter 126 trillion deposits shy 12 trillion fourth quarter 2015 total loans leases including nonus consumer credit cards rose 916 billion 897 billion prioryear period see deposits loans growing interest rates rise great news bofa image source bank america bank america making loans also seeing quality loans improve net chargeoffs consumer commercial businesses improved yearoveryear basis commercial net chargeoffs fallen nearly half 186 million q4 2015 105 million q4 2016 consumer net chargeoffs dipped 775 million 958 million period best number nonperforming loans leases fallen reduced need set aside allowances delinquent loans leases resulting higher profitability bank americas reduced costs improved net interest income coupled fact retains earnings year big banks led considerably better capitalized bank tier 1 common tangible equity ratio improved 80 basis points 11 past year two times coverage annualized net chargeoffs meaning safer years image source getty images bank americas newfound success hasnt lost management team improved capital position higher interest rates allowed begin sharing wealth patient shareholders since mid2014 b increased quarterly dividend 001 per quarter 0075 per quarter latest payout possibility trump administration deregulating banking industry including easing federal reserves veto power big bank capital plans could wind pushing payout even higher years come last least bank america still fundamentally attractive bank even returning 500 march 2009 closing lows based 1695 tangible book value tbv end q4 2016 bank america currently valued 136 times tbv historically still inexpensive side major bank also lower many b banking peers earnings basis wall street expecting bank earn 210 earnings per share eps 2018 yet surpassed wall streets eps consensus past seven quarters makes forward pe 11 even enticing may biased longterm shareholder bank america may well markets perfect stock 10 stocks like better bank americawhen investing geniuses david tom gardner stock tip pay listen newsletter run decade motley fool stock advisor tripled market david tom revealed believe 10 best stocks opens new window investors buy right bank america wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns february 6 2017 sean williams opens new window owns shares bank america motley fool position stocks mentioned motley fool disclosure policy opens new window | 848 |
<p>UPDATED:</p>
<p>Officials said that swine flu has been ruled out as the cause of one of two recent deaths in California, the Associated Press is reporting.</p>
<p>Assistant Chief Ed Winter of the Los Angeles County Coroner’s Office said Tuesday that lab testing is still pending in the case of the second fatality but that swine flu is not now suspected, according to AP.</p>
<p>A Los Angeles County hospital said a 33-year-old Long Beach man brought in on Saturday died from symptoms resembling those of swine flu, county coroner spokesman Craig Harvey told the Los Angeles Times.</p>
<p>The other death was a 45-year-old La Mirada man who died April 22 at a Norwalk hospital.</p>
<p>The Los Angeles Times reported on its Web site that both men’s deaths were reported Monday to the coroner’s office. California Gov. Arnold Schwarzenegger has declared a state of emergency. The Centers for Disease Control and Prevention could not confirmed the deaths.</p>
<p>The number of U.S. cases increased Tuesday to 64, compared with 40 the day before, according to the CDC.</p>
<p>The agency reported 17 new cases in New York City, four more in Texas and three more in California. The totals are now 45 in New York City, 10 in California, six in Texas, two in Kansas and one in Ohio. The CDC also reported “a number of hospitalized,” compared with one on Monday, but no deaths so far in the United States.</p>
<p>Health officials in New Jersey said they had identified five probable cases of the swine flu, and Indiana has confirmed one.</p>
<p>Meanwhile, New York City’s health commissioner said “many hundreds” of schoolchildren are sick with suspected swine flu.</p>
<p>A spokeswoman for the New York City health department said 12 students at Public School 177, a special-needs school in Fresh Meadows, have flulike symptoms but none has been confirmed as having swine flu. She could not confirm a reported outbreak at a Catholic school on the Upper West Side of Manhattan.</p>
<p>Officials said they have expected more confirmed cases and severe illnesses as testing continues.</p>
<p>“We are likely to see more presentations of illness and some death,” said Homeland Security Secretary Janet Napolitano. She also said about 3,500 people every year in the United States die of seasonal flu.</p>
<p>The number of deaths in Mexico as of Tuesday morning was at least 150 with another 1,600 people sickened. The country’s government has closed schools and suspended public events.</p>
<p>Five countries in addition to the United States and Mexico now have confirmed cases: Canada, Israel, New Zealand, Spain and the United Kingdom.</p>
<p>Ms. Napolitano went on the morning TV talk shows Tuesday to assure the public that the federal government is prepared for a health crisis and that its border-check policy at airports and land ports “makes sense” and that further steps are not needed.</p>
<p>The State Department has issued a warning to Americans to refrain from “nonessential travel” to Mexico, and has suspended much of its consular business. Several European nations already have issued similar advice against flying to Mexico, and one European Union official, expressing a private opinion, also advised against flying to the United States.</p>
<p>The swine flu threat also became a political, economic and cultural football. A top House Democrat accused senators of forcing him to strip from the stimulus bill millions of dollars in anti-outbreak spending, prices of pork futures and airline stocks took a beating, and opponents of illegal immigration called for closing the U.S.-Mexico border.</p>
<p>The WHO says the Mexican strain seemed to be more virulent than one that swept through a New York prep school, where 28 students who went on spring break to the Mexico resort city of Cancun now have the virus.</p>
<p>At least six Canadians were hospitalized, with symptoms ranging from coughs and fever to dizziness, dehydration and vomiting.</p>
<p>Dr. Richard Besser, acting director of the CDC, said the median age of those affected in the United States is 16, with a range in age of 7 to 54.</p>
<p>While officials at the Homeland Security Department and other government agencies are putting more resources at border crossings, sheriffs operating along the border say they don’t have enough resources to deter illegal immigrants who might be carrying the disease into the United States.</p>
<p>Sheriff Sigifredo Gonzalez Jr. of Zapata County, Texas, said emergency funding is needed to enhance patrols and monitor local jails for any outbreaks.</p>
<p>Sheriff Gonzalez, who is chairman of the Southwestern Border Sheriff’s Coalition, said thousands of students who cross the border daily from Mexico to attend school in the United States should be monitored or stopped until the severity of the flu outbreak can be determined.</p>
<p>A question-and-answer document distributed to Capitol Hill staffers from the Department of Homeland Security said the CDC “has not recommended closing the border at this time nor is [a] mandatory quarantine for those with flu-like symptoms in place.”</p>
<p>“As part of [Customs and Border Protection’s] routine procedures, if someone crossing the border appears ill, they are referred to CDC quarantine station, where they are evaluated and dispositioned,” the Homeland Security document said.</p>
<p>“There is no mandatory quarantining at this time. If a person tests positive for influenza at the quarantine station, a sample is sent to the CDC for confirmation,” the document said.</p>
<p>The document said the department’s officials have positioned assets at various border locations “in the event a pandemic is declared.”</p>
<p>Rep. John Culberson, Texas Republican, said “current law needs to be enforced from Brownsville to San Diego, with zero tolerance for illegal crossings, which will protect border communities against every conceivable threat,” including a pandemic.</p>
<p>The Americans for Legal Immigration PAC went a step further, calling on the Obama administration to immediately close the southern border and restrict all inbound air and ground traffic from Mexico.</p>
<p>“The Obama administration’s failure to secure our borders against a possible pandemic is putting American lives at risk at a time when days and hours matter,” said William Gheen, the PAC’s spokesman.</p>
<p>But WHO Assistant Director-General Keiji Fukuda said the virus’s spread to other countries means that “at this time, containment is not a feasible option.”</p>
<p>Mexico’s health minister warned that the outbreak in his country was entering its most dangerous phase, with numbers of afflicted people growing even in the face of stepped-up warnings.</p>
<p>“We are in the most critical moment of the epidemic. The number of cases will keep rising, so we have to reinforce preventive measures,” Jose Angel Cordova, the health minister, told reporters at a news conference in Mexico City.</p>
<p>Several departments of the U.S. government mobilized to try to halt the spread of the flu virus and to prepare to help the infected.</p>
<p>The Health and Human Services Department has released 11 million treatments of anti-viral drugs, such as Tamiflu, which scientists say may not be as effective against the swine flu as it was against the avian flu a few years ago.</p>
<p>President Obama is using the outbreak to push his plan for investing more federal funds in science and technology research, but said Americans should not be worried about a pandemic.</p>
<p>“This is obviously a cause for concern and requires a heightened state of alert, but this is not a cause for alarm,” the president said during a speech at the National Academy of Sciences in Washington.</p>
<p>He said the CDC is regularly updating federal and local governments and stressed that his team is on the job to make sure “we have the resources we need at our disposal.”</p>
<p>“They know what steps are being taken and what steps they need to take,” he said, adding that his administration will be relying “heavily” on the U.S. scientific and medical community to deal with the problem.</p>
<p>Congress scheduled emergency hearings for this week. Sen. Tom Harkin, Iowa Democrat and chairman of the Appropriations subcommittee that oversees health issues, will hold a hearing of his panel Tuesday afternoon. On Wednesday, Ms. Napolitano and Dr. Besser are to testify before the Senate Homeland Security and Governmental Affairs Committee.</p>
<p>White House press secretary Robert Gibbs got so many questions about Mr. Obama’s potential exposure to the swine flu during a recent trip to Mexico that he held up his hands to halt the onslaught.</p>
<p>Photographers who rarely take pictures of the daily briefings took so many photos that Mr. Gibbs’ next words were drowned out by the sound of the camera clicks.</p>
<p>He stressed that White House doctors are 100 percent confident “the president’s health was never in any danger.”</p>
<p>When peppered with more queries, Mr. Gibbs added: “My ears work fine. I will check on the other questions.”</p>
<p>The White House even went to the trouble of releasing a statement from the Mexican Embassy saying that Felipe Solis, who guided Mr. Obama through Mexico’s National Anthropology Museum, died last week “of a preexisting condition and not of swine flu.”</p>
<p>So far, the swine flu has been smaller in scope than the much-feared avian flu. Both strains of flu are H1N1 — a virus that can pass from animal to person and onward via sneezing, coughing and other significant physical contact.</p>
<p>But the crisis has triggered fiscal repercussions: The price of pork bellies futures plunged Monday, even as China, Russia, Indonesia and the Philippines have halted pork imports from Mexico and Southern U.S. states, where most infections have been reported. The CDC insists that people cannot get swine flu by eating pork or pork products.</p>
<p>Investors sold off airline holdings, contributing to overall market downturns.</p>
<p>In a particularly bad year, various strains of the flu can kill up to a half-million people around the world. Scientists say it is unusual for a virus to be so active in the Northern Hemisphere in early spring. Flu season generally spans the winter months, which are just starting in the Southern Hemisphere.</p>
<p>• Sara A. Carter, Christina Bellantoni, Joseph Weber and Stephen Dinan contributed to this report.</p>
<p>Copyright © 2018 The Washington Times, LLC. <a href="http://license.icopyright.net/3.7280?icx_id=/news/2009/apr/28/southern-border-open-despite-flu/" type="external">Click here for reprint permission</a>.</p>
<p>&#160;</p> | true | 0 | updated officials said swine flu ruled cause one two recent deaths california associated press reporting assistant chief ed winter los angeles county coroners office said tuesday lab testing still pending case second fatality swine flu suspected according ap los angeles county hospital said 33yearold long beach man brought saturday died symptoms resembling swine flu county coroner spokesman craig harvey told los angeles times death 45yearold la mirada man died april 22 norwalk hospital los angeles times reported web site mens deaths reported monday coroners office california gov arnold schwarzenegger declared state emergency centers disease control prevention could confirmed deaths number us cases increased tuesday 64 compared 40 day according cdc agency reported 17 new cases new york city four texas three california totals 45 new york city 10 california six texas two kansas one ohio cdc also reported number hospitalized compared one monday deaths far united states health officials new jersey said identified five probable cases swine flu indiana confirmed one meanwhile new york citys health commissioner said many hundreds schoolchildren sick suspected swine flu spokeswoman new york city health department said 12 students public school 177 specialneeds school fresh meadows flulike symptoms none confirmed swine flu could confirm reported outbreak catholic school upper west side manhattan officials said expected confirmed cases severe illnesses testing continues likely see presentations illness death said homeland security secretary janet napolitano also said 3500 people every year united states die seasonal flu number deaths mexico tuesday morning least 150 another 1600 people sickened countrys government closed schools suspended public events five countries addition united states mexico confirmed cases canada israel new zealand spain united kingdom ms napolitano went morning tv talk shows tuesday assure public federal government prepared health crisis bordercheck policy airports land ports makes sense steps needed state department issued warning americans refrain nonessential travel mexico suspended much consular business several european nations already issued similar advice flying mexico one european union official expressing private opinion also advised flying united states swine flu threat also became political economic cultural football top house democrat accused senators forcing strip stimulus bill millions dollars antioutbreak spending prices pork futures airline stocks took beating opponents illegal immigration called closing usmexico border says mexican strain seemed virulent one swept new york prep school 28 students went spring break mexico resort city cancun virus least six canadians hospitalized symptoms ranging coughs fever dizziness dehydration vomiting dr richard besser acting director cdc said median age affected united states 16 range age 7 54 officials homeland security department government agencies putting resources border crossings sheriffs operating along border say dont enough resources deter illegal immigrants might carrying disease united states sheriff sigifredo gonzalez jr zapata county texas said emergency funding needed enhance patrols monitor local jails outbreaks sheriff gonzalez chairman southwestern border sheriffs coalition said thousands students cross border daily mexico attend school united states monitored stopped severity flu outbreak determined questionandanswer document distributed capitol hill staffers department homeland security said cdc recommended closing border time mandatory quarantine flulike symptoms place part customs border protections routine procedures someone crossing border appears ill referred cdc quarantine station evaluated dispositioned homeland security document said mandatory quarantining time person tests positive influenza quarantine station sample sent cdc confirmation document said document said departments officials positioned assets various border locations event pandemic declared rep john culberson texas republican said current law needs enforced brownsville san diego zero tolerance illegal crossings protect border communities every conceivable threat including pandemic americans legal immigration pac went step calling obama administration immediately close southern border restrict inbound air ground traffic mexico obama administrations failure secure borders possible pandemic putting american lives risk time days hours matter said william gheen pacs spokesman assistant directorgeneral keiji fukuda said viruss spread countries means time containment feasible option mexicos health minister warned outbreak country entering dangerous phase numbers afflicted people growing even face steppedup warnings critical moment epidemic number cases keep rising reinforce preventive measures jose angel cordova health minister told reporters news conference mexico city several departments us government mobilized try halt spread flu virus prepare help infected health human services department released 11 million treatments antiviral drugs tamiflu scientists say may effective swine flu avian flu years ago president obama using outbreak push plan investing federal funds science technology research said americans worried pandemic obviously cause concern requires heightened state alert cause alarm president said speech national academy sciences washington said cdc regularly updating federal local governments stressed team job make sure resources need disposal know steps taken steps need take said adding administration relying heavily us scientific medical community deal problem congress scheduled emergency hearings week sen tom harkin iowa democrat chairman appropriations subcommittee oversees health issues hold hearing panel tuesday afternoon wednesday ms napolitano dr besser testify senate homeland security governmental affairs committee white house press secretary robert gibbs got many questions mr obamas potential exposure swine flu recent trip mexico held hands halt onslaught photographers rarely take pictures daily briefings took many photos mr gibbs next words drowned sound camera clicks stressed white house doctors 100 percent confident presidents health never danger peppered queries mr gibbs added ears work fine check questions white house even went trouble releasing statement mexican embassy saying felipe solis guided mr obama mexicos national anthropology museum died last week preexisting condition swine flu far swine flu smaller scope muchfeared avian flu strains flu h1n1 virus pass animal person onward via sneezing coughing significant physical contact crisis triggered fiscal repercussions price pork bellies futures plunged monday even china russia indonesia philippines halted pork imports mexico southern us states infections reported cdc insists people get swine flu eating pork pork products investors sold airline holdings contributing overall market downturns particularly bad year various strains flu kill halfmillion people around world scientists say unusual virus active northern hemisphere early spring flu season generally spans winter months starting southern hemisphere sara carter christina bellantoni joseph weber stephen dinan contributed report copyright 2018 washington times llc click reprint permission 160 | 993 |
<p>Yesterday, Rush Limbaugh said of comprehensive immigration reform, “I don’t know that there’s any stopping this; it’s up to me and Fox News, and I don’t think Fox News is that invested in this.” After <a href="http://www.latinorebels.com/2013/01/29/transcript-the-marco-rubio-interview-with-rush-limbaugh/" type="external">Limbaugh’s interview today with Marco Rubio</a>, I wonder how invested Limbaugh is in stopping the comprehensive immigration reform express.</p>
<p>Rubio has been designated by the Senate’s immigration leftists — Schumer, Durbin, McCain, and Graham — as the man who will sell to conservatives their agenda of amnesty and a path to citizenship for illegal aliens. Rubio appears to have done a good sale’s job on Limbaugh.</p>
<p>Rush started out by asking a great question:</p>
<p>The first question I have for you is, why are we doing this? It seems like Washington has a pattern, and that is, when the Democrats want to do something, the media gets behind it, the Democrats get behind it, and it becomes something that has to be done and therefore the Democrats set the stage, they start the ball in motion. The Republicans then react to it, say, “Okay, that’s what you want to do, we’ll do it, but here’s our way of doing it.” Why are we doing this now?</p>
<p>Rubio answered:</p>
<p>The president clearly outlined that he was gonna push on this, the media was gonna focus on this, the Senate Democrats were gonna push on this issue, and I thought it was critically important that we outline the principles of what reform is about. . . .In the absence of stepping forward with our own principles, the left and the president will tell people what we stand for, and it’s not necessarily gonna be true.</p>
<p>This is fine as far as it goes — Republicans should define their position rather than having it defined for them. However, this begs the question of what the Republican position on immigration should be. In Rubio’s mind, as in the mind of Schumer, Durbin, McCain, and Graham, reform should include, among other things, a path to citizenship for illegal immigrants.</p>
<p>But, as Rush asked, Why? Of course, the Democrats were always going to push for citizenship for illegals — it’s a vital element of their plan to obtain permanent political supremacy. But Republicans need not capitulate. The House can block whatever the Senate Democrats push; even Senate Republicans could do so if they were united. With Rubio on board with the Dems, however, it will be politically difficult for even the House to avoid the amnesty/path to citizenship steamroller.</p>
<p>Thus, Rush’s question stands: Why capitulate on amnesty and the path to citizenship?</p>
<p>Unfortunately, Rush didn’t press the point. Instead, he raised the separate concern of how to make sure that the border enforcement component of the deal Rubio is pushing — amnesty and a path for citizenship once the border is secure — will be fulfilled. The question is an important one to be sure, but it assumes that amnesty and a path to citizenship would be meritorious outcomes if the border were secured. But why? Rubio didn’t say and Rush didn’t ask.</p>
<p>Instead, Rubio touted his supposed powers of persuasion:</p>
<p>I am confident, I really am, maybe people don’t share this confidence, I am confident that, given a fair chance, I can convince most Americans, including Americans of Hispanic descent, that limited government and free enterprise is better for them and better for their upward mobility than Big Government is. Because that’s the reason why they came here. You look at people that come from Latin America. They come to get away from stale stagnant economies where the rich keep winning and everybody else keeps working for them because Big Government dominates those economies.</p>
<p>Rush was skeptical:</p>
<p>Well, is that the reason that a majority of immigrants come to this country today? I know it used to be. They wanted to be Americans. They wanted to escape oppression. They wanted to become citizens of the greatest country on earth. I’ve seen a number of research, scholarly research data, which says that a vast majority of arriving immigrants today come here because they believe that government is the source of prosperity, and that’s what they support. It’s not about conservative principles and so forth, not the way it used to be. Are the Republicans stuck in the past in misjudging why the country is attractive to immigrants today?</p>
<p>Rush might have added that even the immigrants of the past supported a leftist, big government agenda for many decades after arriving in America. But Rush was certainly spot-on in refusing to romanticize today’s immigrants.</p>
<p>Rubio responded by resorting to anecdote. Even he didn’t seem convinced by his response:</p>
<p>I haven’t done a scholarly study on the makeup. I can only tell you about the people I interact with, and I can tell you the folks I interact with, once they get into this country and they start to work and they open up their own business, they start to understand the cost of Big Government. I see it every day firsthand from people that have been here about eight to ten years. All of a sudden, they have their own business, they have a bunch of permits that they have to comply with, a bunch of complicated laws. Their taxes just went up a couple of weeks ago even though President Obama has been saying it’s only gonna go up on the rich, and the light bulb is going off that, in fact, Big Government, you know, rich means them even though they’re middle class and Big Government means less opportunity for them. So we have work to do, there’s no doubt about it.</p>
<p>Rubio’s personal observations do not trump the data. Hispanic immigrants vote overwhelmingly for the party of big government. The Republican position on immigration reform probably contributes to this phenomenon at the margin, but it can’t explain it. The waves of immigrants who preceded the Hispanics also voted overwhelmingly for big government liberalism, and for the same reason — they were a resentful underclass.</p>
<p>Rush switched the focus to President Obama. He argued that the president has no real interest in achieving border security.</p>
<p>This enabled Rubio to tout the Gang of Eight, whose blueprint for reform includes improving border security. Rush countered that this will not prevent the Democrats from calling the Republicans anti-Hispanic if they block reform on the grounds that it won’t bring about real border security.</p>
<p>Here, I think Rush misses the game the game of “good cop, bad cop” the Democrats are playing. Obama is the bad cop — the pro-immigration extremist. Schumer and Durbin are the good cops, insisting on (faux) border security. Obama will gladly take what the good cops are offering because it’s also what he craves — the path to a permanent Democrat political majority. Meanwhile, out of fear of the bad cop, Rubio and company probably will ultimately agree to what the good cops are insisting upon — that, by hook or by crook, the border is certified as secure so that millions of illegal immigrants can become citizens.</p>
<p>In any event, Rubio seemed to win Rush over:</p>
<p>Well, what you are doing is admirable and noteworthy. You are recognizing reality. You’re trumpeting it, you’re shouting it. My concern is the president wants to change the reality. My concern is the president wants people to believe something that isn’t true is, and that is that you guys are not being truthful of what you say, that you really don’t want an improved life for Hispanics, that you really are still racist. He’s not gonna give that up. Look how far he’s gotten with this so far. You know, it’s an enviable task that you’ve got.</p>
<p>Rush seems to be suggesting that Republicans should support legislation that includes amnesty and a path to citizenship in order to rebut Obama’s claims that Republicans are racist. In my view, Republicans shouldn’t be cowed into supporting bad ideas in order to avoid charges that the Democrats will always level, based on one pretense or another, against them.</p>
<p>Rush’s next-to-last question was: “What do you think the result will be if this effort fails?” For me, the more pertinent question is: What will be result be if Rubio’s effort to bring about amnesty and a path to citizenship for millions of illegal immigrants succeeds?</p>
<p>One result, I believe, will be the inability, for decades, of the Republican party to win more than the odd election as a conservative entity.</p> | true | 0 | yesterday rush limbaugh said comprehensive immigration reform dont know theres stopping fox news dont think fox news invested limbaughs interview today marco rubio wonder invested limbaugh stopping comprehensive immigration reform express rubio designated senates immigration leftists schumer durbin mccain graham man sell conservatives agenda amnesty path citizenship illegal aliens rubio appears done good sales job limbaugh rush started asking great question first question seems like washington pattern democrats want something media gets behind democrats get behind becomes something done therefore democrats set stage start ball motion republicans react say okay thats want well heres way rubio answered president clearly outlined gon na push media gon na focus senate democrats gon na push issue thought critically important outline principles reform absence stepping forward principles left president tell people stand necessarily gon na true fine far goes republicans define position rather defined however begs question republican position immigration rubios mind mind schumer durbin mccain graham reform include among things path citizenship illegal immigrants rush asked course democrats always going push citizenship illegals vital element plan obtain permanent political supremacy republicans need capitulate house block whatever senate democrats push even senate republicans could united rubio board dems however politically difficult even house avoid amnestypath citizenship steamroller thus rushs question stands capitulate amnesty path citizenship unfortunately rush didnt press point instead raised separate concern make sure border enforcement component deal rubio pushing amnesty path citizenship border secure fulfilled question important one sure assumes amnesty path citizenship would meritorious outcomes border secured rubio didnt say rush didnt ask instead rubio touted supposed powers persuasion confident really maybe people dont share confidence confident given fair chance convince americans including americans hispanic descent limited government free enterprise better better upward mobility big government thats reason came look people come latin america come get away stale stagnant economies rich keep winning everybody else keeps working big government dominates economies rush skeptical well reason majority immigrants come country today know used wanted americans wanted escape oppression wanted become citizens greatest country earth ive seen number research scholarly research data says vast majority arriving immigrants today come believe government source prosperity thats support conservative principles forth way used republicans stuck past misjudging country attractive immigrants today rush might added even immigrants past supported leftist big government agenda many decades arriving america rush certainly spoton refusing romanticize todays immigrants rubio responded resorting anecdote even didnt seem convinced response havent done scholarly study makeup tell people interact tell folks interact get country start work open business start understand cost big government see every day firsthand people eight ten years sudden business bunch permits comply bunch complicated laws taxes went couple weeks ago even though president obama saying gon na go rich light bulb going fact big government know rich means even though theyre middle class big government means less opportunity work theres doubt rubios personal observations trump data hispanic immigrants vote overwhelmingly party big government republican position immigration reform probably contributes phenomenon margin cant explain waves immigrants preceded hispanics also voted overwhelmingly big government liberalism reason resentful underclass rush switched focus president obama argued president real interest achieving border security enabled rubio tout gang eight whose blueprint reform includes improving border security rush countered prevent democrats calling republicans antihispanic block reform grounds wont bring real border security think rush misses game game good cop bad cop democrats playing obama bad cop proimmigration extremist schumer durbin good cops insisting faux border security obama gladly take good cops offering also craves path permanent democrat political majority meanwhile fear bad cop rubio company probably ultimately agree good cops insisting upon hook crook border certified secure millions illegal immigrants become citizens event rubio seemed win rush well admirable noteworthy recognizing reality youre trumpeting youre shouting concern president wants change reality concern president wants people believe something isnt true guys truthful say really dont want improved life hispanics really still racist hes gon na give look far hes gotten far know enviable task youve got rush seems suggesting republicans support legislation includes amnesty path citizenship order rebut obamas claims republicans racist view republicans shouldnt cowed supporting bad ideas order avoid charges democrats always level based one pretense another rushs nexttolast question think result effort fails pertinent question result rubios effort bring amnesty path citizenship millions illegal immigrants succeeds one result believe inability decades republican party win odd election conservative entity | 723 |
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<p>Image source: Getty Images.</p>
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<p>The financial media largely ignores small-cap stocks, but that doesn't mean you should, too. There are plenty of high-quality companies floating around with market caps well under $1 billion, and if you can buy them early in their growth cycle, then you could go on to earnmarket-thumping returns.</p>
<p>To that end,we asked three Motley Fool contributors to each pick a small-cap stock they think investors can buy right now. Read on to see why they selected Zoe's Kitchen (NYSE: ZOES), Tile Shop Holdings (NASDAQ: TTS), and Fogo de Chao (NASDAQ: FOGO).</p>
<p><a href="http://my.fool.com/profile/TMFTypeoh/info.aspx" type="external">Brian Feroldi Opens a New Window.</a> (Zoe's Kitchen): I love investing in restaurants early in their growth phase, because the investing thesis is so easy to understand. If the company has a winning concept on its hand, then sales and profits can grow quickly for years on end as management opens new stores. It doesn't get much easier than that.</p>
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<p>This simple formulahas worked like magic for long-term investors in Panera Bread, Buffalo Wild Wings, and Chipotle Mexican Grill, and early signs hint that Zoe'sKitchen is on a similar growth trajectory.</p>
<p>Zoe's is a fast-casual restaurant that serves healthy Mediterranean dishes. Think salads, sandwiches, and lean entrees that are simple, tasty, and made from scratch daily.</p>
<p>The company's food is highly differentiated from most other chain restaurants, which customers clearly appreciate. Comparable-store sales have increased for 26 quarters in a row, a remarkable achievement. More recently we saw comps jump by 4%, an impressive number given today'stough restaurant environment.</p>
<p>Currently, Zoe's operates 191 stores that are primarily found in the Southeast, but the company believes it could ultimately open 1,600 stores. in the U.S. alone. This year, the company expects to open roughly 35 new stores, which is a pace it should be able to keep up for years on end. That sets the company up nicely to grow revenue and profit at above-average rates for decades to come, which makes this a great stock to consider buying today .</p>
<p><a href="http://my.fool.com/profile/TMFVelvetHammer/info.aspx" type="external">Jason Opens a New Window.</a> <a href="http://my.fool.com/profile/TMFVelvetHammer/info.aspx" type="external">Hall Opens a New Window.</a> (Tile Shop Holdings): Specialty retailerTile Shop Holdings has been both an excellent and horrible investment over the past five years, depending on when you bought shares:</p>
<p><a href="http://ycharts.com/companies/TTS" type="external">TTS</a> data by <a href="http://ycharts.com" type="external">YCharts Opens a New Window.</a></p>
<p>So why does Tile Shop make my list as a small-cap stock to buy this month? Three things:</p>
<p>Since Homeister's promotion to CEO at the beginning of 2015, the company has steadily improved its cost structure, paid down debt, and built up its cash position. At the same time, the company has invested in its stores, adding more store support and management personnel. The result? Seven consecutive quarters of improved store-management tenure, higher comparable-store sales, and what management describes as a strong bench of future managers to support the company's efforts to expand. And with fewer than 150 total stores, there's a pretty big opportunity for growth, in a very fragmented retail tile industry.</p>
<p>Lastly, the long-term trends are in Tile Shop's favor when it comes to housing. Millennials are only just starting to enter the homeownership market, and as they make up the most populous generation in the U.S., the company's efforts to consolidate the retail tile market should pay off for years to come.</p>
<p><a href="http://my.fool.com/profile/TMFBargainBin/info.aspx" type="external">Tim Green Opens a New Window.</a> (Fogo de Chao): One interesting small-cap stock that recently caught my eye is Brazilian steakhouse chain Fogo de Chao. The company is small, operating just 42 restaurants, but profitability is through the roof. During the second quarter, the company reported a restaurant contribution margin of 29.5% and an operating margin of nearly 14%.</p>
<p>Given Fogo de Chao's unique concept, the ceiling on the company's restaurant count is probably not all that high. In a presentation from earlier this year, Fogo de Chao pointed to the potential of opening 100 new restaurants in the United States, along with opportunities in various international markets. The company's aim is for each restaurant to generate $7 million of sales by the third year in operation, along with a contribution margin in the high 20s.</p>
<p>Fogo de Chao has produced net income of $33 million over the past 12 months, putting the P/E ratio below 10. There's a reason for this low valuation -- comparable sales have been weak. The company expects comparable sales to decline by as much as 2.5% this year, driven by general softness in the restaurant industry, as well as currency negatively affecting its 10 restaurants in Brazil.</p>
<p>Many restaurant chains are struggling to attract diners, and Fogo de Chao is no exception. But its unique concept, impressive profitability, low valuation, and growth potential make it an interesting investment opportunity.</p>
<p>A secret billion-dollar stock opportunity The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, <a href="http://www.fool.com/mms/mark/ecap-foolcom-apple-wearable?aid=6965&amp;source=irbeditxt0000017&amp;ftm_cam=rb-wearable-d&amp;ftm_pit=2667&amp;ftm_veh=article_pitch&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">just click here Opens a New Window.</a>.</p>
<p><a href="http://my.fool.com/profile/TMFTypeoh/info.aspx" type="external">Brian Feroldi</a> owns shares of Buffalo Wild Wings and Chipotle Mexican Grill. <a href="http://my.fool.com/profile/elihpaudio/info.aspx" type="external">Jason Hall Opens a New Window.</a> owns shares of Buffalo Wild Wings, Chipotle Mexican Grill, and Tile Shop Holdings. <a href="http://my.fool.com/profile/TMFBargainBin/info.aspx" type="external">Timothy Green</a> has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Buffalo Wild Wings, Chipotle Mexican Grill, Panera Bread, Tile Shop Holdings, and Zoe's Kitchen. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=isiedilnk018048&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://www.fool.com/knowledge-center/motley.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">considering a diverse range of insights Opens a New Window.</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | image source getty images continue reading financial media largely ignores smallcap stocks doesnt mean plenty highquality companies floating around market caps well 1 billion buy early growth cycle could go earnmarketthumping returns endwe asked three motley fool contributors pick smallcap stock think investors buy right read see selected zoes kitchen nyse zoes tile shop holdings nasdaq tts fogo de chao nasdaq fogo brian feroldi opens new window zoes kitchen love investing restaurants early growth phase investing thesis easy understand company winning concept hand sales profits grow quickly years end management opens new stores doesnt get much easier advertisement simple formulahas worked like magic longterm investors panera bread buffalo wild wings chipotle mexican grill early signs hint zoeskitchen similar growth trajectory zoes fastcasual restaurant serves healthy mediterranean dishes think salads sandwiches lean entrees simple tasty made scratch daily companys food highly differentiated chain restaurants customers clearly appreciate comparablestore sales increased 26 quarters row remarkable achievement recently saw comps jump 4 impressive number given todaystough restaurant environment currently zoes operates 191 stores primarily found southeast company believes could ultimately open 1600 stores us alone year company expects open roughly 35 new stores pace able keep years end sets company nicely grow revenue profit aboveaverage rates decades come makes great stock consider buying today jason opens new window hall opens new window tile shop holdings specialty retailertile shop holdings excellent horrible investment past five years depending bought shares tts data ycharts opens new window tile shop make list smallcap stock buy month three things since homeisters promotion ceo beginning 2015 company steadily improved cost structure paid debt built cash position time company invested stores adding store support management personnel result seven consecutive quarters improved storemanagement tenure higher comparablestore sales management describes strong bench future managers support companys efforts expand fewer 150 total stores theres pretty big opportunity growth fragmented retail tile industry lastly longterm trends tile shops favor comes housing millennials starting enter homeownership market make populous generation us companys efforts consolidate retail tile market pay years come tim green opens new window fogo de chao one interesting smallcap stock recently caught eye brazilian steakhouse chain fogo de chao company small operating 42 restaurants profitability roof second quarter company reported restaurant contribution margin 295 operating margin nearly 14 given fogo de chaos unique concept ceiling companys restaurant count probably high presentation earlier year fogo de chao pointed potential opening 100 new restaurants united states along opportunities various international markets companys aim restaurant generate 7 million sales third year operation along contribution margin high 20s fogo de chao produced net income 33 million past 12 months putting pe ratio 10 theres reason low valuation comparable sales weak company expects comparable sales decline much 25 year driven general softness restaurant industry well currency negatively affecting 10 restaurants brazil many restaurant chains struggling attract diners fogo de chao exception unique concept impressive profitability low valuation growth potential make interesting investment opportunity secret billiondollar stock opportunity worlds biggest tech company forgot show something wall street analysts fool didnt miss beat theres small company thats powering brandnew gadgets coming revolution technology think stock price nearly unlimited room run early intheknow investors one click opens new window brian feroldi owns shares buffalo wild wings chipotle mexican grill jason hall opens new window owns shares buffalo wild wings chipotle mexican grill tile shop holdings timothy green position stocks mentioned motley fool owns shares recommends buffalo wild wings chipotle mexican grill panera bread tile shop holdings zoes kitchen try foolish newsletter services free 30 days opens new window fools may hold opinions believe considering diverse range insights opens new window makes us better investors motley fool disclosure policy opens new window | 610 |
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<p>There may be evidence that Macau's casinos industry is actually finallyrecovering. After five months of rising gaming revenues that had externaleventsaccounting for at least part of the gain, the Chinese gambling district posted numbers for February that indicate the rally is real.</p>
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<p>Even better for the major global casino operators, Nevada also put up some robust growth last month, so let's take a look at Las Vegas Sands(NYSE: LVS)andMGM Resorts International(NYSE: MGM) as both resort ownershave their feet firmly planted in each market. Because theyoffer different plays on the two gambling regions, one might be a better bet than the other.</p>
<p>Image source: Getty Images.</p>
<p>Las Vegas Sands has piled the chips high on Macau, generating 59% of its $11.4 billion in revenues last year and 54% of its adjusted property earnings before interest, taxes, depreciation, and amortization. That's second only to Wynn Resorts (NASDAQ: WYNN), which derives almost 64% of its revenues and 62% of its adjusted property EBITDA.</p>
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<p>MGM, on the other hand, generates just 20% of its $9.5 billion in revenues from Macau through its 56% ownership of MGM China, which also represents less than 17% of its adjusted property EBITDA. Even after MGM opens its new MGM Cotai resort later this year, the distribution of revenues and profits won't be appreciably altered.</p>
<p>Instead, Las Vegas is where it's at for MGM as its nine properties there generated over $5.5 billion in revenues last year, or 59% of the total. It also has properties in Maryland, Michigan, Missouri, and New Jersey that account for another 16% of revenues, a percentage that ought to rise in 2017 as MGM only enjoyed <a href="https://www.fool.com/investing/2017/01/09/was-the-borgata-mgm-resorts-smartest-acquisition.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">partial-year revenues Opens a New Window.</a> from the Borgata in Atlantic City after purchasing the other half from Boyd Gaming, and National Harbor in Baltimore that opened in mid-December.</p>
<p>Image source: The Borgata.</p>
<p>It is also developing a new resort in Springfield, Mass., that should be completed by late 2018 andhas a 76% stake inMGM Growth Properties, a triple-net lease real estate investment trust it created to hold properties like Mandalay Bay, The Mirage, Luxor, and Excalibur.</p>
<p>Sands, for its part, has but two casinos in Vegas -- the Venetian and the Palazzo -- that, along with its expo center, generated just $1.5 billion in 2016, or 13% of its total revenues. At $2.8 billion, Sands' Singapore resort, the Marina Bay Sands, delivered more revenues than its Vegas operations.</p>
<p>Still, with both Macau and Vegas seeing gaming revenues on the rise, they should each benefit, though by how much remains to be seen because there are lots of factors that could undermine both locales.</p>
<p>The problems with Macau are well known, stemming from Beijing's crackdown on luxury, gift-giving, and corruption that precipitated the 26-month decline the region is only now just clawing its way back from.</p>
<p>It does appear the mandate to rely less upon VIP gambling is gaining traction, though, as Macau's Statistics and Census Service says visitors who stay at least a night in Macau -- typically considered tourists -- rose 18.9% in January and accounted for 47% of total arrivals.We won't know February's numbers until later this month, but considering the big jump in last month's gaming revenues on the peninsula, up 18% year over year and one of the biggest hauls for a February, it looks solid, even if we need to wait until next month to see whether it was due to VIP baccarat or other mass-market games of chance.</p>
<p>The problem is, the Chinese government remains only tolerant of the wealth passing through Macau, and it occasionally <a href="https://www.fool.com/investing/2017/02/28/china-may-kill-the-macau-casino-rally-again.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">flexes its regulatory muscle Opens a New Window.</a> to show it still has an eye on the region. Recent changes to ATM withdrawals, arrests of foreign casino executives for allegedly advertising gambling on the mainland, and the new policy of fingerprinting all foreign visitors coming into the country may still make tourists and VIPs alike skittish about laying down bets here.</p>
<p>Image source: Las Vegas Sands.</p>
<p>Not that Las Vegas' rebound is built on bedrock, either. While statewide revenues were up 12% in January (the latest data available), helped along by a 14% increase from the Strip, it was the downtown casinos that enjoyed the greatest growth, with a 32% year-over-year gain followed by a 25% increase in north Las Vegas. Yet the Vegas area saw declines across the board in November and December, suggesting it's a recovery still trying to get its balance and may continue to come in fits and starts.</p>
<p>Both operators, as well as rivals like Wynnand even Macau-based Melco Crown Entertainment, are planning to <a href="https://www.fool.com/investing/2016/11/23/forget-vegas-and-macau-this-is-where-casinos-are-p.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">spend big Opens a New Window.</a> in Japan when that market finally opens to casino development. Everyone has said they're willing to spend around $10 billion or more to build up their operations in what could become the biggest, and maybe the most expensive global casino market.</p>
<p>Although Asian markets seemingly having the greatest catalysts for growth, because of the ongoing risks inherent in Macau and Las Vegas Sands' big bet there, I'd say the odds tilt in favor of MGM Resorts for having the biggest advantages where an investor can lay his bets down.</p>
<p>10 stocks we like better than Las Vegas SandsWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*</p>
<p>David and Tom just revealed what they believe are the <a href="http://infotron.fool.com/infotrack/click?url=http%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=de25b827-22fd-437c-a873-6ad89bc0f2e3&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now... and Las Vegas Sands wasn't one of them! That's right -- they think these 10 stocks are even better buys.</p>
<p><a href="http://infotron.fool.com/infotrack/click?url=http%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=de25b827-22fd-437c-a873-6ad89bc0f2e3&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Click here Opens a New Window.</a> to learn about these picks!</p>
<p>*Stock Advisor returns as of February 6, 2017</p>
<p><a href="http://my.fool.com/profile/TMFCop/info.aspx" type="external">Rich Duprey Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | may evidence macaus casinos industry actually finallyrecovering five months rising gaming revenues externaleventsaccounting least part gain chinese gambling district posted numbers february indicate rally real continue reading even better major global casino operators nevada also put robust growth last month lets take look las vegas sandsnyse lvsandmgm resorts internationalnyse mgm resort ownershave feet firmly planted market theyoffer different plays two gambling regions one might better bet image source getty images las vegas sands piled chips high macau generating 59 114 billion revenues last year 54 adjusted property earnings interest taxes depreciation amortization thats second wynn resorts nasdaq wynn derives almost 64 revenues 62 adjusted property ebitda advertisement mgm hand generates 20 95 billion revenues macau 56 ownership mgm china also represents less 17 adjusted property ebitda even mgm opens new mgm cotai resort later year distribution revenues profits wont appreciably altered instead las vegas mgm nine properties generated 55 billion revenues last year 59 total also properties maryland michigan missouri new jersey account another 16 revenues percentage ought rise 2017 mgm enjoyed partialyear revenues opens new window borgata atlantic city purchasing half boyd gaming national harbor baltimore opened middecember image source borgata also developing new resort springfield mass completed late 2018 andhas 76 stake inmgm growth properties triplenet lease real estate investment trust created hold properties like mandalay bay mirage luxor excalibur sands part two casinos vegas venetian palazzo along expo center generated 15 billion 2016 13 total revenues 28 billion sands singapore resort marina bay sands delivered revenues vegas operations still macau vegas seeing gaming revenues rise benefit though much remains seen lots factors could undermine locales problems macau well known stemming beijings crackdown luxury giftgiving corruption precipitated 26month decline region clawing way back appear mandate rely less upon vip gambling gaining traction though macaus statistics census service says visitors stay least night macau typically considered tourists rose 189 january accounted 47 total arrivalswe wont know februarys numbers later month considering big jump last months gaming revenues peninsula 18 year year one biggest hauls february looks solid even need wait next month see whether due vip baccarat massmarket games chance problem chinese government remains tolerant wealth passing macau occasionally flexes regulatory muscle opens new window show still eye region recent changes atm withdrawals arrests foreign casino executives allegedly advertising gambling mainland new policy fingerprinting foreign visitors coming country may still make tourists vips alike skittish laying bets image source las vegas sands las vegas rebound built bedrock either statewide revenues 12 january latest data available helped along 14 increase strip downtown casinos enjoyed greatest growth 32 yearoveryear gain followed 25 increase north las vegas yet vegas area saw declines across board november december suggesting recovery still trying get balance may continue come fits starts operators well rivals like wynnand even macaubased melco crown entertainment planning spend big opens new window japan market finally opens casino development everyone said theyre willing spend around 10 billion build operations could become biggest maybe expensive global casino market although asian markets seemingly greatest catalysts growth ongoing risks inherent macau las vegas sands big bet id say odds tilt favor mgm resorts biggest advantages investor lay bets 10 stocks like better las vegas sandswhen investing geniuses david tom gardner stock tip pay listen newsletter run decade motley fool stock advisor tripled market david tom revealed believe 10 best stocks opens new window investors buy right las vegas sands wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns february 6 2017 rich duprey opens new window position stocks mentioned motley fool position stocks mentioned motley fool disclosure policy opens new window | 606 |
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<p>Image source: Getty Images.</p>
<p>Continue Reading Below</p>
<p>The marijuana industry appears to be on the precipice of its most robust expansion yet in 2016.</p>
<p>Beginning with the legalization of medical marijuana in California in 1996, another two dozen states have since followed suit, bringing the medical legalization total to 25. These include Ohio and Pennsylvania, the most recent two to legalize medicinal marijuana, and two states that did so entirely through the legislative process (i.e., without putting it to vote on a ballot).</p>
<p>Beyond medical marijuana, four states, along with Washington, D.C., have legalized recreational marijuana for adults. Colorado has been the poster child for success among recreational-legal states, with legal sales (recreational + medical) of more than $1 billion on a trailing 12-month basis, and the state generating $135 million in tax and licensing fees in 2015.</p>
<p>This year, residents in up to a dozen states could wind up voting on a marijuana initiative or amendment to legalize the drug in their state -- which is why it could be the biggest year ever for cannabis.</p>
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<p>One of the few things that could sour the cannabis industry's current high is poor safety data. If you recall, long-term safety data has been one of the prime obstacles that has kept marijuana from being rescheduled at the federal level by lawmakers. Unfortunately, disappointing data is precisely what the American public received last week, courtesy of a publication in the Journal of the American Heart Association.</p>
<p>Image source: Getty Images.</p>
<p>In a <a href="http://news.heart.org/secondhand-marijuana-smoke-damages-blood-vessels-more-than-tobacco-smoke/" type="external">new study Opens a New Window.</a>, researchers examined the effects of secondhand marijuana smoke in relation to secondhand tobacco smoke on the arteries of rats. The arteries of rats have a response to tobacco smoke similar to that of human arteries, so they're presumably a good indicator of what might be happening to our arteries when inhaling secondhand marijuana smoke.</p>
<p>Based on the findings of the study, inhaled secondhand tobacco smoke impaired the blood vessels of rats for 30 minutes. Comparatively, inhaled secondhand marijuana smoke impaired the blood vessels of rats for three times longer, or 90 minutes. Researchers observed that it was not the chemicals, such as nicotine or THC, causing the blood vessel impairment, but the actual burning of the plant material leading to the adverse effect on blood vessels.</p>
<p>According to senior study author and professor of medicine at the University of California, San Francisco's Division of Cardiology, Matthew Springer, Ph.D.:</p>
<p>Springer added:</p>
<p>Image source: Getty Images.</p>
<p>Making matters more complicated for the cannabis industry is that this study comes at a time when the U.S. Drug Enforcement Agency is conducting an eight-point review that could lead to the reclassification of marijuana away from a schedule 1 drug. The DEA has already received its recommendation from the Food and Drug Administration, but has been unsurprisingly tight-lipped as to what that recommendation happens to be.</p>
<p>Reclassification of marijuana to anything other than schedule 1 would admit that cannabis has medically beneficial properties, and it would allow physicians the ability to prescribe cannabis for certain medical ailments (i.e., epilepsy, glaucoma, and some forms of terminal cancer). Of course, for this to happen the DEA and FDA have to believe that the benefits of marijuana outweigh its risks. Studies, such as the one above, hurt the case for reclassification.</p>
<p>Mind you, the marijuana industry has the potential to continue its expansion without a rescheduling. ArcView Market Research estimates that $5.4 billion in legal cannabis sales occurred in 2015, which is a testament to this fact. However, rescheduling would more than likely remove the two biggest financial disadvantages facing the industry: namely no ability to take normal tax deductions, and minimal-to-no access to basic banking services, such as checking accounts and bank loans.</p>
<p>Image source: Flickr user Cannabis Culture.</p>
<p>Regardless of the path marijuana takes following the DEA's upcoming decision and the November elections, success seems to be far from a guarantee for the industry and investors.</p>
<p>Although it's pretty evident that legal marijuana sales are growing, investors have yet to harness a safe avenue to take advantage of that growth. Most marijuana businesses are losing money, and far too many trade as penny stocks on the over-the-counter exchanges, where getting accurate financial statements can sometimes be a challenge.</p>
<p>Perhaps an even bigger worry for potential investors is what might happen if the marijuana industry "wins" and the DEA reschedules marijuana as a schedule 2 substance. Doing so would signify it has medical benefits, but also that it's highly addictive. More importantly, it would allow the FDA to get up close and personal with the medical marijuana industry. This could mean strictly overseeing the manufacturing process and ensuring THC content remains consistent. It would also likely mean regulating the packaging and labeling of marijuana-based products. But worst of all for the cannabis industry, it could require clinical studies be run to verify the medically beneficial qualities of marijuana for certain ailments. This is an expense that could put small marijuana shops out of business.</p>
<p>You could certainly say that marijuana is on the precipice of a transformative year. But whether that transformation is good or bad for cannabis and investors remains to be seen.</p>
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<p>The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=isiedilnk018048&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://wiki.fool.com/Motley" type="external">considering a diverse range of insights Opens a New Window.</a>makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | image source getty images continue reading marijuana industry appears precipice robust expansion yet 2016 beginning legalization medical marijuana california 1996 another two dozen states since followed suit bringing medical legalization total 25 include ohio pennsylvania recent two legalize medicinal marijuana two states entirely legislative process ie without putting vote ballot beyond medical marijuana four states along washington dc legalized recreational marijuana adults colorado poster child success among recreationallegal states legal sales recreational medical 1 billion trailing 12month basis state generating 135 million tax licensing fees 2015 year residents dozen states could wind voting marijuana initiative amendment legalize drug state could biggest year ever cannabis advertisement one things could sour cannabis industrys current high poor safety data recall longterm safety data one prime obstacles kept marijuana rescheduled federal level lawmakers unfortunately disappointing data precisely american public received last week courtesy publication journal american heart association image source getty images new study opens new window researchers examined effects secondhand marijuana smoke relation secondhand tobacco smoke arteries rats arteries rats response tobacco smoke similar human arteries theyre presumably good indicator might happening arteries inhaling secondhand marijuana smoke based findings study inhaled secondhand tobacco smoke impaired blood vessels rats 30 minutes comparatively inhaled secondhand marijuana smoke impaired blood vessels rats three times longer 90 minutes researchers observed chemicals nicotine thc causing blood vessel impairment actual burning plant material leading adverse effect blood vessels according senior study author professor medicine university california san franciscos division cardiology matthew springer phd springer added image source getty images making matters complicated cannabis industry study comes time us drug enforcement agency conducting eightpoint review could lead reclassification marijuana away schedule 1 drug dea already received recommendation food drug administration unsurprisingly tightlipped recommendation happens reclassification marijuana anything schedule 1 would admit cannabis medically beneficial properties would allow physicians ability prescribe cannabis certain medical ailments ie epilepsy glaucoma forms terminal cancer course happen dea fda believe benefits marijuana outweigh risks studies one hurt case reclassification mind marijuana industry potential continue expansion without rescheduling arcview market research estimates 54 billion legal cannabis sales occurred 2015 testament fact however rescheduling would likely remove two biggest financial disadvantages facing industry namely ability take normal tax deductions minimaltono access basic banking services checking accounts bank loans image source flickr user cannabis culture regardless path marijuana takes following deas upcoming decision november elections success seems far guarantee industry investors although pretty evident legal marijuana sales growing investors yet harness safe avenue take advantage growth marijuana businesses losing money far many trade penny stocks overthecounter exchanges getting accurate financial statements sometimes challenge perhaps even bigger worry potential investors might happen marijuana industry wins dea reschedules marijuana schedule 2 substance would signify medical benefits also highly addictive importantly would allow fda get close personal medical marijuana industry could mean strictly overseeing manufacturing process ensuring thc content remains consistent would also likely mean regulating packaging labeling marijuanabased products worst cannabis industry could require clinical studies run verify medically beneficial qualities marijuana certain ailments expense could put small marijuana shops business could certainly say marijuana precipice transformative year whether transformation good bad cannabis investors remains seen secret billiondollar stock opportunity worlds biggest tech company forgot show something wall street analysts fool didnt miss beat theres small company thats powering brandnew gadgets coming revolution technology think stock price nearly unlimited room run early intheknow investors one click opens new window sean williams opens new windowhas material interest companies mentioned article follow caps screen name tmfultralong opens new window check twitter goes handle tmfultralong opens new window motley fool position stocks mentioned try foolish newsletter services free 30 days opens new window fools may hold opinions believe considering diverse range insights opens new windowmakes us better investors motley fool disclosure policy opens new window | 622 |
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<p>Continue Reading Below</p>
<p>President Donald Trump visited Detroit Wednesday to announce a re-evaluation of the Obama administration’s aggressive fuel-economy rules, a move that may slow investment in electric cars.</p>
<p>The president met with automotive executives Wednesday at the American Center for Mobility in Ypsilanti, Michigan. The meeting included the CEOs of General Motors (NYSE:GM), Ford (NYSE:F) and Fiat Chrysler (NYSE:FCAU), as well as top executives from Toyota (NYSE:TM), Honda (NYSE:HMC) and others.</p>
<p>In a speech to industry workers, Trump said he will review fuel-economy rules and other regulations to “protect and defend your jobs [and] your factories.” Trump also said another “very big announcement” related to the auto industry will come next week.</p>
<p>Industry executives argue that the Obama-era CAFE targets are too stringent, and they had urged the Environmental Protection Agency under the previous administration to consider easing its rules amid lower gas prices and surging demand for SUVs and pickup trucks—trends which the automakers said made meeting the miles-per-gallon targets even more difficult.</p>
<p>The rules set for governing vehicles from the 2022 to 2025 model years were due to undergo a midterm review in 2017, with a final determination expected in April 2018. But the Obama administration quickly moved to lock in CAFE standards about a week before Trump took office. Automakers hit back at the EPA over its decision and wrote a letter to Trump asking for a full review.</p>
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<p>“By restarting this review, analysis rather than politics will produce a final decision consistent with the process we all agreed to under ‘One National Program’ for GHG and fuel economy standards,” said Mitch Bainwol, president&#160; and CEO of the Alliance of Automobile Manufacturers, a trade group representing most major automakers in the U.S.</p>
<p>The Association of Global Automakers, which represents international car companies, said it looks forward to a review that “accounts for the needs of American consumers without locking in a prejudged outcome.”</p>
<p>In order to comply with the increasingly strict federal emissions standards, automakers invested in developing electric vehicles, despite limited consumer demand. If the Trump administration ultimately agrees to adjust CAFE standards, manufacturers will be faced with a choice: Do they focus as much energy and money on electric cars?</p>
<p>Under current CAFE standards, vehicles from model-year 2016 won’t meet the fleetwide fuel-economy targets, based on industry projections released by the National Highway Traffic Safety Administration. That’s the first time new cars, trucks and SUVs will fall short.</p>
<p>Meanwhile, hybrid and plug-in electric vehicles continue to account for a small portion of U.S. sales. Hybrids were 2.14% of February auto sales, according to data compiled by HybridCars.com. Plug-in electric cars earned a market share of less than 1%.</p>
<p>Jack Nerad, Kelley Blue Book’s executive editorial director and executive market analyst, said relaxing fuel-economy targets will likely steer automakers away from heavy investments in alternative powertrains.</p>
<p>“I think what’s going on with fuel prices has made it very difficult for car companies to sell highly fuel-efficient vehicles. So no matter what they do with vehicle development, it’s like leading a horse to water. [Electric cars] are not what’s popular now,” Nerad told FOX Business.</p>
<p>We have an aggressive plan to electrify our vehicle lineup. Here’s some of what you can expect from <a href="https://twitter.com/hashtag/Ford?src=hash" type="external">#Ford</a>. <a href="https://twitter.com/hashtag/EV?src=hash" type="external">#EV</a> <a href="https://t.co/F3HvoYFaRU" type="external">pic.twitter.com/F3HvoYFaRU</a></p>
<p>Still, automakers continue to pursue advanced technologies like electric and self-driving vehicles, as the industry seeks to stay ahead of global consumer trends.</p>
<p>“We remain absolutely committed to our electrification strategy,” a Ford spokesperson wrote in an email.</p>
<p>While electric vehicles and fuel-efficient small cars have struggled to generate demand, SUVs and crossovers are surging. Utilities now dominate the market, comprising about 63% of U.S. sales. Also, automakers have improved fuel-economy numbers for larger vehicles like crossovers, making the segment even more enticing over other models.</p>
<p>The costs associated with electric-vehicle technology are another challenge for manufacturers. Fiat Chrysler <a href="" type="internal">CEO Sergio Marchionne once said</a> car shoppers should not to buy Fiat’s electric model because the company lost money on every sale.</p>
<p>“[Manufacturers] want nothing more than to make vehicles that people actually want to buy,” Nerad said. “The vexing problem for manufacturers is they would have to sell a certain percentage of highly efficient vehicles in order to sell the cars that they make money on.”</p>
<p>Gas prices, at their current levels, “give people the feeling that they can be comfortable buying a large SUV or a pickup truck,” he added.</p>
<p>The current CAFE standards call for a fleetwide average of 54.5 miles per gallon by 2025, reflecting a 56% bump from the 2017 target of 35 mpg.</p>
<p>Consumers Union, a policy arm of Consumer Reports magazine, criticized the Trump administration’s decision to reopen the CAFE rulebook.</p>
<p>“The EPA finalized the standards after a thorough study of costs and benefits,” said Shannon Baker-Branstetter, policy counsel for Consumers Union. “The standards already take the cost into account, and the record shows that they are a reasonable, cost-effective approach to improving fuel efficiency and lowering consumers’ expenses.”</p>
<p>EPA Administrator Scott Pruitt said the CAFE review will “help ensure that this national program is good for consumers and good for the environment.”</p>
<p>“We will work with our partners at [the Department of Transportation] to take a fresh look to determine if this approach is realistic,” he said in a statement.</p> | true | 0 | updated continue reading president donald trump visited detroit wednesday announce reevaluation obama administrationâs aggressive fueleconomy rules move may slow investment electric cars president met automotive executives wednesday american center mobility ypsilanti michigan meeting included ceos general motors nysegm ford nysef fiat chrysler nysefcau well top executives toyota nysetm honda nysehmc others speech industry workers trump said review fueleconomy rules regulations âœprotect defend jobs factoriesâ trump also said another âœvery big announcementâ related auto industry come next week industry executives argue obamaera cafe targets stringent urged environmental protection agency previous administration consider easing rules amid lower gas prices surging demand suvs pickup trucksâtrends automakers said made meeting milespergallon targets even difficult rules set governing vehicles 2022 2025 model years due undergo midterm review 2017 final determination expected april 2018 obama administration quickly moved lock cafe standards week trump took office automakers hit back epa decision wrote letter trump asking full review advertisement âœby restarting review analysis rather politics produce final decision consistent process agreed âone national programâ ghg fuel economy standardsâ said mitch bainwol president160 ceo alliance automobile manufacturers trade group representing major automakers us association global automakers represents international car companies said looks forward review âœaccounts needs american consumers without locking prejudged outcomeâ order comply increasingly strict federal emissions standards automakers invested developing electric vehicles despite limited consumer demand trump administration ultimately agrees adjust cafe standards manufacturers faced choice focus much energy money electric cars current cafe standards vehicles modelyear 2016 wonât meet fleetwide fueleconomy targets based industry projections released national highway traffic safety administration thatâs first time new cars trucks suvs fall short meanwhile hybrid plugin electric vehicles continue account small portion us sales hybrids 214 february auto sales according data compiled hybridcarscom plugin electric cars earned market share less 1 jack nerad kelley blue bookâs executive editorial director executive market analyst said relaxing fueleconomy targets likely steer automakers away heavy investments alternative powertrains âœi think whatâs going fuel prices made difficult car companies sell highly fuelefficient vehicles matter vehicle development itâs like leading horse water electric cars whatâs popular nowâ nerad told fox business aggressive plan electrify vehicle lineup hereâs expect ford ev pictwittercomf3hvoyfaru still automakers continue pursue advanced technologies like electric selfdriving vehicles industry seeks stay ahead global consumer trends âœwe remain absolutely committed electrification strategyâ ford spokesperson wrote email electric vehicles fuelefficient small cars struggled generate demand suvs crossovers surging utilities dominate market comprising 63 us sales also automakers improved fueleconomy numbers larger vehicles like crossovers making segment even enticing models costs associated electricvehicle technology another challenge manufacturers fiat chrysler ceo sergio marchionne said car shoppers buy fiatâs electric model company lost money every sale âœmanufacturers want nothing make vehicles people actually want buyâ nerad said âœthe vexing problem manufacturers would sell certain percentage highly efficient vehicles order sell cars make money onâ gas prices current levels âœgive people feeling comfortable buying large suv pickup truckâ added current cafe standards call fleetwide average 545 miles per gallon 2025 reflecting 56 bump 2017 target 35 mpg consumers union policy arm consumer reports magazine criticized trump administrationâs decision reopen cafe rulebook âœthe epa finalized standards thorough study costs benefitsâ said shannon bakerbranstetter policy counsel consumers union âœthe standards already take cost account record shows reasonable costeffective approach improving fuel efficiency lowering consumersâ expensesâ epa administrator scott pruitt said cafe review âœhelp ensure national program isâgood consumers good environmentâ âœwe work partners department transportation take fresh look determine approach realisticâ said statement | 573 |
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<p>Investing in stocks will never be without some risks, but you can limit your risks by favoring certain types of stocks. Look for companies that are leaders in stable industries, operate in spaces that have high barriers to entry, and pay a dividend. While how much you pay for the stock naturally matters, it will matter less as your holding period increases.</p>
<p>Continue Reading Below</p>
<p>Two top stocks that fit the bill and have beaten the market over the long term as the chart below shows -- are Waste Management(NYSE: WM) andAmerican Water Works (NYSE: AWK).</p>
<p>Data by <a href="http://ycharts.com" type="external">YCharts</a>.</p>
<p>In addition to beating the market over the long term, American Water Works and Waste Management have done so with less stock-price volatility -- surely a plus for investors who prefer low-risk stocks. The stocks of American Water and Waste Management sport betas of 0.23 and 0.72, respectively, which means their stock prices are just 23% and 72% as volatile as the overall market, which has a beta of 1.0.</p>
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<p>Image source: Getty Images.</p>
<p>There are few certainties in life, but one of them is that humans will keep generating trash. So there will always be a critical need for the services that Waste Management provides. The company is North America's largest waste management company, providing collection, transfer, recycling, resource recovery, and disposal services to residential, commercial, industrial, and municipal customers. Its nearly $31 billion market capitalization is about 60% larger than that of the industry's second-largest player, Republic Services.</p>
<p>Waste Management operates in an industry with substantial barriers to entry, which include high fixed start-up costs as well as regulatory hurdles with respect to landfills. This makes it unattractive for others to enter the market, resulting in less pricing pressure on the existing players As is the case with many leaders in industries with high barriers to entry, Waste Management was an early entrant into the market. While the company was officially founded in 1968, its roots date back to 1893.</p>
<p>Waste Management isn't just a stodgy trash collector, though, as it also operates landfill gas-to-energy facilities. Its facilities scattered across North America provide a total of more than 650 megawatts of power capacity per year -- enough to power nearly half a million homes per year.</p>
<p>The company is very shareholder-friendly -- it actively buys back its stock and has raised its dividend every year since 2004. Its dividend is currently yielding 2.6%, which is about a 30% premium to the approximate 2% the S&amp;P 500 is yielding.</p>
<p>Data by <a href="http://ycharts.com" type="external">YCharts</a>.</p>
<p>Waste Management has been able to post slow but steady earnings growth over the long term thanks in part to ongoing cost-savings initiatives. For instance, it converted its fleet to run on liquefied natural gas, some of which it produces from its landfill gas. Analysts expect Waste Management to grow year-over-year earnings per share a solid 11.9% in 2016 and at an average annual rate of 10.4% over the next five years. The company routinely exceeds Wall Street expectations, so these estimates might prove too conservative.</p>
<p>Image source: Getty Images.</p>
<p>American Water Works shares many similarities with Waste Management: It provides an essential product and service (water and wastewater services); it's the giant in its industry (its market cap of $13.3 billion dwarfs that of the industry's No. 2 player, Aqua America, which sports a market cap of $5.5 billion); it operates in an industry with high barriers to entry; and it was an early market entrant. (The stock went public in April 2008, but the company has been in business since 1886.)</p>
<p>These features provide the company -- and the stock -- with much stability, making it a great choice for investors in search of a low-risk stock.</p>
<p>American Water provides water and wastewater services to about 15 million people in 47 U.S. states and Ontario, Canada. The company operates as a regulatedutility in 16 U.S. states, with its regulated business accounting for the lion's share of its total revenue.American Water uses its predictable earnings stream generated from its regulated business to fund its dependable dividend and to make acquisitions in what's an extremely fragmented industry.</p>
<p>The company also has several market-based businesses, including providing water and wastewater services to military bases and supplying water to natural gas companies in the Appalachian Basin. Notably, American Water's fracking water business has been holding its own despite the depressed energy market, with the business expected to be cash flow positive in 2016.</p>
<p>American Water Works stock's current dividend yield is a modest 2.1%. However, the company has raised its dividend every year since it went public, increasing its dividend a total of 88% --nearly 50% more than the S&amp;P 500's 60% rise during this period.</p>
<p>Data by <a href="http://ycharts.com" type="external">YCharts</a>.</p>
<p>Management said during the third-quarter earnings call that the company remains on track to grow earnings at an average annual rate between 7% and 10% through 2020 (using 2014 as a base).</p>
<p>10 stocks we like better than Waste Management When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*</p>
<p>David and Tom just revealed what they believe are the <a href="http://infotron.fool.com/infotrack/click?url=http%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=2bc6850c-de96-42be-8eb1-57455732b034&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now... and Waste Management wasn't one of them! That's right -- they think these 10 stocks are even better buys.</p>
<p><a href="http://infotron.fool.com/infotrack/click?url=http%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=2bc6850c-de96-42be-8eb1-57455732b034&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Click here Opens a New Window.</a> to learn about these picks!</p>
<p>*Stock Advisor returns as of November 7, 2016</p>
<p><a href="http://my.fool.com/profile/TMFMcKenna/info.aspx" type="external">Beth McKenna Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool owns shares of Waste Management. The Motley Fool recommends Republic Services. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=isiedilnk018048&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://www.fool.com/knowledge-center/motley.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">considering a diverse range of insights Opens a New Window.</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | investing stocks never without risks limit risks favoring certain types stocks look companies leaders stable industries operate spaces high barriers entry pay dividend much pay stock naturally matters matter less holding period increases continue reading two top stocks fit bill beaten market long term chart shows waste managementnyse wm andamerican water works nyse awk data ycharts addition beating market long term american water works waste management done less stockprice volatility surely plus investors prefer lowrisk stocks stocks american water waste management sport betas 023 072 respectively means stock prices 23 72 volatile overall market beta 10 advertisement image source getty images certainties life one humans keep generating trash always critical need services waste management provides company north americas largest waste management company providing collection transfer recycling resource recovery disposal services residential commercial industrial municipal customers nearly 31 billion market capitalization 60 larger industrys secondlargest player republic services waste management operates industry substantial barriers entry include high fixed startup costs well regulatory hurdles respect landfills makes unattractive others enter market resulting less pricing pressure existing players case many leaders industries high barriers entry waste management early entrant market company officially founded 1968 roots date back 1893 waste management isnt stodgy trash collector though also operates landfill gastoenergy facilities facilities scattered across north america provide total 650 megawatts power capacity per year enough power nearly half million homes per year company shareholderfriendly actively buys back stock raised dividend every year since 2004 dividend currently yielding 26 30 premium approximate 2 sampp 500 yielding data ycharts waste management able post slow steady earnings growth long term thanks part ongoing costsavings initiatives instance converted fleet run liquefied natural gas produces landfill gas analysts expect waste management grow yearoveryear earnings per share solid 119 2016 average annual rate 104 next five years company routinely exceeds wall street expectations estimates might prove conservative image source getty images american water works shares many similarities waste management provides essential product service water wastewater services giant industry market cap 133 billion dwarfs industrys 2 player aqua america sports market cap 55 billion operates industry high barriers entry early market entrant stock went public april 2008 company business since 1886 features provide company stock much stability making great choice investors search lowrisk stock american water provides water wastewater services 15 million people 47 us states ontario canada company operates regulatedutility 16 us states regulated business accounting lions share total revenueamerican water uses predictable earnings stream generated regulated business fund dependable dividend make acquisitions whats extremely fragmented industry company also several marketbased businesses including providing water wastewater services military bases supplying water natural gas companies appalachian basin notably american waters fracking water business holding despite depressed energy market business expected cash flow positive 2016 american water works stocks current dividend yield modest 21 however company raised dividend every year since went public increasing dividend total 88 nearly 50 sampp 500s 60 rise period data ycharts management said thirdquarter earnings call company remains track grow earnings average annual rate 7 10 2020 using 2014 base 10 stocks like better waste management investing geniuses david tom gardner stock tip pay listen newsletter run decade motley fool stock advisor tripled market david tom revealed believe 10 best stocks opens new window investors buy right waste management wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns november 7 2016 beth mckenna opens new window position stocks mentioned motley fool owns shares waste management motley fool recommends republic services try foolish newsletter services free 30 days opens new window fools may hold opinions believe considering diverse range insights opens new window makes us better investors motley fool disclosure policy opens new window | 616 |
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<p>Big sales ofprofitable Jeep modelslike the Cherokee powered good profits for FCA in the first quarter. But how much longer will the SUV boom last? Image source: FiatChrysler Automobiles</p>
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<p>Fiat Chrysler Automobiles said on April 26 that its first-quarter net earnings jumped to 478 million euros ($539 million) from just 27 million euros a year ago, on strong sales of highly profitable Jeeps and pickups in North America.</p>
<p>The Italian-American automaker said that its pre-tax earnings nearly doubled to 1.4 billion euros ($1.58 billion), on net revenue of 26.6 billion euros ($30.1 billion, up 3% from a year ago). Analysts polled by Thomson Reuters had expected pre-tax earnings of 1.17 billion euros, but FCA's revenue number fell short of Wall Street expectations.</p>
<p>FCA's debt also rose significantly from the prior quarter.</p>
<p>The key numbers</p>
<p>Source: Fiat Chrysler Automobiles. 2015 results have been restated to exclude Ferrari, which was spun off in October of last year. First-quarter adjustments of 72 million euros include charges for North America capacity realignment, Venezuela currency devaluation, and restructuring costs. 2015 debt and liquidity numbers are as of Dec. 31.</p>
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<p>Good news and bad news in FCA's first-quarter report FCA's report was a mixed bag. There was some very good news: Margins in North America are much stronger than they have been, and FCA managed an operating profit in all of its business units, including Latin America (LATAM).</p>
<p>Source: Fiat Chrysler Automobiles.</p>
<p>FCA's operating profit margin in North America was 7.2%, up from 3.7% a year ago. That's still short of General Motors' 8.6% operating margin, but FCA came much closer to parity with its old Detroit rival than it has in the past. (Ford hasn't yet reported its first-quarter earnings, but it generally targets a profit margin in North America of between 8% and 10%.)</p>
<p>The explanation for that margin boost was simple: FCA is selling a lot of Jeeps and Rams, and those are profitable products.</p>
<p>However, that good news was tempered by a rise in FCA's "net industrial debt," the amount by which its debt exceeds its available liquidity. FCA's net industrial debt rose to 6.6 billion euros ($7.5 billion) from just over 5 billion euros at the end of 2015.</p>
<p>CEO Sergio Marchionne confirmed that FCA is retooling two of its U.S. factories to boost production of profitable Jeep SUVs and Ram pickup trucks, while phasing out its less profitable compact and midsize sedans (the Dodge Dart and Chrysler 200). Marchionne said that he hopes the move will help strengthen FCA's finances before the U.S. new-car market declines from its peak.</p>
<p>What this means for investors: FCA is making a big betDespite the big year-over-year profit jump, FCA shares dropped over 3% in early trading on April 26 after the news was released. While it's never a good idea to draw conclusions from short-term market moves, I can see two big reasons why investors might be concerned about today's numbers.</p>
<p>First, FCA is essentially racing against the U.S. economic cycle, hoping to complete a transition to sustainable profitability before sales start to decline in North America. Its NAFTA region accounted for 89% of FCA's adjusted EBIT. Nearly all of that came from the U.S., and nearly all of that likely came from Jeep and Ram sales.</p>
<p>U.S. Jeep sales were up 17% in the first quarter, while U.S. sales of Ram pickups rose 12%. Both increases were ahead of the overall market's gains, but it's likely that the U.S. new-vehicle market is at or near a plateau. That means year-over-year gains will be increasingly hard to generate -- and at some point, the pace of new-car sales will start to decline, and with it FCA's profits.</p>
<p>The second concern is the rise in debt. While Marchionne has promised to bring FCA's down substantially by 2018, that plan -- like his plan to boost profits from sources other than Jeep and Ram sales in North America -- depends on continued strong earnings in FCA's NAFTA region.</p>
<p>In other words, Marchionne is making a big bet: That he can complete the effort to reshape FCA before the U.S. market runs out of steam.</p>
<p>Looking ahead: FCA's full-year guidance FCA confirmed its full-year guidance. It still expects net revenue of more than 110 billion euros, adjusted EBIT of more than 5 billion euros, and adjusted net profit of 1.9 billion euros. Despite the jump in net industrial debt we saw in the first quarter, it also still expects to end the year with net industrial debt below 5 billion euros.</p>
<p>The article <a href="http://www.fool.com/investing/general/2016/04/26/fiat-chrysler-earnings-profit-jumped-but-debt-did.aspx" type="external">Fiat Chrysler Earnings: Profit Jumped, But Debt Did Too</a> originally appeared on Fool.com.</p>
<p><a href="http://my.fool.com/profile/TMFMarlowe/info.aspx?source=eptfxblnk0000004" type="external">John Rosevear</a> owns shares of Ford and General Motors. The Motley Fool owns shares of and recommends Ford. The Motley Fool recommends General Motors. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=eptfxblnk0000004" type="external">free for 30 days</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://wiki.fool.com/Motley?source=eptfxblnk0000004" type="external">considering a diverse range of insights</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?source=eptfxblnk0000004" type="external">disclosure policy</a>.</p>
<p>Copyright 1995 - 2016 The Motley Fool, LLC. All rights reserved. The Motley Fool has a <a href="http://www.fool.com/help/index.htm?display=about02" type="external">disclosure policy</a>.</p> | true | 0 | big sales ofprofitable jeep modelslike cherokee powered good profits fca first quarter much longer suv boom last image source fiatchrysler automobiles continue reading fiat chrysler automobiles said april 26 firstquarter net earnings jumped 478 million euros 539 million 27 million euros year ago strong sales highly profitable jeeps pickups north america italianamerican automaker said pretax earnings nearly doubled 14 billion euros 158 billion net revenue 266 billion euros 301 billion 3 year ago analysts polled thomson reuters expected pretax earnings 117 billion euros fcas revenue number fell short wall street expectations fcas debt also rose significantly prior quarter key numbers source fiat chrysler automobiles 2015 results restated exclude ferrari spun october last year firstquarter adjustments 72 million euros include charges north america capacity realignment venezuela currency devaluation restructuring costs 2015 debt liquidity numbers dec 31 advertisement good news bad news fcas firstquarter report fcas report mixed bag good news margins north america much stronger fca managed operating profit business units including latin america latam source fiat chrysler automobiles fcas operating profit margin north america 72 37 year ago thats still short general motors 86 operating margin fca came much closer parity old detroit rival past ford hasnt yet reported firstquarter earnings generally targets profit margin north america 8 10 explanation margin boost simple fca selling lot jeeps rams profitable products however good news tempered rise fcas net industrial debt amount debt exceeds available liquidity fcas net industrial debt rose 66 billion euros 75 billion 5 billion euros end 2015 ceo sergio marchionne confirmed fca retooling two us factories boost production profitable jeep suvs ram pickup trucks phasing less profitable compact midsize sedans dodge dart chrysler 200 marchionne said hopes move help strengthen fcas finances us newcar market declines peak means investors fca making big betdespite big yearoveryear profit jump fca shares dropped 3 early trading april 26 news released never good idea draw conclusions shortterm market moves see two big reasons investors might concerned todays numbers first fca essentially racing us economic cycle hoping complete transition sustainable profitability sales start decline north america nafta region accounted 89 fcas adjusted ebit nearly came us nearly likely came jeep ram sales us jeep sales 17 first quarter us sales ram pickups rose 12 increases ahead overall markets gains likely us newvehicle market near plateau means yearoveryear gains increasingly hard generate point pace newcar sales start decline fcas profits second concern rise debt marchionne promised bring fcas substantially 2018 plan like plan boost profits sources jeep ram sales north america depends continued strong earnings fcas nafta region words marchionne making big bet complete effort reshape fca us market runs steam looking ahead fcas fullyear guidance fca confirmed fullyear guidance still expects net revenue 110 billion euros adjusted ebit 5 billion euros adjusted net profit 19 billion euros despite jump net industrial debt saw first quarter also still expects end year net industrial debt 5 billion euros article fiat chrysler earnings profit jumped debt originally appeared foolcom john rosevear owns shares ford general motors motley fool owns shares recommends ford motley fool recommends general motors try foolish newsletter services free 30 days fools may hold opinions believe considering diverse range insights makes us better investors motley fool disclosure policy copyright 1995 2016 motley fool llc rights reserved motley fool disclosure policy | 547 |
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<p>Last year was arguably the <a href="https://www.fool.com/investing/2017/02/11/better-buy-qualcomm-inc-vs-nvidia-corporation.aspx?source=iaasitlnk0000003&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">most impressive Opens a New Window.</a> in NVIDIA's (NASDAQ: NVDA) vaunted corporate history.</p>
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<p>This statement is all the more remarkable considering the enviable growth the chipmaker has enjoyed since its 1999 IPO.</p>
<p><a href="http://ycharts.com/companies/NVDA" type="external">NVDA</a> data by <a href="http://ycharts.com" type="external">YCharts Opens a New Window.</a></p>
<p>In reviewing NVIDIA's recent fiscal 2017 earnings release, we see that the company set records across nearly every meaningful financial metric, demonstrating impressive momentum in all four of the market platforms it operates: gaming, professional visualization, datacenter, and automotive. Here's the supplemental chart NVIDIA included in its earnings that breaks out its growth across its various market segments. (Fiscal 2017's fourth quarter ended Jan. 29.)</p>
<p>Image Source: NVIDIA</p>
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<p>Image Source: NVIDIA Investor Relations</p>
<p>The two main drivers in NVIDIA's record-setting year were the continued ascent of e-sports into a mainstream phenomenon and the growth in A.I. computing. It also bears noting that NVIDIA doesn't consider the OEM (original equipment manufacturer) &amp; IP (intellectual property) segment as one of its four core business areas. In fact, the company mentioned the line item only once during its most recent conference call, so we won't focus on it here either.</p>
<p>That chart just scratches the surface of NVIDIA's performance, of course, so let's delve deeper into the financial performance of each of NVIDIA's four major product platforms in its record-setting fiscal year.</p>
<p>By far its largest segment by revenue, NVIDIA's gaming business expanded at an impressive clip last year. For fiscal 2017 -- NVIDIA's fiscal years run almost a full year ahead of the calendar, for some reason -- gaming sales surged 44%. More encouraging still, fourth-quarter platform sales growth accelerated, rising 66% to a total of $1.35 billion.</p>
<p>The continued rise of e-sports and gaming VR were the primary sources of new demand. The company rolled out its new Pascal architecture in its gaming chips several quarters ago, and CEO Jen-Hsun Huang said on the most recent conference call he sees a fair amount of demand remaining among competitive gamers in the current upgrade cycle. The company said it measures its current installed base as several hundred million gamers globally, and it sees continued growth in demand for its gaming GPU units for the foreseeable future.</p>
<p>One of NVIDIA's less exciting growth opportunities, the professional visualization (PV) platform saw sales rise just 11% to $835 million in its fiscal 2017; PV platform sales rose 11% year over year to $225 million in Q4 too.</p>
<p>The Quadro chips around which the professional visualizationplatform is organized are built to cater to the needs of high-end professional graphics users such as engineers, designers, and artists whose work requires them to produce highly detailed graphical renderings. NVIDIA continues to innovate on this front. As in its gaming components, NVIDIA continues to utilize its Pascal architecture as the basis for its Quadro chipsets, which allow end users to utilize emerging design techniques such as deep learning, fluid simulation, and the like. However, NVIDIA's PV market offers the least long-term upside of the company's four main market platforms, so let's not dwell further on it.</p>
<p>In contrast to professional visualization, sales in NVIDIA's datacenter platform utterly exploded in fiscal 2017. For the year,sales increased by 144% to $830 million. More encouraging still, momentum actually accelerated from one quarter to the next in all four quarters, more than tripling year over year in Q4. On the conference call, CFO Colette Kress attributed this dramatic uptick to adoption among "A.I. [software companies], cloud service providers deploying GPU instances, High Performance Computing, GRID graphics virtualization, and our DGX A.I. supercomputing appliance."</p>
<p>Specifically, Kress called out tech giants Facebook, Alphabet, and Microsoft as key "hyperscale" customers. NVIDIA chips power the A.I. and neural networks that underpin services like their respective voice-controlled virtual assistants, chatbots, image recognition and more. Moreover, they are also rolling out A.I. software as a service as part of their third-party cloud computing platforms as well. This trend is in its nascent stages though, as evidenced by the dramatic acceleration in the segment's growth rate during the year. As we head deeper into NVIDIA's fiscal 2018, this will be arguably the most important segment to watch as we gauge whether all the hype surrounding A.I. and machine learning will translate into tangible sales for component providers like NVIDIA and others.</p>
<p>Image Source: NVIDIA</p>
<p>Turning to the last ofNVIDIA's four core platforms -- to echo a constant refrain -- the automotive segment also yielded impressive results. Sales rose 52% on the year from $320 million to $487 million. However, the fact remains that this is NVIDIA's smallest platform by revenue, which speaks to the youthfulness of the self-driving car movement.</p>
<p>Though NVIDIA has announced partnerships with an impressive array of automakers, tier-1 suppliers, and technology start-ups to eventually bring completely autonomous vehicles -- what the industry calls Stage 4 self-driving technology -- to the masses, most analysts believe they will not be commercially available for several more years. A key step in this process will be government review and regulation of full AV, which will require massive quantities of driving safety data upon which to base decisions. Either way, NVIDIA figures to profit immensely by supplying its chips to this ongoing revolution in one of the world's largest industries.</p>
<p>NVIDIA has never been in a better competitive position in its corporate history. Of course, success begets competition. Other chipmakers, including Intel and Advanced Micro Devices, will challenge it in various areas of its vast GPU dominion. However, as the company with the largest technological lead in the space, NVIDIA's role supplying the chips powering several of tech's most important trends makes it one of the most interesting semiconductor investments on the market today.</p>
<p>10 stocks we like better than NvidiaWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*</p>
<p>David and Tom just revealed what they believe are the <a href="http://infotron.fool.com/infotrack/click?url=http%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=30ef7a7f-c802-412f-9c2e-0055a8745d80&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now... and Nvidia wasn't one of them! That's right -- they think these 10 stocks are even better buys.</p>
<p><a href="http://infotron.fool.com/infotrack/click?url=http%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=30ef7a7f-c802-412f-9c2e-0055a8745d80&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Click here Opens a New Window.</a> to learn about these picks!</p>
<p>*Stock Advisor returns as of February 6, 2017</p>
<p><a href="http://my.fool.com/profile/TMFTheDude/info.aspx" type="external">Andrew Tonner Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Nvidia. The Motley Fool recommends Intel. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | last year arguably impressive opens new window nvidias nasdaq nvda vaunted corporate history continue reading statement remarkable considering enviable growth chipmaker enjoyed since 1999 ipo nvda data ycharts opens new window reviewing nvidias recent fiscal 2017 earnings release see company set records across nearly every meaningful financial metric demonstrating impressive momentum four market platforms operates gaming professional visualization datacenter automotive heres supplemental chart nvidia included earnings breaks growth across various market segments fiscal 2017s fourth quarter ended jan 29 image source nvidia advertisement image source nvidia investor relations two main drivers nvidias recordsetting year continued ascent esports mainstream phenomenon growth ai computing also bears noting nvidia doesnt consider oem original equipment manufacturer amp ip intellectual property segment one four core business areas fact company mentioned line item recent conference call wont focus either chart scratches surface nvidias performance course lets delve deeper financial performance nvidias four major product platforms recordsetting fiscal year far largest segment revenue nvidias gaming business expanded impressive clip last year fiscal 2017 nvidias fiscal years run almost full year ahead calendar reason gaming sales surged 44 encouraging still fourthquarter platform sales growth accelerated rising 66 total 135 billion continued rise esports gaming vr primary sources new demand company rolled new pascal architecture gaming chips several quarters ago ceo jenhsun huang said recent conference call sees fair amount demand remaining among competitive gamers current upgrade cycle company said measures current installed base several hundred million gamers globally sees continued growth demand gaming gpu units foreseeable future one nvidias less exciting growth opportunities professional visualization pv platform saw sales rise 11 835 million fiscal 2017 pv platform sales rose 11 year year 225 million q4 quadro chips around professional visualizationplatform organized built cater needs highend professional graphics users engineers designers artists whose work requires produce highly detailed graphical renderings nvidia continues innovate front gaming components nvidia continues utilize pascal architecture basis quadro chipsets allow end users utilize emerging design techniques deep learning fluid simulation like however nvidias pv market offers least longterm upside companys four main market platforms lets dwell contrast professional visualization sales nvidias datacenter platform utterly exploded fiscal 2017 yearsales increased 144 830 million encouraging still momentum actually accelerated one quarter next four quarters tripling year year q4 conference call cfo colette kress attributed dramatic uptick adoption among ai software companies cloud service providers deploying gpu instances high performance computing grid graphics virtualization dgx ai supercomputing appliance specifically kress called tech giants facebook alphabet microsoft key hyperscale customers nvidia chips power ai neural networks underpin services like respective voicecontrolled virtual assistants chatbots image recognition moreover also rolling ai software service part thirdparty cloud computing platforms well trend nascent stages though evidenced dramatic acceleration segments growth rate year head deeper nvidias fiscal 2018 arguably important segment watch gauge whether hype surrounding ai machine learning translate tangible sales component providers like nvidia others image source nvidia turning last ofnvidias four core platforms echo constant refrain automotive segment also yielded impressive results sales rose 52 year 320 million 487 million however fact remains nvidias smallest platform revenue speaks youthfulness selfdriving car movement though nvidia announced partnerships impressive array automakers tier1 suppliers technology startups eventually bring completely autonomous vehicles industry calls stage 4 selfdriving technology masses analysts believe commercially available several years key step process government review regulation full av require massive quantities driving safety data upon base decisions either way nvidia figures profit immensely supplying chips ongoing revolution one worlds largest industries nvidia never better competitive position corporate history course success begets competition chipmakers including intel advanced micro devices challenge various areas vast gpu dominion however company largest technological lead space nvidias role supplying chips powering several techs important trends makes one interesting semiconductor investments market today 10 stocks like better nvidiawhen investing geniuses david tom gardner stock tip pay listen newsletter run decade motley fool stock advisor tripled market david tom revealed believe 10 best stocks opens new window investors buy right nvidia wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns february 6 2017 andrew tonner opens new window position stocks mentioned motley fool owns shares recommends nvidia motley fool recommends intel motley fool disclosure policy opens new window | 702 |
<p>By <a href="http://investing.covestor.com/author/crabtree-asset-management" type="external">Barry Randall Opens a New Window.</a></p>
<p>Congratulations to Tesla ( <a href="" type="internal">TSLA</a>) shareholders for the recent, astounding gains in the company’s stock. In spite of (or because of) the immense short position in Tesla shares, the stock has risen from about $54/share at the start of May to about $103 as of May 30.</p>
<p>Continue Reading Below</p>
<p>Now Tesla longs are probably weighing their next move. May I make a suggestion?</p>
<p>SELL! Run for the hills!</p>
<p><a href="http://ycharts.com/companies/TSLA" type="external">TSLA Opens a New Window.</a> data by <a href="http://ycharts.com" type="external">YCharts Opens a New Window.</a></p>
<p>OK, that’s perhaps a bit dramatic, but really, it’s how I personally feel.</p>
<p>What has me so sure that it’s time to move on? Let’s start with the emergence of self-justifying babble from Wall Street analysts. After the company reported a better-than-expected “profit” in early May, the stock jumped well past most Tesla analysts’ price targets.</p>
<p>Here’s how Morgan Stanley’s <a href="http://www.businessinsider.com/morgan-stanley-the-tesla-debate-has-changed-2013-5" type="external">Adam Jonas Opens a New Window.</a> put it in his subsequent note to clients [emphasis mine]:</p>
<p>My translation?</p>
<p>Tesla stock has gone &amp;&lt;@!)?(*%# &#160;crazy. So much so that you can’t reasonably expect me to stretch any of the parameters in my financial model (like growth rate and gross margin) in order to justify the current price in our usual Wall Street way. Does a forward P:E ratio of 180 make Tesla stock overvalued? Of course it does! I just can't print that in a research note. Thanks, and don't forget to vote for me in the Institutional Investor survey.</p>
<p>I’m just kidding about Mr. Jonas, who by all accounts is a fine analyst. But his concerns about “triangulation” proved unsurprisingly short-lived, and just one day later, he issued <a href="http://blogs.wsj.com/moneybeat/2013/05/14/four-reasons-morgan-stanley-loves-tesla/" type="external">another note Opens a New Window.</a>. In it, he raised his price target from $47 to $103 (the stock was at $87.80 at the time), based on a variety of factors, such as the possibility that “pound for pound,” Tesla might have the strongest brand in the auto industry.”</p>
<p>This would probably come as a surprise to, say, Ferrari, whose own brand was recently voted the <a href="http://www.motorauthority.com/news/1082379_ferrari-rated-most-powerful-brand-by-international-study" type="external">most powerful commercial brand in the world Opens a New Window.</a>. Not just within the auto industry. The most powerful among all brands.</p>
<p>And I believe the reality distortion field extends across Wall Street. <a href="http://www.benzinga.com/analyst-ratings/analyst-color/13/05/3592022/update-deutsche-bank-raises-pt-on-tesla-motors-following" type="external">Deutsche Bank’s analyst Opens a New Window.</a> wrote post-earnings that he was “re-assessing [the] valuation framework” in his attempt to rationalize a new, much higher price target for Tesla. Yeesh.</p>
<p>But I digress. My point is that I believe Tesla stock is being propelled higher by a frothy mix of unexpected profits, huge short interest and a collective amnesia that there already exists quite a few electric cars available for sale at much lower prices than Tesla’s excellent Model S.</p>
<p>So where does Tesla go from here? Well, it’s certainly possible for the company to build a profitable business around high-end cars. This strategy served Porsche so well it was able, in 2007, to accumulate a 35% stake in the much larger Volkswagen. Alas, Porsche <a href="http://en.wikipedia.org/wiki/Porsche#Relationship_with_Volkswagen" type="external">overplayed its hand Opens a New Window.</a> and after unit sales dropped by 25% from 2008 to 2009, Volkswagen turned the tables and “re-structured” their way into complete ownership of Porsche.</p>
<p>But Tesla seems bound and determined to move down-market. CEO Elon Musk <a href="http://www.forbes.com/sites/markrogowsky/2013/03/25/teslas-bmw-3-series-fighter-just-might-be-your-next-car/" type="external">has promised Opens a New Window.</a> that a ‘Gen 3’ mass market car is coming, “in a few years.”</p>
<p>Only one problem with that plan: the Gen 3 mass market car is already here. It's called the <a href="http://www.nissanusa.com/electric-cars/leaf" type="external">Nissan Leaf Opens a New Window.</a>. The base Leaf, the model S, has an MSRP of $21,300 after applicable tax credits. Is the Leaf as nice an automobile as Tesla’s proposed Gen 3 car – described by some as similar to a BMW 3-series – is likely to be? No, but that’s only because of strategic choices by Nissan, not a function of its ability to produce high end cars (e.g., Infiniti).</p>
<p>Good luck to Tesla competing with Nissan's global supply chain; the Japanese automaker sold <a href="http://articles.chicagotribune.com/2013-01-27/classified/sns-rt-us-nissan-sales-recordbre90r04h-20130127_1_nissan-vehicles-record" type="external">4.9 million vehicles in 2012 Opens a New Window.</a>. Let's see. Carlos Ghosn? Or Elon Musk? Hmmm.</p>
<p>There is nothing game-changing about Tesla that hasn't already been accomplished by other automakers, &#160;in some cases several years ago and without 9-figure loans from the U.S. government. Tesla’s decision to use an 85 killowatt-hour battery pack (the Leaf’s is 24 kW-h) has resulted in an electric car with greater range. Fine. But that’s just a strategic design choice, not a competitive advantage protected by patents or trade secrets.</p>
<p>Electric cars all have the same virtues, like lower cost-per-mile than traditional internal combustion vehicles of comparable size and duty. But only a few electric car manufacturers have the economies of scale necessary to compete in the real, non-subsidized world. Tesla is not one of those companies today. Tomorrow? Perhaps. But not today and not soon.</p>
<p>Did anybody else beside me notice that after Tesla reported their first quarter earnings, <a href="http://finance.yahoo.com/q/ae?s=TSLA+Analyst+Estimates" type="external">estimates for 2013 and 2014 fell Opens a New Window.</a>" No, that wasn’t highly publicized. Why let the facts get in the way of a great story"</p>
<p>The post <a href="http://investing.covestor.com/2013/05/beware-tesla-is-a-bubble-just-waiting-to-burst" type="external">Beware! Tesla is a bubble just waiting to burst Opens a New Window.</a> appeared first on <a href="http://investing.covestor.com" type="external">Smarter Investing Opens a New Window.</a>Covestor Ltd. is a registered investment advisor. Covestor licenses investment strategies from its Model Managers to establish investment models. The commentary here is provided as general and impersonal information and should not be construed as recommendations or advice. Information from Model Managers and third-party sources deemed to be reliable but not guaranteed. Past performance is no guarantee of future results. Transaction histories for Covestor models available upon request. Additional important disclosures available at http://site.covestor.com/help/disclosures.</p>
<p>Advertisement</p> | true | 0 | barry randall opens new window congratulations tesla tsla shareholders recent astounding gains companys stock spite immense short position tesla shares stock risen 54share start may 103 may 30 continue reading tesla longs probably weighing next move may make suggestion sell run hills tsla opens new window data ycharts opens new window ok thats perhaps bit dramatic really personally feel sure time move lets start emergence selfjustifying babble wall street analysts company reported betterthanexpected profit early may stock jumped well past tesla analysts price targets heres morgan stanleys adam jonas opens new window put subsequent note clients emphasis mine translation tesla stock gone amplt 160crazy much cant reasonably expect stretch parameters financial model like growth rate gross margin order justify current price usual wall street way forward pe ratio 180 make tesla stock overvalued course cant print research note thanks dont forget vote institutional investor survey im kidding mr jonas accounts fine analyst concerns triangulation proved unsurprisingly shortlived one day later issued another note opens new window raised price target 47 103 stock 8780 time based variety factors possibility pound pound tesla might strongest brand auto industry would probably come surprise say ferrari whose brand recently voted powerful commercial brand world opens new window within auto industry powerful among brands believe reality distortion field extends across wall street deutsche banks analyst opens new window wrote postearnings reassessing valuation framework attempt rationalize new much higher price target tesla yeesh digress point believe tesla stock propelled higher frothy mix unexpected profits huge short interest collective amnesia already exists quite electric cars available sale much lower prices teslas excellent model tesla go well certainly possible company build profitable business around highend cars strategy served porsche well able 2007 accumulate 35 stake much larger volkswagen alas porsche overplayed hand opens new window unit sales dropped 25 2008 2009 volkswagen turned tables restructured way complete ownership porsche tesla seems bound determined move downmarket ceo elon musk promised opens new window gen 3 mass market car coming years one problem plan gen 3 mass market car already called nissan leaf opens new window base leaf model msrp 21300 applicable tax credits leaf nice automobile teslas proposed gen 3 car described similar bmw 3series likely thats strategic choices nissan function ability produce high end cars eg infiniti good luck tesla competing nissans global supply chain japanese automaker sold 49 million vehicles 2012 opens new window lets see carlos ghosn elon musk hmmm nothing gamechanging tesla hasnt already accomplished automakers 160in cases several years ago without 9figure loans us government teslas decision use 85 killowatthour battery pack leafs 24 kwh resulted electric car greater range fine thats strategic design choice competitive advantage protected patents trade secrets electric cars virtues like lower costpermile traditional internal combustion vehicles comparable size duty electric car manufacturers economies scale necessary compete real nonsubsidized world tesla one companies today tomorrow perhaps today soon anybody else beside notice tesla reported first quarter earnings estimates 2013 2014 fell opens new window wasnt highly publicized let facts get way great story post beware tesla bubble waiting burst opens new window appeared first smarter investing opens new windowcovestor ltd registered investment advisor covestor licenses investment strategies model managers establish investment models commentary provided general impersonal information construed recommendations advice information model managers thirdparty sources deemed reliable guaranteed past performance guarantee future results transaction histories covestor models available upon request additional important disclosures available httpsitecovestorcomhelpdisclosures advertisement | 566 |
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<p>When you see the trucks, bulldozers, guns, dogs and mud on the reality show Gold Rush, it evokes images of quintessential childhood play for a little boy. Rough and tumble, up-to-the-elbows dirty, in on the action.</p>
<p>Continue Reading Below</p>
<p>But when you add in the size of the machines, the real risk, the hard hats and the proud layer of legacy, it quickly becomes an adult’s game. And the adult is – mostly – the American man. Whether he’s sitting in an office on Madison Avenue, exterminating bugs in Illinois or developing web content in Atlanta, there’s a pretty good chance he wants to play, or at least live vicariously through gold miner <a href="https://www.facebook.com/goldrushtodd" type="external">Todd Hoffman Opens a New Window.</a> on Friday nights via the Discovery Channel.</p>
<p>“The American man needs to go ahead and attack his dreams,” Hoffman tells me in our recent interview. “We’ve always been a beacon of light. I’m worried that we’re going to lose that. I think we already are. I want to be one of those guys. I’m on Gold Rush to be a beacon of light. No, we’re not professional miners. No, we don’t do everything right. Yeah, we’re under-capitalized. We’re moving forward and we can kick some ass.”</p>
<p>Yes, these men he’s assembled -unemployed and ready for adventure - are really mining for gold in the Klondike. And it is that very reason he states, they’re not professionals but men trying to make something work, that plays a big part in their rousing success with viewers.</p>
<p>The season two finale airs Feb. 24, and there is much on the line as the miners pile gold on a scale -- complete with drama music -- and try to meet their goals. When it comes to building a strong following, the show can already check that off the goal list with roughly five million viewers a week. According to The Hollywood Reporter, paired with another gold-themed series, Gold Rush has “propelled Discovery to the No. 1 network on TV on Friday nights among men [in the] 25-54 demo” and <a href="http://www.hollywoodreporter.com/live-feed/discovery-renews-gold-rush-season-three-290858" type="external">has been signed to a third season Opens a New Window.</a>.</p>
<p>The show is so successful that Hoffman often wishes he could help all the men – at one point 10 to 20 a day – who come up to him looking for work.</p>
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<p>“Even wounded veterans,” he says with a tinge of sadness.</p>
<p>But there is still that beacon part and here is where Hoffman lives up to that. Sure, it’s impressive that people can see him working hard in the mine. And being a leader. And persevering. But as I’m talking to him, what stands out is that if he is indeed a beacon for his fellow Americans, it is most glaringly obvious when he relates the genesis of the idea for the TV show.</p>
<p>A self-described Christian, but no “poster boy” for it, and a man with devout love of country, Hoffman could never shake the fact that his father’s dream was to be a gold miner, that they’d tried it in the 1980s, his parents almost divorced over it, and they came back from Alaska with “our tail between our legs.” He always wanted to try again to make his father’s dream come true.</p>
<p>In the meantime, Hoffman accumulated a vast and varied resume that includes a near-B.A. in theology specializing in youth ministry, recruiting young men for basketball scholarships, venturing into “dot com” by selling dial-up service, welding, real estate and assorted entrepreneurial pursuits. He’s been married for 16 years and has three children – boys ages 13 and 10 and a 4-year-old girl.</p>
<p>A few years ago, during what he calls a “dark time” where his wife left with their daughter, he turned to prayer. And it went something like this: “You know what? I feel like everything I touch right now turns to crap. I just need something to work. I want to go gold mining with my dad and I need you to help me.” Answers came in a flurry.</p>
<p>“I was sitting there and I thought, you know what?” Hoffman says. “I’ll bet you there’s not too many idiots out there who are going to go gold mining right now. And I’m betting somebody would want to see this. And I’m thinking I bet you anything I can get 10 maybe 20 maybe even 50% of my fuel bill paid if they followed me and filmed it.”</p>
<p>This was a guy used to people thinking his ideas were hare-brained, so what was one more? Late at night he wrote an email to Raw TV because he liked their work on Locked Up Abroad on the National Geographic channel. Not expecting a response, he was heartened to get one and a correspondence started.</p>
<p>“They didn’t believe me because they’re from London and they’re like, nobody does [gold mining] anymore,” Hoffman says. “They thought I was lying to them. Finally I said, ‘You can come out here and meet me or forget it. I’m done sending you emails.’ They came out. Two British guys show up and a camera and we film a pilot, shoot it like a taster tape. They took it to Discovery and away we go.”</p>
<p>I tell him that’s quite an enlightened leap from gold mining to gold mining on TV and he laughs.</p>
<p>“I just thought, this would be good television,” he says. “I don’t know why.”</p>
<p>What Hoffman knows is he has one major strength – putting things together. And so what he has pulled off here is a chance to live that dream with his father, an integral part of Gold Rush, and bring some others along for the ride who needed a hand up. When you watch them work, you can’t help but root for their success and of course the Alaskan vistas are stunning to boot.</p>
<p>That could all be enough for many a man, that he has lifted himself up and brought some friends along with him. But the beacon sees more. He sees his country in distress and the need for reinvention.</p>
<p>“How many times as a life coach do you see that fear is such a crippling power?” Hoffman asks me. “Fear has gripped and has stripped the American man in today’s day and age.”</p>
<p>At one point I wonder if I should stop him and interject that the women are taking a shellacking in this economy, too. But instead, I just listen and eventually appreciate that he is schooling me on the male psyche – my father’s, my brother’s, and every man I’ve ever dated, worked for or coached. Their identity is wrapped up in providing in a wholly different way from their female counterparts.</p>
<p>“When something happens and you’re not able to [provide] as a man, you lose your confidence,” Hoffman says. “You lose part of what makes a man, being able to provide for his family. You get into a corner and you have two decisions -- you give up or you come out fighting. In America I still believe most guys are going to come out swinging. Even if we have to take some of the hard medicine, I think we’re going to make it. American men don’t go that easy.”</p>
<p>The swagger feels pure of heart. In fact, it compels me to want to share that I came back from a layoff in 2002, struggled but then emerged debt-free by 2009.</p>
<p>“Wow!” Hoffman shouts. “How did that feel? Amazing?”</p>
<p>Yes, I tell him. I learned to live simply.</p>
<p>“Instead of going out and buying a really hot car, the new Mercedes Benz is a paid-off mortgage,” he says.</p>
<p>When we talked about whether the television show is his actual “gold mine,” Hoffman quickly dispelled the notion that reality TV has him raking in the dough.</p>
<p>“We’re not all getting rich on the deal but we do get paid some,” he says, indicating that filming can slow down mining a bit and there needs to be some compensation for that.</p>
<p>As he embarks on the show’s third season, he marvels at how much he loves gold because it “can’t be debased,” at how the recession has not touched the Klondike because it is maximizing its natural resources, and at all he and his team have managed to accomplish.</p>
<p>“What I’m doing is tough,” Hoffman says. “It takes a lot of money and a lot of risk. But it’s that same spirit that can be a crossover to anything you’re doing. Really we didn’t set the world on fire in gold mining. We still have so much to learn, but when you’re talking about guys that come from such a different world and here we are in this whole new industry that’s very secretive and there isn’t a lot of information and people don’t want to help you, to actually progress, I feel like we just hit one out of the park. And we’re just getting started.</p>
<p>“Season three is either going to be a big success or a really brutal failure,” he says. “I don’t think it can be anything in between. I’m going big.”</p>
<p>This definitely ain’t no boy with a Tonka truck.</p>
<p>Nancy Colasurdo is a practicing life coach and freelance writer. Her Web site is <a href="http://www.nancola.com" type="external">www.nancola.com Opens a New Window.</a> and you can follow her on <a href="" type="internal">Twitter</a> @nancola. Please direct all questions/comments to <a href="http://mailto:[email protected]" type="external">[email protected] Opens a New Window.</a>.</p> | true | 0 | see trucks bulldozers guns dogs mud reality show gold rush evokes images quintessential childhood play little boy rough tumble uptotheelbows dirty action continue reading add size machines real risk hard hats proud layer legacy quickly becomes adults game adult mostly american man whether hes sitting office madison avenue exterminating bugs illinois developing web content atlanta theres pretty good chance wants play least live vicariously gold miner todd hoffman opens new window friday nights via discovery channel american man needs go ahead attack dreams hoffman tells recent interview weve always beacon light im worried going lose think already want one guys im gold rush beacon light professional miners dont everything right yeah undercapitalized moving forward kick ass yes men hes assembled unemployed ready adventure really mining gold klondike reason states theyre professionals men trying make something work plays big part rousing success viewers season two finale airs feb 24 much line miners pile gold scale complete drama music try meet goals comes building strong following show already check goal list roughly five million viewers week according hollywood reporter paired another goldthemed series gold rush propelled discovery 1 network tv friday nights among men 2554 demo signed third season opens new window show successful hoffman often wishes could help men one point 10 20 day come looking work advertisement even wounded veterans says tinge sadness still beacon part hoffman lives sure impressive people see working hard mine leader persevering im talking stands indeed beacon fellow americans glaringly obvious relates genesis idea tv show selfdescribed christian poster boy man devout love country hoffman could never shake fact fathers dream gold miner theyd tried 1980s parents almost divorced came back alaska tail legs always wanted try make fathers dream come true meantime hoffman accumulated vast varied resume includes nearba theology specializing youth ministry recruiting young men basketball scholarships venturing dot com selling dialup service welding real estate assorted entrepreneurial pursuits hes married 16 years three children boys ages 13 10 4yearold girl years ago calls dark time wife left daughter turned prayer went something like know feel like everything touch right turns crap need something work want go gold mining dad need help answers came flurry sitting thought know hoffman says ill bet theres many idiots going go gold mining right im betting somebody would want see im thinking bet anything get 10 maybe 20 maybe even 50 fuel bill paid followed filmed guy used people thinking ideas harebrained one late night wrote email raw tv liked work locked abroad national geographic channel expecting response heartened get one correspondence started didnt believe theyre london theyre like nobody gold mining anymore hoffman says thought lying finally said come meet forget im done sending emails came two british guys show camera film pilot shoot like taster tape took discovery away go tell thats quite enlightened leap gold mining gold mining tv laughs thought would good television says dont know hoffman knows one major strength putting things together pulled chance live dream father integral part gold rush bring others along ride needed hand watch work cant help root success course alaskan vistas stunning boot could enough many man lifted brought friends along beacon sees sees country distress need reinvention many times life coach see fear crippling power hoffman asks fear gripped stripped american man todays day age one point wonder stop interject women taking shellacking economy instead listen eventually appreciate schooling male psyche fathers brothers every man ive ever dated worked coached identity wrapped providing wholly different way female counterparts something happens youre able provide man lose confidence hoffman says lose part makes man able provide family get corner two decisions give come fighting america still believe guys going come swinging even take hard medicine think going make american men dont go easy swagger feels pure heart fact compels want share came back layoff 2002 struggled emerged debtfree 2009 wow hoffman shouts feel amazing yes tell learned live simply instead going buying really hot car new mercedes benz paidoff mortgage says talked whether television show actual gold mine hoffman quickly dispelled notion reality tv raking dough getting rich deal get paid says indicating filming slow mining bit needs compensation embarks shows third season marvels much loves gold cant debased recession touched klondike maximizing natural resources team managed accomplish im tough hoffman says takes lot money lot risk spirit crossover anything youre really didnt set world fire gold mining still much learn youre talking guys come different world whole new industry thats secretive isnt lot information people dont want help actually progress feel like hit one park getting started season three either going big success really brutal failure says dont think anything im going big definitely aint boy tonka truck nancy colasurdo practicing life coach freelance writer web site wwwnancolacom opens new window follow twitter nancola please direct questionscomments foxgameplangmailcom opens new window | 805 |
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<p>The video game industry is seriously big business. If you have any lingering doubts about that, Amazon.com's $1 billion purchase of Twitch — a video game streaming website that's one of the Web's most-visited pages — should put that argument to rest.</p>
<p>Continue Reading Below</p>
<p>But even in a multibillion-dollar industry that has already eclipsed music and movies as the top-grossing entertainment medium, there's still plenty of room for the little guys. With the advent of crowdfunding and online video game distribution services like Xbox Live Arcade and Playstation Network, even a sole entrepreneur has a chance to break into the gaming industry — at least, if they can make a great product. Here are six up-and-coming video game startups to watch out for.</p>
<p>Alien Trap</p>
<p>Who says a team of two can't produce some of the most anticipated and visually striking indie games of the year? Alien Trap was originally founded in 2002 by Lee Vermeulen, but didn't really get off the ground until 2009 with the release of "Capsized," a 2D sci-fi shooting game with lush, hand-drawn graphics. Now the studio is prepping "Apotheon," an action-platforming game set in Ancient Greece that's also notable for its art style, which is inspired by the painting style of ancient Greek pottery. Vermeulen and artist Jesse McGibney, who met in college, are getting ready to launch Apotheon later this year.</p>
<p>Sean "Day[9]" Plott</p>
<p>Here's a gamer who turned his passion for competing into a thriving business. Plott, known on the Internet by his gaming handle Day[9], got his start as a professional gamer playing a sci-fi strategy game called "StarCraft" on his PC, raking in cash prizes for winning big matches. He later turned his focus to commentary, providing in-depth analysis for the game's biggest tournaments and becoming one of the most-recognized voices in competitive gaming. Later he launched his own channel on Twitch.com, where thousands of players pay for subscription access to "Starcraft" strategy video. And last year, Plott announced that he had joined a small game company called Arillery, where he's helping develop a browser-based strategy game. With someone of Plott's expertise at the helm, the new game — titled "Project Atlas" — is one to watch.</p>
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<p>Pillow Castle</p>
<p>Pillow Castle's mind-bending new puzzle game is one of the most unique video games of the year. The tiny development studio created "Museum of Simulation Technology," a game that's all about forced perspective. If you're not familiar with the term, it refers to the way that objects look bigger when you're close to them, and smaller when you're farther away. The game challenges you to solve puzzles by manipulating camera angles to create optical illusions, which you can use to reach previously inaccessible areas. "Museum of Simulation Technology," created by five students from Carnegie Mellon University, raked in a slew of awards in the past year when it appeared as a demo at big game shows around the world. The Pillow Castle crew is currently developing another first-person puzzle game called "Muse," but not much is known about it yet.</p>
<p>Virtuix</p>
<p>What if playing games could give you a workout? They can if you're playing with the Virtuix Omni, a special gaming apparatus that lets you actually walk or run to control your character in a video game. Virtuix founder Jan Goetgeluk launched a Kickstarter for the project last year and raked in more than $1 million to create a mass market version of the device. To use the device, gamers strap themselves into a special harness, then walk, run and turn while their game character mirrors their movement. &#160;But it's not a treadmill — players wear slick-soled shoes and essentially slide about on a fixed ramp. With plenty of upcoming games to support the device, and native integration with Oculus Rift, the Virtuix Omni is one device to watch.</p>
<p>Campo Santo</p>
<p>This small team of seven developers and artists is preparing to launch "Firewatch," an eerie first-person mystery with a strong narrative hook. The player takes control of Henry, a man working as a fire lookout in the Wyoming wilderness who wanders into the woods one day. He must rely on help from one person on the other end of a radio to guide him to safety in the new game, which puts the focus on exploration and story instead of action or combat. The small Campo Santo development team, based in Portland, Oregon, is composed of developers with a strong track record in the industry, having worked on popular games like "The Walking Dead" and "Mark of the Ninja." Now that they've set out on their own, they're producing what looks to be one of the most promising and hotly anticipated indie games of the year.</p>
<p>Oculus VR</p>
<p>OK — Oculus VR isn't exactly the scrappy startup it once was, after the company was acquired by Facebook last March for $2 billion. But founder Palmer Luckey might be the poster child for how a good gaming idea can pave the way to serious success in a very short period of time. Luckey founded Oculus VR in 2012 to develop a head-mounted display for immersive "virtual reality" gaming. &#160;The headset, dubbed Oculus Rift, racked up nearly $2.5 million in a 30-day Kickstarter campaign for the project, allowing for the development of the first device that could display PC games in full HD right in front of your eyes, and react dynamically to your head movements. Now that Facebook owns Oculus VR, the company has nearly limitless resources to push the tech in new directions.</p>
<p>Originally published on <a href="http://businessnewsdaily.com/7078-6-gaming-startups-poised-to-be-the-next-big-thing.html" type="external">Business News Daily. Opens a New Window.</a></p> | true | 0 | video game industry seriously big business lingering doubts amazoncoms 1 billion purchase twitch video game streaming website thats one webs mostvisited pages put argument rest continue reading even multibilliondollar industry already eclipsed music movies topgrossing entertainment medium theres still plenty room little guys advent crowdfunding online video game distribution services like xbox live arcade playstation network even sole entrepreneur chance break gaming industry least make great product six upandcoming video game startups watch alien trap says team two cant produce anticipated visually striking indie games year alien trap originally founded 2002 lee vermeulen didnt really get ground 2009 release capsized 2d scifi shooting game lush handdrawn graphics studio prepping apotheon actionplatforming game set ancient greece thats also notable art style inspired painting style ancient greek pottery vermeulen artist jesse mcgibney met college getting ready launch apotheon later year sean day9 plott heres gamer turned passion competing thriving business plott known internet gaming handle day9 got start professional gamer playing scifi strategy game called starcraft pc raking cash prizes winning big matches later turned focus commentary providing indepth analysis games biggest tournaments becoming one mostrecognized voices competitive gaming later launched channel twitchcom thousands players pay subscription access starcraft strategy video last year plott announced joined small game company called arillery hes helping develop browserbased strategy game someone plotts expertise helm new game titled project atlas one watch advertisement pillow castle pillow castles mindbending new puzzle game one unique video games year tiny development studio created museum simulation technology game thats forced perspective youre familiar term refers way objects look bigger youre close smaller youre farther away game challenges solve puzzles manipulating camera angles create optical illusions use reach previously inaccessible areas museum simulation technology created five students carnegie mellon university raked slew awards past year appeared demo big game shows around world pillow castle crew currently developing another firstperson puzzle game called muse much known yet virtuix playing games could give workout youre playing virtuix omni special gaming apparatus lets actually walk run control character video game virtuix founder jan goetgeluk launched kickstarter project last year raked 1 million create mass market version device use device gamers strap special harness walk run turn game character mirrors movement 160but treadmill players wear slicksoled shoes essentially slide fixed ramp plenty upcoming games support device native integration oculus rift virtuix omni one device watch campo santo small team seven developers artists preparing launch firewatch eerie firstperson mystery strong narrative hook player takes control henry man working fire lookout wyoming wilderness wanders woods one day must rely help one person end radio guide safety new game puts focus exploration story instead action combat small campo santo development team based portland oregon composed developers strong track record industry worked popular games like walking dead mark ninja theyve set theyre producing looks one promising hotly anticipated indie games year oculus vr ok oculus vr isnt exactly scrappy startup company acquired facebook last march 2 billion founder palmer luckey might poster child good gaming idea pave way serious success short period time luckey founded oculus vr 2012 develop headmounted display immersive virtual reality gaming 160the headset dubbed oculus rift racked nearly 25 million 30day kickstarter campaign project allowing development first device could display pc games full hd right front eyes react dynamically head movements facebook owns oculus vr company nearly limitless resources push tech new directions originally published business news daily opens new window | 566 |
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<p>Image source: Getty Images.</p>
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<p>It's no secret that the smartphone upgrade cycle is getting longer. Earlier this year, Citigroup analysts estimated the smartphone upgrade cycle would extend to 29 months this year, from a range of 24 to 26 months two years ago.</p>
<p>The driving force behind the extension is the shift in carriers from a subsidy model to equipment installment plans. And the move is now starting to cut into carriers' revenues. Verizon (NYSE: VZ) saw its equipment revenue fall 4.1% last quarter, leading to its first quarterly revenue decline in over six years.AT&amp;T (NYSE: T) has seen its equipment revenue fall three straight quarters as customers hold on to their smartphones longer.</p>
<p>But while wireless carriers are seeing a decline in revenue in part because of declining equipment sales, the lengthening smartphone upgrade cycle shouldn't worry investors.</p>
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<p>The margins on smartphone sales are significantly worse than on carriers' wireless service. While carriers may receive incentives to sell phones from certain hardware makers, the devices are generally sold at cost. Samsung (NASDAQOTH: SSNLF) pays salespeople notoriously high commissions, which is why <a href="http://www.fool.com/investing/general/2014/08/13/att-and-verizon-prefer-to-sell-a-samsung-smartphon.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">sales reps often recommend Samsung devices over other manufacturers Opens a New Window.</a>. Still, those commissions don't amount to much in the grand scheme of things, and AT&amp;T's and Verizon's margins on its wireless service are much better.</p>
<p>That's evidenced in the companies' wireless segment margins. Verizon's wireless business saw its operating margin increase 2.9 percentage points year over year, and its EBITDA margin improved 3.6 percentage points in the most recent quarter. AT&amp;T's consumer mobility segment improved its operating margin a more modest 1.5 percentage points, and its EBITDA margin improved 2.2 percentage points.</p>
<p>The shift to separate service and equipment billing has also lifted service margin at AT&amp;T. Verizon doesn't break out service margin. Both have seen service revenue decline as a result of the shift as well.</p>
<p>Verizon has managed to continue increasing its operating income and EBITDA. The same can't be said of AT&amp;T, but that's due more to high-value postpaid phone subscriber losses than to an extension of the smartphone upgrade cycle.</p>
<p>On Verizon's second-quarter earnings call, CFO Fran Shammo told investors he doesn't really know what kind of impact equipment installment plans will have on existing customers' decisions to upgrade their phones. "We have our first set of EIP customers coming up on their two-year anniversary," he told analysts. "And there's not enough volume yet of those customers to really get a behavior track, if you will, whether they are going to hold their phone and take a $20 to $25 discount on their bill or if they are just waiting for a new phone."</p>
<p>He also noted that the company saw a similar trend in 2014 ahead of Apple's (NASDAQ: AAPL) iPhone 6 launch, but it wasn't quite as "dramatic." There are reports that Apple's upcoming iPhone release this fall won't be a major upgrade like the iPhone 6, which may cause some iPhone customers to hold on to their devices even longer. Apple holds a 43.9% market share in the United States, and that percentage is likely even higher for Verizon with its premium customer base.</p>
<p>For what it's worth, AT&amp;T saw its first round of EIP customers finish their first round of installment payments in the second quarter last year, when equipment revenue stayed flat. It improved marginally in the third quarter before falling nearly 21% in the fourth quarter. That may be partially due to the tough comparable with the iPhone 6 release in 2014, though. Operating income continued to increase nonetheless.</p>
<p>Investors should look closely at Verizon's results in the third quarter. Verizon could report another revenue decline, but if it's mostly the result of customers who are holding on to their phones longer, it shouldn't be too much of a concern.</p>
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<p><a href="http://my.fool.com/profile/adamlevy/info.aspx" type="external">Adam Levy Opens a New Window.</a> owns shares of AAPL and VZ. The Motley Fool owns shares of and recommends AAPL and VZ. The Motley Fool has the following options: long January 2018 $90 calls on AAPL and short January 2018 $95 calls on AAPL. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=isiedilnk018048&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://wiki.fool.com/Motley" type="external">considering a diverse range of insights Opens a New Window.</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | image source getty images continue reading secret smartphone upgrade cycle getting longer earlier year citigroup analysts estimated smartphone upgrade cycle would extend 29 months year range 24 26 months two years ago driving force behind extension shift carriers subsidy model equipment installment plans move starting cut carriers revenues verizon nyse vz saw equipment revenue fall 41 last quarter leading first quarterly revenue decline six yearsatampt nyse seen equipment revenue fall three straight quarters customers hold smartphones longer wireless carriers seeing decline revenue part declining equipment sales lengthening smartphone upgrade cycle shouldnt worry investors advertisement margins smartphone sales significantly worse carriers wireless service carriers may receive incentives sell phones certain hardware makers devices generally sold cost samsung nasdaqoth ssnlf pays salespeople notoriously high commissions sales reps often recommend samsung devices manufacturers opens new window still commissions dont amount much grand scheme things atampts verizons margins wireless service much better thats evidenced companies wireless segment margins verizons wireless business saw operating margin increase 29 percentage points year year ebitda margin improved 36 percentage points recent quarter atampts consumer mobility segment improved operating margin modest 15 percentage points ebitda margin improved 22 percentage points shift separate service equipment billing also lifted service margin atampt verizon doesnt break service margin seen service revenue decline result shift well verizon managed continue increasing operating income ebitda cant said atampt thats due highvalue postpaid phone subscriber losses extension smartphone upgrade cycle verizons secondquarter earnings call cfo fran shammo told investors doesnt really know kind impact equipment installment plans existing customers decisions upgrade phones first set eip customers coming twoyear anniversary told analysts theres enough volume yet customers really get behavior track whether going hold phone take 20 25 discount bill waiting new phone also noted company saw similar trend 2014 ahead apples nasdaq aapl iphone 6 launch wasnt quite dramatic reports apples upcoming iphone release fall wont major upgrade like iphone 6 may cause iphone customers hold devices even longer apple holds 439 market share united states percentage likely even higher verizon premium customer base worth atampt saw first round eip customers finish first round installment payments second quarter last year equipment revenue stayed flat improved marginally third quarter falling nearly 21 fourth quarter may partially due tough comparable iphone 6 release 2014 though operating income continued increase nonetheless investors look closely verizons results third quarter verizon could report another revenue decline mostly result customers holding phones longer shouldnt much concern secret billiondollar stock opportunity worlds biggest tech company forgot show something wall street analysts fool didnt miss beat theres small company thats powering brandnew gadgets coming revolution technology think stock price nearly unlimited room run early intheknow investors one click opens new window adam levy opens new window owns shares aapl vz motley fool owns shares recommends aapl vz motley fool following options long january 2018 90 calls aapl short january 2018 95 calls aapl try foolish newsletter services free 30 days opens new window fools may hold opinions believe considering diverse range insights opens new window makes us better investors motley fool disclosure policy opens new window | 512 |
<p>PNC Financial Services Group Inc.'s second-quarter earnings and revenue topped estimates, helped by higher interest rates and growth in commercial lending.</p>
<p>"This is a pretty good quarter for us," William Demchak, PNC's chairman and chief executive officer, said in a call with analysts.</p>
<p>Continue Reading Below</p>
<p>PNC's shares however fell about 0.7% in morning trading, though other banks were down more, including J.P. Morgan and Citigroup. Shares of Wells Fargo &amp; Co., which also reported second-quarter results Friday, slipped almost 2%.</p>
<p>Pittsburgh-based PNC said it continues to expect loans to be up by mid-single digits for the full year. Analysts took that as an encouraging sign, especially amid industrywide questions about whether an election-fueled rally in bank stocks will translate into more bank lending. PNC officials said Friday they expect continued steady growth in U.S. GDP.</p>
<p>Loans at the bank grew 4% from a year ago to $218 billion, fueled mostly by commercial lending, where PNC focuses most of its business. Part of that was due to the bank's purchase earlier this year of a portfolio of construction, transportation and other loans.</p>
<p>Over all PNC, reported earnings of $1.09 billion, or $2.10 per share, up from $966 million, or $1.82 per share, in the year-earlier quarter. Revenue jumped 7% to $4.06 billion. Analysts polled by Thomson Reuters had forecast earnings of $2.02 per share on revenue of $3.99 billion.</p>
<p>PNC is the first major regional bank to report results this quarter. Its results came on the same day as bigger banks including J.P. Morgan Chase &amp; Co. and Citigroup Inc. Both of those banks were hurt by weaker trading, a volatile business that doesn't impact most of the regional banks.</p>
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<p>PNC also benefited from the Federal Reserve's decision to raise interest rates three times since December, which allows banks to charge more on loans. PNC's net interest income grew 9% compared with a year ago. Net interest margin, a key measure of lending profitability, was also higher.</p>
<p>Instinet analyst Bill Carcache said PNC results "set a high bar" for the regional banks that will report next week. But Terry McEvoy, an analyst at Stephens Inc., noted that the better-than-expected earnings were helped by a lower loan-loss provision, "which typically (is) not rewarded by investors."</p>
<p>PNC has been expanding its commercial banking operations into new regions, and on Friday announced it would open middle-market offices in Denver, Houston and Nashville next year. It recently expanded into Dallas, Kansas City and Minneapolis as well.</p>
<p>But another part of Mr. Demchak's strategy is to focus more on consumers. He acknowledged that the bank had historically underinvested in consumer lending and noted new consumer products, including a cash-reward credit card. "We have a lot of work to do," he said, "and it's going to take a while."</p>
<p>Still, that doesn't mean raising deposit rates for consumers any time soon. Like most other banks, PNC has been r eluctant to pass those higher rates along to deposit customers.</p>
<p>Mr. Demchak said he thinks "we're still a couple (Fed) moves away" before banks have to notably increase deposit rates for retail customers. And while some online lenders might be offering much higher rates, he said they represent only a tiny percentage of consumer deposits.</p>
<p>PNC previously experimented with higher promotional rates on some deposit products, but pulled away from that strategy to focus instead, it said, on customers who want a long-term relationship with the bank.</p>
<p>Write to Christina Rexrode at [email protected] and Imani Moise at [email protected]</p>
<p>PNC Financial Services Group Inc.'s second-quarter earnings and revenue topped estimates, helped by higher interest rates and growth in commercial lending.</p>
<p>"This is a pretty good quarter for us," William Demchak, PNC's chairman and chief executive officer, said in a call with analysts.</p>
<p>PNC's shares fell 0.1%, though other banks were down more, including J.P. Morgan and Citigroup Inc. Shares of Wells Fargo &amp; Co., which also reported second-quarter results Friday, slipped 1.1%.</p>
<p>Pittsburgh-based PNC said it continues to expect loans to be up by mid-single digits for the full year. Analysts took that as an encouraging sign, especially amid industrywide questions about whether an election-fueled rally in bank stocks will translate into more bank lending. PNC officials said Friday they expect continued steady growth in U.S. gross domestic product.</p>
<p>The bank also announced it would expand corporate-lending offices into new regions. In an interview, PNC's head of corporate banking, Terry Begley, said businesses are creating "decent" growth in loan demand but are concerned by uncertainty around health care, taxes and other Washington debates. "They can live with different government policies," Mr. Begley said, referring to corporate customers, "but they want to know what it is."</p>
<p>Loans at the bank grew 4% from a year ago to $218 billion, fueled mostly by commercial lending, where PNC focuses most of its business. Part of that was due to the bank's purchase earlier this year of a portfolio of construction, transportation and other loans.</p>
<p>Overall, PNC reported earnings of $1.09 billion, or $2.10 per share, up from $966 million, or $1.82 per share, in the year-earlier quarter. Revenue jumped 7% to $4.06 billion. Analysts polled by Thomson Reuters had forecast earnings of $2.02 per share on revenue of $3.99 billion.</p>
<p>PNC is the first major regional bank to report results this quarter. Its results came on the same day as those of bigger banks including J.P. Morgan Chase &amp; Co. and Citigroup Inc. Both of those banks were hurt by weaker trading, a volatile business that doesn't impact most of the regional banks.</p>
<p>PNC also benefited from the Federal Reserve's decision to raise interest rates three times since December, which allows banks to charge more on loans. PNC's net interest income grew 9% compared with a year ago. Net interest margin, a key measure of lending profitability, was also higher.</p>
<p>Instinet analyst Bill Carcache said PNC results "set a high bar" for the regional banks that will report next week. But Terry McEvoy, an analyst at Stephens Inc., noted that the better-than-expected earnings were helped by a lower loan-loss provision, "which typically [is] not rewarded by investors."</p>
<p>PNC also announced it would open middle-market offices in Denver, Houston and Nashville next year. It recently expanded into Dallas, Kansas City and Minneapolis as well.</p>
<p>But another part of Mr. Demchak's strategy is to focus more on consumers. He acknowledged that the bank had historically underinvested in consumer lending and noted new consumer products, including a cash-reward credit card. "We have a lot of work to do," he said, "and it's going to take a while."</p>
<p>Still, that doesn't mean raising deposit rates for consumers any time soon. Like most other banks, PNC has been r eluctant to pass those higher rates along to deposit customers.</p>
<p>Mr. Demchak said he thinks "we're still a couple [Fed] moves away" before banks have to notably increase deposit rates for retail customers. And while some online lenders might be offering much higher rates, he said they represent only a tiny percentage of consumer deposits.</p>
<p>PNC previously experimented with higher promotional rates on some deposit products, but pulled away from that strategy to focus, it said, on customers who want a long-term relationship with the bank.</p>
<p>Write to Christina Rexrode at [email protected] and Imani Moise at [email protected]</p>
<p>(END) Dow Jones Newswires</p>
<p>July 14, 2017 18:01 ET (22:01 GMT)</p> | true | 0 | pnc financial services group incs secondquarter earnings revenue topped estimates helped higher interest rates growth commercial lending pretty good quarter us william demchak pncs chairman chief executive officer said call analysts continue reading pncs shares however fell 07 morning trading though banks including jp morgan citigroup shares wells fargo amp co also reported secondquarter results friday slipped almost 2 pittsburghbased pnc said continues expect loans midsingle digits full year analysts took encouraging sign especially amid industrywide questions whether electionfueled rally bank stocks translate bank lending pnc officials said friday expect continued steady growth us gdp loans bank grew 4 year ago 218 billion fueled mostly commercial lending pnc focuses business part due banks purchase earlier year portfolio construction transportation loans pnc reported earnings 109 billion 210 per share 966 million 182 per share yearearlier quarter revenue jumped 7 406 billion analysts polled thomson reuters forecast earnings 202 per share revenue 399 billion pnc first major regional bank report results quarter results came day bigger banks including jp morgan chase amp co citigroup inc banks hurt weaker trading volatile business doesnt impact regional banks advertisement pnc also benefited federal reserves decision raise interest rates three times since december allows banks charge loans pncs net interest income grew 9 compared year ago net interest margin key measure lending profitability also higher instinet analyst bill carcache said pnc results set high bar regional banks report next week terry mcevoy analyst stephens inc noted betterthanexpected earnings helped lower loanloss provision typically rewarded investors pnc expanding commercial banking operations new regions friday announced would open middlemarket offices denver houston nashville next year recently expanded dallas kansas city minneapolis well another part mr demchaks strategy focus consumers acknowledged bank historically underinvested consumer lending noted new consumer products including cashreward credit card lot work said going take still doesnt mean raising deposit rates consumers time soon like banks pnc r eluctant pass higher rates along deposit customers mr demchak said thinks still couple fed moves away banks notably increase deposit rates retail customers online lenders might offering much higher rates said represent tiny percentage consumer deposits pnc previously experimented higher promotional rates deposit products pulled away strategy focus instead said customers want longterm relationship bank write christina rexrode christinarexrodewsjcom imani moise imanimoisewsjcom pnc financial services group incs secondquarter earnings revenue topped estimates helped higher interest rates growth commercial lending pretty good quarter us william demchak pncs chairman chief executive officer said call analysts pncs shares fell 01 though banks including jp morgan citigroup inc shares wells fargo amp co also reported secondquarter results friday slipped 11 pittsburghbased pnc said continues expect loans midsingle digits full year analysts took encouraging sign especially amid industrywide questions whether electionfueled rally bank stocks translate bank lending pnc officials said friday expect continued steady growth us gross domestic product bank also announced would expand corporatelending offices new regions interview pncs head corporate banking terry begley said businesses creating decent growth loan demand concerned uncertainty around health care taxes washington debates live different government policies mr begley said referring corporate customers want know loans bank grew 4 year ago 218 billion fueled mostly commercial lending pnc focuses business part due banks purchase earlier year portfolio construction transportation loans overall pnc reported earnings 109 billion 210 per share 966 million 182 per share yearearlier quarter revenue jumped 7 406 billion analysts polled thomson reuters forecast earnings 202 per share revenue 399 billion pnc first major regional bank report results quarter results came day bigger banks including jp morgan chase amp co citigroup inc banks hurt weaker trading volatile business doesnt impact regional banks pnc also benefited federal reserves decision raise interest rates three times since december allows banks charge loans pncs net interest income grew 9 compared year ago net interest margin key measure lending profitability also higher instinet analyst bill carcache said pnc results set high bar regional banks report next week terry mcevoy analyst stephens inc noted betterthanexpected earnings helped lower loanloss provision typically rewarded investors pnc also announced would open middlemarket offices denver houston nashville next year recently expanded dallas kansas city minneapolis well another part mr demchaks strategy focus consumers acknowledged bank historically underinvested consumer lending noted new consumer products including cashreward credit card lot work said going take still doesnt mean raising deposit rates consumers time soon like banks pnc r eluctant pass higher rates along deposit customers mr demchak said thinks still couple fed moves away banks notably increase deposit rates retail customers online lenders might offering much higher rates said represent tiny percentage consumer deposits pnc previously experimented higher promotional rates deposit products pulled away strategy focus said customers want longterm relationship bank write christina rexrode christinarexrodewsjcom imani moise imanimoisewsjcom end dow jones newswires july 14 2017 1801 et 2201 gmt | 794 |
<p />
<p>After eight years as first lady, what Michelle Obama does next will be one of the most talked-about questions when the Obamas leave the White House.</p>
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<p>She'll have a variety of options after being a high-profile advocate against childhood obesity, a sought-after talk-show guest, a Democratic power player and a fashion maven.</p>
<p>Just as the first lady's role is undefined, with each woman molding it to her personality, interests and comfort level, there is no script for what comes after the first lady finishes the job.</p>
<p>The widowed Jacqueline Kennedy remarried and became a New York book editor. Laura Bush continues her advocacy for literacy and women in Afghanistan. Hillary Clinton launched her political career with her bid for the U.S. Senate, even before her family left the White House.</p>
<p>Here's a look at what Mrs. Obama is likely to do, or not do, when at 53 years old she returns to "private" life on Jan. 20.</p>
<p>LIKELY TO DO:</p>
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<p>R&amp;R</p>
<p>President Barack Obama says he's taking his wife on a "really nice vacation, because she deserves it. She's been putting up with me for quite some time." (Twenty-four years of marriage, to be exact.)</p>
<p>WRITE A MEMOIR</p>
<p>Practically all first ladies do. Book publishers would offer millions for the rights to Mrs. Obama's insider account as the first black woman in the role and as someone who has said little publicly about her private life in the White House. Clinton got an $8 million advance for her 2003 memoir, "Living History."</p>
<p>SET UP HER FAMILY'S NEW HOME</p>
<p>Breaking from post-presidential tradition, the Obamas plan to stay in Washington so their 15-year-old daughter, Sasha, can finish high school. Presidents usually leave Washington when they leave office, but the Obamas are renting a home in the wealthy Kalorama neighborhood, near what will be the official residence of Vice President-elect Mike Pence. The Obamas also still own a home in Chicago.</p>
<p>STICK WITH HER INITIATIVES</p>
<p>Mrs. Obama has said she'll stay engaged in public service and will keep working on the issues she focused on during her tenure. They included childhood obesity and education for girls around the world.</p>
<p>"I've always felt very alive using my gifts and talents to help other people. I sleep better at night. I'm happier," she told Vogue for an interview in the fashion magazine's December issue. "So we'll look back at the issues that I've been working on. The question is: How do I engage in those issues from a new platform? I can't say right now, because we can't spend that much time really doing the hard work of vetting offers or ideas or options because we're still closing things out here."</p>
<p>COULD DO:</p>
<p>JOIN SPEAKER'S CIRCUIT</p>
<p>Mrs. Obama put her oratory on display with a well-received speech on opening night of the Democratic National Convention. She followed with a series of campaign speeches criticizing Republican Donald Trump, now the president-elect, as unsuitable for the nation's highest office. Her friend, media mogul Oprah Winfrey, said the first lady will be "one of the most in-demand speakers" as a result of her convention performance. "That speaking fee just quadrupled," Winfrey said during an interview with The Associated Press.</p>
<p>Clinton earned millions of dollars giving paid speeches after she stepped down as secretary of state in 2013. Laura Bush also keeps a robust public speaking schedule.</p>
<p>HOST A TELEVISION TALK SHOW</p>
<p>Mrs. Obama has demonstrated a knack for talk-show banter, and an ease in front of TV cameras. She co-hosted "The View" before the 2008 election and recently co-hosted Ellen DeGeneres' hourlong gabfest. Roy Ashton, head of television at the Gersh Agency in Los Angeles, says Mrs. Obama would be a "no-brainer" to have a show of her own.</p>
<p>"She could pick up where Oprah left off, or something else," Ashton said. "I think Michelle Obama has a ton to say."</p>
<p>SERVE ON CORPORATE BOARDS</p>
<p>She has some experience with corporate America, but she'll want to choose carefully. Mrs. Obama resigned from the board of a food supplier for Wal-Mart Stores Inc. in 2007, shortly after her husband announced his presidential bid. He had been a critic of the retail giant. Mrs. Obama cited the increased demands of the campaign for leaving the board of Illinois-based TreeHouse Foods Inc.</p>
<p>"It will be fun to see what she actually does," said Kimberly Archer, head of the Washington office of Russell Reynolds Associates, an executive search and assessment firm. "Wherever she does decide to focus, I would say, 'Lucky them.'"</p>
<p>LIKELY WON'T DO:</p>
<p>RUN FOR PUBLIC OFFICE</p>
<p>Both Obamas repeatedly have said she will not run for president — despite pressure from Democrats wowed by her campaign speeches against Trump.</p>
<p>Obama has said she doesn't have "the patience or the inclination" to be a candidate and is "too sensible to want to be in politics." Mrs. Obama said: "No, no. Not going to do it," when asked earlier this year about following in her husband's footsteps.</p>
<p>RESUME PRACTICING LAW</p>
<p>Mrs. Obama, a Harvard law school graduate, practiced at a Chicago firm but abandoned a legal career after the deaths of her father and a close friend. She entered public service, working for the city of Chicago and running an AmeriCorps service program before she joined the University of Chicago Medical Center as a vice president for community and external affairs. It was the last paid position she held before become first lady.</p>
<p>Dr. Kurt Newman, president and CEO of Children's National Health System in Washington, noted the first lady's past hospital experience during her annual Christmastime appearance at the facility and said he looked forward to having her back.</p>
<p>"I can always put her to work," Newman said.</p>
<p>___</p>
<p>Follow Darlene Superville on Twitter: http://www.twitter.com/dsupervilleap</p> | true | 0 | eight years first lady michelle obama next one talkedabout questions obamas leave white house continue reading shell variety options highprofile advocate childhood obesity soughtafter talkshow guest democratic power player fashion maven first ladys role undefined woman molding personality interests comfort level script comes first lady finishes job widowed jacqueline kennedy remarried became new york book editor laura bush continues advocacy literacy women afghanistan hillary clinton launched political career bid us senate even family left white house heres look mrs obama likely 53 years old returns private life jan 20 likely advertisement rampr president barack obama says hes taking wife really nice vacation deserves shes putting quite time twentyfour years marriage exact write memoir practically first ladies book publishers would offer millions rights mrs obamas insider account first black woman role someone said little publicly private life white house clinton got 8 million advance 2003 memoir living history set familys new home breaking postpresidential tradition obamas plan stay washington 15yearold daughter sasha finish high school presidents usually leave washington leave office obamas renting home wealthy kalorama neighborhood near official residence vice presidentelect mike pence obamas also still home chicago stick initiatives mrs obama said shell stay engaged public service keep working issues focused tenure included childhood obesity education girls around world ive always felt alive using gifts talents help people sleep better night im happier told vogue interview fashion magazines december issue well look back issues ive working question engage issues new platform cant say right cant spend much time really hard work vetting offers ideas options still closing things could join speakers circuit mrs obama put oratory display wellreceived speech opening night democratic national convention followed series campaign speeches criticizing republican donald trump presidentelect unsuitable nations highest office friend media mogul oprah winfrey said first lady one indemand speakers result convention performance speaking fee quadrupled winfrey said interview associated press clinton earned millions dollars giving paid speeches stepped secretary state 2013 laura bush also keeps robust public speaking schedule host television talk show mrs obama demonstrated knack talkshow banter ease front tv cameras cohosted view 2008 election recently cohosted ellen degeneres hourlong gabfest roy ashton head television gersh agency los angeles says mrs obama would nobrainer show could pick oprah left something else ashton said think michelle obama ton say serve corporate boards experience corporate america shell want choose carefully mrs obama resigned board food supplier walmart stores inc 2007 shortly husband announced presidential bid critic retail giant mrs obama cited increased demands campaign leaving board illinoisbased treehouse foods inc fun see actually said kimberly archer head washington office russell reynolds associates executive search assessment firm wherever decide focus would say lucky likely wont run public office obamas repeatedly said run president despite pressure democrats wowed campaign speeches trump obama said doesnt patience inclination candidate sensible want politics mrs obama said going asked earlier year following husbands footsteps resume practicing law mrs obama harvard law school graduate practiced chicago firm abandoned legal career deaths father close friend entered public service working city chicago running americorps service program joined university chicago medical center vice president community external affairs last paid position held become first lady dr kurt newman president ceo childrens national health system washington noted first ladys past hospital experience annual christmastime appearance facility said looked forward back always put work newman said ___ follow darlene superville twitter httpwwwtwittercomdsupervilleap | 559 |
<p />
<p>This is not a column about reform. This is not a column bemoaning the corrosive influence of money in politics. This is a column that just looks at the way campaigns have evolved over the past few years and asks a very simple question – is money still really that important in campaigns?</p>
<p>Continue Reading Below</p>
<p>When people talk about the influence of money in politics, they’re specifically talking about a culture that empowers major donors to influence elections through independent expenditures and a culture that encourages pay to play governance by incentivizing politicians to dole out favors to donors in return for campaign contributions. The money mainly goes to one thing – television commercials. When you hear about the millions of dollars raised for congressional campaigns or the two billion dollars that will be spent collectively by the nominees for President, you’re really hearing about the money allocated to the tv buy.</p>
<p>But viewership is rapidly declining and fewer and fewer people are watching live tv (no one pauses the DVR to watch a political ad). Senior citizens (who are prime, coveted voters) are now more and more technically fluent, meaning you can reach them through ways other than tv spots. And as more and more people watch Netflix, Hulu and Amazon Prime and fewer watch CBS, TNT or even ESPN, the efficacy of tv ads in campaigns is becoming questionable at best.</p>
<p>Donald Trump has barely run tv spots and he’s on his way to capturing the Republican nomination. In last week’s New York primary, Bernie Sanders outspent Hillary Clinton on tv 2-1 and still lost by a 60-40 margin. Jeb Bush outraised and outspent his rivals by a mile and barely made a dent in the electorate. So maybe our focus on removing the influence of money in politics is misplaced.</p>
<p>The odds of passing major, truly meaningful campaign finance reform in Congress (or most state legislatures) are low. The odds of the Supreme Court reversing Buckley v. Valeo or Citizens United aren’t much higher. And even campaign finance systems praised by policy experts – like New York City’s public finance matching system – can easily be circumvented, as the multiple criminal investigations into Mayor Bill de Blasio’s fundraising operation clearly shows. But maybe we don’t need major systematic reform or legal change. Maybe we just need campaigns and candidates to start realizing they don’t need that much money in the first place.</p>
<p>Apart from tv ads, the major components of a serious campaign – digital ads, grassroots outreach, a campaign staff, polling, collateral like signs and buttons – only make up a modest percentage of most campaign budgets. And yet the time devoted to raising the money for tv ads is vast. Candidates (and sitting elected officials) right now spend far too many waking hours raising money (just ask them). Their decisions around legislation and policy are influenced by donors, by lobbyists (who are counted on to raise money) and by interest groups (who threaten to run negative ads if they don’t get what they want). And many of those same politicians are then accused of engaging in pay to play politics, with some finding themselves under criminal investigation for it.</p>
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<p>None of this may be necessary. A sophisticated digital, pr and grassroots campaign often reaches more voters, with more efficacy, at a fraction of the cost (and the vast majority of today’s political tv spots are hackneyed, and therefore fairly ineffective anyway). Yes, it’s harder for PACs and outside groups to reach as many voters or strike fear in as many candidates without the tool of television, so they’ll use it for as long as they can. But their influence is solely dependent on the perception of their strength, which is a direct correlation with the perception of the power of television ads. So as candidates, sitting elected officials, campaign staff, reporters, political operatives and others in the system start to realize that the thing they value the most in campaigns isn’t nearly as important as they thought it was, the influence of money in politics – and the need for money in politics – will wane with it.</p>
<p>Sure, some who directly benefit from the status quo (tv stations, ad makers and buyers) will scoff and argue that tv matters as much as ever. What else are they going to say? But one look at the way today’s campaigns are playing out tells you they’re wrong. And the sooner we realize that, the sooner we’ll end up with a more honest, more democratic system. In other words, saving our democracy probably doesn’t require radical reform. It just requires opening our eyes.</p>
<p>Bradley Tusk is the founder and CEO of <a href="http://tuskstrategies.com/" type="external">Tusk Holdings Opens a New Window.</a>, the parent company of Tusk Strategies, Tusk Ventures, Kronos Archives, the Ivory Gaming Group and the Tusk Montgomery Family Foundation.</p>
<p>Prior to creating Tusk Strategies in 2010, Bradley served as Mike Bloomberg’s campaign manager, guiding Mayor Bloomberg to a third term. In 2016 he advised Bloomberg on a potential presidential run.</p>
<p>Earlier in his career, he created and ran Lehman Brothers’ lottery privatization group. His career in the public sector began at the New York City Parks Department in 1995, acting as spokesman and then senior advisor to Commissioner Henry Stern. Bradley then served as Communications Director for U.S. Senator Chuck Schumer, before becoming Special Advisor to Mayor Bloomberg at City Hall. From 2003-2006, Bradley was Deputy Governor of Illinois.</p>
<p>Bradley received his B.A. from the University of Pennsylvania in 1995 and a J.D. from the University of Chicago Law School in 1999. He serves on the boards of Creative Time, StoryCorps, and the New York Advisory Board of the Trust for Public Land.</p> | true | 0 | column reform column bemoaning corrosive influence money politics column looks way campaigns evolved past years asks simple question money still really important campaigns continue reading people talk influence money politics theyre specifically talking culture empowers major donors influence elections independent expenditures culture encourages pay play governance incentivizing politicians dole favors donors return campaign contributions money mainly goes one thing television commercials hear millions dollars raised congressional campaigns two billion dollars spent collectively nominees president youre really hearing money allocated tv buy viewership rapidly declining fewer fewer people watching live tv one pauses dvr watch political ad senior citizens prime coveted voters technically fluent meaning reach ways tv spots people watch netflix hulu amazon prime fewer watch cbs tnt even espn efficacy tv ads campaigns becoming questionable best donald trump barely run tv spots hes way capturing republican nomination last weeks new york primary bernie sanders outspent hillary clinton tv 21 still lost 6040 margin jeb bush outraised outspent rivals mile barely made dent electorate maybe focus removing influence money politics misplaced odds passing major truly meaningful campaign finance reform congress state legislatures low odds supreme court reversing buckley v valeo citizens united arent much higher even campaign finance systems praised policy experts like new york citys public finance matching system easily circumvented multiple criminal investigations mayor bill de blasios fundraising operation clearly shows maybe dont need major systematic reform legal change maybe need campaigns candidates start realizing dont need much money first place apart tv ads major components serious campaign digital ads grassroots outreach campaign staff polling collateral like signs buttons make modest percentage campaign budgets yet time devoted raising money tv ads vast candidates sitting elected officials right spend far many waking hours raising money ask decisions around legislation policy influenced donors lobbyists counted raise money interest groups threaten run negative ads dont get want many politicians accused engaging pay play politics finding criminal investigation advertisement none may necessary sophisticated digital pr grassroots campaign often reaches voters efficacy fraction cost vast majority todays political tv spots hackneyed therefore fairly ineffective anyway yes harder pacs outside groups reach many voters strike fear many candidates without tool television theyll use long influence solely dependent perception strength direct correlation perception power television ads candidates sitting elected officials campaign staff reporters political operatives others system start realize thing value campaigns isnt nearly important thought influence money politics need money politics wane sure directly benefit status quo tv stations ad makers buyers scoff argue tv matters much ever else going say one look way todays campaigns playing tells theyre wrong sooner realize sooner well end honest democratic system words saving democracy probably doesnt require radical reform requires opening eyes bradley tusk founder ceo tusk holdings opens new window parent company tusk strategies tusk ventures kronos archives ivory gaming group tusk montgomery family foundation prior creating tusk strategies 2010 bradley served mike bloombergs campaign manager guiding mayor bloomberg third term 2016 advised bloomberg potential presidential run earlier career created ran lehman brothers lottery privatization group career public sector began new york city parks department 1995 acting spokesman senior advisor commissioner henry stern bradley served communications director us senator chuck schumer becoming special advisor mayor bloomberg city hall 20032006 bradley deputy governor illinois bradley received ba university pennsylvania 1995 jd university chicago law school 1999 serves boards creative time storycorps new york advisory board trust public land | 561 |
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<p>You wouldn't be completely remiss if you were to mistake the <a href="http://www.pcmag.com/review/343777/microsoft-surface-hub" type="external">Opens a New Window.</a> <a href="http://www.pcmag.com/review/343777/microsoft-surface-hub" type="external">Microsoft Surface Hub Opens a New Window.</a> (which begins at $8,999) with a really nice TV. It has a gorgeous 55-inch, Full HD, 120Hz refresh matte screen that would be superb for your next Super Bowl party (it also comes in an 84-inch, 4K model for $21,999). Conversely, if you were to call the Surface Hub a giant tablet, you wouldn't be entirely wrong, either. It runs <a href="http://www.pcmag.com/article2/0,2817,2488631,00.asp" type="external">Microsoft Windows 10 Opens a New Window.</a> <a type="external" href="" /> and <a href="http://www.pcmag.com/article2/0,2817,2383731,00.asp" type="external">Microsoft Office 365 Opens a New Window.</a> <a type="external" href="" />, it's got a touchscreen, and you can play games on it when you're not working (we've been playing a lot of Crossy Road afterhours in the PCMag Labs).</p>
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<p>But the Surface Hub is much more than a TV and it doesn't operate the way a tablet or any personal computing device would. When you think of the Surface Hub, the first thought that should come to mind is <a href="http://www.pcmag.com/article2/0,2817,2489110,00.asp" type="external">collaboration Opens a New Window.</a>. This isn't the kind of gadget your CEO will tuck away in his or her office to impress major clients. The Surface Hub is meant to sit in a conference room or a communal space, somewhere where people can easily hop on and hop off of the device for whiteboard meetings, demonstrations, or video calls.</p>
<p>How You Would Use the Surface HubMicrosoft aptly describes the Surface Hub as a "collaboration kiosk." Users don't log into the Surface Hub the way you would a typical PC. To use the Surface Hub, you've got to schedule it the way you would schedule a boardroom; in fact, it's designed to meld into the conference room scheduler you'd normally use through your calendaring app, whether that be <a href="http://www.pcmag.com/article2/0,2817,2492238,00.asp" type="external">Opens a New Window.</a> <a href="http://www.pcmag.com/article2/0,2817,2492238,00.asp" type="external">Microsoft Outlook Opens a New Window.</a> or a competitor such as Google Calendar. Your Surface Hub only stores data during your session; once the session ends, the machine automatically returns to a neutral state except for the applications your administrator has installed on the device. To save any data you create during meetings, you need to either email files to yourself or other meeting attendees, or you can log into your own Office 365 environment, in which case you can save to storage resources there, like <a href="http://www.pcmag.com/article2/0,2817,2409569,00.asp" type="external">Opens a New Window.</a> <a href="http://www.pcmag.com/article2/0,2817,2409569,00.asp" type="external">OneDrive Opens a New Window.</a> or <a href="http://www.pcmag.com/article2/0,2817,2490933,00.asp" type="external">Opens a New Window.</a> <a href="http://www.pcmag.com/article2/0,2817,2490933,00.asp" type="external">SharePoint Opens a New Window.</a>.</p>
<p>So, you can't directly store all your wonderful collaborative artwork and whiteboard brainstorms on the Surface Hub directly; it isn't designed for that level of storage, but you can store or share them using other mediums. As far as the Surface Hub goes, you're meant to hop on, work on a specific task, share the completed product with your team, and log off of the device. This is useful for two reasons: 1) It ensures that sensitive data doesn't fall into the hands of unwanted employees and 2) It helps keep the device clean, and quick and easy to use. Just look at your cluttered PC's desktop; the Surface Hub will never look that way.</p>
<p>Another reason you shouldn't confuse the Surface Hub with any old Windows tablet is that only <a href="http://www.pcmag.com/article2/0,2817,2477782,00.asp" type="external">Opens a New Window.</a> <a href="http://www.pcmag.com/article2/0,2817,2477782,00.asp" type="external">Universal Windows 10 apps Opens a New Window.</a> can run on the Surface Hub. Mobile and desktop-specific apps won't work. There is a limited set of available apps that you can access while you're using the device and, even if you can access them, you'll need to be an account admin to add the app to the Surface Hub's roster. In fact, the admin can disable the app store entirely so that users are only able to use what's already been downloaded to the device. Additionally, third-party apps have to be developed in partnership with Microsoft to run on the Surface Hub and its custom Windows 10 environment. As I mentioned, any data in the apps will be wiped after each Surface Hub session.</p>
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<p>Your screen can be segmented into three smaller screens, though not in even splits. You can, for example, open the whiteboard app alongside your <a href="http://www.pcmag.com/article2/0,2817,2493880,00.asp" type="external">Microsoft Edge Opens a New Window.</a> browser and then open up <a href="http://www.pcmag.com/article2/0,2817,2486508,00.asp" type="external">Microsoft Skype for Business Opens a New Window.</a> <a type="external" href="" />. The whiteboard and Edge browser can be expanded and shrunk as much as you'd like, but the Skype for Business screen will sit along the left- or right-hand rail, taking up about a fifth of the screen.</p>
<p>Unique Hardware, Unique Use CasesUsing Skype for Business on a Surface Hub is unlike anything you've experienced on a <a href="http://www.pcmag.com/article2/0,2817,2388678,00.asp" type="external">videoconference</a>. The Surface Hub features one wide-angle, 100-degree field of view camera on each side of the screen, both of which integrate with the Surface Hub's software and passive infrared presence sensors to identify where the speaker's face is and adjust the camera input accordingly. So, if you're presenting to a group of local and remote employees, and your big head is blocking the left camera as you doodle on the whiteboard, on a typical video call your remote viewers would be forced to stare at your dome. But with the Surface Hub, the video input will shift to the camera you're not blocking.</p>
<p>Another design that is meant to promote Edge is the screen's multitouch capacity. Up to 100 fingers can draw, write, or make selections on the screen at once, and up to three different pen inputs give multiple users the ability to take notes, make edits, or do whatever it is your team does during group presentations. Pen storage is really cool on the Surface Hub. Unlike the ugly and flimsy rings found on early versions of the Surface Pro, the Surface Hub's pens sit neatly on magnets along each side of the screen. If you lift a pen off of the magnet, the Surface Hub automatically launches the whiteboard.</p>
<p>The Standard Specs The 55-inch Surface Hub measures 31.75" by 59.62" by 3.38" and weighs 105 pounds. The <a href="http://www.pcmag.com/encyclopedia/term/63085/fhd" type="external">Full HD</a> screen features a contract ratio of 1,300:1. It comes with 128 GB of <a href="http://www.pcmag.com/encyclopedia/term/56084/solid-state-drive" type="external">SSD Opens a New Window.</a> storage and 8 GB of RAM. All of that is backed by a fourth-generation Intel <a href="http://www.pcmag.com/encyclopedia/term/60289/core-i5" type="external">Core i5 Opens a New Window.</a> processor and Intel HD 4600 graphics. Because the Surface Hub is so heavy, you'll have to buy a stand or work with your building's facilities team to mount the unit to a wall. The 55-inch stand will run you $2,350 and the mount costs $329.</p>
<p>The Surface Hub is port-heavy. You'll get access to <a href="http://www.pcmag.com/encyclopedia/term/58695/usb-3-0" type="external">USB 3.0 Opens a New Window.</a>, two USB 2.0, Ethernet 1000 Base-T, and <a href="http://www.pcmag.com/encyclopedia/term/59795/displayport" type="external">DisplayPort Opens a New Window.</a> inputs. The Surface Hub is <a href="http://www.pcmag.com/encyclopedia/term/37204/802-11" type="external">802.11ac/b/g/n Opens a New Window.</a>-, Bluetooth 4.0-, <a href="http://www.pcmag.com/encyclopedia/term/62130/nfc" type="external">NFC Opens a New Window.</a>-, and <a href="http://www.pcmag.com/encyclopedia/term/65695/miracast" type="external">Miracast Opens a New Window.</a>-enabled for wireless data transfer. This is especially useful for sharing and editing content during team meetings. For example: An employee could Miracast his or her laptop's display onto the Surface Hub to share the first draft of a <a href="http://www.pcmag.com/article2/0,2817,2455927,00.asp" type="external">Microsoft PowerPoint Opens a New Window.</a> <a type="external" href="" /> presentation. The meeting leader can then mark up the presentation with one of the pens, and the changes made on the Surface Hub will also be reflected on the user's original file.</p>
<p>That's pretty much the Surface Hub in a nutshell. It's capable of many amazing things and it will improve your team's interaction during meetings. But it's not just a giant tablet, and it's way more substantial than a large, expensive TV.</p>
<p>This article <a href="http://www.pcmag.com/article/345646/what-is-the-microsoft-surface-hub" type="external">originally appeared</a> on <a href="http://www.pcmag.com" type="external">PCMag.com Opens a New Window.</a>.</p> | true | 0 | wouldnt completely remiss mistake opens new window microsoft surface hub opens new window begins 8999 really nice tv gorgeous 55inch full hd 120hz refresh matte screen would superb next super bowl party also comes 84inch 4k model 21999 conversely call surface hub giant tablet wouldnt entirely wrong either runs microsoft windows 10 opens new window microsoft office 365 opens new window got touchscreen play games youre working weve playing lot crossy road afterhours pcmag labs continue reading surface hub much tv doesnt operate way tablet personal computing device would think surface hub first thought come mind collaboration opens new window isnt kind gadget ceo tuck away office impress major clients surface hub meant sit conference room communal space somewhere people easily hop hop device whiteboard meetings demonstrations video calls would use surface hubmicrosoft aptly describes surface hub collaboration kiosk users dont log surface hub way would typical pc use surface hub youve got schedule way would schedule boardroom fact designed meld conference room scheduler youd normally use calendaring app whether opens new window microsoft outlook opens new window competitor google calendar surface hub stores data session session ends machine automatically returns neutral state except applications administrator installed device save data create meetings need either email files meeting attendees log office 365 environment case save storage resources like opens new window onedrive opens new window opens new window sharepoint opens new window cant directly store wonderful collaborative artwork whiteboard brainstorms surface hub directly isnt designed level storage store share using mediums far surface hub goes youre meant hop work specific task share completed product team log device useful two reasons 1 ensures sensitive data doesnt fall hands unwanted employees 2 helps keep device clean quick easy use look cluttered pcs desktop surface hub never look way another reason shouldnt confuse surface hub old windows tablet opens new window universal windows 10 apps opens new window run surface hub mobile desktopspecific apps wont work limited set available apps access youre using device even access youll need account admin add app surface hubs roster fact admin disable app store entirely users able use whats already downloaded device additionally thirdparty apps developed partnership microsoft run surface hub custom windows 10 environment mentioned data apps wiped surface hub session advertisement screen segmented three smaller screens though even splits example open whiteboard app alongside microsoft edge opens new window browser open microsoft skype business opens new window whiteboard edge browser expanded shrunk much youd like skype business screen sit along left righthand rail taking fifth screen unique hardware unique use casesusing skype business surface hub unlike anything youve experienced videoconference surface hub features one wideangle 100degree field view camera side screen integrate surface hubs software passive infrared presence sensors identify speakers face adjust camera input accordingly youre presenting group local remote employees big head blocking left camera doodle whiteboard typical video call remote viewers would forced stare dome surface hub video input shift camera youre blocking another design meant promote edge screens multitouch capacity 100 fingers draw write make selections screen three different pen inputs give multiple users ability take notes make edits whatever team group presentations pen storage really cool surface hub unlike ugly flimsy rings found early versions surface pro surface hubs pens sit neatly magnets along side screen lift pen magnet surface hub automatically launches whiteboard standard specs 55inch surface hub measures 3175 5962 338 weighs 105 pounds full hd screen features contract ratio 13001 comes 128 gb ssd opens new window storage 8 gb ram backed fourthgeneration intel core i5 opens new window processor intel hd 4600 graphics surface hub heavy youll buy stand work buildings facilities team mount unit wall 55inch stand run 2350 mount costs 329 surface hub portheavy youll get access usb 30 opens new window two usb 20 ethernet 1000 baset displayport opens new window inputs surface hub 80211acbgn opens new window bluetooth 40 nfc opens new window miracast opens new windowenabled wireless data transfer especially useful sharing editing content team meetings example employee could miracast laptops display onto surface hub share first draft microsoft powerpoint opens new window presentation meeting leader mark presentation one pens changes made surface hub also reflected users original file thats pretty much surface hub nutshell capable many amazing things improve teams interaction meetings giant tablet way substantial large expensive tv article originally appeared pcmagcom opens new window | 725 |
<p>Former United Nations Ambassador John Bolton's <a href="http://www.boltonsuperpac.com/" type="external">SuperPAC</a> is focusing on down-ballot congressional races this election cycle, as they have recently announced that they will engage in an independent expenditure campaign for Senators Richard Burr (R-NC), Kelly Ayotte (R-NC) and Rep. Joe Heck (R-NV); the latter is running for an open Senate seat. The SuperPAC has pledged $1 million for each of these three campaigns.</p>
<p>Here is The Daily Wire's conversation with Bolton:</p>
<p>What prompted you to start getting involved in these down-ballot congressional races?</p>
<p>Well, we started in late 2013 when I had come to the conclusion that for President Obama national security just wasn't a priority. He was focused on what he said in 2008 he was going to do, which was his words, fundamentally transform the country, so...and I also felt Republicans in the House and Senate weren't as effective as they should have been on making it clear that international problems don't get easier to resolve by ignoring them, they get more difficult. So anyway, back in 2013 or late 2013 I formed a PAC and a SuperPAC to help in the House and the Senate get people elected who understood that a strong American presence in the world was critical to maintaining the way of life we have here at home, and in the 2014 cycle we raised a little bit over $7.5 million. Through the SuperPAC, we did three big independent expenditure campaigns for Tom Cotton in Arkansas, Thom Tillis in North Carolina and Scott Brown up in New Hampshire...after the 2014 election, I also set up a foundation of 501(c)4 to be able to do issue-oriented things as well, and so we've been raising money now among the three committees, each operating in its own way, we've raised a little bit over $10.5 million, so we're way ahead of where we ended up in 2014 and the pace of the last two months of fundraising, if that's an example we should be substantially higher than $10.5 million here by the end of this cycle.</p>
<p>Right now, we're doing independent expenditures in three races: Joe Heck in Nevada, Kelly Ayotte in New Hampshire; we just announced this week Richard Burr in North Carolina. And as of 2014, we've picked races where we thought the combination of the candidates who were running and the nature of the states in question were well suited to make national security arguments. We thought our efforts should be focused, not spread all around 10 or 15 races, so we picked three last time, we're doing three so far this time. We'd like to do one more, maybe two more, but certainly not more than that, we may end up just with three so we can do an effective job, and the other, I guess distinguishing feature, is that we do almost no radio or TV advertising. We do almost everything through digital communication, social media, we think that's the wave of the future. We think it's far more cost-effective than broadcast ads and in any event, we want to catch up with Barack Obama and the Democrats. So basically, that's we're up to.</p>
<p>What are the key foreign policy issues and arguments you're focusing on in these key races?</p>
<p>Well, the first is the qualifications of the people running, and in all three cases, Ayotte is an incumbent senator, Heck's a member of the House running for the Senate, Burr is chairman of the Senate Intelligence Committee...back on Heck, he's an Iraq veteran, a physician, first responder, but they've all had experience in or extensive knowledge of foreign and defense policy, and in all three cases their opponents are amateurs. And so, this is not the time internationally where you want to swap out proven, knowledgeable, effective people for amateurs.</p>
<p>Number two, you know I think the issues of terrorism, proliferation of nuclear weapons are very important to the American people. I think the Iran deal and what a terrible strategic mistake that was, people are very familiar with that, and obviously the terrorist threat, so those are some of the things we have focused on so far.</p>
<p>Right, and I would imagine that these Democratic opponents of these candidates you have endorsed would also be a rubber stamp for Hillary's foreign policy, would they not?</p>
<p>Yeah, I don't have any doubt about that. As I say, none of them–Hassan in New Hampshire is a state governor, the Nevada candidate is a former state attorney general and the person in North Carolina, Ross, running against Burr is a former ACLU staffer, so they've got essentially among the three of them zero international experience and I'm sure if Hillary were elected they would be precisely in line with her, and that's one of the things we're going to hit them on: They have supported the Obama foreign policy, and we need a change.</p>
<p>What would be the foreign policy ramifications of a Hillary presidency?</p>
<p>Well, I think personally it would be Obama's third term, and I think eight years of him have been more than enough to do us considerable damage, so we certainly don't need four more years, much less eight more years. But that, we're not really focused on Hillary in in the work we're doing. Obviously, each candidate this year has his or her own relationship to what's going on at the top of the ticket, we're really focused on the Senate races, and if we get in, and we may to a House race or two here or there, I think we follow the same pattern.</p>
<p>But certainly a GOP-controlled Congress can provide a check on Hillary's foreign policy, right?</p>
<p>Well, there's less they can do than in the domestic area given the way the Constitution allocates authority, but one important thing about the electing the right kind of people to the House and the Senate is to help change the national debate. You know, the conventional wisdom in Washington is voters don't care about foreign policy, and a lot of political operatives–God knows the political media–by and large don't know anything foreign and defense policy. I think that's a mistake for the country. If you're not debating your basic safety, then you're missing priority number one. So to me, having the right people in the Senate, even under a Clinton presidency, is still a very big priority.</p>
<p>Are you beginning to see the needle move in some of these races after you've gotten involved? There's a <a href="https://twitter.com/sahilkapur/status/773915844799762432" type="external">poll</a> that came out today that showed that showed Richard Burr ahead of his opponent.</p>
<p>My view is that we ought to be able to put North Carolina back in the safe column, and by getting in right now...that's certainly our intention. But yeah, we track these ads very carefully. One thing about digital communication is we know who opens the ad, we know who watches it all the way through, as compared to broadcast TV where, you know, people are getting up, going to the kitchen and the ad, you don't know who's watching it and who's not.</p>
<p>Just going back to the foreign policy issues a little bit, when you talk about terrorism, the Iran deal, are you going to be focusing on the recent Iranian provocation on a U.S. Navy ship and the chlorine bombing in Syria, are those some of the things you think should be focused on this election cycle and these down-ballot races?</p>
<p>Well, we're looking now at the ads we're going to be doing in North Carolina. We expect new ads, we've got ads up now and this is our second sweep of ads in Nevada and New Hampshire, we expect another set-up in the near future. And we're kind of constantly evaluating it, and again I think that's one major plus of digital and social media is you can evaluate and make changes quickly, measuring what we think are not just inputs but outputs. You know, the conventional political adviser will say, we've bought X number of rating points. Well, that's great, that tells you what your input is, but we can say 50 percent of our ads people are watching all the way through. That's much more important. If they open the ad and turn it off after four or five seconds, it shows that we haven't caught their attention, and as of 2014 we're making tweaks and changes to the ads all the time.</p>
<p>Was the fact that these races were all in key swing states part of your decision to get involved in these races?</p>
<p>Well, it's more we've looked at the states, trying to calculate where we could make a real difference on the national security front. There are a lot of different reasons people vote for or against somebody, but we think, this is especially for some Republican candidates, this is not something their advisors are telling them to focus on, whereas we think the people are out ahead of the consultant class in Washington. So that's what we're looking for, where could we have the most impact, and especially given the uncertainty at the top of the ticket, where can we focus on a House race or Senate race, and if we do it, really help swing that particular race.</p>
<p>Is there any chance that the top of the ticket is producing some challenges for these down-ballot races?</p>
<p>We watch, obviously, the polls very carefully in each state. We watch what the commentators are doing, we watch what the candidates are doing. You know, I think in New Hampshire for example, Ayotte is suffering somewhat. She's running ahead of Trump in various polls. If Trump comes up, I think that will help her. But we're focusing on what we can do for the different Senate candidates and let the presidential take care of itself.</p> | true | 0 | former united nations ambassador john boltons superpac focusing downballot congressional races election cycle recently announced engage independent expenditure campaign senators richard burr rnc kelly ayotte rnc rep joe heck rnv latter running open senate seat superpac pledged 1 million three campaigns daily wires conversation bolton prompted start getting involved downballot congressional races well started late 2013 come conclusion president obama national security wasnt priority focused said 2008 going words fundamentally transform country soand also felt republicans house senate werent effective making clear international problems dont get easier resolve ignoring get difficult anyway back 2013 late 2013 formed pac superpac help house senate get people elected understood strong american presence world critical maintaining way life home 2014 cycle raised little bit 75 million superpac three big independent expenditure campaigns tom cotton arkansas thom tillis north carolina scott brown new hampshireafter 2014 election also set foundation 501c4 able issueoriented things well weve raising money among three committees operating way weve raised little bit 105 million way ahead ended 2014 pace last two months fundraising thats example substantially higher 105 million end cycle right independent expenditures three races joe heck nevada kelly ayotte new hampshire announced week richard burr north carolina 2014 weve picked races thought combination candidates running nature states question well suited make national security arguments thought efforts focused spread around 10 15 races picked three last time three far time wed like one maybe two certainly may end three effective job guess distinguishing feature almost radio tv advertising almost everything digital communication social media think thats wave future think far costeffective broadcast ads event want catch barack obama democrats basically thats key foreign policy issues arguments youre focusing key races well first qualifications people running three cases ayotte incumbent senator hecks member house running senate burr chairman senate intelligence committeeback heck hes iraq veteran physician first responder theyve experience extensive knowledge foreign defense policy three cases opponents amateurs time internationally want swap proven knowledgeable effective people amateurs number two know think issues terrorism proliferation nuclear weapons important american people think iran deal terrible strategic mistake people familiar obviously terrorist threat things focused far right would imagine democratic opponents candidates endorsed would also rubber stamp hillarys foreign policy would yeah dont doubt say none themhassan new hampshire state governor nevada candidate former state attorney general person north carolina ross running burr former aclu staffer theyve got essentially among three zero international experience im sure hillary elected would precisely line thats one things going hit supported obama foreign policy need change would foreign policy ramifications hillary presidency well think personally would obamas third term think eight years enough us considerable damage certainly dont need four years much less eight years really focused hillary work obviously candidate year relationship whats going top ticket really focused senate races get may house race two think follow pattern certainly gopcontrolled congress provide check hillarys foreign policy right well theres less domestic area given way constitution allocates authority one important thing electing right kind people house senate help change national debate know conventional wisdom washington voters dont care foreign policy lot political operativesgod knows political mediaby large dont know anything foreign defense policy think thats mistake country youre debating basic safety youre missing priority number one right people senate even clinton presidency still big priority beginning see needle move races youve gotten involved theres poll came today showed showed richard burr ahead opponent view ought able put north carolina back safe column getting right nowthats certainly intention yeah track ads carefully one thing digital communication know opens ad know watches way compared broadcast tv know people getting going kitchen ad dont know whos watching whos going back foreign policy issues little bit talk terrorism iran deal going focusing recent iranian provocation us navy ship chlorine bombing syria things think focused election cycle downballot races well looking ads going north carolina expect new ads weve got ads second sweep ads nevada new hampshire expect another setup near future kind constantly evaluating think thats one major plus digital social media evaluate make changes quickly measuring think inputs outputs know conventional political adviser say weve bought x number rating points well thats great tells input say 50 percent ads people watching way thats much important open ad turn four five seconds shows havent caught attention 2014 making tweaks changes ads time fact races key swing states part decision get involved races well weve looked states trying calculate could make real difference national security front lot different reasons people vote somebody think especially republican candidates something advisors telling focus whereas think people ahead consultant class washington thats looking could impact especially given uncertainty top ticket focus house race senate race really help swing particular race chance top ticket producing challenges downballot races watch obviously polls carefully state watch commentators watch candidates know think new hampshire example ayotte suffering somewhat shes running ahead trump various polls trump comes think help focusing different senate candidates let presidential take care | 826 |
<p><a href="https://www.fool.com/investing/2017/05/22/amazons-next-big-thing-should-make-pharmacies-very.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=978f13ba-6233-11e7-8b9e-0050569d4be0&amp;utm_source=foxbusiness" type="external">Rumors are swirling Opens a New Window.</a> that Amazon.com (NASDAQ: AMZN) may have its sights set on getting into the prescription drug business. If so, then recent news that Walgreens Boots Alliance (NASDAQ: WBA) is <a href="https://www.fool.com/investing/2017/07/06/a-botched-merger-sent-rite-aids-shares-reeling-16.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=978f13ba-6233-11e7-8b9e-0050569d4be0&amp;utm_source=foxbusiness" type="external">giving up Opens a New Window.</a> on its attempt to buy Rite Aid (NYSE: RAD) outright may provide Amazon.com with a simple way to scale quickly in this more than $300 billion market. Can Rite Aid <a href="https://www.fool.com/investing/2017/07/01/what-rite-aid-will-do-now-to-survive.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=978f13ba-6233-11e7-8b9e-0050569d4be0&amp;utm_source=foxbusiness" type="external">survive on its own Opens a New Window.</a>" And could Amazon.com come knocking on its door" Analyst Kristine Harjes is joined by investor Todd Campbell to discuss that (and more!) in this week’s <a href="https://www.fool.com/podcasts/industry-focus?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=978f13ba-6233-11e7-8b9e-0050569d4be0&amp;utm_source=foxbusiness" type="external">Industry Focus: Healthcare Opens a New Window.</a> podcast.</p>
<p>A full transcript follows the video.</p>
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<p>This video was recorded on July 5, 2017.</p>
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<p>Kristine Harjes: Welcome to Industry Focus, the podcast that dives into a different sector of the stock market every day. It's&#160;July 5th, and I'm your Healthcare show host, Kristine Harjes.&#160;I'm on the phone today with Todd Campbell, a fool.com healthcare specialist.&#160;Todd, how was your Independence Day?</p>
<p>Todd Campbell: It&#160;was great, I was actually up in northern Maine&#160;in the quaintest little village. They did a parade&#160;that was basically just people walking down the street&#160;led by a drum major&#160;to a brass band.</p>
<p>Harjes: That&#160;sounds awesome.</p>
<p>Campbell: It was,&#160;it was so down home.</p>
<p>Harjes: Was there&#160;anybody around to watch the parade,&#160;or was the whole town in it?</p>
<p>Campbell: There [were] at least 15 people on the sidelines.</p>
<p>Harjes: Solid, good turnout.</p>
<p>Campbell:&#160;[laughs] But,&#160;it was a very nice Fourth of July. Didn't get to see any fireworks, though,&#160;how about you?</p>
<p>Harjes:&#160;I saw enough for the both of us. I live in D.C.,&#160;so you kind of have to.</p>
<p>Campbell: Oh.&#160;I could hear them from afar, but those&#160;dreaded pine trees were blocking my view.</p>
<p>Harjes: Oh, man. Maybe&#160;next year, come visit HQ, we'll&#160;watch some fireworks.</p>
<p>Campbell: There we go.</p>
<p>Harjes:&#160;I don't know about you, but&#160;I'm actually very happy to be back after the long weekend.&#160;I'm kind of happy to just be back in the office and in the studio. For the show today,&#160;we're talking about retail pharmacies.&#160;Rite Aid&#160;and&#160;Walgreens'&#160;attempts to make a deal were all over the news last week,&#160;before we took a hiatus for the long weekend, so&#160;we're going to digest these headlines for you all,&#160;and then talk about the pharmacy space at large. Sound good, Todd?</p>
<p>Campbell: Yeah,&#160;there were a lot of fireworks last week,&#160;related to this merger, right?</p>
<p>Harjes: That's a good way of putting it.</p>
<p>Campbell: It's&#160;unfortunate, I know a lot of&#160;listeners are probably looking at it and saying, "Please&#160;tell me something good." This was a deal that was supposed to go through, it's&#160;hopefully going to go through. Back in 2015,&#160;investors were thinking they were going to get $9 a share --</p>
<p>Harjes: For&#160;Rite Aid?</p>
<p>Campbell: Yeah, for&#160;Rite Aid, Walgreens offering over $9 billion to acquire the company, lock, stock, and barrel. Now, Rite Aid shares sitting below $3, you need to triple before you get back to those levels, and&#160;it's all about the FTC. And to&#160;mix a bunch of metaphors together,&#160;no joy in Mudville last week, the FTC has struck out the&#160;Rite Aid-Walgreens merger.</p>
<p>Harjes: Right. Digging&#160;through the timeline here a little bit, as you said,&#160;back in October 2015,&#160;that's when you had the original deal that was announced. That was since revised because the FTC was like, "No,&#160;you guys can't just get together, there wouldn't be enough competition in this space,"&#160;which is perhaps not surprising when you consider that,&#160;between&#160;CVS, Rite Aid, and Walgreens, they&#160;completely dominate the retail pharmacy space.</p>
<p>Campbell: It's&#160;crazy, Kristine. You have this top tier,&#160;because of consolidation over the last decade, of&#160;players that includes&#160;those three that you just mentioned, plus,&#160;Wal-Mart&#160;is a big player in that, too. But&#160;if you conclude just that top tier, they control two-thirds of market share in&#160;prescription drug volume by revenue. And&#160;that's just an amazingly consolidated&#160;industry to be trafficking in. And&#160;that's why, obviously, the FTC was&#160;concerned that pairing these two companies up together&#160;might be a problem.</p>
<p>Harjes: Right. So,&#160;the two to revise their agreement down to an&#160;acquisition price of between $6.50 to $7.00&#160;per share of Rite Aid,&#160;depending on how many of the Rite Aid stores were divested. That was going to be between either 1,000 and 1,200 stores sold to a&#160;company called&#160;Fred's, so that $6.50 to $7.00 range was&#160;dependent on how many stores, between 1,000 and 1,200, were&#160;divested.</p>
<p>Campbell: Yeah.&#160;I felt like this whole deal was all about, "What&#160;if we try this? What about this?" And&#160;they just kept throwing darts at the wall,&#160;hoping that the FTC would say, "Oh,&#160;that works for us." But no.</p>
<p>Harjes: Yeah. That was plan B. Last Monday, Rite Aid shares soared&#160;30% on news that the merger is&#160;more likely than not to be approved by the FTC&#160;coming up ahead of their deadline of July 7th. But,&#160;now we're on to plan C&#160;because the deal fell apart again.</p>
<p>Campbell: Yeah. Rumors and&#160;innuendo, don't buy stocks&#160;because of them. This is a prime example of,&#160;you never know if a deal is going to close&#160;until the deal closes,&#160;especially when you're talking about a very&#160;competitive market like pharmacy and pharmacy retail.&#160;Walgreens is the second largest player in terms of retail&#160;pharmacy market share&#160;with about 13.8%,&#160;Rite Aid clocks in about 5%; combine the two&#160;together, and they come out to about 19% market share in retail pharmacy. Obviously, that was too&#160;concentrated for the FTC to go ahead and say, "Yeah,&#160;we're OK with it." So,&#160;back to the drawing board for yet another try&#160;at a very different deal.</p>
<p>Harjes: Right. So,&#160;now the deal is that Walgreens will&#160;acquire around half of Rite Aid stores, 2,186 of them,&#160;and they'll get some other things&#160;like inventory as well. In&#160;return, they will give Rite Aid $5.175 billion in cash, and&#160;Rite Aid will also receive a $325 million merger termination fee.</p>
<p>Campbell: Yeah. Thank goodness that they were able to at least get this deal -- well,&#160;it's not approved yet -- but,&#160;to announce this deal at the same time that they announced Walgreens was abandoning the prior bid, because who knows where the share price would have gone on Rite Aid.</p>
<p>As a&#160;refresher, to go back in time for&#160;investors,&#160;Rite Aid took on a tremendous amount of debt back in&#160;the late 2000s to expand,&#160;because they recognized, "If&#160;we want to keep up with CVS and Walgreens,&#160;we need to grow our footprint, build up our buy power." So,&#160;they did a lot of acquisitions,&#160;but unfortunately they did those acquisitions with debt, that debt was&#160;costly,&#160;and it really hamstrung them. For&#160;Walgreens to step in and say, "We'll&#160;buy you, including all&#160;the problems you may have&#160;profitability wise," was great. Now we're&#160;looking at a situation where those problems still exist,&#160;there's still a tremendous amount of debt on the balance sheet,&#160;you have some questions regarding how bloated&#160;corporate expenses are relative to&#160;some of their other retailing peers -- there's a lot of things that make people nervous&#160;about this company surviving or thriving&#160;against CVS and Walgreens&#160;on a stand-alone basis. Some&#160;may be unfounded, though.</p>
<p>Harjes: Yeah.&#160;I actually kind of like where this leaves Rite Aid. As you mentioned, they're sitting on a ton of debt,&#160;it's over $7 billion last time I looked. Right now, when they get $5 billion-plus&#160;from Walgreens, a lot of that&#160;is going to be able to de-lever them and help&#160;bring down interest expense. They paid $432 million in interest expense just last year. So,&#160;I like this shift in strategy from them, where&#160;they're not going to be&#160;trying to take on a bunch more debt to expand&#160;their footprint. In fact, they're doing the opposite. They're&#160;selling these stores to Walgreens&#160;so that they can actually focus on&#160;their own profitability. And,&#160;this is an important thing to note,&#160;they also have a PBM business,&#160;EnvisionRx&#160;is their pharmacy benefits management&#160;business, and that's going to become a&#160;more important segment of Rite Aid&#160;now that they don't have as many stores to worry about.</p>
<p>Campbell: Yeah,&#160;it's almost like, we gave you the bad news, now&#160;maybe here's the good news, the silver lining,&#160;what could go right in the playbook for Rite Aid as you go forward. Without a doubt, like you said, EnvisionRx is a big&#160;part of that, because the pharmacy benefit management business is a higher EBITDA generating as a percentage of sales, it's&#160;more profitable than the retail store business. So,&#160;you're going to get a shift in revenue mix&#160;that would theoretically provide a&#160;tailwind to the company's profitability once this deal closes -- assuming, obviously, the FTC doesn't block it.</p>
<p>The&#160;FTC could still halt this deal in its tracks,&#160;so people should be aware that risk still exist. It doesn't yet have the blessing of the regulators. If EnvisionRx is able to continue to grow&#160;against some very large players, including&#160;Express Scripts&#160;and CVS Health,&#160;UnitedHealthcare&#160;has a PBM business as well,&#160;then theoretically, an argument, I think, could be made that investors are overreacting with&#160;how much they've driven down the share price. If&#160;I just look at price to sales for&#160;Express Scripts, it's about 0.40 right now. If I look at the fact that the EnvisionRx business is going to do $6 billion in sales,&#160;you could make an argument that&#160;that's worth $2.4 billion,&#160;and the market cap of Rite Aid right now is about $2.7 billion. So, would you pay $300 million for 2,000 stores? I would.</p>
<p>Harjes: Yeah,&#160;absolutely. That's a really interesting point. Before we take a break,&#160;what about Walgreens in this situation? Where does this leave them?</p>
<p>Campbell:&#160;Walgreens, I think, is a winner in this. Theoretically, they've got to go through,&#160;look at their&#160;entire footprint,&#160;figure out what stores they could get from Rite Aid that would dovetail&#160;perfectly within their own model. They&#160;say they're going to be able to make this deal&#160;accretive within one year. They think&#160;they can carve $400 million in synergies, i.e., cost savings, layoffs, whatever,&#160;out of this deal. So they're going to make money on this deal. So,&#160;from Walgreens' perspective,&#160;we don't get the problems,&#160;we don't have to buy the problems,&#160;we can just buy the stores we want, walk away, and&#160;theoretically this makes us bigger,&#160;stronger, and even more profitable. So,&#160;I think they are a winner.&#160;Rite Aid is more of a mixed bag,&#160;because you're looking at it and saying,&#160;how much of the debt will we pay off? Will we be lean and mean enough&#160;to be able to survive and thrive as we go forward? There is&#160;something else, though, Kristine, that we didn't mention,&#160;and we should probably touch on really quick, and&#160;that's the ability to piggyback on&#160;Walgreens' buying power.</p>
<p>Harjes: Oh, yeah,&#160;this is an important detail, here.&#160;I'll let you go into the details, but&#160;essentially, Rite Aid can still buy&#160;drugs at cost from Walgreens affiliates for&#160;up to 10 years.</p>
<p>Campbell: Right. One&#160;of the big reasons that Rite Aid stores have suffered&#160;profitability-wise has been&#160;a lot of payback and compression on margins in the back end of the store,&#160;the pharmacy business at the retail stores. And&#160;a lot of that has come from generic drugs,&#160;which are obviously lower-cost,&#160;lower-margin drugs,&#160;and they represent 90% of all prescriptions written. So,&#160;the ability to team up and piggyback on Walgreens'&#160;purchasing power -- because Walgreens is much&#160;larger and they get much better deals on these drugs -- theoretically, that should boost store profitability. There [are] also opportunities to boost&#160;store profitability by&#160;investing in RediClinics,&#160;which are in-store clinics that&#160;could drive additional volume there as well,&#160;and doing remodeling. They have about&#160;60% of their footprint will be updated to the most&#160;recent model that they like,&#160;the format that they like,&#160;the wellness&#160;format, and I assume they'll&#160;double down and get the rest of that 40%&#160;upgraded to those stores, too.</p>
<p>Harjes: We talked a little bit about what is next for&#160;these major retail pharmacies, but&#160;we left out the risk that they will be disrupted entirely. It may&#160;come as little surprise that&#160;Amazon&#160;is a threat to the front-of-store sales&#160;in the brick-and-mortar stores,&#160;but the threat doesn't stop there.&#160;Amazon could effectively compete with these companies' entire operations,&#160;and it's not as far-fetched as it seems.</p>
<p>Campbell:&#160;Amazon is, without a doubt,&#160;one of the most innovative and aggressive retailers out there,&#160;and they have successfully disrupted&#160;business after business after business. In May, some people and some chatter started about it potentially&#160;getting into the pharmacy retailing business. Again,&#160;this is rumor, and&#160;we don't want to buy stocks based on rumor. However,&#160;there is some smoke that&#160;could indicate there's fire here to the idea that Amazon&#160;might try and figure out a way to&#160;either use its newly acquired&#160;Whole Foods&#160;stores&#160;to help with prescription fulfillment&#160;somehow, as delivery centers or pickup centers, and there is some other&#160;evidence that they're making a push&#160;into the pharmacy benefit management business,&#160;which we talked about a little bit earlier in the show, for their own use, and that&#160;they could theoretically open that pharmacy benefit manager up to anyone, to all sorts of employers across the nation.</p>
<p>Harjes: And&#160;that's so Amazon of Amazon,&#160;to do it like that, where&#160;they create something for their own internal usage&#160;and then flip it to be external-facing, where&#160;anybody can come in and use it then. And&#160;they're so good at doing this. In fact, actually,&#160;this reminds me of an article I read recently in&#160;TechCrunch&#160;called "Why Amazon Is Eating The World." If&#160;anyone&#160;listening is interested in this article, it was a really amazing deep dive into how Amazon is poised to win&#160;everything because of this model of&#160;developing things internally and then&#160;exposing them externally. Anyway. Specifically about the&#160;PBM, Amazon has 128,000 employees.&#160;CNBC&#160;reports that they're creating an internal&#160;pharmacy benefits manager for those&#160;employees. This is a business where scale is everything. Margins are slim,&#160;efficiency is huge. So,&#160;when you look at Amazon,&#160;that sounds exactly like something Amazon could win. They're&#160;amazing at supply chain&#160;efficiencies, all their&#160;sourcing, and their distribution. If they're able to harness that kind of scale and those efficiencies,&#160;I can really see them competing in this space.</p>
<p>Campbell: With that many&#160;employees, you know you're spending a heck of a lot of money on healthcare. So,&#160;from an internal perspective,&#160;developing your own pharmacy benefits manager --&#160;as a refresher,&#160;what those pharmacy benefit managers do is&#160;negotiate for lower drug prices with the drug manufacturers&#160;and the distributors. So,&#160;the bigger scale you have, the better price you can get. Amazon is a huge employer,&#160;and it's probably not lost on them that if they took their size and paired it up with&#160;some of the other large employers in the country, maybe we can really get their expenses to drop when it comes to healthcare cost.</p>
<p>So, there is reason to think that without a doubt, they're doing the PBM. They&#160;already hired somebody earlier this year,&#160;that's a fact. Based on&#160;just looking at LinkedIn profiles,&#160;I found a gentleman named Mark Lyons, who&#160;used to work for&#160;Premera Blue Cross, which handles or&#160;ministers the health insurance program for Amazon employees, they hired him to&#160;theoretically develop this&#160;pharmacy benefit manager. There's&#160;also been some talk of job postings out there for other positions that would&#160;also be tied into developing this pharmacy business of some sort. So, I think that's a very intriguing angle for them. I don't think it would be&#160;out of the question for them to try and&#160;pursue it. They're going&#160;to have to overcome some regulatory hurdles anyway internally, so why not leverage&#160;all of those lessons learned&#160;to expand it more broadly? Also, Kristine,&#160;it shouldn't be ignored that over in Japan, where,&#160;of course, you have a different regulatory framework, they're experimenting by&#160;doing some partnerships with&#160;pharmacies in major population centers where you can order your&#160;prescription online, have it validated by a pharmacist,&#160;and then you can go pick it up at the pharmacy. That way, that model, is&#160;kind of similar to a deal that&#160;Amazon had with drugstore.com way back in the day. Kristine, do you remember drugstore.com?</p>
<p>Harjes: I do not.</p>
<p>Campbell: This was the&#160;internet heyday, late 1990s, "Wouldn't it be great&#160;if we could order things online like our prescription medicine?" It&#160;came out at around the same time that&#160;mail order pharmacy was really starting to become a big thing. Amazon took a 40% stake in&#160;drugstore.com, and drugstore.com had a 10-year&#160;supply relationship with none other than&#160;Rite Aid. So,&#160;it's interesting to think that Bezos was on drugstore.com's board, that&#160;Amazon was a big investor in this early on play, and that there was&#160;already some familiarity with Rite Aid via that deal. Now,&#160;I don't want to start&#160;flaming the fire that maybe&#160;Amazon would come knocking on Rite Aid's door,&#160;but it did dawn on me that Rite Aid already has EnvisionRx, and Amazon has shown&#160;it has&#160;an interest in retail store footprints by buying Whole Foods. So,&#160;why couldn't you just buy the PBM&#160;business from Rite Aid, plus the stores, and&#160;voila, you're&#160;in the pharmacy business.</p>
<p>Harjes: Yeah.&#160;I could see that. Obviously, you and I are just speculating, here,&#160;but I would be really interested to see a map of the store&#160;footprint overlay of Amazon distribution centers, plus&#160;the Whole Foods stores&#160;they just acquired, plus&#160;existing Rite Aid stores&#160;that are not going to end up being sold&#160;to Walgreens. I don't think you actually even know that last part yet,&#160;I don't think they've cherry-picked just yet which stores&#160;they would actually take. That's&#160;probably contingent on this deal actually being approved by the FTC.</p>
<p>Campbell: It's&#160;going to actually be rolled out, Kristine, in phases. They're&#160;going to take some stores at a time. They do have a&#160;pro forma map&#160;out there that would show&#160;the concentrations afterwards.&#160;Rite Aid will be mostly West Coast and Northeast. So,&#160;something to keep in mind for anyone at home as they're&#160;drawing their own maps,&#160;sketching it out with their own paper and pencil, "Would&#160;this really makes sense?"</p>
<p>Harjes: Yeah,&#160;I'm kind of doing this in my head right now, and&#160;from the overlay maps that I've seen of&#160;Whole Foods and Amazon,&#160;that's kind of already where they are, it's&#160;a lot of Amazon on the coast, and&#160;Whole Foods also on the coast, but&#160;filling in some of the gaps in the Midwest region.</p>
<p>Campbell: Yeah,&#160;and the smaller footprint of Rite Aid stores, Kristine, I have a Rite Aid near me,&#160;but I don't have a Whole Foods anywhere near me.</p>
<p>Harjes: Interesting.</p>
<p>Campbell: So,&#160;I think there are opportunities&#160;for them to fill in the gaps. Again, this is pure speculation,&#160;people. We don't know what's going to end up happening, or&#160;how Amazon will pursue this,&#160;or even if they will pursue it. They&#160;definitely throw a lot of things at the wall to see what sticks. There&#160;just happens to be some interesting evidence that&#160;they've been interested in this&#160;industry in the past via&#160;drugstore.com, that there are some drum beats&#160;to the idea that they might be exploring doing the PBM, and then,&#160;of course, with the recent news of the deal&#160;falling apart with Walgreens, it&#160;just makes it interesting to speculate and say, "Hmm,&#160;would Rite Aid be intriguing to Amazon?" It's&#160;anyone's guess how this will all shake out, but it's&#160;definitely, definitely something that people are&#160;going to want to keep an eye on, because wow,&#160;the reverberations would be huge.</p>
<p>Harjes: Oh,&#160;absolutely. This&#160;isn't just you and me speculating on this. There are clearly&#160;investors everywhere that are&#160;making the connections between these two different spaces. For example,&#160;on the day of the acquisition announcement of Whole Foods,&#160;I was looking at shares of some of these&#160;pharmacies, and I remember seeing both&#160;CVS and Walgreens down about 4.5% each, just on that day. For&#160;example, Walgreens gets 78% of its&#160;total gross profit from&#160;retail pharmacy. So,&#160;these industries are very much intertwined, and&#160;I suspect they will become&#160;even more so.</p>
<p>Campbell: Yeah. You&#160;want to really start putting on your look-forward cap -- what would it look like in the future? If you were a Prime&#160;member, would you qualify for&#160;free delivery,&#160;if you were somehow able to be vetted so that you knew your&#160;medicine could show up to your door like mail-order, very simple [to] be able to use it and order it? I mean, who out there does not have an Amazon account at this point? They have, what, 80 million Prime&#160;members, or something ridiculous like that. Theoretically, you could create one heck of a rewards program around this whole thing.</p>
<p>Harjes: Yeah,&#160;and they are a trusted name. In a&#160;Wells Fargo&#160;survey, they found that five in 10 adults would use or probably use an Amazon pharmacy.</p>
<p>Campbell: I would.</p>
<p>Harjes: I would, too.&#160;I absolutely would. So, yeah,&#160;you made a good point earlier about how&#160;you really do need to look far out&#160;into the future if you're going to be a long-term investor, like we preach here at&#160;The Motley Fool.</p>
<p>Campbell: Absolutely. And with over $300 billion in&#160;prescription drug spending in the U.S. alone,&#160;this is a massive market that's ripe for disruption, and there's no one who's better at supply chain,&#160;as you indicated earlier, than Amazon. If&#160;somebody can figure out a way to shave an additional percentage off of cost, it's going to be Amazon.</p>
<p>Harjes: Absolutely. Todd, thank you, as always, for calling into the show today. Folks, as always,&#160;people on the program may have interests&#160;in the stocks that they talk about,&#160;and The Motley Fool may have formal recommendations for or against,&#160;so don't buy or sell stocks based&#160;solely on what you hear. Feel&#160;free to email us any time at <a href="http://mailto:[email protected]" type="external">[email protected] Opens a New Window.</a>. For&#160;Todd Campbell, I'm Kristine Harjes,&#160;thanks for listening and Fool on!</p>
<p>John Mackey, CEO of Whole Foods Market, is a member of The Motley Fool's board of directors. <a href="http://my.fool.com/profile/TMFAnchor/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=978f13ba-6233-11e7-8b9e-0050569d4be0&amp;utm_source=foxbusiness" type="external">Kristine Harjes Opens a New Window.</a> owns shares of Whole Foods Market. <a href="http://my.fool.com/profile/EBCapitalMarkets/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=978f13ba-6233-11e7-8b9e-0050569d4be0&amp;utm_source=foxbusiness" type="external">Todd Campbell Opens a New Window.</a> owns shares of Amazon. The Motley Fool owns shares of and recommends Amazon and Whole Foods Market. The Motley Fool owns shares of Express Scripts. The Motley Fool recommends CVS Health and UnitedHealth Group. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=978f13ba-6233-11e7-8b9e-0050569d4be0&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | rumors swirling opens new window amazoncom nasdaq amzn may sights set getting prescription drug business recent news walgreens boots alliance nasdaq wba giving opens new window attempt buy rite aid nyse rad outright may provide amazoncom simple way scale quickly 300 billion market rite aid survive opens new window could amazoncom come knocking door analyst kristine harjes joined investor todd campbell discuss weeks industry focus healthcare opens new window podcast full transcript follows video continue reading 10 stocks like better amazonwhen investing geniuses david tom gardner stock tip pay listen newsletter run decade motley fool stock advisor tripled market david tom revealed believe 10 best stocks opens new window investors buy right nowand amazon wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns july 6 2017 video recorded july 5 2017 advertisement kristine harjes welcome industry focus podcast dives different sector stock market every day its160july 5th im healthcare show host kristine harjes160im phone today todd campbell foolcom healthcare specialist160todd independence day todd campbell it160was great actually northern maine160in quaintest little village parade160that basically people walking street160led drum major160to brass band harjes that160sounds awesome campbell was160it home harjes there160anybody around watch parade160or whole town campbell least 15 people sidelines harjes solid good turnout campbell160laughs but160it nice fourth july didnt get see fireworks though160how harjes160i saw enough us live dc160so kind campbell oh160i could hear afar those160dreaded pine trees blocking view harjes oh man maybe160next year come visit hq well160watch fireworks campbell go harjes160i dont know but160im actually happy back long weekend160im kind happy back office studio show today160were talking retail pharmacies160rite aid160and160walgreens160attempts make deal news last week160before took hiatus long weekend so160were going digest headlines all160and talk pharmacy space large sound good todd campbell yeah160there lot fireworks last week160related merger right harjes thats good way putting campbell its160unfortunate know lot of160listeners probably looking saying please160tell something good deal supposed go its160hopefully going go back 2015160investors thinking going get 9 share harjes for160rite aid campbell yeah for160rite aid walgreens offering 9 billion acquire company lock stock barrel rite aid shares sitting 3 need triple get back levels and160its ftc to160mix bunch metaphors together160no joy mudville last week ftc struck the160rite aidwalgreens merger harjes right digging160through timeline little bit said160back october 2015160thats original deal announced since revised ftc like no160you guys cant get together wouldnt enough competition space160which perhaps surprising consider that160between160cvs rite aid walgreens they160completely dominate retail pharmacy space campbell its160crazy kristine top tier160because consolidation last decade of160players includes160those three mentioned plus160walmart160is big player but160if conclude top tier control twothirds market share in160prescription drug volume revenue and160thats amazingly consolidated160industry trafficking and160thats obviously ftc was160concerned pairing two companies together160might problem harjes right so160the two revise agreement an160acquisition price 650 700160per share rite aid160depending many rite aid stores divested going either 1000 1200 stores sold a160company called160freds 650 700 range was160dependent many stores 1000 1200 were160divested campbell yeah160i felt like whole deal what160if try and160they kept throwing darts wall160hoping ftc would say oh160that works us harjes yeah plan b last monday rite aid shares soared16030 news merger is160more likely approved ftc160coming ahead deadline july 7th but160now plan c160because deal fell apart campbell yeah rumors and160innuendo dont buy stocks160because prime example of160you never know deal going close160until deal closes160especially youre talking very160competitive market like pharmacy pharmacy retail160walgreens second largest player terms retail160pharmacy market share160with 138160rite aid clocks 5 combine two160together come 19 market share retail pharmacy obviously too160concentrated ftc go ahead say yeah160were ok so160back drawing board yet another try160at different deal harjes right so160now deal walgreens will160acquire around half rite aid stores 2186 them160and theyll get things160like inventory well in160return give rite aid 5175 billion cash and160rite aid also receive 325 million merger termination fee campbell yeah thank goodness able least get deal well160its approved yet but160to announce deal time announced walgreens abandoning prior bid knows share price would gone rite aid a160refresher go back time for160investors160rite aid took tremendous amount debt back in160the late 2000s expand160because recognized if160we want keep cvs walgreens160we need grow footprint build buy power so160they lot acquisitions160but unfortunately acquisitions debt debt was160costly160and really hamstrung for160walgreens step say well160buy including all160the problems may have160profitability wise great were160looking situation problems still exist160theres still tremendous amount debt balance sheet160you questions regarding bloated160corporate expenses relative to160some retailing peers theres lot things make people nervous160about company surviving thriving160against cvs walgreens160on standalone basis some160may unfounded though harjes yeah160i actually kind like leaves rite aid mentioned theyre sitting ton debt160its 7 billion last time looked right get 5 billionplus160from walgreens lot that160is going able delever help160bring interest expense paid 432 million interest expense last year so160i like shift strategy where160theyre going be160trying take bunch debt expand160their footprint fact theyre opposite theyre160selling stores walgreens160so actually focus on160their profitability and160this important thing note160they also pbm business160envisionrx160is pharmacy benefits management160business thats going become a160more important segment rite aid160now dont many stores worry campbell yeah160its almost like gave bad news now160maybe heres good news silver lining160what could go right playbook rite aid go forward without doubt like said envisionrx big160part pharmacy benefit management business higher ebitda generating percentage sales its160more profitable retail store business so160youre going get shift revenue mix160that would theoretically provide a160tailwind companys profitability deal closes assuming obviously ftc doesnt block the160ftc could still halt deal tracks160so people aware risk still exist doesnt yet blessing regulators envisionrx able continue grow160against large players including160express scripts160and cvs health160unitedhealthcare160has pbm business well160then theoretically argument think could made investors overreacting with160how much theyve driven share price if160i look price sales for160express scripts 040 right look fact envisionrx business going 6 billion sales160you could make argument that160thats worth 24 billion160and market cap rite aid right 27 billion would pay 300 million 2000 stores would harjes yeah160absolutely thats really interesting point take break160what walgreens situation leave campbell160walgreens think winner theoretically theyve got go through160look their160entire footprint160figure stores could get rite aid would dovetail160perfectly within model they160say theyre going able make deal160accretive within one year think160they carve 400 million synergies ie cost savings layoffs whatever160out deal theyre going make money deal so160from walgreens perspective160we dont get problems160we dont buy problems160we buy stores want walk away and160theoretically makes us bigger160stronger even profitable so160i think winner160rite aid mixed bag160because youre looking saying160how much debt pay lean mean enough160to able survive thrive go forward is160something else though kristine didnt mention160and probably touch really quick and160thats ability piggyback on160walgreens buying power harjes oh yeah160this important detail here160ill let go details but160essentially rite aid still buy160drugs cost walgreens affiliates for160up 10 years campbell right one160of big reasons rite aid stores suffered160profitabilitywise been160a lot payback compression margins back end store160the pharmacy business retail stores and160a lot come generic drugs160which obviously lowercost160lowermargin drugs160and represent 90 prescriptions written so160the ability team piggyback walgreens160purchasing power walgreens much160larger get much better deals drugs theoretically boost store profitability also opportunities boost160store profitability by160investing rediclinics160which instore clinics that160could drive additional volume well160and remodeling about16060 footprint updated most160recent model like160the format like160the wellness160format assume theyll160double get rest 40160upgraded stores harjes talked little bit next for160these major retail pharmacies but160we left risk disrupted entirely may160come little surprise that160amazon160is threat frontofstore sales160in brickandmortar stores160but threat doesnt stop there160amazon could effectively compete companies entire operations160and farfetched seems campbell160amazon without doubt160one innovative aggressive retailers there160and successfully disrupted160business business business may people chatter started potentially160getting pharmacy retailing business again160this rumor and160we dont want buy stocks based rumor however160there smoke that160could indicate theres fire idea amazon160might try figure way to160either use newly acquired160whole foods160stores160to help prescription fulfillment160somehow delivery centers pickup centers other160evidence theyre making push160into pharmacy benefit management business160which talked little bit earlier show use that160they could theoretically open pharmacy benefit manager anyone sorts employers across nation harjes and160thats amazon amazon160to like where160they create something internal usage160and flip externalfacing where160anybody come use and160theyre good fact actually160this reminds article read recently in160techcrunch160called amazon eating world if160anyone160listening interested article really amazing deep dive amazon poised win160everything model of160developing things internally then160exposing externally anyway specifically the160pbm amazon 128000 employees160cnbc160reports theyre creating internal160pharmacy benefits manager those160employees business scale everything margins slim160efficiency huge so160when look amazon160that sounds exactly like something amazon could win theyre160amazing supply chain160efficiencies their160sourcing distribution theyre able harness kind scale efficiencies160i really see competing space campbell many160employees know youre spending heck lot money healthcare so160from internal perspective160developing pharmacy benefits manager 160as refresher160what pharmacy benefit managers is160negotiate lower drug prices drug manufacturers160and distributors so160the bigger scale better price get amazon huge employer160and probably lost took size paired with160some large employers country maybe really get expenses drop comes healthcare cost reason think without doubt theyre pbm they160already hired somebody earlier year160thats fact based on160just looking linkedin profiles160i found gentleman named mark lyons who160used work for160premera blue cross handles or160ministers health insurance program amazon employees hired to160theoretically develop this160pharmacy benefit manager theres160also talk job postings positions would160also tied developing pharmacy business sort think thats intriguing angle dont think would be160out question try and160pursue theyre going160to overcome regulatory hurdles anyway internally leverage160all lessons learned160to expand broadly also kristine160it shouldnt ignored japan where160of course different regulatory framework theyre experimenting by160doing partnerships with160pharmacies major population centers order your160prescription online validated pharmacist160and go pick pharmacy way model is160kind similar deal that160amazon drugstorecom way back day kristine remember drugstorecom harjes campbell the160internet heyday late 1990s wouldnt great160if could order things online like prescription medicine it160came around time that160mail order pharmacy really starting become big thing amazon took 40 stake in160drugstorecom drugstorecom 10year160supply relationship none than160rite aid so160its interesting think bezos drugstorecoms board that160amazon big investor early play was160already familiarity rite aid via deal now160i dont want start160flaming fire maybe160amazon would come knocking rite aids door160but dawn rite aid already envisionrx amazon shown160it has160an interest retail store footprints buying whole foods so160why couldnt buy pbm160business rite aid plus stores and160voila youre160in pharmacy business harjes yeah160i could see obviously speculating here160but would really interested see map store160footprint overlay amazon distribution centers plus160the whole foods stores160they acquired plus160existing rite aid stores160that going end sold160to walgreens dont think actually even know last part yet160i dont think theyve cherrypicked yet stores160they would actually take thats160probably contingent deal actually approved ftc campbell its160going actually rolled kristine phases theyre160going take stores time a160pro forma map160out would show160the concentrations afterwards160rite aid mostly west coast northeast so160something keep mind anyone home theyre160drawing maps160sketching paper pencil would160this really makes sense harjes yeah160im kind head right and160from overlay maps ive seen of160whole foods amazon160thats kind already its160a lot amazon coast and160whole foods also coast but160filling gaps midwest region campbell yeah160and smaller footprint rite aid stores kristine rite aid near me160but dont whole foods anywhere near harjes interesting campbell so160i think opportunities160for fill gaps pure speculation160people dont know whats going end happening or160how amazon pursue this160or even pursue they160definitely throw lot things wall see sticks there160just happens interesting evidence that160theyve interested this160industry past via160drugstorecom drum beats160to idea might exploring pbm then160of course recent news deal160falling apart walgreens it160just makes interesting speculate say hmm160would rite aid intriguing amazon its160anyones guess shake its160definitely definitely something people are160going want keep eye wow160the reverberations would huge harjes oh160absolutely this160isnt speculating clearly160investors everywhere are160making connections two different spaces example160on day acquisition announcement whole foods160i looking shares these160pharmacies remember seeing both160cvs walgreens 45 day for160example walgreens gets 78 its160total gross profit from160retail pharmacy so160these industries much intertwined and160i suspect become160even campbell yeah you160want really start putting lookforward cap would look like future prime160member would qualify for160free delivery160if somehow able vetted knew your160medicine could show door like mailorder simple able use order mean amazon account point 80 million prime160members something ridiculous like theoretically could create one heck rewards program around whole thing harjes yeah160and trusted name a160wells fargo160survey found five 10 adults would use probably use amazon pharmacy campbell would harjes would too160i absolutely would yeah160you made good point earlier how160you really need look far out160into future youre going longterm investor like preach at160the motley fool campbell absolutely 300 billion in160prescription drug spending us alone160this massive market thats ripe disruption theres one whos better supply chain160as indicated earlier amazon if160somebody figure way shave additional percentage cost going amazon harjes absolutely todd thank always calling show today folks always160people program may interests160in stocks talk about160and motley fool may formal recommendations against160so dont buy sell stocks based160solely hear feel160free email us time industryfocusfoolcom opens new window for160todd campbell im kristine harjes160thanks listening fool john mackey ceo whole foods market member motley fools board directors kristine harjes opens new window owns shares whole foods market todd campbell opens new window owns shares amazon motley fool owns shares recommends amazon whole foods market motley fool owns shares express scripts motley fool recommends cvs health unitedhealth group motley fool disclosure policy opens new window | 2,097 |
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<p>Image source: Getty Images.</p>
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<p>We'd all like to invest in the next big thing, but avoiding major mistakes is a far simpler way to produce above-average results. <a href="http://www.fool.com/investing/general/2014/09/28/25-best-warren-buffett-quotes.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">As Warren Buffett said Opens a New Window.</a>, "You only have to do a very few things right in your life so long as you don't do too many things wrong." When it comes to investing, staying away from stocks that have the potential to permanently wipe out a significant portion of your hard-earned cash is a good strategy to follow.</p>
<p>Which stocks should be avoided? For me, GoPro (NASDAQ: GPRO), Chipotle Mexican Grill (NYSE: CMG), and J.C. Penney (NYSE: JCP) make the list.</p>
<p>Image source: GoPro.</p>
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<p>When your investment thesis boils down to hoping that entering new markets and launching new products will save a company, I think it's time to consider other options. Action camera maker GoPro has been a disaster since its holiday quarter last year featured a 31% decline in revenue, driven by weak demand for its products. Sales have continued to tumble, dropping 47% year over year during the second quarter, and the company is now consistently producing sizable losses.</p>
<p>GoPro is banking on a strong holiday season driven by new product launches. Its long-awaited Karma drone is set to be unveiled later this month, and the new Hero5 is expected to be launched soon. The company is expecting these products to reverse the company's fortunes. During the company's latest earnings conference call,CEO Nicholas Woodman said,"HERO5 and Karma will contribute to the largest introduction of new products in our history, all in time for what we think will be GoPro's most exciting fourth quarter ever, a quarter where we expect to return to profitability."</p>
<p>After a disastrous holiday season last year, I can't think of one good reason why investors should accept the company's optimistic outlook on blind faith. It's the job of management to wear rose-colored glasses. It's the job of investors to be realistic. These new products may very well return the company to profitability. But anything short of that could send the stock crashing further.</p>
<p>Image source: Chipotle.</p>
<p>For many years, Chipotle was the undisputed king of the fast-casual restaurant industry. The company successfully convinced its customers that its food was far superior to typical fast-food fare, crafted with locally sourced, ethically raised ingredients.</p>
<p>This image came crashing down last year when <a href="http://www.fool.com/investing/2016/06/16/this-warren-buffett-quote-describes-chipotles-prob.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Chipotle was rocked by a string of food safety crises Opens a New Window.</a>. Cases of E. coli, norovirus, and salmonella popped up at Chipotle restaurants around the country, prompting an extended investigation by the Food and Drug Administration. Comparable-store sales tumbled 29.7% during the first quarter of 2016, leading Chipotle to report its first quarterly loss as a publicly traded company.</p>
<p>The company is trying gimmicky promotion after gimmicky promotion in an effort to get customers to come back, offering free burritos, free drinks for students, and free kid's meals. But the damage to the brand has been done, and the hard truth is that it takes a lot more time to build something up than it takes to tear it down. Winning back customers will be a struggle, and an expensive one at that.</p>
<p>Despite all of the issues facing Chipotle, the stock is still priced optimistically. Shares of Chipotle trade for nearly 30 times last year's earnings, which were mostly free from the negative effects of the food safety scandal. Earnings will be far lower this year, and getting back to last year's level may take years. I don't doubt that Chipotle will eventually turn things around, but I think investors are being far too optimistic. While the stock has already declined by 40% over the past year, it could still go much lower.</p>
<p>Image source: <a href="https://www.flickr.com/photos/jeepersmedia/14348702792/in/photolist-nRWRrs-nzAinQ-auhijC-auhh9j-oDCoVy-ammQHL-mhNmep-bGff56-D1QwGm-nRWRnE-nzBa16-nzAbKT-5YG6Fh-92V16W-92RSWc-92RT3x-92VEUJ-92V1cW-92UZXd-92RSTP-aueCBK-92SvgX-92SmwK-dP8AR5-MC76F-7pvbw3-4tyBKz-vyd6X-mHsv7c-nzAzWy-6KM8s3-fe14qk-MBYKL-nGP1oA-i3fQNZ-cG28VN-mHsq3B-4uY6nF-75E2AM-6vLHAx-gWf28L-mHsyjB-mHso1k-e7kTeQ-MC79D-3jZvv7-mHswKc-HFofsx-dUb7fY-7wzEPN" type="external">Mike Mozart via Flickr Opens a New Window.</a>.</p>
<p>Much of J.C. Penney's multiyear strategy to return to profitability makes sense. The company has starting selling major appliances, creating a new revenue stream from a category that is producing solid growth. Special clothingsizes and an increased focus on beauty products should help draw in new customers, and investments in e-commerce, with the company planning to speed up its average delivery time to two days next year, will aid J.C. Penney in transforming itself into an omni-channel retailer.</p>
<p>The company's goal to produce as much as $500 million in net income by 2019 is ambitious, and I have my doubts that it's feasible. One of the pillars of J.C. Penney's plan is to boost its private-label and exclusive merchandise up to 70% of sales. If it works, it will drive gross margin higher. But swapping out national brands comes with the risk of driving customers away. Competitor Kohl's <a href="http://www.fool.com/investing/2016/08/29/one-big-problem-with-jc-penneys-turnaround-plan.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">experienced exactly that effect Opens a New Window.</a> when it shifted too far toward private-label merchandise in recent years.</p>
<p>Shares of J.C. Penney cratered a few years back after sales fell off a cliff. With the company still very unprofitable, nearly everything needs to go right over the next few years for J.C. Penney for its turnaround plan to succeed. If the company manages to hit its profitability target, something that looks unlikely to me, the stock could soar. But any shortfall could lead to more pain for investors.</p>
<p>A secret billion-dollar stock opportunity The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, <a href="http://www.fool.com/mms/mark/ecap-foolcom-apple-wearable?aid=6965&amp;source=irbeditxt0000017&amp;ftm_cam=rb-wearable-d&amp;ftm_pit=2667&amp;ftm_veh=article_pitch&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">just click here Opens a New Window.</a>.</p>
<p><a href="http://my.fool.com/profile/TMFBargainBin/info.aspx" type="external">Timothy Green Opens a New Window.</a> owns shares of Kohl's. The Motley Fool owns shares of and recommends Chipotle Mexican Grill and GoPro. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=isiedilnk018048&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://www.fool.com/knowledge-center/motley.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">considering a diverse range of insights Opens a New Window.</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | image source getty images continue reading wed like invest next big thing avoiding major mistakes far simpler way produce aboveaverage results warren buffett said opens new window things right life long dont many things wrong comes investing staying away stocks potential permanently wipe significant portion hardearned cash good strategy follow stocks avoided gopro nasdaq gpro chipotle mexican grill nyse cmg jc penney nyse jcp make list image source gopro advertisement investment thesis boils hoping entering new markets launching new products save company think time consider options action camera maker gopro disaster since holiday quarter last year featured 31 decline revenue driven weak demand products sales continued tumble dropping 47 year year second quarter company consistently producing sizable losses gopro banking strong holiday season driven new product launches longawaited karma drone set unveiled later month new hero5 expected launched soon company expecting products reverse companys fortunes companys latest earnings conference callceo nicholas woodman saidhero5 karma contribute largest introduction new products history time think gopros exciting fourth quarter ever quarter expect return profitability disastrous holiday season last year cant think one good reason investors accept companys optimistic outlook blind faith job management wear rosecolored glasses job investors realistic new products may well return company profitability anything short could send stock crashing image source chipotle many years chipotle undisputed king fastcasual restaurant industry company successfully convinced customers food far superior typical fastfood fare crafted locally sourced ethically raised ingredients image came crashing last year chipotle rocked string food safety crises opens new window cases e coli norovirus salmonella popped chipotle restaurants around country prompting extended investigation food drug administration comparablestore sales tumbled 297 first quarter 2016 leading chipotle report first quarterly loss publicly traded company company trying gimmicky promotion gimmicky promotion effort get customers come back offering free burritos free drinks students free kids meals damage brand done hard truth takes lot time build something takes tear winning back customers struggle expensive one despite issues facing chipotle stock still priced optimistically shares chipotle trade nearly 30 times last years earnings mostly free negative effects food safety scandal earnings far lower year getting back last years level may take years dont doubt chipotle eventually turn things around think investors far optimistic stock already declined 40 past year could still go much lower image source mike mozart via flickr opens new window much jc penneys multiyear strategy return profitability makes sense company starting selling major appliances creating new revenue stream category producing solid growth special clothingsizes increased focus beauty products help draw new customers investments ecommerce company planning speed average delivery time two days next year aid jc penney transforming omnichannel retailer companys goal produce much 500 million net income 2019 ambitious doubts feasible one pillars jc penneys plan boost privatelabel exclusive merchandise 70 sales works drive gross margin higher swapping national brands comes risk driving customers away competitor kohls experienced exactly effect opens new window shifted far toward privatelabel merchandise recent years shares jc penney cratered years back sales fell cliff company still unprofitable nearly everything needs go right next years jc penney turnaround plan succeed company manages hit profitability target something looks unlikely stock could soar shortfall could lead pain investors secret billiondollar stock opportunity worlds biggest tech company forgot show something wall street analysts fool didnt miss beat theres small company thats powering brandnew gadgets coming revolution technology think stock price nearly unlimited room run early intheknow investors one click opens new window timothy green opens new window owns shares kohls motley fool owns shares recommends chipotle mexican grill gopro try foolish newsletter services free 30 days opens new window fools may hold opinions believe considering diverse range insights opens new window makes us better investors motley fool disclosure policy opens new window | 621 |
<p>When used responsibly, credit cards offer extraordinary perks. The key is to avoid interest and fees by paying off your balances in full after making a purchase. That means using a card to spend just like you would with cash or a debit card, not using your credit limit to make purchases you otherwise couldn't afford.</p>
<p>Here's the simple guide for how to use a credit card to get the most benefit without any of the sky-high costs most people associate with credit cards.</p>
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<p>Credit cards aren't very well understood by the general public, especially when it comes to the interest they charge. The reality is that as long as you always pay your bill in full, you'll never pay a dime in interest, even if the card charges an APR of 25%, or even more. That's because credit cards have what is known as a <a href="https://www.fool.com/credit-cards/2017/08/22/what-is-a-credit-card-grace-period.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=cd3d1774-8e60-11e7-92e0-0050569d4be0&amp;utm_source=foxbusiness" type="external">grace period Opens a New Window.</a>, or a certain amount of time before interest is charged to your balance.</p>
<p>To avoid any interest on your purchases, all you have to do is pay the "statement balance" each month when the bill comes due. This amount will be clearly labeled on your credit card statement, and it should be greater than or equal to the minimum payment amount.</p>
<p>People who use credit cards as a replacement for debit cards (to purchase things they can afford without carrying a balance) get more fraud protection and up to <a href="https://www.fool.com/credit-cards/best-cash-back-credit-cards/?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=cd3d1774-8e60-11e7-92e0-0050569d4be0&amp;utm_source=foxbusiness" type="external">2% cash back Opens a New Window.</a> on everyday purchases. If you spend responsibly, it's almost irresponsible not to put your purchases on a cash-back credit card.</p>
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<p>The hurdle for a good cash back or travel card is 2%. A <a href="https://www.fool.com/credit-cards/best-cash-back-credit-cards/?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=cd3d1774-8e60-11e7-92e0-0050569d4be0&amp;utm_source=foxbusiness" type="external">cash back card Opens a New Window.</a> should generally offer 2% cash back or more on every purchase. The same goes for <a href="https://www.fool.com/credit-cards/best-travel-credit-cards?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=cd3d1774-8e60-11e7-92e0-0050569d4be0&amp;utm_source=foxbusiness" type="external">travel cards Opens a New Window.</a>, which should offer value roughly equal to 2% of every purchase you make to the card.</p>
<p>This can get a little complicated, since some cards pay out in "miles" or "points" rather than simple cash, but we've curated a list of the best travel and <a href="https://www.fool.com/credit-cards/best-cash-back-credit-cards/?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=cd3d1774-8e60-11e7-92e0-0050569d4be0&amp;utm_source=foxbusiness" type="external">cash-back credit cards Opens a New Window.</a> that generally reward cardholders with at least 1.5% on every swipe of their card, either in the form of cash or in travel value. These cards can be more rewarding when bonuses and bonus category spend is taken into consideration. (For example, some top cards offer double rewards on restaurant and travel spending, bringing up the overall average rewards rate.)</p>
<p>Used responsibly, cash-back and travel cards can be an excellent way to benefit from purchases you would otherwise pay for with cash or debit. Importantly, thanks to <a href="https://www.fool.com/credit-cards/best-credit-card-sign-up-bonuses/?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=cd3d1774-8e60-11e7-92e0-0050569d4be0&amp;utm_source=foxbusiness" type="external">sign-up bonuses Opens a New Window.</a>, the effective rewards rate in the first few months on a top-tier travel or cash-back card can easily equate to a 10-15% net rewards yield. The <a href="https://www.fool.com/credit-cards/best-credit-card-sign-up-bonuses/?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=cd3d1774-8e60-11e7-92e0-0050569d4be0&amp;utm_source=foxbusiness" type="external">best sign-up bonus Opens a New Window.</a> currently offers travel rewards worth $625 in travel value on the first $4,000 of purchase volume, equating to an effective rewards rate of nearly 16% on the first $4,000 of purchases.</p>
<p>Credit cards offer perks to new cardholders that can include <a href="https://www.fool.com/credit-cards/best-low-apr-credit-cards?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=cd3d1774-8e60-11e7-92e0-0050569d4be0&amp;utm_source=foxbusiness" type="external">0% promo APRs Opens a New Window.</a> on purchases for as long as 21 months. These promotional periods can be very useful for people who need a way to finance a major necessary purchase like a new fence for a backyard, a major repair to a car, or a new heating unit for your home before winter arrives.</p>
<p>During these 0% APR intro periods, cardholders can effectively use a credit card as an interest-free loan. In the most extreme case, one could use a new card with a 0% promo APR for 18 months to make a $10,000 purchase. By making equal payments of approximately $556 per month, every month, the balance will be repaid in full before interest is charged to the card in the 19th&#160;billing cycle.</p>
<p>Of course, this takes some planning ahead, since 0% APRs are usually only doled out to new cardholders, but the reward is pretty good. Considering that the average two-year personal loan carried a rate of 10% 2017, a 0% APR on purchases from a credit card is a pretty good deal.</p>
<p>It's my view that credit cards offer the single best way to get out of credit card debt without paying sky-high interest on the balances. Some of the best&#160; <a href="https://www.fool.com/credit-cards/best-balance-transfer-credit-cards?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=cd3d1774-8e60-11e7-92e0-0050569d4be0&amp;utm_source=foxbusiness" type="external">balance transfer cards Opens a New Window.</a> allow cardholders to transfer their balances to their new card with no fee, on terms that include up to 15 months of 0% interest on the balance.</p>
<p>The potential savings are massive. Consolidating a $3,000 balance and a $2,000 balance on a new balance transfer credit card could save you as much as $620 in interest over a 15-month 0% APR promo period.&#160;The key is to use the card for the balance transfer, then put it in your sock drawer. It's important <a href="https://www.fool.com/credit-cards/2017/06/13/3-tips-to-know-before-applying-for-a-balance-trans.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=cd3d1774-8e60-11e7-92e0-0050569d4be0&amp;utm_source=foxbusiness" type="external">not to carry ordinary purchase balances Opens a New Window.</a> on a 0% APR credit card unless the card offers 0% APRs on purchases, too.</p>
<p>A credit card can help you build and maintain a great credit score that will yield rewards for the rest your life in the form of lower interest rates on car loans or mortgages and even lower insurance premiums. It's true -- just one open credit card, managed responsibly, can lend to a superprime credit score of 760 or higher.</p>
<p>The key is avoiding potential pitfalls.</p>
<p>Opening a credit card account and managing it responsibly is one of the best -- and free -- ways to build or rebuild credit. There are cards for everyone, even people who have credit scores that don't lend themselves to an instant approval. If you have bad credit, a <a href="https://www.fool.com/credit-cards/best-secured-credit-cards/?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=cd3d1774-8e60-11e7-92e0-0050569d4be0&amp;utm_source=foxbusiness" type="external">secured credit card Opens a New Window.</a> offers a high chance at approval and the opportunity to start building good credit history to replace the bad. On the opposite end of the spectrum, top-shelf <a href="https://www.fool.com/credit-cards/best-credit-card-sign-up-bonuses/?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=cd3d1774-8e60-11e7-92e0-0050569d4be0&amp;utm_source=foxbusiness" type="external">sign-up bonus cards Opens a New Window.</a> offer the opportunity to collect $500 or more of travel or cash value within the first three months of opening the card, in addition to all the benefits to your credit report.</p>
<p>5 Simple Tips to Skyrocket Your Credit Score Over 800!Increasing your credit score above 800 will put you in rare company. So rare that only 1 in 9 Americans can claim they're members of this elite club. But contrary to popular belief, racking up a high credit score is a lot easier than you may have imagined following 5 simple, disciplined strategies. You'll find a full rundown of each inside our <a href="http://www.fool.com/ecap/the_motley_fool/mortgage-creditscore/?ftm_cam=the-motley-fool&amp;ftm_veh=article_pitch&amp;source=ic3editxt0000001&amp;aid=8985&amp;ftm_pit=6983&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=cd3d1774-8e60-11e7-92e0-0050569d4be0&amp;utm_source=foxbusiness" type="external">FREE credit score guide Opens a New Window.</a>. It's time to put your financial future first and secure a lifetime of savings by increasing your credit score. Simply <a href="http://www.fool.com/ecap/the_motley_fool/mortgage-creditscore/?ftm_cam=the-motley-fool&amp;ftm_veh=article_pitch&amp;source=ic3editxt0000001&amp;aid=8985&amp;ftm_pit=6983&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=cd3d1774-8e60-11e7-92e0-0050569d4be0&amp;utm_source=foxbusiness" type="external">click here Opens a New Window.</a>&#160;to claim a copy 5 Simple Tips to Skyrocket Your Credit Score over 800.</p>
<p>The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=cd3d1774-8e60-11e7-92e0-0050569d4be0&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | used responsibly credit cards offer extraordinary perks key avoid interest fees paying balances full making purchase means using card spend like would cash debit card using credit limit make purchases otherwise couldnt afford heres simple guide use credit card get benefit without skyhigh costs people associate credit cards continue reading credit cards arent well understood general public especially comes interest charge reality long always pay bill full youll never pay dime interest even card charges apr 25 even thats credit cards known grace period opens new window certain amount time interest charged balance avoid interest purchases pay statement balance month bill comes due amount clearly labeled credit card statement greater equal minimum payment amount people use credit cards replacement debit cards purchase things afford without carrying balance get fraud protection 2 cash back opens new window everyday purchases spend responsibly almost irresponsible put purchases cashback credit card advertisement hurdle good cash back travel card 2 cash back card opens new window generally offer 2 cash back every purchase goes travel cards opens new window offer value roughly equal 2 every purchase make card get little complicated since cards pay miles points rather simple cash weve curated list best travel cashback credit cards opens new window generally reward cardholders least 15 every swipe card either form cash travel value cards rewarding bonuses bonus category spend taken consideration example top cards offer double rewards restaurant travel spending bringing overall average rewards rate used responsibly cashback travel cards excellent way benefit purchases would otherwise pay cash debit importantly thanks signup bonuses opens new window effective rewards rate first months toptier travel cashback card easily equate 1015 net rewards yield best signup bonus opens new window currently offers travel rewards worth 625 travel value first 4000 purchase volume equating effective rewards rate nearly 16 first 4000 purchases credit cards offer perks new cardholders include 0 promo aprs opens new window purchases long 21 months promotional periods useful people need way finance major necessary purchase like new fence backyard major repair car new heating unit home winter arrives 0 apr intro periods cardholders effectively use credit card interestfree loan extreme case one could use new card 0 promo apr 18 months make 10000 purchase making equal payments approximately 556 per month every month balance repaid full interest charged card 19th160billing cycle course takes planning ahead since 0 aprs usually doled new cardholders reward pretty good considering average twoyear personal loan carried rate 10 2017 0 apr purchases credit card pretty good deal view credit cards offer single best way get credit card debt without paying skyhigh interest balances best160 balance transfer cards opens new window allow cardholders transfer balances new card fee terms include 15 months 0 interest balance potential savings massive consolidating 3000 balance 2000 balance new balance transfer credit card could save much 620 interest 15month 0 apr promo period160the key use card balance transfer put sock drawer important carry ordinary purchase balances opens new window 0 apr credit card unless card offers 0 aprs purchases credit card help build maintain great credit score yield rewards rest life form lower interest rates car loans mortgages even lower insurance premiums true one open credit card managed responsibly lend superprime credit score 760 higher key avoiding potential pitfalls opening credit card account managing responsibly one best free ways build rebuild credit cards everyone even people credit scores dont lend instant approval bad credit secured credit card opens new window offers high chance approval opportunity start building good credit history replace bad opposite end spectrum topshelf signup bonus cards opens new window offer opportunity collect 500 travel cash value within first three months opening card addition benefits credit report 5 simple tips skyrocket credit score 800increasing credit score 800 put rare company rare 1 9 americans claim theyre members elite club contrary popular belief racking high credit score lot easier may imagined following 5 simple disciplined strategies youll find full rundown inside free credit score guide opens new window time put financial future first secure lifetime savings increasing credit score simply click opens new window160to claim copy 5 simple tips skyrocket credit score 800 motley fool disclosure policy opens new window | 695 |
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<p>With the current bull market entering its <a href="https://www.fool.com/investing/2017/03/09/the-bull-market-turns-8-these-dow-stocks-led-the-w.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">eighth year Opens a New Window.</a> and the S&amp;P 500 trading wellabove its historic average, it's becoming increasingly difficult to find and buy cheap stocks today -- challenging, but not impossible.</p>
<p>Continue Reading Below</p>
<p>In fact, some of businesses' biggest names trade at significant discounts to the market, including companies like Warren Buffett's Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK.B), Cisco Systems (NASDAQ: CSCO), and International Business Machines (NYSE: IBM). As such, let's dive into what specifically makes these value stocks particularly intriguing investing opportunities today.</p>
<p>A monument to the powers of savvy capital allocation, Warren Buffett's Berkshire Hathaway has produced so impressive a track record of investment excellence that it may never be seen again. Since 1965, Berkshire shares have appreciated at an average annual rate of 20.1% per year, which translates to a 1,972,000% increase in value.</p>
<p>Today, Berkshire also mirrors its octogenarian CEO in some respects. Like Buffett, Berkshire has grown mature, its days of torrent growth largely in its rear-view mirror. However, the company controls an enviable assortment of high-quality businesses that will continue to throw off substantial amounts of free cash. Though Buffet and his longtime business partner are irreplaceable, The Oracle of Omaha has cultivated a deep bench of managers that should be able to skillfully tend to the company's operational and investing needs. At just 16 times last year's earnings, Berkshire shares remain a highly attractive option amid a generally expensive market.</p>
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<p>Like Berkshire, Silicon Valley stalwart Cisco Systems also trades hands at just 16 times earnings. Also like Berkshire, Cisco is a mature and hugely profitable, although Cisco's growth concerns are slightly more acute than Berkshire's.</p>
<p>Analysts see Cisco's sales declining 1.8% this year, and then increasing 2.3% in 2018, the net effect of which resultsin no change over this period. The company's recent second-quarter result certainly didn't offer much in the way of hope, either. Here's a quick snapshot of how some of Cisco's main financial drivers fared during this period.</p>
<p>Image source: Cisco Systems Investor Relations.</p>
<p>Revenue trended downward, as analysts expected, and the company's guidance also called for a 2% sales decline in the current quarter. However, the $3.8 billion in operating cash flow indeed speaks to one area where I think Cisco is quite interesting as an investment.</p>
<p>As I detailed in <a href="https://www.fool.com/investing/2017/04/18/the-3-best-dividend-stocks-in-silicon-valley.aspx?source=iaasitlnk0000003&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">another recent piece Opens a New Window.</a>, Cisco has jumpedheadfirst into its newfound role as a dividend stock. The company's shares currently yield 3.2%,well above the S&amp;P 500's 1.9% payout. Moreover, the company raised its dividend 11.5%as part of its recent earnings report, which gives the company an implied forward dividend yield of 3.6%. However, what I like most about Cisco as an income investment is the aggressive pace at which it has grown its payouts, which it has increased at an average annual rate of 27% per year since it initiated dividend payments in 2011. So, while Cisco's forward growth path isn't clear, the company can still drive returns via its aggressive capital return, especially when its dividends are reinvested.</p>
<p>Image source: Getty Images.</p>
<p>IBM shares received a 6% haircut earlier this month, when the company's first-quarter earnings disappointed Wall Street. The IT giant beat profit expectations but saw its $18.2 billion in salesmiss estimates by just $190 million. This marks the 20thstraight quarter of declining revenue for Big Blue, which probably doesn't make for much of a selling point as far as IBM's bull thesis is concerned. However, the market's strongly negative reaction reiterates the disconnect between the Street's view on IBM and the reality that its long-term business overhaul continues to take shape.</p>
<p>For the quarter, revenue from IBM's strategic imperatives increased 12% year over year. Over the past 12 months, sales from IBM's next-generation businesses -- including cloud computing, cognitive solutions, security, etc. -- have growth to represent 42% of IBM's sales. Furthermore, the company reiterated its full-year earnings per share (EPS) and cash flow guidance, making the market's dour reaction to its earnings seem all the more overblown.</p>
<p>It's simply a given at this point that it will take years for IBM to fully realize its strategic overhaul. The evidence clearly shows that the company will be able to do so, which wasn't necessarily the case as recently as two years ago. The company's shares currently trade hands at 13 times earnings, half that of the wider market. Moreover, the company's impressive 3.2% dividend yieldand strong track record of capital return should help compensate shareholders as IBM's revival continues to play out, making IBM an intriguing stock for income-oriented value investors today.</p>
<p>10 stocks we like better than Berkshire Hathaway (A shares)When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*</p>
<p>David and Tom just revealed what they believe are the <a href="http://infotron.fool.com/infotrack/click?url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=c0821f1a-eb2b-42ae-b974-55cf1aabdc18&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now...and Berkshire Hathaway (A shares) wasn't one of them! That's right -- they think these 10 stocks are even better buys.</p>
<p><a href="http://infotron.fool.com/infotrack/click?url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=c0821f1a-eb2b-42ae-b974-55cf1aabdc18&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Click here Opens a New Window.</a> to learn about these picks!</p>
<p>*Stock Advisor returns as of April 3, 2017.</p>
<p><a href="http://my.fool.com/profile/TMFTheDude/info.aspx" type="external">Andrew Tonner Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares). The Motley Fool recommends Cisco Systems. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | current bull market entering eighth year opens new window sampp 500 trading wellabove historic average becoming increasingly difficult find buy cheap stocks today challenging impossible continue reading fact businesses biggest names trade significant discounts market including companies like warren buffetts berkshire hathaway nyse brka nyse brkb cisco systems nasdaq csco international business machines nyse ibm lets dive specifically makes value stocks particularly intriguing investing opportunities today monument powers savvy capital allocation warren buffetts berkshire hathaway produced impressive track record investment excellence may never seen since 1965 berkshire shares appreciated average annual rate 201 per year translates 1972000 increase value today berkshire also mirrors octogenarian ceo respects like buffett berkshire grown mature days torrent growth largely rearview mirror however company controls enviable assortment highquality businesses continue throw substantial amounts free cash though buffet longtime business partner irreplaceable oracle omaha cultivated deep bench managers able skillfully tend companys operational investing needs 16 times last years earnings berkshire shares remain highly attractive option amid generally expensive market advertisement like berkshire silicon valley stalwart cisco systems also trades hands 16 times earnings also like berkshire cisco mature hugely profitable although ciscos growth concerns slightly acute berkshires analysts see ciscos sales declining 18 year increasing 23 2018 net effect resultsin change period companys recent secondquarter result certainly didnt offer much way hope either heres quick snapshot ciscos main financial drivers fared period image source cisco systems investor relations revenue trended downward analysts expected companys guidance also called 2 sales decline current quarter however 38 billion operating cash flow indeed speaks one area think cisco quite interesting investment detailed another recent piece opens new window cisco jumpedheadfirst newfound role dividend stock companys shares currently yield 32well sampp 500s 19 payout moreover company raised dividend 115as part recent earnings report gives company implied forward dividend yield 36 however like cisco income investment aggressive pace grown payouts increased average annual rate 27 per year since initiated dividend payments 2011 ciscos forward growth path isnt clear company still drive returns via aggressive capital return especially dividends reinvested image source getty images ibm shares received 6 haircut earlier month companys firstquarter earnings disappointed wall street giant beat profit expectations saw 182 billion salesmiss estimates 190 million marks 20thstraight quarter declining revenue big blue probably doesnt make much selling point far ibms bull thesis concerned however markets strongly negative reaction reiterates disconnect streets view ibm reality longterm business overhaul continues take shape quarter revenue ibms strategic imperatives increased 12 year year past 12 months sales ibms nextgeneration businesses including cloud computing cognitive solutions security etc growth represent 42 ibms sales furthermore company reiterated fullyear earnings per share eps cash flow guidance making markets dour reaction earnings seem overblown simply given point take years ibm fully realize strategic overhaul evidence clearly shows company able wasnt necessarily case recently two years ago companys shares currently trade hands 13 times earnings half wider market moreover companys impressive 32 dividend yieldand strong track record capital return help compensate shareholders ibms revival continues play making ibm intriguing stock incomeoriented value investors today 10 stocks like better berkshire hathaway shareswhen investing geniuses david tom gardner stock tip pay listen newsletter run decade motley fool stock advisor tripled market david tom revealed believe 10 best stocks opens new window investors buy right nowand berkshire hathaway shares wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns april 3 2017 andrew tonner opens new window position stocks mentioned motley fool owns shares recommends berkshire hathaway b shares motley fool recommends cisco systems motley fool disclosure policy opens new window | 599 |
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<p>Richard Davis is the chairman and <a href="https://www.fool.com/investing/2017/01/18/us-bancorp-ceo-richard-davis-to-step-down-at-the-t.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">soon-to-retire Opens a New Window.</a> CEO of U.S. Bancorp (NYSE: USB), the most profitable big bank in the United States. It remains to be seen what Davis will do in retirement -- he's only 59 -- but he's purportedly being considered for a position on the Federal Reserve's board of governors. As you'll see by reading through my interview with Davis, which was edited for organization and flow, his insights on the industry are invaluable.</p>
<p>Continue Reading Below</p>
<p>John Maxfield: What did you learn as CEO of U.S. Bancorp that you didn't know before?</p>
<p>Richard Davis: The economy couldn't have been more different when I took over in December 2006. The world was absolutely spectacular. We were coming to the end of a 13-year run on the market. The economy was fantastic. It was the holidays. Everybody thought things were terrific and no one saw a bubble anywhere.</p>
<p>U.S. Bancorp Chairman and CEO Richard Davis. Image source: U.S. Bancorp.</p>
<p>I realized that this company had been playing to its strengths as an efficient company, but efficiency wasn't the way into the future. So as the world was wonderful and robust, I also knew that we'd have to move the bank more into an offensive position than a defensive one and start earning our stripes as an offensive company. But then the bottom fell out and the financial crisis struck, which required that we stay on the defensive to help protect our clients and customers.</p>
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<p>So for me it's about the importance of pivoting between strategies when something unexpected happens. In our case, we went back to the old tenets that had kept us safe, and slowly but surely over the last nine years we've moved the company toward an offensive position, which is where we're at today.</p>
<p>Maxfield: When did you know the financial crisis would be so severe?</p>
<p>Davis: When the first money fund broke the buck. That was unprecedented. It had never happened in the history of the world. It wasn't housing. It wasn't mortgage banking. Those were dominoes that fell. But it really was the implied fact that the markets had built up a bubble in secondary, tertiary, and beyond-tertiary monetary instruments.</p>
<p>Because it was money fund-driven, and because we're in the business of managing money as a large bank, we realized quickly that we would be in the path of the crisis. Within days of that, we also realized that we didn't have many of the issues that caused the crisis, which meant that we would be safe from the most significant sources of damage like subprime lending, air-bubble mortgages, and investments built on bubbles. So for quite some time we were quietly celebrating that we wouldn't have to spend time picking up the pieces.</p>
<p>We realized sometime after that the market was responding with great favor to our company. Our stock started to strengthen. We did well even among the strongest banks. And the market's behavior said to us: "We liked you before, but we like you even more in these tough times." This gave us permission to move forward while everybody else was picking up the pieces. It's like we were running a race and you dropped something and had to go back and pick it up.</p>
<p>Maxfield: How did U.S. Bancorp avoid the worst excesses that caused the crisis?</p>
<p>Davis: We didn't stay out of those things because we knew they were bad. We shouldn't take credit for saying that we sat around in 2005 and 2006 and realized that subprime lending would be such a big problem and that there was a bubble in the housing market.</p>
<p>The reason we did well was because we never got away from our basic model, which is to do things that are sustainable and repeatable. So when subprime came along, I'm sure there was a meeting where I asked my team "What do you think?" and they probably said "We just don't think it's sustainable."</p>
<p>One consistent theme between my predecessor and my role is the board of directors. The board hasn't changed. It has an operating philosophy that the bank would always do things that were sustainable. I created the phrase "CPR": consistent, predictable, repeatable. This is code for "We're not going to take a flyer, we're not going to take excessive risk, and we don't do things that only make sense in the near term."</p>
<p>I don't want to give our shareholders a run-up for a quarter or two only to say later that "We just took advantage of a bubble but can't keep it up because it isn't sustainable." That's bad shareholder form. If you stick to your model in good times and bad, it means you don't get greedy when things look too good to be true and you don't get shortsighted when things get tough.</p>
<p>Maxfield: How has U.S. Bancorp gotten such a low efficiency ratio?</p>
<p>Davis: There was a large bank CEO a few years ago that called to talk about the efficiency ratio because he wanted to break through a long-standing high number. He was coming at it like everyone else does, by focusing on the numerator in the efficiency ratio -- expenses. But efficiency isn't about expenses; it's about revenue. He who has the lowest efficiency ratio also often has the biggest revenue, which is in the denominator. A bank needs to look at what it does, and get into businesses where it can be better than everyone else, or where it has skills that no one else has, or where it can outperform its own history.</p>
<p>So the first reason our efficiency ratio is low is because our revenue is better -- which is because our mix of businesses is better. We have the payments business and the corporate trust business, both of which are outsized relative to the composition of our revenue. We've got scale in them. Neither requires capital, so you don't have to put any money against loans or deposits. And the cost of entry is prohibitively high. So they've got all the benefits.</p>
<p>The second thing is that we do have discipline around expenses, but we never use that word. We talk about investments. Everything is about the return on investment. We don't cut off expenses or capital expenditures if they have a good return. But you can't spend money if you don't know what you're going to get for it. If you have a capital expenditure and it's going to be more than $100,000, it has to come before a committee. Small expenditures can sneak up on you. You amortize them, and all of a sudden you've got this huge depreciation cost from small incremental capital items that were done because they didn't impair earnings at the time.</p>
<p>Our expenses have been growing quite a bit. Our revenue is supposed to grow faster. So we have failed the market over the last six quarters because our revenue has not outpaced our expenses. But to our credit, we didn't cut back on expenses to equal the governor of revenue in the near term. If we did that, we'd struggle in the future. So we took a hit from the analysts and said we'd be slightly negative operating leverage. We're doing that because we don't want to stop spending money on important investments.</p>
<p>Maxfield: How important are U.S. Bancorp's debt ratings to its success?</p>
<p>Davis: Let me walk you through our constituencies. The main ones are our customers, shareholders, employees, analysts, regulators, and the ratings agencies.</p>
<p>I start there because the ratings agencies are probably the most important constituency to us. We want to protect their favor and their belief that our reputation deserves the highest debt rating of any bank in the country, which we have right now and have had for a long time. They trust us because they're insiders. If they came in today, we can show them everything that's happening. We can show them our profit plan. We can show them what happened last quarter. We can predict our earnings for the next 90 days. We can show them all our capital expenditures. I can tell them every single thing that I tell Andy Cecere, who takes over as CEO in April.</p>
<p>Every other outside constituency only knows what's happened in hindsight; they know nothing about the future. When a ratings agency goes and meets withDelta, American, United, and Southwest, it is already aware of their current performance. So ratings agencies instead go in to ask questions about the future that only management knows the answers to. Ratings agencies can never disclose this, but they give the highest grade to not only the company doing well now, but also to the one they think is positioned to do better in the future.</p>
<p>So when we sit down with the ratings agencies, we're all about the future. We try to make sure that we retain the respect they've given us -- that they like our future better than anyone else. Not like an analyst who knows our current day better than anyone else. If I talk to the analyst community about my loan growth -- the higher the loan growth, the higher the share price. In the same scenario, the ratings agencies will come in and say, "I'm a little worried about your loan growth. Why is it so high? I'm worried that you're taking on too much risk. Show me your underwriting. Have you made any changes?" Typically, the ratings agencies are worried if we outperform everybody else because they want to ensure that it's sustainable, like I do. It's the complete reverse conversation you have with the analyst community.</p>
<p>That's how we get the highest rating, then we protect it like crazy because anyone in the C-suite of a large company that went through 2008-09 will tell you that they never paid much attention to the quality of the banks they partnered with -- but they do now. When you wake up one day and National City is gone. Wachovia is gone. Washington Mutual is gone. And you're the CFO of a Fortune 100 company and you have part of your line of credit extended there and you're thinking "What do I care? I've got their money." But then the terms change and all of a sudden the new owner can kick them out. So the rating itself matters much more now than it did 10 years ago because people understand that it has value and that it's created by people who are supposed to be experts and are looking into the future.</p>
<p>Maxfield: What impact does U.S. Bancorp's debt rating have on its cost of funds?</p>
<p>Davis: It gives us the ability to go into the market and raise debt at a remarkably low level.</p>
<p>Just the other day we were in the market for $1 billion and paid LIBOR plus 35 or 40 basis points. Another bank would have paid anywhere from 40 to 80 basis points more. So, think of that: Two banks. Both in the same business going after the same loan customer. And I have $1 billion that I get at an average of 60 basis points cheaper than they get. I can take that and use all of it and price the top AAA customer better than they can. I can take half of it, give 30 basis points to the bank, 30 basis points to the customer. But I've got 60 basis points to play with. It's like a head start on every single deal.</p>
<p>We can do that because we have the financial numbers. There's no one that can beat us. Because we have the highest debt ratings, we get the lowest cost of funds. And we only go after the top AAA customers, which helps us avoid quality issues in our portfolio that come from stretching on underwriting or rates. But if our operating model wasn't sustainable and repeatable enough to satisfy the rating agencies that are trained to look for that, then we'd lose the high rating and the advantage on the cost of funds.</p>
<p>Our debt rating is the most credible thing we have to offer Wall Street. No matter what you put up against it, having the highest debt rating and using it to your advantage to get the best quality customers, no one can poke a hole in that argument.</p>
<p>Maxfield: What explains your stock's high valuation?</p>
<p>Davis: It's high because we have a great mix of business and because we have the best debt ratings in the industry. But it stays high because we haven't surprised anybody or let anyone down.</p>
<p>Imagine how concerned we were to announce last year that we would go negative operating leverage. We didn't know how that'd go over with analysts, because higher provisions reduce earnings. But the fact that revenue isn't growing as fast as expenses because of low interest rates doesn't mean that we should suffocate the future of innovation, the future of investment, the future of branch technology. I remember crossing my fingers and wondering if they were going to take us to task. And while they didn't love it, they bought it and they believed it because we've never said something we didn't then do.</p>
<p>We simply manage for the long, long, long term and run the risk of being a little less interesting to day traders but a lot more interesting to people like Warren Buffett.</p>
<p>10 stocks we like better than US BancorpWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*</p>
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<p><a href="http://my.fool.com/profile/JohnMaxfield37/info.aspx" type="external">John Maxfield Opens a New Window.</a> owns shares of US Bancorp. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | richard davis chairman soontoretire opens new window ceo us bancorp nyse usb profitable big bank united states remains seen davis retirement hes 59 hes purportedly considered position federal reserves board governors youll see reading interview davis edited organization flow insights industry invaluable continue reading john maxfield learn ceo us bancorp didnt know richard davis economy couldnt different took december 2006 world absolutely spectacular coming end 13year run market economy fantastic holidays everybody thought things terrific one saw bubble anywhere us bancorp chairman ceo richard davis image source us bancorp realized company playing strengths efficient company efficiency wasnt way future world wonderful robust also knew wed move bank offensive position defensive one start earning stripes offensive company bottom fell financial crisis struck required stay defensive help protect clients customers advertisement importance pivoting strategies something unexpected happens case went back old tenets kept us safe slowly surely last nine years weve moved company toward offensive position today maxfield know financial crisis would severe davis first money fund broke buck unprecedented never happened history world wasnt housing wasnt mortgage banking dominoes fell really implied fact markets built bubble secondary tertiary beyondtertiary monetary instruments money funddriven business managing money large bank realized quickly would path crisis within days also realized didnt many issues caused crisis meant would safe significant sources damage like subprime lending airbubble mortgages investments built bubbles quite time quietly celebrating wouldnt spend time picking pieces realized sometime market responding great favor company stock started strengthen well even among strongest banks markets behavior said us liked like even tough times gave us permission move forward everybody else picking pieces like running race dropped something go back pick maxfield us bancorp avoid worst excesses caused crisis davis didnt stay things knew bad shouldnt take credit saying sat around 2005 2006 realized subprime lending would big problem bubble housing market reason well never got away basic model things sustainable repeatable subprime came along im sure meeting asked team think probably said dont think sustainable one consistent theme predecessor role board directors board hasnt changed operating philosophy bank would always things sustainable created phrase cpr consistent predictable repeatable code going take flyer going take excessive risk dont things make sense near term dont want give shareholders runup quarter two say later took advantage bubble cant keep isnt sustainable thats bad shareholder form stick model good times bad means dont get greedy things look good true dont get shortsighted things get tough maxfield us bancorp gotten low efficiency ratio davis large bank ceo years ago called talk efficiency ratio wanted break longstanding high number coming like everyone else focusing numerator efficiency ratio expenses efficiency isnt expenses revenue lowest efficiency ratio also often biggest revenue denominator bank needs look get businesses better everyone else skills one else outperform history first reason efficiency ratio low revenue better mix businesses better payments business corporate trust business outsized relative composition revenue weve got scale neither requires capital dont put money loans deposits cost entry prohibitively high theyve got benefits second thing discipline around expenses never use word talk investments everything return investment dont cut expenses capital expenditures good return cant spend money dont know youre going get capital expenditure going 100000 come committee small expenditures sneak amortize sudden youve got huge depreciation cost small incremental capital items done didnt impair earnings time expenses growing quite bit revenue supposed grow faster failed market last six quarters revenue outpaced expenses credit didnt cut back expenses equal governor revenue near term wed struggle future took hit analysts said wed slightly negative operating leverage dont want stop spending money important investments maxfield important us bancorps debt ratings success davis let walk constituencies main ones customers shareholders employees analysts regulators ratings agencies start ratings agencies probably important constituency us want protect favor belief reputation deserves highest debt rating bank country right long time trust us theyre insiders came today show everything thats happening show profit plan show happened last quarter predict earnings next 90 days show capital expenditures tell every single thing tell andy cecere takes ceo april every outside constituency knows whats happened hindsight know nothing future ratings agency goes meets withdelta american united southwest already aware current performance ratings agencies instead go ask questions future management knows answers ratings agencies never disclose give highest grade company well also one think positioned better future sit ratings agencies future try make sure retain respect theyve given us like future better anyone else like analyst knows current day better anyone else talk analyst community loan growth higher loan growth higher share price scenario ratings agencies come say im little worried loan growth high im worried youre taking much risk show underwriting made changes typically ratings agencies worried outperform everybody else want ensure sustainable like complete reverse conversation analyst community thats get highest rating protect like crazy anyone csuite large company went 200809 tell never paid much attention quality banks partnered wake one day national city gone wachovia gone washington mutual gone youre cfo fortune 100 company part line credit extended youre thinking care ive got money terms change sudden new owner kick rating matters much 10 years ago people understand value created people supposed experts looking future maxfield impact us bancorps debt rating cost funds davis gives us ability go market raise debt remarkably low level day market 1 billion paid libor plus 35 40 basis points another bank would paid anywhere 40 80 basis points think two banks business going loan customer 1 billion get average 60 basis points cheaper get take use price top aaa customer better take half give 30 basis points bank 30 basis points customer ive got 60 basis points play like head start every single deal financial numbers theres one beat us highest debt ratings get lowest cost funds go top aaa customers helps us avoid quality issues portfolio come stretching underwriting rates operating model wasnt sustainable repeatable enough satisfy rating agencies trained look wed lose high rating advantage cost funds debt rating credible thing offer wall street matter put highest debt rating using advantage get best quality customers one poke hole argument maxfield explains stocks high valuation davis high great mix business best debt ratings industry stays high havent surprised anybody let anyone imagine concerned announce last year would go negative operating leverage didnt know thatd go analysts higher provisions reduce earnings fact revenue isnt growing fast expenses low interest rates doesnt mean suffocate future innovation future investment future branch technology remember crossing fingers wondering going take us task didnt love bought believed weve never said something didnt simply manage long long long term run risk little less interesting day traders lot interesting people like warren buffett 10 stocks like better us bancorpwhen investing geniuses david tom gardner stock tip pay listen newsletter run decade motley fool stock advisor tripled market david tom revealed believe 10 best stocks opens new window investors buy right us bancorp wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns february 6 2017 john maxfield opens new window owns shares us bancorp motley fool position stocks mentioned motley fool disclosure policy opens new window | 1,190 |
<p />
<p>The next time you're stopped in traffic, look to your right. And then to your left.</p>
<p>Continue Reading Below</p>
<p>At least one of you could not pass a written driver's test.</p>
<p>Nearly half of the 500 drivers who took a quiz of 20 driver's test questions failed to get a passing score of 80%, according to results released today by CarInsurance.com.</p>
<p>The questions, drawn from state practice tests, covered basics such as signs and rights of way. The questions missed most often involved when to stop for school buses and pedestrians. (You can take the <a href="http://www.carinsurance.com/drivers-test.aspx?WT.qs_osrc=fxb-167928110" type="external">Driver's License Quiz Opens a New Window.</a> for yourself to see how you compare.)</p>
<p>Women averaged a score of 78%, compared with 71% for men. And experience seems to help: Drivers under age 40 scored an average of 67% correct, and those over 40 scored an average of 79%.</p>
<p>Advertisement</p>
<p>Only three drivers had perfect scores: two women and one man.</p>
<p>A brief history of driver's licenses</p>
<p>The driver's license is almost as old as the car itself.</p>
<p>It is widely accepted that Karl Benz, of Mercedes-Benz fame and the man credited with inventing the modern automobile, was issued the first driver's license in 1888 in Mannheim, Germany.</p>
<p>In the United States, the first driver's licenses were simple identification cards. A license could be had for 25 cents, and in many states drivers could send away for one by mail. There were no required skills or knowledge tests. (Here's a look at <a href="http://www.thehenryford.org/exhibits/collections/Collections/library/ford/family/license.html?WT.qs_osrc=fxb-167928110" type="external">Henry Ford's driver's license Opens a New Window.</a>, circa 1919.)</p>
<p>According to the <a href="http://www.fhwa.dot.gov/ohim/summary95/dl230.pdf?WT.qs_osrc=fxb-167928110" type="external">Federal Highway Administration Opens a New Window.</a>, Missouri and Massachusetts issued the first driver's licenses in 1903 but didn't start testing drivers' skills until years later. Massachusetts waited until 1920 and Missouri started testing in 1952.</p>
<p>South Dakota was the last holdout, waiting until 1954 to require drivers to have licenses. It introduced testing in 1959.</p>
<p>U.S testing is comparatively easy</p>
<p>In the last decade, graduated driver licensing systems have changed the process of getting a license for every teen driver in the country, but the test itself has basically stayed the same.</p>
<p>A 2011 National Highway Traffic Safety Administration (NHTSA) report declares the overall testing process "weak," especially compared with that in other nations. (See " <a href="http://www.carinsurance.com/Articles/how-us-driver-training-compares.aspx?WT.qs_osrc=fxb-167928110" type="external">Are U.S. teens the world's worst-trained drivers? Opens a New Window.</a>")</p>
<p>On average, the knowledge portion of a state test is 25 questions long and takes about 25 minutes to complete. Minimum passing requirements range from 70 to 85% correct with the average being 79%.</p>
<p>Despite the relatively simple tests, U.S. failure rates are eye-opening. (Only 13 states were able to provide actual numbers to the NHTSA, while the rest were estimated by DMV officials.)</p>
<p>Missouri recorded a whopping 61.4% failure rate on the written portion of its test. Mississippi was a close second at an even 60%, and Florida rounded out the top three with a failure rate of 58.1%. Most states allow a driver who fails the written test to retake it after a one-day wait; the wait to retake a failed road test could be anywhere from one day to 30 days.</p>
<p>For many, it's a challenge</p>
<p>The <a href="http://www.nhtsa.gov/staticfiles/nti/pdf/811440.pdf?WT.qs_osrc=fxb-167928110" type="external">NHTSA report Opens a New Window.</a> found that driving tests are quite similar in most states, but a few were deemed easier or harder than the norm, based on failure rates for written and road tests and a survey of drivers in each state who had just taken the examinations. If you are looking for an easier test, head to Arkansas, Iowa, Kansas or West Virginia. If you like a challenge, Connecticut, Minnesota, Rhode Island and Tennessee are where you want to be.</p>
<p>Experts point to poor preparation and overconfidence as the culprits behind failure.</p>
<p>Rajendra Hariprashad, owner of <a href="http://www.enasdrivingschool.com/index.php?WT.qs_osrc=fxb-167928110" type="external">Ena's Driving School Opens a New Window.</a> in New York City, says poor study habits will often lead to a failed written test. He advises reading the state's road rules manual cover to cover and taking numerous practice tests. ( <a href="http://www.carinsurance.com/MotorVehicle.aspx?WT.qs_osrc=fxb-167928110" type="external">Check your state's DMV Opens a New Window.</a>.) Take time to learn the material -- and wait until you are prepared before scheduling a test.</p>
<p>If you've left the DMV disappointed, consider that:</p>
<p>But wait, there's good news</p>
<p>Once you've got that laminated piece of plastic in your wallet, you're in. A failed driving test will not show up on your driving record, so your car insurance company has no way of knowing that you were clueless about parallel parking.</p>
<p>Failure itself could become a thing of the past because future drivers may never take a DMV test. Many experts believe that <a href="http://www.carinsurance.com/Articles/robot-cars-insurance.aspx?WT.qs_osrc=fxb-167928110" type="external">autonomous cars Opens a New Window.</a> (driverless vehicles) will rule the roads in the future. Do you need a driver's license when the car drives itself?</p>
<p>Futurist Thomas Frey, executive director at the <a href="http://www.davinciinstitute.com/?WT.qs_osrc=fxb-167928110" type="external">DaVinci Institute Opens a New Window.</a>, predicts that while the driver's license will survive in a different form, written and practical driving tests will disappear.</p>
<p>"Today's driver's license will morph into a national ID, which you will use to access driverless vehicles, and other services," Frey says. "You may have to swipe it to prove your identity to the robot delivery driver before they will release your package; it could be used for medical identification and to pay for items."</p>
<p>The original article can be found at CarInsurance.com: <a href="http://www.carinsurance.com/Articles/drivers-license-report-card.aspx?WT.qs_osrc=fxb-167928110" type="external">Could you pass a driver's test? Many can't Opens a New Window.</a></p> | true | 0 | next time youre stopped traffic look right left continue reading least one could pass written drivers test nearly half 500 drivers took quiz 20 drivers test questions failed get passing score 80 according results released today carinsurancecom questions drawn state practice tests covered basics signs rights way questions missed often involved stop school buses pedestrians take drivers license quiz opens new window see compare women averaged score 78 compared 71 men experience seems help drivers age 40 scored average 67 correct 40 scored average 79 advertisement three drivers perfect scores two women one man brief history drivers licenses drivers license almost old car widely accepted karl benz mercedesbenz fame man credited inventing modern automobile issued first drivers license 1888 mannheim germany united states first drivers licenses simple identification cards license could 25 cents many states drivers could send away one mail required skills knowledge tests heres look henry fords drivers license opens new window circa 1919 according federal highway administration opens new window missouri massachusetts issued first drivers licenses 1903 didnt start testing drivers skills years later massachusetts waited 1920 missouri started testing 1952 south dakota last holdout waiting 1954 require drivers licenses introduced testing 1959 us testing comparatively easy last decade graduated driver licensing systems changed process getting license every teen driver country test basically stayed 2011 national highway traffic safety administration nhtsa report declares overall testing process weak especially compared nations see us teens worlds worsttrained drivers opens new window average knowledge portion state test 25 questions long takes 25 minutes complete minimum passing requirements range 70 85 correct average 79 despite relatively simple tests us failure rates eyeopening 13 states able provide actual numbers nhtsa rest estimated dmv officials missouri recorded whopping 614 failure rate written portion test mississippi close second even 60 florida rounded top three failure rate 581 states allow driver fails written test retake oneday wait wait retake failed road test could anywhere one day 30 days many challenge nhtsa report opens new window found driving tests quite similar states deemed easier harder norm based failure rates written road tests survey drivers state taken examinations looking easier test head arkansas iowa kansas west virginia like challenge connecticut minnesota rhode island tennessee want experts point poor preparation overconfidence culprits behind failure rajendra hariprashad owner enas driving school opens new window new york city says poor study habits often lead failed written test advises reading states road rules manual cover cover taking numerous practice tests check states dmv opens new window take time learn material wait prepared scheduling test youve left dmv disappointed consider wait theres good news youve got laminated piece plastic wallet youre failed driving test show driving record car insurance company way knowing clueless parallel parking failure could become thing past future drivers may never take dmv test many experts believe autonomous cars opens new window driverless vehicles rule roads future need drivers license car drives futurist thomas frey executive director davinci institute opens new window predicts drivers license survive different form written practical driving tests disappear todays drivers license morph national id use access driverless vehicles services frey says may swipe prove identity robot delivery driver release package could used medical identification pay items original article found carinsurancecom could pass drivers test many cant opens new window | 545 |
<p>AP</p>
<p>BY: <a href="" type="internal">Bill Gertz</a> November 14, 2012 5:00 am</p>
<p>Senior intelligence officials and the FBI’s deputy director will face tough questioning Thursday from House and Senate intelligence committee members upset over the Obama administration’s mishandling of the Sept. 11 terror attack in Benghazi.</p>
<p>The intelligence and law enforcement leaders also will be grilled about the FBI cyber probe into email messages that led to the resignation Friday of CIA director David Petraeus and this week ensnared the top U.S. military commander in Afghanistan in an unfolding scandal.</p>
<p>The scandal that led to the downfall of Petraeus one week before he was to testify on the Benghazi terror attack implicated Gen. John Allen, the commander in Afghanistan whose nomination to be U.S. European Command commander was put on hold after the discovery of up to 30,000 "potentially inappropriate" pages of emails the four-star general sent to a central figure in the affair.</p>
<p>Acting CIA director Mike Morell, Senate Intelligence Committee chairwoman Dianne Feinstein, and committee vice chairman Sen. Saxby Chambliss (R., Ga.) met late Tuesday. No details of the discussion could be learned.</p>
<p>The FBI agent in Tampa who first triggered the federal investigation after Tampa socialite Jill Kelley contacted him was later barred from involvement in the case after reportedly becoming obsessed with the case and for sending emails containing shirtless photographs of himself to Kelley.</p>
<p>FBI agents, meanwhile, conducted a raid on the Charlotte, N.C., home of Paula Broadwell, a reserve Army officer who had the affair with Petraeus and then sent a series of menacing emails to Kelley. Agents were seen removing boxes from the home.</p>
<p>Petraeus resigned after a year as CIA director following FBI agents questioning him about the affair last month. Broadwell had written a biography of Petraeus.</p>
<p>The CIA director announced his resignation in a message to agency employees that said, "I showed extremely poor judgment by engaging in an extramarital affair."</p>
<p>Both House and Senate members will question Director of National Intelligence James Clapper, Acting CIA director Morell, Deputy FBI Director Sean Joyce, and National Counterterrorism Center Director Matthew Olsen on Thursday as to why Congress was not informed of the probe into Petraeus’ covert relationship with Broadwell as it was underway.</p>
<p>Petraeus had been slated to testify in the closed-door hearings before the Senate Select Committee on Intelligence and the House Permanent Select Committee on Intelligence. Morell will replace him because of his resignation.</p>
<p>The CIA’s role in Libya also will be a focus of the hearing. The agency was engaged in a still-classified covert action program in Libya involving weapons.</p>
<p>Sen. Roy Blunt (R., Mo.) <a href="http://www.youtube.com/watch?v=pb6HCPHti8s" type="external">told Fox News</a> that he expects the CIA to turn over a report by Petraeus following the CIA director’s recent visit to Libya and Benghazi. "We need to see that report," said Blunt, a member of the Intelligence Committee. "And in all likelihood, we need to talk to Gen. Petraeus and find out what he knows and what was going on while he was director, as it relates, not to his personal activities, as much as it relates to our national security activities."</p>
<p>Blunt said senior members of Congress need to know "sooner rather than later" what was in Petraeus’ report on Libya.</p>
<p>The Sept. 11 terrorist attack on a diplomatic compound in Benghazi led to the disclosure of a nearby CIA "annex."</p>
<p>One congressional aide said among the questions asked during the hearings on the Petraeus resignation will be why the FBI launched the initial probe in May and whether his indiscretion required him to resign.</p>
<p>According to United States officials, Clapper called Petraeus on Nov. 6—Election Day—and urged him to resign.</p>
<p>At issue are security questions about whether Petraeus improperly kept secret his relationship with a woman who may have been unstable and thus posed a risk to the agency director.</p>
<p>Petraeus’ resignation "couldn’t happen at a worse time," Sen. Chambliss <a href="http://swampland.time.com/2012/11/13/senate-intelligence-committee-to-probe-petraeus-affair/" type="external">told Time</a>. Chambliss said the compromise of classified data found on Broadwell’s computer will be probed by the committee. "And there are others that give us concerns," he said.</p>
<p>The committees also will examine Petraeus’ reported use of unclassified Internet connections to send emails while director. The Washington Post <a href="http://www.washingtonpost.com/blogs/worldviews/wp/2012/11/12/petraeus-snagged-by-online-data-trail-lived-much-of-his-life-on-e-mail/" type="external">reported</a> Monday that Petraeus revealed to a reporter in late 2011 that he was the first CIA director to have an open Internet connection in his Langley, Va., headquarters office. The report said Petraeus frequently exchanged emails with reporters.</p>
<p>The FBI and Justice Department also are under fire from Congress for not informing congressional leaders about the probe, and for keeping the scandal under wraps until after the Nov. 6 election.</p>
<p>"That is absolutely inexcusable," chairman of the House Homeland Security Committee Rep. Peter King (R., N.Y.) <a href="http://video.today.msnbc.msn.com/today/49802465/#49802465" type="external">told</a> Today’s Matt Lauer.</p>
<p>"Any time something comes close to an investigation of the CIA, the committee chairmen and ranking members are supposed to be notified, and for good reason—not for ego and not for turf battles, but because they'll know what's going on if we're going to effectively monitor the CIA."</p>
<p>Sen. Feinstein <a href="http://politicalticker.blogs.cnn.com/2012/11/13/feinstein-says-shell-push-for-petraeus-to-testify/comment-page-1/" type="external">told CNN</a>: "I&#160;have many questions about the nature of the FBI investigation, how it was instituted, and we'll be asking those questions."</p>
<p>Feinstein was asked if there is a connection between the Benghazi killings and Petraeus' resignation and the inspector general probe of Allen. "I've seen no connection whatsoever," she said.</p>
<p>To fully probe the matter, including Petraeus' visit to Benghazi, Feinstein said the committee needs "to talk directly with Director Petraeus."</p>
<p>King also questioned why the FBI conducted the initial investigation. "This is not the type of case that usually becomes a federal investigation," he told NBC’s "Today."</p>
<p>"Cyber harassment between two women or between any two people, but certainly involving a love triangle or whatever it was, should not rise to this level," King said.</p>
<p>King noted that the U.S. is "in cyber wars with Iran and China, which is serious enough, without putting personnel on something like this."</p>
<p>White House Press Secretary Jay Carney <a href="http://www.realclearpolitics.com/video/2012/11/13/carney_grilled_on_petraeus_scandal_says_obama_has_faith_in_gen_allen.html" type="external">told reporters</a> on Tuesday that the president "has faith in Gen. Allen, believes he's doing and has done an excellent job at [International Security Assistance Force in Afghanistan]."</p>
<p>Defense Secretary Leon Panetta said in a <a href="http://www.defense.gov/releases/release.aspx?releaseid=15673" type="external">statement</a> issued Monday that he was informed Sunday by the FBI of "a matter" related to Allen.</p>
<p>"Today, I directed that the matter be referred to the Inspector General of the Department of Defense for investigation, and it is now in the hands of the Inspector General," he said.</p>
<p>"While the matter is under investigation and before the facts are determined, Gen. Allen will remain commander of ISAF. His leadership has been instrumental in achieving the significant progress that ISAF, working alongside our Afghan partners, has made in bringing greater security to the Afghan people and in ensuring that Afghanistan never again becomes a safe haven for terrorists."</p>
<p>Panetta said Allen "is entitled to due process in this matter."</p>
<p>On Petraeus, Carney said Obama was "surprised" by Petraeus’ situation when told about it on Thursday. "[Obama] greatly appreciates Gen. Petraeus' remarkable service to his country, both in uniform and at the CIA."</p>
<p>The probe that led to Petraeus’ downfall was sparked by a FBI inquiry in May after Kelley contacted a FBI agent whom she had known and told him she had received menacing emails.</p>
<p>The FBI’s cyber crime unit then conducted an investigation that traced the emails to Broadwell, whose messages to Kelley were sent from locations in the United States where Broadwell has been doing a book promotion tour.</p>
<p>The FBI probe then uncovered information indicating that an insider within the government had access to sensitive information regarding the CIA director and senior military officers at the U.S. Central Command at MacDill Air Force Base, near Tampa, Fla.</p>
<p>One congressional aide said Congress wants to find out why Clapper told Petraeus to resign.</p>
<p>"Nobody thought this was a firing offense," the aide said. "It may have been that Petraeus was having an affair with someone who was not particularly stable."</p>
<p>Regarding the CIA role in the Sept. 11 Benghazi attack, a senior U.S. intelligence official who briefed reporters on the CIA’s response to the attack said a security team from the agency annex had a firefight with the terrorists who attacked the diplomatic mission.</p>
<p>"Sporadic small arms fire and RPG rounds" were fired on the annex less than two hours after the first attack and the CIA security personnel returned fire, dispersing the attackers.</p>
<p>An additional security team that flew by aircraft from Tripoli to Benghazi arrived several hours later. As they arrived, the terrorist attackers fired mortars at the annex, killing two security officers.</p>
<p>"At every level in the chain of command, from the senior officers in Libya to the most senior officials in Washington, everyone was fully engaged in trying to provide whatever help they could," the official said.</p>
<p>"There was no second guessing those decisions being made on the ground, by people at every U.S. organization that could play a role in assisting those in danger. There were no orders to anybody to stand down in providing support."</p>
<p>The U.S. military did not have forces in the Sept. 11 fight other than a drone aircraft that provided intelligence and medical evacuation.</p> | true | 0 | ap bill gertz november 14 2012 500 senior intelligence officials fbis deputy director face tough questioning thursday house senate intelligence committee members upset obama administrations mishandling sept 11 terror attack benghazi intelligence law enforcement leaders also grilled fbi cyber probe email messages led resignation friday cia director david petraeus week ensnared top us military commander afghanistan unfolding scandal scandal led downfall petraeus one week testify benghazi terror attack implicated gen john allen commander afghanistan whose nomination us european command commander put hold discovery 30000 potentially inappropriate pages emails fourstar general sent central figure affair acting cia director mike morell senate intelligence committee chairwoman dianne feinstein committee vice chairman sen saxby chambliss r ga met late tuesday details discussion could learned fbi agent tampa first triggered federal investigation tampa socialite jill kelley contacted later barred involvement case reportedly becoming obsessed case sending emails containing shirtless photographs kelley fbi agents meanwhile conducted raid charlotte nc home paula broadwell reserve army officer affair petraeus sent series menacing emails kelley agents seen removing boxes home petraeus resigned year cia director following fbi agents questioning affair last month broadwell written biography petraeus cia director announced resignation message agency employees said showed extremely poor judgment engaging extramarital affair house senate members question director national intelligence james clapper acting cia director morell deputy fbi director sean joyce national counterterrorism center director matthew olsen thursday congress informed probe petraeus covert relationship broadwell underway petraeus slated testify closeddoor hearings senate select committee intelligence house permanent select committee intelligence morell replace resignation cias role libya also focus hearing agency engaged stillclassified covert action program libya involving weapons sen roy blunt r mo told fox news expects cia turn report petraeus following cia directors recent visit libya benghazi need see report said blunt member intelligence committee likelihood need talk gen petraeus find knows going director relates personal activities much relates national security activities blunt said senior members congress need know sooner rather later petraeus report libya sept 11 terrorist attack diplomatic compound benghazi led disclosure nearby cia annex one congressional aide said among questions asked hearings petraeus resignation fbi launched initial probe may whether indiscretion required resign according united states officials clapper called petraeus nov 6election dayand urged resign issue security questions whether petraeus improperly kept secret relationship woman may unstable thus posed risk agency director petraeus resignation couldnt happen worse time sen chambliss told time chambliss said compromise classified data found broadwells computer probed committee others give us concerns said committees also examine petraeus reported use unclassified internet connections send emails director washington post reported monday petraeus revealed reporter late 2011 first cia director open internet connection langley va headquarters office report said petraeus frequently exchanged emails reporters fbi justice department also fire congress informing congressional leaders probe keeping scandal wraps nov 6 election absolutely inexcusable chairman house homeland security committee rep peter king r ny told todays matt lauer time something comes close investigation cia committee chairmen ranking members supposed notified good reasonnot ego turf battles theyll know whats going going effectively monitor cia sen feinstein told cnn i160have many questions nature fbi investigation instituted well asking questions feinstein asked connection benghazi killings petraeus resignation inspector general probe allen ive seen connection whatsoever said fully probe matter including petraeus visit benghazi feinstein said committee needs talk directly director petraeus king also questioned fbi conducted initial investigation type case usually becomes federal investigation told nbcs today cyber harassment two women two people certainly involving love triangle whatever rise level king said king noted us cyber wars iran china serious enough without putting personnel something like white house press secretary jay carney told reporters tuesday president faith gen allen believes hes done excellent job international security assistance force afghanistan defense secretary leon panetta said statement issued monday informed sunday fbi matter related allen today directed matter referred inspector general department defense investigation hands inspector general said matter investigation facts determined gen allen remain commander isaf leadership instrumental achieving significant progress isaf working alongside afghan partners made bringing greater security afghan people ensuring afghanistan never becomes safe terrorists panetta said allen entitled due process matter petraeus carney said obama surprised petraeus situation told thursday obama greatly appreciates gen petraeus remarkable service country uniform cia probe led petraeus downfall sparked fbi inquiry may kelley contacted fbi agent known told received menacing emails fbis cyber crime unit conducted investigation traced emails broadwell whose messages kelley sent locations united states broadwell book promotion tour fbi probe uncovered information indicating insider within government access sensitive information regarding cia director senior military officers us central command macdill air force base near tampa fla one congressional aide said congress wants find clapper told petraeus resign nobody thought firing offense aide said may petraeus affair someone particularly stable regarding cia role sept 11 benghazi attack senior us intelligence official briefed reporters cias response attack said security team agency annex firefight terrorists attacked diplomatic mission sporadic small arms fire rpg rounds fired annex less two hours first attack cia security personnel returned fire dispersing attackers additional security team flew aircraft tripoli benghazi arrived several hours later arrived terrorist attackers fired mortars annex killing two security officers every level chain command senior officers libya senior officials washington everyone fully engaged trying provide whatever help could official said second guessing decisions made ground people every us organization could play role assisting danger orders anybody stand providing support us military forces sept 11 fight drone aircraft provided intelligence medical evacuation | 907 |
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<p>Image source: Getty Images</p>
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<p>In today's era of stiff competition from low-price, online retailers, maintaining a dividend might seem like a pipe dream for traditional brick and mortar retailers. Still, despite the emerging challenges that they face, there are a handful of retailers that look capable of not just maintaining their dividends, but also increasing them.</p>
<p>The three retailers listed below not only have increased their dividends in the recent past, but they're positioning themselves for a good chance at future dividend growth, too. The key traits they share that put them in that enviable position include a solid corporate financial position and a stronger-than-normal moat protecting them from that intense competitive onslaught.</p>
<p>Home Depot (NYSE: HD) is the world's largest home improvement retailer, and that particular construction titan has figured out ways to build a pretty resilient moat against the online onslaught. Key moat drivers include:</p>
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<p>Buoyed by that competitive benefit helping keep the online competition somewhat subdued, Home Depot has been able to keep increasing its dividend in recent years. What makes Home Depot look capable of continuing to increase its dividend include the following key factors:</p>
<p>Kroger (NYSE: KR) is one of the world's largest grocery retailers, operating nearly two dozen banners in addition to its namesake. Kroger's moat includes its strong local and service oriented focus, the difficulty that online retailers have had with cost-effectively delivering perishables, and the buying power that comes from its size.</p>
<p>Kroger has also been able to regularly increase its dividend recently, including its August 2016 payment, and it too provides signs that it will be well positioned to continue that trend. For instance, Kroger's payout ratio is less than 20% of its earnings, giving it ample room to continue its increases, even if its business doesn't rapidly grow. In addition, with a debt to equity ratio below two to one, Kroger's balance sheet leverage isn't heavy enough to put its dividend at a substantial risk of being cut in order to service its debt costs.</p>
<p>In addition, Kroger is expected to be able to increase its earnings by a touch more than nine percentage points annually over the next five years. For a company to sustainably increase its dividend over time, it needs the earnings and cash to be there to support those increases, and Kroger's projected growth looks capable of supporting that.</p>
<p>As the world's largest retailer, Walmart (NYSE: WMT) has the biggest target on its back when it comes to what the online retailers are aiming at. Still, being the largest also gives Walmart the most resources to protect and even find ways to improve its business over time. For instance, few other retailers could have shelled out over $3 billion for e-commerce start-up retailer Jet.comto take the fight to other online retailers the way Walmart just agreed to do.</p>
<p>In addition, as the Walton family still owns a controlling stake in Walmart, the company isn't as beholden to Wall Street and its short term mentality as other retailers might be. That gives it the ability to build for the longer term, which is a huge asset when its primary online competition is also willing to heavily invest for the future rather than simply seek to maximize the current quarter.</p>
<p>From a dividend perspective, Walmart currently pays out $0.50 per share per quarter, which represents about a third of its earnings. It has a decent history of past dividend increases and that reasonably low payout ratio gives it room to continue increasing its dividend over time as its business grows. In addition, with a fairly low 0.7 debt to equity ratio, Walmart is at low risk of having to cut its dividend to cover its debt payments at any time in the near future.</p>
<p>Over time, of course, no company can sustainably increase its dividend faster than its earnings grow. From that perspective, Walmart's anticipated growth of around 2.4% over the next five years may not seem like much, but it is anticipated growth, despite the online onslaught. And in the end, that's what ultimately gives Walmart the opportunity to continue its trend of dividend increases.</p>
<p>Image source: Getty Images</p>
<p>Despite the challenges of operating and growing a bricks and mortar retail business in this era of online competition, Home Depot, Kroger, and Walmart have proven themselves capable of success. Their dividends have continued to increase despite the changing landscape, and their current strength gives them the agility to continue to adapt with the times. While there are no guarantees in investing, all three of these retailers look capable of continuing their trends of increasing their dividends.</p>
<p>The $15,834 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $15,834 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. <a href="http://www.fool.com/mms/mark/ecap-foolcom-social-security?aid=8727&amp;source=irreditxt0000002&amp;ftm_cam=ryr-ss-intro-report&amp;ftm_pit=3186&amp;ftm_veh=article_pitch&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Simply click here to discover how to learn more about these strategies. Opens a New Window.</a></p>
<p><a href="http://my.fool.com/profile/TMFBigFrog/info.aspx" type="external">Chuck Saletta Opens a New Window.</a>'s wife owns shares of Kroger. The Motley Fool recommends Home Depot. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=isiedilnk018048&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://wiki.fool.com/Motley" type="external">considering a diverse range of insights Opens a New Window.</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | image source getty images continue reading todays era stiff competition lowprice online retailers maintaining dividend might seem like pipe dream traditional brick mortar retailers still despite emerging challenges face handful retailers look capable maintaining dividends also increasing three retailers listed increased dividends recent past theyre positioning good chance future dividend growth key traits share put enviable position include solid corporate financial position strongerthannormal moat protecting intense competitive onslaught home depot nyse hd worlds largest home improvement retailer particular construction titan figured ways build pretty resilient moat online onslaught key moat drivers include advertisement buoyed competitive benefit helping keep online competition somewhat subdued home depot able keep increasing dividend recent years makes home depot look capable continuing increase dividend include following key factors kroger nyse kr one worlds largest grocery retailers operating nearly two dozen banners addition namesake krogers moat includes strong local service oriented focus difficulty online retailers costeffectively delivering perishables buying power comes size kroger also able regularly increase dividend recently including august 2016 payment provides signs well positioned continue trend instance krogers payout ratio less 20 earnings giving ample room continue increases even business doesnt rapidly grow addition debt equity ratio two one krogers balance sheet leverage isnt heavy enough put dividend substantial risk cut order service debt costs addition kroger expected able increase earnings touch nine percentage points annually next five years company sustainably increase dividend time needs earnings cash support increases krogers projected growth looks capable supporting worlds largest retailer walmart nyse wmt biggest target back comes online retailers aiming still largest also gives walmart resources protect even find ways improve business time instance retailers could shelled 3 billion ecommerce startup retailer jetcomto take fight online retailers way walmart agreed addition walton family still owns controlling stake walmart company isnt beholden wall street short term mentality retailers might gives ability build longer term huge asset primary online competition also willing heavily invest future rather simply seek maximize current quarter dividend perspective walmart currently pays 050 per share per quarter represents third earnings decent history past dividend increases reasonably low payout ratio gives room continue increasing dividend time business grows addition fairly low 07 debt equity ratio walmart low risk cut dividend cover debt payments time near future time course company sustainably increase dividend faster earnings grow perspective walmarts anticipated growth around 24 next five years may seem like much anticipated growth despite online onslaught end thats ultimately gives walmart opportunity continue trend dividend increases image source getty images despite challenges operating growing bricks mortar retail business era online competition home depot kroger walmart proven capable success dividends continued increase despite changing landscape current strength gives agility continue adapt times guarantees investing three retailers look capable continuing trends increasing dividends 15834 social security bonus retirees completely overlook youre like americans youre years behind retirement savings handful littleknown social security secrets could help ensure boost retirement income example one easy trick could pay much 15834 year learn maximize social security benefits think could retire confidently peace mind simply click discover learn strategies opens new window chuck saletta opens new windows wife owns shares kroger motley fool recommends home depot try foolish newsletter services free 30 days opens new window fools may hold opinions believe considering diverse range insights opens new window makes us better investors motley fool disclosure policy opens new window | 554 |
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<p>After months and months of debate, health care reform was ushered in this week. While coverage under the Affordable Care Act will not kick in until the first of the year, starting this week small businesses and individuals can start enrolling through the federal government's new Health Insurance Marketplace. Included in that is the Small Business Health Options Program (SHOP) for small businesses with fewer than 50 employees. Here are 10 things small business owners need to know about the new SHOP Marketplace and how it is affecting them.</p>
<p>Continue Reading Below</p>
<p>The Small Business Health Options Program is now open.</p>
<p>This week, the SHOP Marketplace was officially opened for small businesses with fewer than 50 employees. The SHOP Marketplace is a new program under the <a href="http://www.businessnewsdaily.com/2740-affordable-care-small-business.html" type="external">Affordable Care Act Opens a New Window.</a> that is designed to simplify the process of buying health insurance for small businesses. The SHOP Marketplace offers businesses options for controlling the coverage they offer and the premiums they pay for each employee. The Marketplace also allows small businesses to compare and contrast SHOP plans with privately offered plans to ensure they are getting coverage that is most cost-effective for them and their employees.</p>
<p>For more information visit: <a href="https://www.healthcare.gov/what-is-the-shop-marketplace/" type="external">https://www.healthcare.gov/what-is-the-shop-marketplace/ Opens a New Window.</a></p>
<p>Businesses with fewer than 50 employees are not required by the new Affordable Care Act to provide insurance to their employees.</p>
<p>While the SHOP marketplace offers small businesses a chance to find coverage, they are under no obligation to do so. <a href="http://www.businessnewsdaily.com/4779-healthcare-reform-improve-job-market.html" type="external">Obamacare Opens a New Window.</a> includes no penalties for businesses with under 50 employees that choose not to offer health insurance to their employees. Starting next year, however, businesses with more than 50 full-time employees that do not provide coverage to their full-time employees may be subject to fines. According to the Small Business Administration, however, 96 percent of America’s businesses are too small to be subject to these rules.</p>
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<p>For more information visit: <a href="http://www.sba.gov/content/employers-with-up-to-50-employees" type="external">http://www.sba.gov/content/employers-with-up-to-50-employees Opens a New Window.</a></p>
<p>Small businesses are only eligible to obtain coverage via the SHOP Marketplace if they offer insurance coverage to every employee.</p>
<p>In order to qualify for insurance from the SHOP Marketplace, small businesses cannot pick and choose which employees to offer it to. Small businesses with fewer than 50 employees must offer SHOP coverage to all of their full-time employees, as well as those that work more than 30 hours a week, in order to obtain coverage.</p>
<p>For more information visit: <a href="https://www.healthcare.gov/what-is-the-shop-marketplace/" type="external">https://www.healthcare.gov/what-is-the-shop-marketplace/</a></p>
<p>Each state is offering different plans and coverage.</p>
<p>While the SHOP Marketplace is a nationwide program, it is being operated differently in each state. Each state will either have its own Marketplace, partner with the U.S. Department of Health and Human Services (HHS) to partially run the Marketplace, or have a Marketplace run strictly by the HHS.&#160; The Small Business Administration reports that 17 states and the District of Columbia are establishing their own Marketplace, with several others partnering with the HHS.</p>
<p>For more information visit: <a href="https://www.healthcare.gov/what-is-the-marketplace-in-my-state" type="external">https://www.healthcare.gov/what-is-the-marketplace-in-my-state Opens a New Window.</a>.</p>
<p>Larger businesses will eventually gain access to the SHOP Marketplace.</p>
<p>While the SHOP Marketplace is currently only available to businesses with fewer than 50 employees, larger companies will be able to access it in the years ahead. Starting in 2016, SHOP Marketplaces in each state will be open to businesses with fewer than 100 employees.</p>
<p>For more information visit: <a href="https://www.healthcare.gov/what-do-large-business-owners-need-to-know/" type="external">https://www.healthcare.gov/what-do-large-business-owners-need-to-know/ Opens a New Window.</a></p>
<p>Small businesses with fewer than 25 employees may qualify for a tax credit to offset the costs.</p>
<p>Small businesses that opt for coverage for their employees through the SHOP Marketplace may qualify to receive a Small Business Health Tax Care Credit. To be eligible, a business must have less than 35 full-time employees who are making an average of less than $50,000 a year. Starting next year, those businesses that qualify can earn credits worth as much as up to 50 percent of their contribution toward employees' premium costs. The smaller the business, the larger the credit they can earn. The credits are highest for businesses with fewer than 10 employees who are paid less than $25,000 a year.</p>
<p>For more information visit: <a href="https://www.healthcare.gov/will-i-qualify-for-small-business-health-care-tax-credits/" type="external">https://www.healthcare.gov/will-i-qualify-for-small-business-health-care-tax-credits/ Opens a New Window.</a></p>
<p>Small businesses have the option of hiring a licensed agent or broker to help find the best insurance options.</p>
<p>Since navigating the new health care landscape can be confusing, Obamacare gives small businesses the option of working with a licensed agent or broker. These <a href="http://www.businessnewsdaily.com/4933-businesses-starting-to-calculate-effect-of-health-care-reform.html" type="external">health care Opens a New Window.</a> experts can be hired to help small business owners review and compare various coverage plans, choose a plan that best fits their needs, and actually apply for the insurance.</p>
<p>For more information visit: <a href="https://www.healthcare.gov/can-i-use-an-agent-or-broker-in-shop/" type="external">https://www.healthcare.gov/can-i-use-an-agent-or-broker-in-shop/ Opens a New Window.</a></p>
<p>Small businesses that want insurance via the SHOP Marketplace have the choice of several different options.</p>
<p>Thee are four different categories of health care coverage businesses can opt for through the SHOP Marketplace: Bronze, Silver, Gold and Platinum. Each plan offers similar benefits, such as ambulatory patient services, emergency services, hospitalization, pediatric care and preventive wellness services, but are different based on the how much money employees contribute to the costs through their monthly premiums, as well as co-pays, deductibles and other out-of pocket costs.</p>
<p>For more information visit: <a href="https://www.healthcare.gov/how-do-i-choose-insurance-thats-right-for-my-business" type="external">https://www.healthcare.gov/how-do-i-choose-insurance-thats-right-for-my-business Opens a New Window.</a></p>
<p>The self-employed are not considered an employer and must use the individual marketplace to find coverage.</p>
<p>Those who are self-employed, and who have no employees, aren't eligible for insurance through the SHOP Marketplace. Since the self-employed are not considered an employer, even if they hire outside contractors to do some work, they can only obtain health care coverage through the Individual Marketplace, which also opened for enrollment this week.</p>
<p>For more information visit: <a href="https://www.healthcare.gov/what-if-im-self-employed/" type="external">https://www.healthcare.gov/what-if-im-self-employed/ Opens a New Window.</a></p>
<p>While they might not have to offer them insurance, most businesses need to notify employees about the new Health Insurance Marketplace.</p>
<p>Starting this week, all businesses that are covered by the Fair Labor Standards Act must provide a written notice to employees informing them about the Marketplaces, that they may be able to get lower costs through private insurance in the Marketplace based on their income, and that if they buy insurance through the Marketplace, they may lose the employer contribution to their health benefits.</p>
<p>For more information visit: <a href="https://www.healthcare.gov/what-do-i-need-to-tell-my-employees-about-the-marketplace/" type="external">https://www.healthcare.gov/what-do-i-need-to-tell-my-employees-about-the-marketplace/ Opens a New Window.</a></p> | true | 0 | months months debate health care reform ushered week coverage affordable care act kick first year starting week small businesses individuals start enrolling federal governments new health insurance marketplace included small business health options program shop small businesses fewer 50 employees 10 things small business owners need know new shop marketplace affecting continue reading small business health options program open week shop marketplace officially opened small businesses fewer 50 employees shop marketplace new program affordable care act opens new window designed simplify process buying health insurance small businesses shop marketplace offers businesses options controlling coverage offer premiums pay employee marketplace also allows small businesses compare contrast shop plans privately offered plans ensure getting coverage costeffective employees information visit httpswwwhealthcaregovwhatistheshopmarketplace opens new window businesses fewer 50 employees required new affordable care act provide insurance employees shop marketplace offers small businesses chance find coverage obligation obamacare opens new window includes penalties businesses 50 employees choose offer health insurance employees starting next year however businesses 50 fulltime employees provide coverage fulltime employees may subject fines according small business administration however 96 percent americas businesses small subject rules advertisement information visit httpwwwsbagovcontentemployerswithupto50employees opens new window small businesses eligible obtain coverage via shop marketplace offer insurance coverage every employee order qualify insurance shop marketplace small businesses pick choose employees offer small businesses fewer 50 employees must offer shop coverage fulltime employees well work 30 hours week order obtain coverage information visit httpswwwhealthcaregovwhatistheshopmarketplace state offering different plans coverage shop marketplace nationwide program operated differently state state either marketplace partner us department health human services hhs partially run marketplace marketplace run strictly hhs160 small business administration reports 17 states district columbia establishing marketplace several others partnering hhs information visit httpswwwhealthcaregovwhatisthemarketplaceinmystate opens new window larger businesses eventually gain access shop marketplace shop marketplace currently available businesses fewer 50 employees larger companies able access years ahead starting 2016 shop marketplaces state open businesses fewer 100 employees information visit httpswwwhealthcaregovwhatdolargebusinessownersneedtoknow opens new window small businesses fewer 25 employees may qualify tax credit offset costs small businesses opt coverage employees shop marketplace may qualify receive small business health tax care credit eligible business must less 35 fulltime employees making average less 50000 year starting next year businesses qualify earn credits worth much 50 percent contribution toward employees premium costs smaller business larger credit earn credits highest businesses fewer 10 employees paid less 25000 year information visit httpswwwhealthcaregovwilliqualifyforsmallbusinesshealthcaretaxcredits opens new window small businesses option hiring licensed agent broker help find best insurance options since navigating new health care landscape confusing obamacare gives small businesses option working licensed agent broker health care opens new window experts hired help small business owners review compare various coverage plans choose plan best fits needs actually apply insurance information visit httpswwwhealthcaregovcaniuseanagentorbrokerinshop opens new window small businesses want insurance via shop marketplace choice several different options thee four different categories health care coverage businesses opt shop marketplace bronze silver gold platinum plan offers similar benefits ambulatory patient services emergency services hospitalization pediatric care preventive wellness services different based much money employees contribute costs monthly premiums well copays deductibles outof pocket costs information visit httpswwwhealthcaregovhowdoichooseinsurancethatsrightformybusiness opens new window selfemployed considered employer must use individual marketplace find coverage selfemployed employees arent eligible insurance shop marketplace since selfemployed considered employer even hire outside contractors work obtain health care coverage individual marketplace also opened enrollment week information visit httpswwwhealthcaregovwhatifimselfemployed opens new window might offer insurance businesses need notify employees new health insurance marketplace starting week businesses covered fair labor standards act must provide written notice employees informing marketplaces may able get lower costs private insurance marketplace based income buy insurance marketplace may lose employer contribution health benefits information visit httpswwwhealthcaregovwhatdoineedtotellmyemployeesaboutthemarketplace opens new window | 610 |
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<p>RUSH: The Supreme Court, ladies and gentlemen, has upheld Trump’s travel ban and has reinstated it. To me, this is an example of how silly and stupid we have been since Trump was — not us. There has been no question that Trump was totally constitutionally within his rights to issue this travel ban.</p>
<p>An act of Congress that we read to you many times explicitly granted to Trump the official constitutional powers to do exactly what he did and more if he wanted to in his travel ban. It was stayed by all these lower courts and then upheld by the U.S. Ninth Circuit. And it was only a matter of time before it got to the Supreme Court, and the Supreme Court reinstated it and said they’re gonna hear arguments in October.</p>
<p>What this means: Trump was right, Trump had full authority to do what he did. The media experts were wrong, all of this in-depth analysis, all the panel discussions, all the people supporting these judges who said that they were going to stay the travel ban because of what Trump had said during the campaign trail, and all of this enlightened intellectual hemming and hawing back and forth on cable TV, which was an embarrassing joke to anybody who knows the Constitution and the law has just been blown to smithereens.</p>
<p>Now, the Supreme Court, given that courts, including the Supreme Court, allow or deny stays based upon the likelihood that the issue in question will be found to be constitutional or not, this unanimous decision to allow the Trump travel ban to be implemented shows that the court thinks it’s highly likely that Trump will eventually prevail during oral arguments and the formal presentation of the case when the court hears it in October.</p>
<p>The only exception here that the court carved out is that immigrants and refugees and others entering the country cannot be kept out if they can show a definite link, familial or some other type of relation, to somebody who is a citizen living in America.</p>
<p>Now, what’s gonna happen here, remember, now, the left never just says, “Oh, we lost? Oh, okay.” That’s not how they do it. So what’s gonna happen here, the left is gonna go out and find a bunch of people who may or may not have friends or family living in America who are citizens. They’re gonna try to get in, they’re gonna be denied by the ban and then they’re gonna file lawsuits.</p>
<p>I know this because I saw some left-wing commentator on CNN today discuss the likelihood and the possibility, which means they’re already thinking about it and probably already have the process ready to go. Just flood the courts with lawsuit after lawsuit after lawsuit. After attempts to enter the country are denied on the basis of the ban, the left will get into gear and file massive lawsuits against Trump and against the DOJ and against the government for this.</p>
<p>But all that aside, it is something to feel comforted about and revealed about because the Supreme Court — it’s kind of like the Florida recount. The recount in 2000 that the Florida Supreme Court continued to authorize was just crazy. It was asinine. Over and over again the definition of hanging chads changing, and basically the Florida Supreme Court was allowing the recount to go on and on and on until the Democrats could find enough votes for Algore.</p>
<p>And after a time the U.S. Supreme Court shut it down using the law and common sense because the law had been satisfied long before — I’m giving you the Cliffs Notes version of this — and of course the Democrats went nuts claiming the Supreme Court interceded to choose Bush when Bush had already been certified as the president. It was a big argument over nothing except the left turned it into a giant political issue in order to delegitimize Bush for his entire presidency, which they immediately embarked on that course and that political procedure.</p>
<p>Same thing here. There was never any doubt that this travel ban was constitutional. The very federal statute that exists, we read it to you I don’t know how many times, Trump totally satisfied it with this travel ban. The only reason to stop this was political hacks that have been appointed to the judiciary by Obama and other Democrat presidents. And they were simply implementing personal political policy preferences to stop the travel ban rather than looking at is as a matter of law.</p>
<p>It was only a matter of time, folks. I never doubted this. When the Supreme Court saw this, the law is the law, the statute’s the statute. And the Supreme Court was gonna slap this down in no time, and it did. Now, the fact that they’re gonna hear it formally in October doesn’t mean that they’re gonna overturn it. It means they want to probably officially hear this thing and give it the official stamp of approval once it’s all said and done, because this is explicitly about the Constitution and separation of powers. And the judicial branch was way overstepping here for personal political policy reasons on the part of all the judges who decided this. Unanimous.</p>
<p>By the way, as the Supreme Court goes, the media is beside itself today. I’ve seen several leftists in media in a panic over the Supreme Court Justice Gorsuch. You know why? Because Gorsuch, they thought he was a moderate for some reason, Gorsuch was a moderate, they held out great hope that Gorsuch was not actually gonna be a Scalia, and there might be a slight change in balance. And then they found out that Gorsuch has agreed with Clarence Thomas four different times so far on four different cases, and they’re livid now.</p>
<p>They’re claiming there’s nothing moderate about the guy. He’s just as insane, he’s just as wacko, he’s an extremist and we were fooled. All because he agreed with Clarence Thomas four times. Look, the Democrats are in trouble in more ways than one. I know it’s not fashionable to portray them that way because of the history that they have, seemingly on a whim, being able to win and overpower their opponents, but they are encountering a lot of problems. They’re in the midst of tremendous problems and I’m gonna continue to point them out when I see them.</p>
<p>BREAK TRANSCRIPT</p>
<p>RUSH: Now, the Supreme Court, the decision today on the travel ban actually warns nonprofits about setting up phony relationships in order to secure entry by foreigners banned by the travel ban. This is anybody who can claim a legitimate relationship with somebody living in the country now can be exempted from the ban. And I saw some eager beaver leftist on CNN earlier today talking about all the lawsuits that are waiting to happen, which told me they’re already lining them up.</p>
<p>And so the judiciary has been warned for this, and the court, Supreme Court has even warned nonprofits against trying to do this, ’cause it’s the one opening that has been left for people to get in. You mark my words. And the mainstream media anger over this… There’s more outrage from the Drive-Bys over the travel ban than we saw from them after any recent terror attack. They’re livid here. They thought they had Trump boxed in. And Trump just keeps prevailing. It’s one of the reasons I think the worm’s turning.</p>
<p>BREAK TRANSCRIPT</p>
<p>RUSH: Now, one thing about the Supreme Court ruling here on the travel ban, if I may briefly return to that. And of course I can; it’s my program; I can take it anywhere I want it to go. The court said that essentially Trump’s travel ban stands, that it is constitutional. They left one category of foreigner protected: those with a credible claim of a bona fide relationship with a person or entity in the United States. It’s an unsigned opinion. It’s unanimous. It really makes the last however many months since the first travel ban, it makes these last months just a total joke.</p>
<p>Look at what this country has been put through. Look at what the people of this country have been put through by decidedly extraconstitutional acts by hack judges in Seattle and in Hawaii and of course the appellate judges on the Ninth Circuit Court of Appeals. There was never any question statutorily, constitutionally, that the Trump travel ban passed every constitutional test. It was 100 percent constitutional. And it was stayed simply because of the personal political policy preferences of individual district court judges and the Ninth Circuit appellate judges.</p>
<p>And everything they did was bogus. Everything they wrote was bogus. Everything they wrote stood the law on its head upside down. When it got to the Supreme Court — and it’s unanimous. You don’t even have the four libs trying to bail these judges out, it’s unanimous. The Trump travel ban is a thousand percent constitutional with the one exception, and that is foreigners with a credible claim of a bona fide relationship with a person or entity in the United States can be permitted entry, which is gonna open lawsuits.</p>
<p>They punted this until October. And one of the original takes on this, “Well, October, that’s the next session of the court. They have gone ahead and implemented the ban, which means that they think that Trump would prevail under a full-fledged hearing,” blah, blah, blah. There could also be something else going on here. It could well be, ’cause the court could have ruled in toto today if they wanted to. They just didn’t want to maybe give the impression of a full-fledged hearing with oral arguments and all the “shebaz” that goes with it. But in truth they’re probably never gonna hear the case.</p>
<p>The terms of the Trump travel ban limit its application to 90 days or four times, 90 or 120 days.</p>
<p>And Trump said he’s gonna implement the thing in a couple of days after any court rules that it’s constitutional, so that should happen this week. And the travel ban itself is 90 days, 120 days, not sure which. And the reason for that, this is in part of the Trump ban, was during the period of the ban the administration is going to develop new vetting procedures. It’s not a permanent ban. It’s not a policy statement or position. It provides a period of time for the administration to change, ramp up, or vet new vetting procedures. And then after those have been developed the ban’s lifted and a new policy gets put into place.</p>
<p>The Supreme Court may be figuring that by the time they get back after their summer recess, which will be October, that the travel ban order will have lapsed, 90 days, 120 days. By the time they get back, it’s over, in which case the case would be over, the case would be moot. And what would be argued about would be the new vetting procedures that the administration comes up with during the 90 or 120 days of the travel ban. They may not even want to hear the case at all is the point. Could be why they happen.</p>
<p>BREAK TRANSCRIPT</p>
<p>RUSH: Here is Eric in Dallas. Welcome to the EIB Network, sir. Hello.</p>
<p>CALLER: Good afternoon, Rush. Thanks for taking my call.</p>
<p>RUSH: Yes, sir.</p>
<p>CALLER: I wanted to switch over just a little bit and ask you a question about the Supreme Court decision on the travel ban. While I am pleased that they have reinstituted it, I don’t really understand how it will be considered appropriate for the Supreme Court to institute a friends and family plan. It sounds to me kind of like legislating from the bench, you know, that they take this ban and then they say, “Well, part of it might be okay, part of it’s not, we’re gonna make this part okay, or we’re gonna say it’s okay for now except for these people.”</p>
<p>RUSH: I think what this is related to is the original travel ban had a bit of a flaw in it in that it kept people with green cards, if they were out of the country, from getting back in. If you’ve been issued a green card, you’re almost commanded to be here. It’s a step in the citizenship process, and if you had been out of the country when the first travel ban was implemented, you would not have been permitted back in. That was an error, and I don’t know how it was fixed in subsequent writings of the travel ban. I suspect it’s at the root of it here. The court leaves this category of foreigners protected, those with a credible claim of a bona fide relationship with a person or entity in the United States. I agree with you, it leaves the door pretty wide open. And who gets to decide who has a bona fide relationship, you know, does the ACLU get to decide that? Does some other special interest group?</p>
<p>CALLER: Right. I mean, I don’t personally have anything opposed to that sort of exemption. I just don’t understand how it’s accepted that the Supreme Court could come up with that and put that into the executive order. You know, certainly a lot of us were unsatisfied when other things have come up like, you know, Obamacare and the individual mandate penalty. Was it a tax or was it a —</p>
<p>RUSH: Right. And the chief justice rewrote the law to make it constitutional because he didn’t think it was —</p>
<p>CALLER: Right.</p>
<p>RUSH: — his job to — yeah, I think this probably — and I’m just guessing. I will be able to dig deep, this came out not long enough, not enough time before the show began to dig deep in this, and I’ll be able to before the program ends here, but I think this is also part of the — it’s not a final ruling. We’re gonna hear the case in October, and until then, da-da-da-da-da, so that it doesn’t have a total finality to it.</p>
<p>BREAK TRANSCRIPT</p>
<p>RUSH: Let me give you some of the examples the court sites here in their ruling today. Several examples to explain who may enter the country during the travel ban. One example is if U.S. citizens claim close relatives from one of the targeted countries, they will be able to enter. So if Mustapha Sahib Skyhook from Dearbornistan says he’s got a close family member from some country that’s on the banned list, the guy can get in, it seems. from a targeted country.</p>
<p>Seems to be able to do so. If U.S. universities have accepted students from one of the targeted countries, the students will be able to enter, the university being an entity. They can start their studies. If a U.S. business has given a job to a worker from one of the targeted countries, the worker will be able to enter the country and do that job.</p>
<p>Now, this doesn’t appear to jibe with what the law says, which is that the president can ban anyone in the interests of national security, and that is statue that we have often cited and read from verbatim here on the program countless times. Notice that the court’s ruling did not make any mention of what Trump or his surrogates have said on the campaign trail about Muslims.</p>
<p>Well, I’m being a little facetious here. The lower court judges, in putting a stay on Trump’s ban, said, “He’s lying. He hates Muslims. He’s trying to ban all Muslims. He’s trying to ban a religion and it’s against our values. And he said so on the campaign trail.”</p>
<p>But it doesn’t say that in the executive order.</p>
<p>“It doesn’t have to,” say the judges. “We know what he means. We can read his mind. We know that Trump’s a bigot. We know we hate Trump, and we know what he really wants to do, and we’re not gonna let him do it.” And so that’s how they formed the legal basis, that judge Seattle, the judge in Hawaii, and the Ninth Circuit appellate judges all agreed that the Trump travel ban was not true. That Trump really was using the travel ban to implement his Muslim hatred and bigotry. And the Supreme Court makes no mention of any of that in their ruling today.</p>
<p>Now, let’s take the university example. Now, I understand this one. If you’re in one of the targeted countries yesterday and you have an agreement and you paid or you have a scholarship and you’re gonna come to the University of What’s Happening Now, and you’re gonna start your fall term in September, the travel ban can’t stop you. You already had an agreement with an entity that had accepted you and so you can come.</p>
<p>Another one is the close relative. If a U.S. citizen claims close relatives from one of the targeted countries, they’ll be able to come in. As I say, so if you have a close relative in one of the banned countries and your relative was your relative yesterday and the ban goes into effect Wednesday, it’s still your relative so your relative can get in.</p>
<p>I don’t know on what basis these exceptions were carved out. I didn’t have enough time before the program began to dig into this, like I will have after the program to dig into it, which I will do, because it does seem to be a little conflicted here. The statute that we read, the statute that exists here, Trump can ban anybody for any reason whatsoever, in the national interests. The Supreme Court has found it necessary to carve out some exceptions here, which I’ll get to the bottom of.</p> | true | 0 | rush supreme court ladies gentlemen upheld trumps travel ban reinstated example silly stupid since trump us question trump totally constitutionally within rights issue travel ban act congress read many times explicitly granted trump official constitutional powers exactly wanted travel ban stayed lower courts upheld us ninth circuit matter time got supreme court supreme court reinstated said theyre gon na hear arguments october means trump right trump full authority media experts wrong indepth analysis panel discussions people supporting judges said going stay travel ban trump said campaign trail enlightened intellectual hemming hawing back forth cable tv embarrassing joke anybody knows constitution law blown smithereens supreme court given courts including supreme court allow deny stays based upon likelihood issue question found constitutional unanimous decision allow trump travel ban implemented shows court thinks highly likely trump eventually prevail oral arguments formal presentation case court hears october exception court carved immigrants refugees others entering country kept show definite link familial type relation somebody citizen living america whats gon na happen remember left never says oh lost oh okay thats whats gon na happen left gon na go find bunch people may may friends family living america citizens theyre gon na try get theyre gon na denied ban theyre gon na file lawsuits know saw leftwing commentator cnn today discuss likelihood possibility means theyre already thinking probably already process ready go flood courts lawsuit lawsuit lawsuit attempts enter country denied basis ban left get gear file massive lawsuits trump doj government aside something feel comforted revealed supreme court kind like florida recount recount 2000 florida supreme court continued authorize crazy asinine definition hanging chads changing basically florida supreme court allowing recount go democrats could find enough votes algore time us supreme court shut using law common sense law satisfied long im giving cliffs notes version course democrats went nuts claiming supreme court interceded choose bush bush already certified president big argument nothing except left turned giant political issue order delegitimize bush entire presidency immediately embarked course political procedure thing never doubt travel ban constitutional federal statute exists read dont know many times trump totally satisfied travel ban reason stop political hacks appointed judiciary obama democrat presidents simply implementing personal political policy preferences stop travel ban rather looking matter law matter time folks never doubted supreme court saw law law statutes statute supreme court gon na slap time fact theyre gon na hear formally october doesnt mean theyre gon na overturn means want probably officially hear thing give official stamp approval said done explicitly constitution separation powers judicial branch way overstepping personal political policy reasons part judges decided unanimous way supreme court goes media beside today ive seen several leftists media panic supreme court justice gorsuch know gorsuch thought moderate reason gorsuch moderate held great hope gorsuch actually gon na scalia might slight change balance found gorsuch agreed clarence thomas four different times far four different cases theyre livid theyre claiming theres nothing moderate guy hes insane hes wacko hes extremist fooled agreed clarence thomas four times look democrats trouble ways one know fashionable portray way history seemingly whim able win overpower opponents encountering lot problems theyre midst tremendous problems im gon na continue point see break transcript rush supreme court decision today travel ban actually warns nonprofits setting phony relationships order secure entry foreigners banned travel ban anybody claim legitimate relationship somebody living country exempted ban saw eager beaver leftist cnn earlier today talking lawsuits waiting happen told theyre already lining judiciary warned court supreme court even warned nonprofits trying cause one opening left people get mark words mainstream media anger theres outrage drivebys travel ban saw recent terror attack theyre livid thought trump boxed trump keeps prevailing one reasons think worms turning break transcript rush one thing supreme court ruling travel ban may briefly return course program take anywhere want go court said essentially trumps travel ban stands constitutional left one category foreigner protected credible claim bona fide relationship person entity united states unsigned opinion unanimous really makes last however many months since first travel ban makes last months total joke look country put look people country put decidedly extraconstitutional acts hack judges seattle hawaii course appellate judges ninth circuit court appeals never question statutorily constitutionally trump travel ban passed every constitutional test 100 percent constitutional stayed simply personal political policy preferences individual district court judges ninth circuit appellate judges everything bogus everything wrote bogus everything wrote stood law head upside got supreme court unanimous dont even four libs trying bail judges unanimous trump travel ban thousand percent constitutional one exception foreigners credible claim bona fide relationship person entity united states permitted entry gon na open lawsuits punted october one original takes well october thats next session court gone ahead implemented ban means think trump would prevail fullfledged hearing blah blah blah could also something else going could well cause court could ruled toto today wanted didnt want maybe give impression fullfledged hearing oral arguments shebaz goes truth theyre probably never gon na hear case terms trump travel ban limit application 90 days four times 90 120 days trump said hes gon na implement thing couple days court rules constitutional happen week travel ban 90 days 120 days sure reason part trump ban period ban administration going develop new vetting procedures permanent ban policy statement position provides period time administration change ramp vet new vetting procedures developed bans lifted new policy gets put place supreme court may figuring time get back summer recess october travel ban order lapsed 90 days 120 days time get back case case would case would moot would argued would new vetting procedures administration comes 90 120 days travel ban may even want hear case point could happen break transcript rush eric dallas welcome eib network sir hello caller good afternoon rush thanks taking call rush yes sir caller wanted switch little bit ask question supreme court decision travel ban pleased reinstituted dont really understand considered appropriate supreme court institute friends family plan sounds kind like legislating bench know take ban say well part might okay part gon na make part okay gon na say okay except people rush think related original travel ban bit flaw kept people green cards country getting back youve issued green card youre almost commanded step citizenship process country first travel ban implemented would permitted back error dont know fixed subsequent writings travel ban suspect root court leaves category foreigners protected credible claim bona fide relationship person entity united states agree leaves door pretty wide open gets decide bona fide relationship know aclu get decide special interest group caller right mean dont personally anything opposed sort exemption dont understand accepted supreme court could come put executive order know certainly lot us unsatisfied things come like know obamacare individual mandate penalty tax rush right chief justice rewrote law make constitutional didnt think caller right rush job yeah think probably im guessing able dig deep came long enough enough time show began dig deep ill able program ends think also part final ruling gon na hear case october dadadadada doesnt total finality break transcript rush let give examples court sites ruling today several examples explain may enter country travel ban one example us citizens claim close relatives one targeted countries able enter mustapha sahib skyhook dearbornistan says hes got close family member country thats banned list guy get seems targeted country seems able us universities accepted students one targeted countries students able enter university entity start studies us business given job worker one targeted countries worker able enter country job doesnt appear jibe law says president ban anyone interests national security statue often cited read verbatim program countless times notice courts ruling make mention trump surrogates said campaign trail muslims well im little facetious lower court judges putting stay trumps ban said hes lying hates muslims hes trying ban muslims hes trying ban religion values said campaign trail doesnt say executive order doesnt say judges know means read mind know trumps bigot know hate trump know really wants gon na let thats formed legal basis judge seattle judge hawaii ninth circuit appellate judges agreed trump travel ban true trump really using travel ban implement muslim hatred bigotry supreme court makes mention ruling today lets take university example understand one youre one targeted countries yesterday agreement paid scholarship youre gon na come university whats happening youre gon na start fall term september travel ban cant stop already agreement entity accepted come another one close relative us citizen claims close relatives one targeted countries theyll able come say close relative one banned countries relative relative yesterday ban goes effect wednesday still relative relative get dont know basis exceptions carved didnt enough time program began dig like program dig seem little conflicted statute read statute exists trump ban anybody reason whatsoever national interests supreme court found necessary carve exceptions ill get bottom | 1,472 |
<p>Why I Use The Authorized Version Of God's Holy Word</p>
<p>The King of Bible Translations "Where the word of a king [is, there is] power" <a href="javascript:;" type="external">Ecclesiastes 8:4</a></p>
<p>A personal testimony of the King James Bible by Geoffrey Grider How well remember the night that I put my trust and faith in the promised Jewish Messiah - Jesus the Christ. I was on my knees in my bedroom, with the bible opened to the only verse that I knew - John 3:16. And the only reason I knew that verse was because I watch a lot of NFL football, and saw the "John 3:16" signs that someone is always holding up in the end zone. I found out later that that is an actual ministry, which for me, worked pretty good. So there I was on my knees, in the dark, reading the only verse that I knew, and trusting in God's Provision. "For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life." <a href="javascript:;" type="external">John 3:16</a> The King James Bible has withstood the test of time, and is the version God used during the greatest period of evangelism in world history The bible I had open? It was a very dusty, never used King James Bible, published by the Gideons, that my dad had "borrowed" from a hotel room on a business trip <a href="javascript:;" type="external" />. It sat there all those years, waiting for someone to open it up and drink deeply from it's life-giving waters that were contained inside. I had no clue of bible versions, all I knew is I read the words on the page, believed what I read, and trusted God for the rest. "The words of the LORD [are] pure words: [as] silver tried in a furnace of earth, purified seven times. Thou shalt keep them, O LORD, thou shalt preserve them from this generation for ever." <a href="javascript:;" type="external">Psalm 12: 6,7</a> But little did I know that there was a bible version battle raging, with over 250 translations all competing for the title of God's Holy Word. And little did I know that I would become a champion of one of those versions.</p>
<p>Salvation by Works or Faith in Jesus Christ?</p>
<p>QUESTION: I have been told that King James was a homosexual. Is this true?</p>
<p>ANSWER: No. EXPLANATION: King James I of England, who authorized the translation of the now famous King James Bible, was considered by many to be one of the greatest, if not the greatest, monarchs that England has ever seen. Through his wisdom and determination he united the warring tribes of Scotland into a unified nation, and then joined England and Scotland to form the foundation for what is now known as the British Empire. At a time when only the churches of England possessed the Bible in English, King James' desire was that the common people should have the Bible in their native tongue. Thus, in 1603, King James called 54 of history's most learned men together to accomplish this great task. At a time when the leaders of the world wished to keep their subjects in spiritual ignorance, King James offered his subjects the greatest gift that he could give them. Their own copy of the Word of God in English. James, who was fluent in Latin, Greek, and French, and schooled in Italian and Spanish even wrote a tract entitled "Counterblast to Tobacco",which was written to help thwart the use of tobacco in England. Such a man was sure to have enemies. One such man, Anthony Weldon, had to be excluded from the court. Weldon swore vengeance. It was not until 1650, twenty-five years after the death of James that Weldon saw his chance. He wrote a paper calling James a homosexual. Obviously, James, being dead, was in no condition to defend himself. The report was largely ignored since there were still enough people alive who knew it wasn't true. In fact, it lay dormant for years, until recently when it was picked up by Christians who hoped that vilifying King James, would tarnish the Bible that bears his name so that Christians would turn away from God's book to a more "modern" translation. It seems though, that Weldon's false account is being once again largely ignored by the majority of Christianity with the exception of those with an ulterior motive, such as its author had. It might also be mentioned here that the Roman Catholic Church was so desperate to keep the true Bible out of the hands of the English people that it attempted to kill King James and all of Parliament in 1605. In 1605 a Roman Catholic by the name of Guy Fawkes, under the direction of a Jesuit priest by the name of Henry Garnet, was found in the basement of Parliament with thirty-six barrels of gunpowder which he was to use to blow up King James and the entire Parliament. After killing the king, they planned on imprisoning his children, re-establishing England as a state loyal to the Pope and kill all who resisted. Needless to say, the perfect English Bible would have been one of the plot's victims. Fawkes and Garnet and eight other conspirators were caught and hanged. It seems that those who work so hard to discredit the character of King James join an unholy lot. <a href="javascript:;" type="external">source - The Answer Book by Dr. Samuel Gipp</a></p>
<p>&#160;</p>
<p>QUESTION: Haven't there been several revisions of the King James Bible since 1611?</p>
<p>ANSWER: No. There have been several editions but no revisions.</p>
<p>EXPLANATION: One of the last ditch defenses of a badly shaken critic of the Authorized Version 1611 is the "revision hoax." They run to this seeming fortress in an attempt to stave off ultimate defeat by their opponents who overwhelm their feeble arguments with historic facts, manuscript evidence and to obvious workings of the Holy Spirit. Once inside, they turn self-confidently to their foes and ask with a smug look, "Which King James do you use, the 1611 or the 1629 or perhaps the 1769?" The shock of this attack and the momentary confusion that results usually allows them time to make good their escape. Unfortunately, upon entering their castle and closing the door behind them they find that their fortress has been systematically torn down, brick by brick, by a man with the title of Dr. David F. Reagan. Dr. Reagan pastors the Trinity Baptist Temple in Knoxville, Tennessee. He has written a devastating expose on the early editions of the King James Bible entitled "The King James Version of 1611. The Myth of Early Revisions." Dr. Reagan has done an excellent job of destroying the last stronghold of Bible critics. I see neither a way, nor a reason to try to improve on his finding. So I have secured his permission to reproduce his pamphlet in its entirety.</p>
<p>THE KING JAMES VERSION OF 1611 THE MYTH OF EARLY REVISIONS</p>
<p>Introduction</p>
<p>Men have been "handling the word of God deceitfully" (II Cor. 4:2) ever since the devil first taught Eve how. From Cain to Balaam, from Jehudi to the scribes and Pharisees, from the Dark Age theologians to present-day scholars, the living words of the Almighty God have been prime targets for man's corrupting hand. The attacks on the Word of God are threefold: addition, subtraction, and substitution. From Adam's day to the computer age, the strategies have remained the same. There is nothing new under the sun. One attack which is receiving quite a bit of attention these days is a direct attack on the Word of God as preserved in the English language: the King James Version of 1611. The attack referred to is the myth which claims that since the King James Version has already been revised four times, there should be and can be no valid objection to other revisions. This myth was used by the English Revisers of 1881 and has been revived in recent years by Fundamentalist scholars hoping to sell their latest translation. This book is given as an answer to this attack. The purpose of the material is not to convince those who would deny this preservation but to strengthen the faith of those who already believe in a preserved English Bible. One major question often arises in any attack such as this. How far should we go in answering the critics? If we were to attempt to answer every shallow objection to the infallibility of the English Bible, we would never be able to accomplish anything else. Sanity must prevail somewhere. As always, the answer is in God's Word. Proverbs 26:4-5 states: Answer not a fool according to his folly, lest thou also be like unto him. Answer a fool according to his folly, lest he be wise in his own conceit. Obviously, there are times when a foolish query should be ignored and times when it should be met with an answer. If to answer the attack will make you look as foolish as the attacker, then the best answer is to ignore the question. For instance, if you are told that the Bible cannot be infallible because so-and-so believes that it is, and he is divorced, then you may safely assume that silence is the best answer. On the other hand, there are often questions and problems that, if true, would be serious. To ignore these issues would be to leave the Bible attacker wise in his own conceit. I believe that the question of revisions to the King James Version of 1611 is a question of the second class. If the King James Version has undergone four major revisions of its text, then to oppose further revisions on the basis of an established English text would truly be faulty. For this reason, this attack should and must be answered. Can the argument be answered? Certainly! That is the purpose of this book.</p>
<p>I - THE PRINTING CONDITIONS OF 1611</p>
<p>If God did preserve His Word in the English language through the Authorized Version of 1611 (and He did), then where is our authority for the infallible wording? Is it in the notes of the translators? Or is it to be found in the proof copy sent to the printers? If so, then our authority is lost because these papers are lost. But, you say, the authority is in the first copy which came off the printing press. Alas, that copy has also certainly perished. In fact, if the printing of the English Bible followed the pattern of most printing jobs, the first copy was probably discarded because of bad quality. That leaves us with existing copies of the first printing. They are the ones often pointed out as the standard by which all other King James Bibles are to be compared. But are they? Can those early printers of the first edition not be allowed to make printing errors? We need to establish one thing from the outset. The authority for our preserved English text is not found in any human work. The authority for our preserved and infallible English text is in God! Printers may foul up at times and humans will still make plenty of errors, but God in His power and mercy will preserve His text despite the weaknesses of fallible man. Now, let us look at the pressures on a printer in the year of 1611. Although the printing press had been invented in 1450 by Johann Gutenburg in Germany (161 years before the 1611 printing), the equipment used by the printer had changed very little. Printing was still very slow and difficult. All type was set by hand, one piece at a time (that's one piece at a time through the whole Bible), and errors were an expected part of any completed book. Because of this difficulty and also because the 1611 printers had no earlier editions from which to profit, the very first edition of the King James Version had a number of printing errors. As shall later be demonstrated, these were not the sort of textual alterations which are freely made in modern bibles. They were simple, obvious printing errors of the sort that can still be found at times in recent editions even with all of the advantages of modem printing. These errors do not render a Bible useless, but they should be corrected in later editions. The two original printings of the Authorized Version demonstrate the difficulty of printing in 1611 without making mistakes. Both editions were printed in Oxford. Both were printed in the same year: 1611. The same printers did both jobs. Most likely, both editions were printed on the same printing press. Yet, in a strict comparison of the two editions, approximately 100 textual differences can be found. In the same vein the King James critics can find only about 400 alleged textual alterations in the King James Version after 375 years of printing and four so-called revisions! Something is rotten in Scholarsville! The time has come to examine these revisions."</p>
<p>11 - THE FOUR SO-CALLED REVISIONS OF THE 1611 KJV</p>
<p>Much of the information in this section is taken from a book by F.H.A. Scrivener called The Authorized Edition of the English Bible (1611), Its Subsequent Reprints and Modern Representatives. The book is as pedantic as its title indicates. The interesting point is that Scrivener, who published this book in 1884, was a member of the Revision Committee of 1881. He was not a King James Bible believer, and therefore his material is not biased toward the Authorized Version. In the section of Scrivener's book dealing with the KJV "revisions," one initial detail is striking. The first two so-called major revisions of the King James Bible occurred within 27 years of the original printing. (The language must have been changing very rapidly in those days.) The 1629 edition of the Bible printed in Cambridge is said to have been the first revision. A revision it was not, but simply a careful correction of earlier printing errors. Not only was this edition completed just eighteen years after the translation, but two of the men who participated in this printing, Dr. Samuel Ward and John Bois, had worked on the original translation of the King James Version. Who better to correct early errors than two who had worked on the original translation! Only nine years later and in Cambridge again, another edition came out which is supposed to have been the second major revision. Both Ward and Bois were still alive, but it is not known if they participated at this time. But even Scrivener, who as you remember worked on the English Revised Version of 1881, admitted that the Cambridge printers had simply reinstated words and clauses overlooked by the 1611 printers and amended manifest errors. According to a study which will be detailed later, 72% of the approximately 400 textual corrections in the KJV were completed by the time of the 1638 Cambridge edition, only 27 years after the original printing! Just as the first two so-called revisions were actually two stages of one process: the purification of early printing errors, so the last two so-called revisions were two stages in another process: the standardization of the spelling, These two editions were only seven years apart (1762 and 1769) with the second one completing what the first had started. But when the scholars are numbering revisions, two sounds better than one. Very few textual corrections were necessary at this time. The thousands of alleged changes are spelling changes made to match the established correct forms. These spelling changes will be discussed later. Suffice it to say at this time that the tale of four major revisions is truly a fraud and a myth. But you say, there are still changes whether they be few or many. What are you going to do with the changes that are still there? Let us now examine the character of these changes.</p>
<p>III - THE SO-CALLED THOUSANDS OF CHANGES</p>
<p>Suppose someone were to take you to a museum to see an original copy of the King James Version. You come to the glass case where the Bible is displayed and look down at the opened Bible through the glass. Although you are not allowed to flip through its pages, you can readily tell that there are some very different things about this Bible from the one you own. You can hardly read its words, and those you can make out are spelled in odd and strange ways. Like others before you, you leave with the impression that the King James Version has undergone a multitude of changes since its original printing in 1611. But beware, you have just been taken by a very clever ploy. The differences you saw are not what they seem to be. Let's examine the evidence.</p>
<p>Printing Changes For proper examination, the changes can be divided into three kinds: printing changes, spelling changes, and textual changes. Printing changes will be considered first. The type style used in 1611 by the KJV translators was the Gothic Type Style. The type style you are reading right now and are familiar with is Roman Type. Gothic Type is sometimes called Germanic because it originated in Germany. Remember, that is where printing was invented. The Gothic letters were formed to resemble the hand-drawn manuscript lettering of the Middle Ages. At first, it was the only style in use. The Roman Type Style was invented fairly early, but many years passed before it became the predominate style in most European countries. Gothic continued to be used in Germany until recent years. In 1611 in England, Roman Type was already very popular and would soon supersede the Gothic. However, the original printers chose the Gothic Style for the KJV because it was considered to be more beautiful and eloquent than the Roman. But the change to Roman Type was not long in coming. In 1612, the first King James Version using Roman Type was printed. Within a few years, all the bibles printed used the Roman Type Style. Please realize that a change in type style no more alters the text of the Bible than a change in format or type size does. However, the modem reader who has not become familiar with Gothic can find it very difficult to understand. Besides some general change in form, several specific letter changes need to be observed. For instance, the Gothic s looks like the Roman s when used as a capital letter or at the end of a word. But when it is used as a lower case s at the beginning or in the middle of a word, the letter looks like our f. Therefore, also becomes alfo and set becomes fet. Another variation is found in the German v and u. The Gothic v looks like a Roman u while the Gothic u looks like the Roman v. This explains why our w is called a double-u and not a double-v. Sound confusing? It is until you get used to it. In the 1611 edition, love is loue, us is vs, and ever is euer. But remember, these are not even spelling changes. They are simply type style changes. In another instance, the Gothic j looks like our i. So Jesus becomes Iefus (notice the middle s changed to f) and joy becomes ioy. Even the Gothic d with the stem leaning back over the circle in a shape resembling that of the Greek Delta. These changes account for a large percentage of the "thousands" of changes in the KJV, yet they do no harm whatsoever to the text. They are nothing more than a smokescreen set up by the attackers of our English Bible. Spelling Changes Another kind of change found in the history of the Authorized Version are changes of orthography or spelling. Most histories date the beginning of Modern English around the year 1500. Therefore, by 1611 the grammatical structure and basic vocabulary of present-day English had long been established. However, the spelling did not stabilize at the same time. In the 1600's spelling was according to whim. There was no such thing as correct spelling. No standards had been established. An author often spelled the same word several different ways, often in the same book and sometimes on the same page. And these were the educated people. Some of you reading this today would have found the 1600's a spelling paradise. Not until the eighteenth century did the spelling begin to take a stable form. Therefore, in the last half of the eighteenth century, the spelling of the King James Version of 1611 was standardized. What kind of spelling variations can you expect to find between your present edition and the 1611 printing? Although every spelling difference cannot be categorized, several characteristics are very common. Additional e's were often found at the end of the words such as feare, darke, and beare. Also, double vowels were much more common than they are today. You would find ee, bee, and mooued instead of me, be, and moved. Double consonants were also much more common. What would ranne, euill, and ftarres be according to present-day spelling? See if you can figure them out. The present-day spellings would be ran, evil, and stars. These typographical and spelling changes account for almost all of the so-called thousands of changes in the King James Bible. None of them alter the text in any way. Therefore they cannot be honestly compared with thousands of true textual changes which are blatantly made in the modern versions.</p>
<p>Textual Changes Almost all of the alleged changes have been accounted for. We now come to the question of actual textual differences between our present editions and that of 1611. There are some differences between the two, but they are not the changes of a revision. They are instead the correction of early printing errors. That this is a fact may be seen in three things: (1) the character of the changes, (2) the frequency of the changes throughout the Bible, and (3) the time the changes were made. First, let us look at the character of the changes made from the time of the first printing of the Authorized English Bible. The changes from the 1611 edition that are admittedly textual are obviously printing errors because of the nature of these changes. They are not textual changes made to alter the reading. In the first printing, words were sometimes inverted. Sometimes a plural was written as singular or visa versa. At times a word was miswritten for one that was similar. A few times a word or even a phrase was omitted. The omissions were obvious and did not have the doctrinal implications of those found in modern translations. In fact, there is really no comparison between the corrections made in the King James text and those proposed by the scholars of today. F.H.A. Scrivener, in the appendix of his book, lists the variations between the 1611 edition of the KJV and later printings. A sampling of these corrections is given below. In order to be objective, the samples give the first textual correction on consecutive left hand pages of Scrivener's book. The 1611 reading is given first; then the present reading; and finally, the date the correction was first made.</p>
<p>1 this thing - this thing also (1638) 2 shalt have remained - ye shall have remained (1762) 3 Achzib, nor Helbath, nor Aphik - of Achzib, nor of Helbath, nor of Aphik (1762) 4 requite good - requite me good (1629) 5 this book of the Covenant - the book of this covenant (1629) 6 chief rulers - chief ruler (1629) 7 And Parbar - At Parbar (1638) 8 For this cause - And for this cause (1638) 9 For the king had appointed - for so the king had appointed (1629) 10 Seek good - seek God (1617) 11 The cormorant - But the cormorant (1629) 12 returned - turned (1769) 13 a fiery furnace - a burning fiery furnace (1638) 14 The crowned - Thy crowned (1629) 15 thy right doeth - thy right hand doeth (1613) 16 the wayes side - the way side (1743) 17 which was a Jew - which was a Jewess (1629) 18 the city - the city of the Damascenes (1629) 19 now and ever - both now and ever (1638) 20 which was of our father's - which was our fathers (1616)</p>
<p>Before your eyes are 5% of the textual changes made in the King James Version in 375 years. Even if they were not corrections of previous errors, they would be of no comparison to modem alterations. But they are corrections of printing errors, and therefore no comparison is at all possible. Look at the list for yourself and you will find only one that has serious doctrinal implications. In fact, in an examination of Scrivener's entire appendix, it is the only variation found by this author that could be accused of being doctrinal. I am referring to Psalm 69:32 where the 1611 edition has "seek good" when the Bible should have read "seek God." Yet, even with this error, two points demonstrate that this was indeed a printing error. First, the similarity of the words "good" and "God" in spelling shows how easily a weary type setter could misread the proof and put the wrong word in the text. Second, this error was so obvious that it was caught and corrected in the year 1617, only six years after the original printing and well before the first so-called revision. The myth that there are several major revisions to the 1611 KJV should be getting clearer. But there is more. Not only does the character of the changes show them to be printing errors, so does their frequency. Fundamentalist scholars refer to the thousands of revisions made to the 1611 as if they were on a par with the recent bible versions. They are not. The overwhelming majority of them are either type style or spelling changes. The few which do remain are clearly corrections of printing errors made because of the tediousness involved in the early printing process. The sample list given above will demonstrate just how careful Scrivener was in listing all the variations. Yet, even with this great care, only approximately 400 variations are named between the 1611 edition and modern copies. Remember that there were 100 variations between the first two Oxford editions which were both printed in 1611. Since there are almost 1200 chapters in the Bible, the average variation per chapter (after 375 years) is one third, i.e., one correction per every three chapters. These are changes such as "chief rulers" to "chief ruler" and "And Parbar" to "At Parbar." But there is yet one more evidence that these variations are simply corrected printing errors: the early date at which they were corrected. The character and frequency of the textual changes clearly separate them from modern alterations. But the time the changes were made settles the issue absolutely. The great majority of the 400 corrections were made within a few years of the original printing. Take, for example, our earlier sampling. Of the twenty corrections listed, one was made in 1613, one in 1616, one in 1617, eight in 1629, five in 1638, one in 1743, two in 1762, and one in 1769. That means that 16 out of 20 corrections, or 80%, were made within twenty-seven years of the 1611 printing. That is hardly the long drawn out series of revisions the scholars would have you to believe. In another study made by examining every other page of Scrivener's appendix in detail, 72% of the textual corrections were made by 1638. There is no "revision" issue. The character of the textual changes is that of obvious errors. The frequency of the textual changes is sparse, occurring only once per three chapters. The chronology of the textual changes is early with about three fourths of them occurring within twenty-seven years of the first printing. All of these details establish the fact that there were no true revisions in the sense of updating the language or correcting translation errors. There were only editions which corrected early typographical errors. Our source of authority for the exact wording of the 1611 Authorized Version is not in the existing copies of the first printing. Our source of authority for the exact wording of our English Bible is in the preserving power of Almighty God. Just as God did not leave us the original autographs to fight and squabble over, so He did not see fit to leave us the proof copy of the translation. Our authority is in the hand of God as always. You can praise the Lord for that!</p>
<p>IV - CHANGES IN THE BOOK OF ECCLESIASTES</p>
<p>An in-depth study of the changes made in the book of Ecclesiastes would help to illustrate the principles stated above. The author is grateful to Dr. David Reese of Millbrook, Alabama, for his work in this area. By comparing a 1611 reprint of the original edition put out by Thomas Nelson &amp; Sons with recent printing of the King James Version, Dr. Reese was able to locate four variations in the book of Ecclesiastes. The reference is given first; then the text of the Thomas Nelson 1611 reprint. This is followed by the reading of the present editions of the 1611 KJV and the date the change was made.</p>
<p>1 1:5 the place - his place (1638) 2 2:16 shall be - shall all be (1629) 3 8:17 out, yea further - out, yet he shall not find it; yea farther (1629) 4 11: 17 thing is it - thing it is (?)</p>
<p>Several things should be noted about these changes. The last variation ("thing is it" to "thing it is") is not mentioned by Scrivener who was a very careful and accurate scholar. Therefore, this change may be a misprint in the Thomas Nelson reprint. That would be interesting. The corrected omission in chapter eight is one of the longest corrections of the original printing. But notice that it was corrected in 1629. The frequency of printing errors is average (four errors in twelve chapters). But the most outstanding fact is that the entire book of Ecclesiastes reads exactly like our present editions without even printing errors by the year 1638. That's approximately 350 years ago. By that time, the Bible was being printed in Roman type. Therefore, all (and I mean all) that has changed in 350 years in the book of Ecclesiastes is that the spelling has been standardized! As stated before, the main purpose of the 1629 and 1638 Cambridge editions was the correction of earlier printing errors. And the main purpose of the 1762 and 1769 editions was the standardization of spelling.</p>
<p>V - THE SO-CALLED JUSTIFICATION FOR OTHER REVISIONS</p>
<p>Maybe now you see that the King James Version of 1611 has not been revised but only corrected. But why does it make that much difference? Although there are several reasons why this issue is important, the most pressing one is that fundamentalist scholars are using this myth of past revisions to justify their own tampering with the text. The editors of the New King James Version have probably been the worst in recent years to use this propaganda ploy. In the preface of the New King James they have stated, "For nearly four hundred years, and throughout several revisions of its English form, the King James Bible has been deeply revered among the English-speaking peoples of the world. "In the midst of their flowery rhetoric, they strongly imply that their edition is only a continuation of the revisions that have been going on for the past 375 years. This implication, which has been stated directly by others, could not be more false. To prove this point, we will go back to the book of Ecclesiastes. An examination of the first chapter in Ecclesiastes in the New King James Version reveals approximately 50 changes from our present edition. In order to be fair, spelling changes (cometh to comes; labour to labor; etc.) were not included in this count. That means there are probably about 600 alterations in the book of Ecclesiastes and approximately 60,000 changes in the entire Bible. If you accuse me of including every recognizable change, you are correct. But I am only counting the sort of changes which were identified in analyzing the 1611 King James. That's only fair. Still, the number of changes is especially baffling for a version which claims to be an updating in the same vein as earlier revisions. According to the fundamentalist scholar, the New King James is only a fifth in a series of revisions. Then pray tell me how four "revisions" and 375 years brought only 400 changes while the fifth revision brought about 60,000 additional changes? That means that the fifth revision made 150 times more changes than the total number of changes in the first four! That's preposterous! Not only is the frequency of the changes unbelievable, but the character of the alterations are serious. Although many of the alterations seem harmless enough at first glance, many are much more serious. The editors of the New King James Version were sly enough not to alter the most serious blunders of the modern bibles. Yet, they were not afraid to change the reading in those places that are unfamiliar to the average fundamentalist. In these areas, the New King James Version is dangerous. Below are some of the more harmful alterations made in the book of Ecclesiastes. The reference is given first; then the reading as found in the King James Version; and last, the reading as found in the New King James Version. 1:13 sore travail; grievous task 1:14 vexation of spirit; grasping for the wind 1:16 my heart had great experience of wisdom; My heart has understood great wisdom 2:3 to give myself unto; to gratify my flesh with 2:3 acquainting; guiding 2:21 equity; skill 3:10 the travail, which God hath given; the God-given task 3:11 the world; eternity 3:18 that God might manifest them; God tests them 3:18 they themselves are beasts; they themselves are like beasts 3:22 portion; heritage 4:4 right work; skillful work 5:1 Keep thy foot; Walk prudently 5:6 the angel; the messenger of God 5:6 thy voice; your excuse 5:8 he that is higher than the highest; high official 5:20 God answereth him; God keeps him busy 6:3 untimely birth; stillborn child 7:29 inventions; schemes 8:1 boldness; sterness 8:10 the place of the holy; the place of holiness 10:1 Dead flies cause the ointment of the apothecary to send forth a stinking savour; Dead flies putrefy the perfumer's ointment 10:10 If the iron be blunt; If the ax is dull 10:10 wisdom is profitable to direct; wisdom brings success 12:9 gave good heed; pondered 12:11 the masters of assemblies; scholars</p>
<p>This is only a sampling of the changes in the book, but notice what is done. Equity, which is a trait of godliness, becomes skill (2:21). The world becomes eternity (3:11). Man without God is no longer a beast but just like a beast (3:18). The clear reference to deity in Ecclesiastes 5:8 ("he that is higher than the highest") is successfully removed ("higher official"). But since success is what wisdom is supposed to bring us (10: 10), this must be progress. At least God is keeping the scholars busy (5:20). Probably the most revealing of the above mentioned changes is the last one listed where "the masters of assemblies" become "scholars." According to the New King James, "the words of scholars are like well-driven nails, given by one Shepherd." The masters of assemblies are replaced by the scholars who become the source of the Shepherd's words. That is what these scholars would like us to think, but it is not true. In conclusion, the New King James is not a revision in the vein of former revisions of the King James Version. It is instead an entirely new translation. As stated in the introduction, the purpose of this book is not to convince those who use the other versions. The purpose of this book is to expose a fallacious argument that has been circulating in fundamentalist circles for what it is: an overblown myth. That is, the myth that the New King James Version and others like it are nothing more than a continuation of revisions which have periodically been made to the King James Version since 1611. There is one problem with this theory. There are no such revisions. The King James Bible of 1611 has not undergone four (or any) major revisions. Therefore, the New King James Version is not a continuation of what has gone on before. It should in fact be called the Thomas Nelson Version. They hold the copyright. The King James Version we have today has not been revised but purified. We still have no reason to doubt that the Bible we hold in our hands is the very word of God preserved for us in the English language. The authority for its veracity lies not in the first printing of the King James Version in 1611, or in the character of King James 1, or in the scholarship of the 1611 translators, or in the literary accomplishments of Elizabethan England, or even in the Greek Received Text. Our authority for the infallible words of the English Bible lies in the power and promise of God to preserve His Word! God has the power. We have His Word. <a href="javascript:;" type="external">source - The Answer Book by Dr. Samuel Gipp</a></p>
<p>Individual copies of Dr. Reagan's excellent pamphlet can be obtained by sending one dollar to:</p>
<p>Trinity Baptist Temple Bookstore 5709 N. Broadway Knoxville, Tennessee 37918 (865) 688-0780</p> (Note: The New Versions have entirely removed the most powerful scripture identifying the Trinity!) of them which are saved Christ God Lord His name and God not take up the cross holy pure actually is a means with contentment than God but by every word of God Check NASB, NIV, et al. KJV for them that trust in riches of Christ through his blood in me on me of the Lord of Christ in Christ For in Christ Jesus of our Lord Jesus Christ through Christ by Jesus Christ and the Lord Jesus Christ Christ is come in the flesh Some questions about the King James Bible answered QUESTION: ANSWER: EXPLANATION: historical between not between QUESTION: QUESTION: EXPLANATION: Let us hear the conclusion of the matter Click here | true | 0 | use authorized version gods holy word king bible translations word king power ecclesiastes 84 personal testimony king james bible geoffrey grider well remember night put trust faith promised jewish messiah jesus christ knees bedroom bible opened verse knew john 316 reason knew verse watch lot nfl football saw john 316 signs someone always holding end zone found later actual ministry worked pretty good knees dark reading verse knew trusting gods provision god loved world gave begotten son whosoever believeth perish everlasting life john 316 king james bible withstood test time version god used greatest period evangelism world history bible open dusty never used king james bible published gideons dad borrowed hotel room business trip sat years waiting someone open drink deeply lifegiving waters contained inside clue bible versions knew read words page believed read trusted god rest words lord pure words silver tried furnace earth purified seven times thou shalt keep lord thou shalt preserve generation ever psalm 12 67 little know bible version battle raging 250 translations competing title gods holy word little know would become champion one versions salvation works faith jesus christ question told king james homosexual true answer explanation king james england authorized translation famous king james bible considered many one greatest greatest monarchs england ever seen wisdom determination united warring tribes scotland unified nation joined england scotland form foundation known british empire time churches england possessed bible english king james desire common people bible native tongue thus 1603 king james called 54 historys learned men together accomplish great task time leaders world wished keep subjects spiritual ignorance king james offered subjects greatest gift could give copy word god english james fluent latin greek french schooled italian spanish even wrote tract entitled counterblast tobaccowhich written help thwart use tobacco england man sure enemies one man anthony weldon excluded court weldon swore vengeance 1650 twentyfive years death james weldon saw chance wrote paper calling james homosexual obviously james dead condition defend report largely ignored since still enough people alive knew wasnt true fact lay dormant years recently picked christians hoped vilifying king james would tarnish bible bears name christians would turn away gods book modern translation seems though weldons false account largely ignored majority christianity exception ulterior motive author might also mentioned roman catholic church desperate keep true bible hands english people attempted kill king james parliament 1605 1605 roman catholic name guy fawkes direction jesuit priest name henry garnet found basement parliament thirtysix barrels gunpowder use blow king james entire parliament killing king planned imprisoning children reestablishing england state loyal pope kill resisted needless say perfect english bible would one plots victims fawkes garnet eight conspirators caught hanged seems work hard discredit character king james join unholy lot source answer book dr samuel gipp 160 question havent several revisions king james bible since 1611 answer several editions revisions explanation one last ditch defenses badly shaken critic authorized version 1611 revision hoax run seeming fortress attempt stave ultimate defeat opponents overwhelm feeble arguments historic facts manuscript evidence obvious workings holy spirit inside turn selfconfidently foes ask smug look king james use 1611 1629 perhaps 1769 shock attack momentary confusion results usually allows time make good escape unfortunately upon entering castle closing door behind find fortress systematically torn brick brick man title dr david f reagan dr reagan pastors trinity baptist temple knoxville tennessee written devastating expose early editions king james bible entitled king james version 1611 myth early revisions dr reagan done excellent job destroying last stronghold bible critics see neither way reason try improve finding secured permission reproduce pamphlet entirety king james version 1611 myth early revisions introduction men handling word god deceitfully ii cor 42 ever since devil first taught eve cain balaam jehudi scribes pharisees dark age theologians presentday scholars living words almighty god prime targets mans corrupting hand attacks word god threefold addition subtraction substitution adams day computer age strategies remained nothing new sun one attack receiving quite bit attention days direct attack word god preserved english language king james version 1611 attack referred myth claims since king james version already revised four times valid objection revisions myth used english revisers 1881 revived recent years fundamentalist scholars hoping sell latest translation book given answer attack purpose material convince would deny preservation strengthen faith already believe preserved english bible one major question often arises attack far go answering critics attempt answer every shallow objection infallibility english bible would never able accomplish anything else sanity must prevail somewhere always answer gods word proverbs 2645 states answer fool according folly lest thou also like unto answer fool according folly lest wise conceit obviously times foolish query ignored times met answer answer attack make look foolish attacker best answer ignore question instance told bible infallible soandso believes divorced may safely assume silence best answer hand often questions problems true would serious ignore issues would leave bible attacker wise conceit believe question revisions king james version 1611 question second class king james version undergone four major revisions text oppose revisions basis established english text would truly faulty reason attack must answered argument answered certainly purpose book printing conditions 1611 god preserve word english language authorized version 1611 authority infallible wording notes translators found proof copy sent printers authority lost papers lost say authority first copy came printing press alas copy also certainly perished fact printing english bible followed pattern printing jobs first copy probably discarded bad quality leaves us existing copies first printing ones often pointed standard king james bibles compared early printers first edition allowed make printing errors need establish one thing outset authority preserved english text found human work authority preserved infallible english text god printers may foul times humans still make plenty errors god power mercy preserve text despite weaknesses fallible man let us look pressures printer year 1611 although printing press invented 1450 johann gutenburg germany 161 years 1611 printing equipment used printer changed little printing still slow difficult type set hand one piece time thats one piece time whole bible errors expected part completed book difficulty also 1611 printers earlier editions profit first edition king james version number printing errors shall later demonstrated sort textual alterations freely made modern bibles simple obvious printing errors sort still found times recent editions even advantages modem printing errors render bible useless corrected later editions two original printings authorized version demonstrate difficulty printing 1611 without making mistakes editions printed oxford printed year 1611 printers jobs likely editions printed printing press yet strict comparison two editions approximately 100 textual differences found vein king james critics find 400 alleged textual alterations king james version 375 years printing four socalled revisions something rotten scholarsville time come examine revisions 11 four socalled revisions 1611 kjv much information section taken book fha scrivener called authorized edition english bible 1611 subsequent reprints modern representatives book pedantic title indicates interesting point scrivener published book 1884 member revision committee 1881 king james bible believer therefore material biased toward authorized version section scriveners book dealing kjv revisions one initial detail striking first two socalled major revisions king james bible occurred within 27 years original printing language must changing rapidly days 1629 edition bible printed cambridge said first revision revision simply careful correction earlier printing errors edition completed eighteen years translation two men participated printing dr samuel ward john bois worked original translation king james version better correct early errors two worked original translation nine years later cambridge another edition came supposed second major revision ward bois still alive known participated time even scrivener remember worked english revised version 1881 admitted cambridge printers simply reinstated words clauses overlooked 1611 printers amended manifest errors according study detailed later 72 approximately 400 textual corrections kjv completed time 1638 cambridge edition 27 years original printing first two socalled revisions actually two stages one process purification early printing errors last two socalled revisions two stages another process standardization spelling two editions seven years apart 1762 1769 second one completing first started scholars numbering revisions two sounds better one textual corrections necessary time thousands alleged changes spelling changes made match established correct forms spelling changes discussed later suffice say time tale four major revisions truly fraud myth say still changes whether many going changes still let us examine character changes iii socalled thousands changes suppose someone take museum see original copy king james version come glass case bible displayed look opened bible glass although allowed flip pages readily tell different things bible one hardly read words make spelled odd strange ways like others leave impression king james version undergone multitude changes since original printing 1611 beware taken clever ploy differences saw seem lets examine evidence printing changes proper examination changes divided three kinds printing changes spelling changes textual changes printing changes considered first type style used 1611 kjv translators gothic type style type style reading right familiar roman type gothic type sometimes called germanic originated germany remember printing invented gothic letters formed resemble handdrawn manuscript lettering middle ages first style use roman type style invented fairly early many years passed became predominate style european countries gothic continued used germany recent years 1611 england roman type already popular would soon supersede gothic however original printers chose gothic style kjv considered beautiful eloquent roman change roman type long coming 1612 first king james version using roman type printed within years bibles printed used roman type style please realize change type style alters text bible change format type size however modem reader become familiar gothic find difficult understand besides general change form several specific letter changes need observed instance gothic looks like roman used capital letter end word used lower case beginning middle word letter looks like f therefore also becomes alfo set becomes fet another variation found german v u gothic v looks like roman u gothic u looks like roman v explains w called doubleu doublev sound confusing get used 1611 edition love loue us vs ever euer remember even spelling changes simply type style changes another instance gothic j looks like jesus becomes iefus notice middle changed f joy becomes ioy even gothic stem leaning back circle shape resembling greek delta changes account large percentage thousands changes kjv yet harm whatsoever text nothing smokescreen set attackers english bible spelling changes another kind change found history authorized version changes orthography spelling histories date beginning modern english around year 1500 therefore 1611 grammatical structure basic vocabulary presentday english long established however spelling stabilize time 1600s spelling according whim thing correct spelling standards established author often spelled word several different ways often book sometimes page educated people reading today would found 1600s spelling paradise eighteenth century spelling begin take stable form therefore last half eighteenth century spelling king james version 1611 standardized kind spelling variations expect find present edition 1611 printing although every spelling difference categorized several characteristics common additional es often found end words feare darke beare also double vowels much common today would find ee bee mooued instead moved double consonants also much common would ranne euill ftarres according presentday spelling see figure presentday spellings would ran evil stars typographical spelling changes account almost socalled thousands changes king james bible none alter text way therefore honestly compared thousands true textual changes blatantly made modern versions textual changes almost alleged changes accounted come question actual textual differences present editions 1611 differences two changes revision instead correction early printing errors fact may seen three things 1 character changes 2 frequency changes throughout bible 3 time changes made first let us look character changes made time first printing authorized english bible changes 1611 edition admittedly textual obviously printing errors nature changes textual changes made alter reading first printing words sometimes inverted sometimes plural written singular visa versa times word miswritten one similar times word even phrase omitted omissions obvious doctrinal implications found modern translations fact really comparison corrections made king james text proposed scholars today fha scrivener appendix book lists variations 1611 edition kjv later printings sampling corrections given order objective samples give first textual correction consecutive left hand pages scriveners book 1611 reading given first present reading finally date correction first made 1 thing thing also 1638 2 shalt remained ye shall remained 1762 3 achzib helbath aphik achzib helbath aphik 1762 4 requite good requite good 1629 5 book covenant book covenant 1629 6 chief rulers chief ruler 1629 7 parbar parbar 1638 8 cause cause 1638 9 king appointed king appointed 1629 10 seek good seek god 1617 11 cormorant cormorant 1629 12 returned turned 1769 13 fiery furnace burning fiery furnace 1638 14 crowned thy crowned 1629 15 thy right doeth thy right hand doeth 1613 16 wayes side way side 1743 17 jew jewess 1629 18 city city damascenes 1629 19 ever ever 1638 20 fathers fathers 1616 eyes 5 textual changes made king james version 375 years even corrections previous errors would comparison modem alterations corrections printing errors therefore comparison possible look list find one serious doctrinal implications fact examination scriveners entire appendix variation found author could accused doctrinal referring psalm 6932 1611 edition seek good bible read seek god yet even error two points demonstrate indeed printing error first similarity words good god spelling shows easily weary type setter could misread proof put wrong word text second error obvious caught corrected year 1617 six years original printing well first socalled revision myth several major revisions 1611 kjv getting clearer character changes show printing errors frequency fundamentalist scholars refer thousands revisions made 1611 par recent bible versions overwhelming majority either type style spelling changes remain clearly corrections printing errors made tediousness involved early printing process sample list given demonstrate careful scrivener listing variations yet even great care approximately 400 variations named 1611 edition modern copies remember 100 variations first two oxford editions printed 1611 since almost 1200 chapters bible average variation per chapter 375 years one third ie one correction per every three chapters changes chief rulers chief ruler parbar parbar yet one evidence variations simply corrected printing errors early date corrected character frequency textual changes clearly separate modern alterations time changes made settles issue absolutely great majority 400 corrections made within years original printing take example earlier sampling twenty corrections listed one made 1613 one 1616 one 1617 eight 1629 five 1638 one 1743 two 1762 one 1769 means 16 20 corrections 80 made within twentyseven years 1611 printing hardly long drawn series revisions scholars would believe another study made examining every page scriveners appendix detail 72 textual corrections made 1638 revision issue character textual changes obvious errors frequency textual changes sparse occurring per three chapters chronology textual changes early three fourths occurring within twentyseven years first printing details establish fact true revisions sense updating language correcting translation errors editions corrected early typographical errors source authority exact wording 1611 authorized version existing copies first printing source authority exact wording english bible preserving power almighty god god leave us original autographs fight squabble see fit leave us proof copy translation authority hand god always praise lord iv changes book ecclesiastes indepth study changes made book ecclesiastes would help illustrate principles stated author grateful dr david reese millbrook alabama work area comparing 1611 reprint original edition put thomas nelson amp sons recent printing king james version dr reese able locate four variations book ecclesiastes reference given first text thomas nelson 1611 reprint followed reading present editions 1611 kjv date change made 1 15 place place 1638 2 216 shall shall 1629 3 817 yea yet shall find yea farther 1629 4 11 17 thing thing several things noted changes last variation thing thing mentioned scrivener careful accurate scholar therefore change may misprint thomas nelson reprint would interesting corrected omission chapter eight one longest corrections original printing notice corrected 1629 frequency printing errors average four errors twelve chapters outstanding fact entire book ecclesiastes reads exactly like present editions without even printing errors year 1638 thats approximately 350 years ago time bible printed roman type therefore mean changed 350 years book ecclesiastes spelling standardized stated main purpose 1629 1638 cambridge editions correction earlier printing errors main purpose 1762 1769 editions standardization spelling v socalled justification revisions maybe see king james version 1611 revised corrected make much difference although several reasons issue important pressing one fundamentalist scholars using myth past revisions justify tampering text editors new king james version probably worst recent years use propaganda ploy preface new king james stated nearly four hundred years throughout several revisions english form king james bible deeply revered among englishspeaking peoples world midst flowery rhetoric strongly imply edition continuation revisions going past 375 years implication stated directly others could false prove point go back book ecclesiastes examination first chapter ecclesiastes new king james version reveals approximately 50 changes present edition order fair spelling changes cometh comes labour labor etc included count means probably 600 alterations book ecclesiastes approximately 60000 changes entire bible accuse including every recognizable change correct counting sort changes identified analyzing 1611 king james thats fair still number changes especially baffling version claims updating vein earlier revisions according fundamentalist scholar new king james fifth series revisions pray tell four revisions 375 years brought 400 changes fifth revision brought 60000 additional changes means fifth revision made 150 times changes total number changes first four thats preposterous frequency changes unbelievable character alterations serious although many alterations seem harmless enough first glance many much serious editors new king james version sly enough alter serious blunders modern bibles yet afraid change reading places unfamiliar average fundamentalist areas new king james version dangerous harmful alterations made book ecclesiastes reference given first reading found king james version last reading found new king james version 113 sore travail grievous task 114 vexation spirit grasping wind 116 heart great experience wisdom heart understood great wisdom 23 give unto gratify flesh 23 acquainting guiding 221 equity skill 310 travail god hath given godgiven task 311 world eternity 318 god might manifest god tests 318 beasts like beasts 322 portion heritage 44 right work skillful work 51 keep thy foot walk prudently 56 angel messenger god 56 thy voice excuse 58 higher highest high official 520 god answereth god keeps busy 63 untimely birth stillborn child 729 inventions schemes 81 boldness sterness 810 place holy place holiness 101 dead flies cause ointment apothecary send forth stinking savour dead flies putrefy perfumers ointment 1010 iron blunt ax dull 1010 wisdom profitable direct wisdom brings success 129 gave good heed pondered 1211 masters assemblies scholars sampling changes book notice done equity trait godliness becomes skill 221 world becomes eternity 311 man without god longer beast like beast 318 clear reference deity ecclesiastes 58 higher highest successfully removed higher official since success wisdom supposed bring us 10 10 must progress least god keeping scholars busy 520 probably revealing mentioned changes last one listed masters assemblies become scholars according new king james words scholars like welldriven nails given one shepherd masters assemblies replaced scholars become source shepherds words scholars would like us think true conclusion new king james revision vein former revisions king james version instead entirely new translation stated introduction purpose book convince use versions purpose book expose fallacious argument circulating fundamentalist circles overblown myth myth new king james version others like nothing continuation revisions periodically made king james version since 1611 one problem theory revisions king james bible 1611 undergone four major revisions therefore new king james version continuation gone fact called thomas nelson version hold copyright king james version today revised purified still reason doubt bible hold hands word god preserved us english language authority veracity lies first printing king james version 1611 character king james 1 scholarship 1611 translators literary accomplishments elizabethan england even greek received text authority infallible words english bible lies power promise god preserve word god power word source answer book dr samuel gipp individual copies dr reagans excellent pamphlet obtained sending one dollar trinity baptist temple bookstore 5709 n broadway knoxville tennessee 37918 865 6880780 note new versions entirely removed powerful scripture identifying trinity saved christ god lord name god take cross holy pure actually means contentment god every word god check nasb niv et al kjv trust riches christ blood lord christ christ christ jesus lord jesus christ christ jesus christ lord jesus christ christ come flesh questions king james bible answered question answer explanation historical question question explanation let us hear conclusion matter click | 3,375 |
<p />
<p>Before we dive into talking about how investors might best take advantage of the shift toward a world of increasingly democratic entertainment distribution, I have a confession:</p>
<p>Continue Reading Below</p>
<p>I don't actually think the cable industry is doomed.</p>
<p>True, the days of 200+ channel cable packages (with a $200 price to go along with it) are probably coming to a close. But to say the likes of Comcast, Cablevision Systems, and Charter Communicationsare about to go the way of the dodo bird is to greatly exaggerate the situation. Hundreds of billions, arguably trillions, have been invested in the technology, wires, and equipment that make modern in-home entertainment possible. Comcast's balance sheet alone shows $81.8 billion invested in PP&amp;E net of depreciation.</p>
<p>These companies aren't going anywhere, for the simple reason they still own the lines that we rely on for the Internet. They'll figure out a way to make money off of this natural monopoly whether you like it or not.</p>
<p>This becomes all the more apparent when one peruses the Internet-only packages available through these providers. At the time of this writing, in my enclave of suburban Washington, D.C., Comcast charges $39.95 for the mostbasic of Internet packages (3 mbs). This does not include a single cable channel. Internet service at 10 mbs will run you $49.95 per month, 25 mbs will set you back $69.95, and for you online gamers out there, be prepared to pony up $79.95 plus tax for 75 mbs. Cable sees the cord-cutting writing on the wall, and companies are adjusting accordingly. Granted, Comcast may not be the cash machine it is today, but it will still be there helping you to stream the latest season of House of Cards on Netflix for years to come.</p>
<p>With that point out of the way, let's take a look at who really stands to benefit from the death of thecable television package.</p>
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<p>The horsesWhile upstart and award-winning Amazon Prime Video isn't one of them, there are plenty of options at the investor's disposal. The first of which of these isScripps Networks , the owner of such addictive cable channels as HGTV, The Travel Channel, and the Food Network. The value of these properties in a reality-tv loving world is obvious.</p>
<p>Discovery Communications ,in case you were not aware, is not only the owner of the prolific Discovery Channel (who doesn't love Shark Week?), but alsoThe Learning Channel (TLC), Animal Planet, and the Oprah Winfrey Network (OWN).</p>
<p>Starz , affiliated with and partially owned by Liberty Media's John Malone, is not only the owner of Starz Network, but Encore and Movieplex as well. Starz, which has lagged most of its peers in creating a portfolio of original in-house content, is currently playing catch-up and making a decent go of it. Its The White Queen, Black Sails, Power, and Ash Vs. Evil Deadare all beginning to attract decent viewership and positive reviews.</p>
<p>The red elephant in the room is, of course, Netflix,which has been ahead of the curve the whole time and is reaping its just rewards.</p>
<p>The leadership of Netflix aside, all of these companies are well positioned as we continue to move toward an a-la-carte world. Even if that doesn't happen, and we continue to pay up for modest cable packages, it's hard to imagine such an offering not including HGTV, TLC, and perhaps, in more premium packages, Starz. Even Netflix is aware of this fact; it is now offering older episodes of HGTV's House Hunters, House Hunters International, Property Brothers, etc. Starz, too, is in the process of making its own streaming app service, "Starz Play," as available as Netflix. Play can already be found onAmazon Prime and Roku.</p>
<p>Stats on our thoroughbredsThe author firmly believes each of these companies has a great future ahead of it. This leads us to the heart of the matter for investors: Which is the best horse to bet on, given that they'll all likely be finishing the race?</p>
<p>Source: <a href="http://capitaliq.com" type="external">S&amp;P Capital IQ Opens a New Window.</a>.</p>
<p>The obvious valuation outlier is, of course, Netflix. True, Netflix is expected to grow GAAP EPS by a whopping 116% per year on average all the way to FY 2020, culminating in estimated EPS of $5.72 in that year. This eye-popping growth does make its current earnings multiple of 376 more palatable, but the inescapable truth is that investors are forced to pay up for quality growth in this case. With shares just above $100, it seems that a good bit of the money has already been made in a company valued at over $43 billion.</p>
<p>Starz' critically acclaimed series "Power" is just one of a host of high-quality offerings. Image source: <a href="http://files.shareholder.com/downloads/AMDA-1IP5AU/1721376002x0x824706/1C6BDDA0-ED59-4B24-B6D3-FE8EA3E6C0A6/Starz-2014-Annual-Report_web.pdf" type="external">Starz 2014 Annual Report Opens a New Window.</a>.</p>
<p>The other stand-out possibility, Starz, does appear to be worthy of consideration. Not only does it offer higher estimated earnings growth prospects, but a reasonable valuation to boot. Seeing the success of Netflix and Amazon Prime, Starz has begun <a href="http://finance.yahoo.com/news/starz-reports-fourth-quarter-end-210500741.html" type="external">investing in original content Opens a New Window.</a> in a big way, as seen in its latest earnings results. Operating income fell 60% year over year in the fourth quarter because of the costs associated with management's major push toward original content generation. So aggressive is this move, in fact, that they're not finished yet. Management has stated the company wants 80-90 original shows under its umbrella ASAP, up from the 70+ it has today. The upside of this drop in profits is that original content has a way of generating consistent cash flows for years to come (just ask Netflix), which bodes well for Starz's future.</p>
<p>Starz is the horse to bet onIt bears repeating that most, if not all, of the content-creators discussed in this article stand to benefit from a streaming world. Starz, though, not only offers viewers high-quality content but, for investors, an extremely shareholder-friendlymanagement team. Not only did the company buy back $98 million worth of shares in the most recent quarter (just as the share price was experiencing a pullback), but its board authorizedanother buyback program in the amount of $400 million. These numbers are nothing to sneeze at given its current market capitalization of $2.9 billion.</p>
<p>All in all, the weight of the evidence lends credence to the idea that Starz is an extremely well-run and reasonably valued enterprise. Throw in that Starz is part of media king John Malone's solar system, and Foolish investors would be downright (small-f) fool-hearty not to give it strong consideration.</p>
<p>The article <a href="http://www.fool.com/investing/general/2016/03/20/your-best-bet-to-profit-from-the-death-of-cable.aspx" type="external">Your Best Bet to Profit From the Death of Cable Opens a New Window.</a> originally appeared on Fool.com.</p>
<p><a href="http://my.fool.com/profile/TMFBuckeye/info.aspx?source=eptfxblnk0000004" type="external">Sean O'Reilly Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Amazon.com and Netflix. The Motley Fool recommends Scripps Networks Interactive and Starz. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=eptfxblnk0000004" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://wiki.fool.com/Motley?source=eptfxblnk0000004" type="external">considering a diverse range of insights Opens a New Window.</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?source=eptfxblnk0000004" type="external">disclosure policy Opens a New Window.</a>.</p>
<p>Copyright 1995 - 2016 The Motley Fool, LLC. All rights reserved. The Motley Fool has a <a href="http://www.fool.com/help/index.htm?display=about02" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | dive talking investors might best take advantage shift toward world increasingly democratic entertainment distribution confession continue reading dont actually think cable industry doomed true days 200 channel cable packages 200 price go along probably coming close say likes comcast cablevision systems charter communicationsare go way dodo bird greatly exaggerate situation hundreds billions arguably trillions invested technology wires equipment make modern inhome entertainment possible comcasts balance sheet alone shows 818 billion invested ppampe net depreciation companies arent going anywhere simple reason still lines rely internet theyll figure way make money natural monopoly whether like becomes apparent one peruses internetonly packages available providers time writing enclave suburban washington dc comcast charges 3995 mostbasic internet packages 3 mbs include single cable channel internet service 10 mbs run 4995 per month 25 mbs set back 6995 online gamers prepared pony 7995 plus tax 75 mbs cable sees cordcutting writing wall companies adjusting accordingly granted comcast may cash machine today still helping stream latest season house cards netflix years come point way lets take look really stands benefit death thecable television package advertisement horseswhile upstart awardwinning amazon prime video isnt one plenty options investors disposal first isscripps networks owner addictive cable channels hgtv travel channel food network value properties realitytv loving world obvious discovery communications case aware owner prolific discovery channel doesnt love shark week alsothe learning channel tlc animal planet oprah winfrey network starz affiliated partially owned liberty medias john malone owner starz network encore movieplex well starz lagged peers creating portfolio original inhouse content currently playing catchup making decent go white queen black sails power ash vs evil deadare beginning attract decent viewership positive reviews red elephant room course netflixwhich ahead curve whole time reaping rewards leadership netflix aside companies well positioned continue move toward alacarte world even doesnt happen continue pay modest cable packages hard imagine offering including hgtv tlc perhaps premium packages starz even netflix aware fact offering older episodes hgtvs house hunters house hunters international property brothers etc starz process making streaming app service starz play available netflix play already found onamazon prime roku stats thoroughbredsthe author firmly believes companies great future ahead leads us heart matter investors best horse bet given theyll likely finishing race source sampp capital iq opens new window obvious valuation outlier course netflix true netflix expected grow gaap eps whopping 116 per year average way fy 2020 culminating estimated eps 572 year eyepopping growth make current earnings multiple 376 palatable inescapable truth investors forced pay quality growth case shares 100 seems good bit money already made company valued 43 billion starz critically acclaimed series power one host highquality offerings image source starz 2014 annual report opens new window standout possibility starz appear worthy consideration offer higher estimated earnings growth prospects reasonable valuation boot seeing success netflix amazon prime starz begun investing original content opens new window big way seen latest earnings results operating income fell 60 year year fourth quarter costs associated managements major push toward original content generation aggressive move fact theyre finished yet management stated company wants 8090 original shows umbrella asap 70 today upside drop profits original content way generating consistent cash flows years come ask netflix bodes well starzs future starz horse bet onit bears repeating contentcreators discussed article stand benefit streaming world starz though offers viewers highquality content investors extremely shareholderfriendlymanagement team company buy back 98 million worth shares recent quarter share price experiencing pullback board authorizedanother buyback program amount 400 million numbers nothing sneeze given current market capitalization 29 billion weight evidence lends credence idea starz extremely wellrun reasonably valued enterprise throw starz part media king john malones solar system foolish investors would downright smallf foolhearty give strong consideration article best bet profit death cable opens new window originally appeared foolcom sean oreilly opens new window position stocks mentioned motley fool owns shares recommends amazoncom netflix motley fool recommends scripps networks interactive starz try foolish newsletter services free 30 days opens new window fools may hold opinions believe considering diverse range insights opens new window makes us better investors motley fool disclosure policy opens new window copyright 1995 2016 motley fool llc rights reserved motley fool disclosure policy opens new window | 692 |
<p>Low-cost solar panels imported from China and other countries have caused serious injury to American manufacturers, a U.S. trade commission ruled Friday, raising the possibility of the Trump administration imposing tariffs that could double the price of solar panels from abroad.</p>
<p>The 4-0 vote by the International Trade Commission sets up a two-month review period in which the panel must recommend a remedy to President Donald Trump, with a final decision on tariffs expected in January.</p>
<p>Continue Reading Below</p>
<p>White House spokeswoman Natalie Strom said Trump "will examine the facts and make a determination that reflects the best interests of the United States. The U.S. solar manufacturing sector contributes to our energy security and economic prosperity."</p>
<p>Georgia-based Suniva Inc. and Oregon-based SolarWorld Americas brought the case, saying a flood of imports have pushed them to the brink of extinction. Suniva declared bankruptcy, while SolarWorld had to lay off three-quarters of its workforce.</p>
<p>Cheap imports have led to a boom in the U.S. solar industry, where rooftop and other installations have surged tenfold since 2011.</p>
<p>The main trade group for the solar industry and many governors oppose tariffs, saying they could cause a sharp price hike that would lead to a drop in solar installations by more than 50 percent in two years.</p>
<p>Abigail Ross Hopper, president and CEO of the Solar Energy Industries Association, called the trade commission's vote disappointing for nearly 9,000 U.S. solar companies and the 260,000 Americans they employ.</p>
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<p>"Foreign-owned companies that brought business failures on themselves are attempting to exploit American trade laws to gain a bailout for their bad investments," Hopper said, warning that potential tariffs could double the price of solar installations, lowering U.S. demand and risking billions of dollars in investment.</p>
<p>Suniva's U.S. operations are based in Georgia, but the company's majority owner is in China. SolarWorld Americas is a subsidiary of German solar giant SolarWorld, which declared insolvency last month.</p>
<p>Suniva hailed the ruling.</p>
<p>"It will be in President Trump's hands to decide whether America will continue to have the capability to manufacture this energy source," the company said in a statement. "President Trump can remedy this injury with relief that ensures U.S. energy dominance that includes a healthy U.S. solar ecosystem and prevents China and its proxies from owning the sun."</p>
<p>Trump has not cozied up to the solar industry, as he has for coal and other fossil fuels, but he is considered sympathetic to imposing tariffs on solar imports as part of his "America first" agenda.</p>
<p>Governors of four solar-friendly states — Nevada, Colorado, Massachusetts and North Carolina — oppose the tariff, warning it could jeopardize the industry. They cited a study showing that a global tariff could cause solar installations to drop by more than 50 percent in two years, a crushing blow as states push for renewable energy that does not contribute to climate change.</p>
<p>"The requested tariff could inflict a devastating blow on our states' solar industries and lead to unprecedented job loss, at steep cost to our states' economies," the two Republicans and two Democrats wrote in a letter Thursday to the trade commission.</p>
<p>A group of former U.S. military officials also urged the Trump administration to reject solar tariffs, noting that the Defense Department is the nation's largest energy consumer and follows a federal law calling for the Pentagon to procure 25 percent of its energy from renewable sources by 2025.</p>
<p>Suniva called the case a matter of fairness. Even with better manufacturing methods, lower costs and "dramatically improved efficiency," the company has "suffered substantial losses due to global imports," Suniva said in its petition. The company declared bankruptcy this spring after laying off 190 employees and closing production sites in Georgia and Michigan.</p>
<p>SolarWorld Americas, meanwhile, has trimmed its workforce from 1,300 to 300, with more cuts likely.</p>
<p>"After nearly 30 factories have shut down in the wake of surging imports, the legacy of this pioneering American industry hangs in the balance," said Juergen Stein, CEO and president of SolarWorld Americas.</p>
<p>"We believe that the promise of solar - energy sustainability and independence - can be realized only with healthy American manufacturing to supply growing U.S. demand," Stein said in a statement to The Associated Press.</p>
<p>Hopper countered that a tariff would likely decrease the number of U.S. manufacturers, because of reduced demand.</p>
<p>While the U.S. solar industry employs about 260,000 people, fewer than 2,000 are involved in making solar panels like those made by Suniva and SolarWorld. More than half of solar jobs are in installation, with another 66,000 in sales, distribution and development.</p>
<p>About 38,000 jobs involve manufacture of inverters, racks and other products related to solar panels.</p>
<p>Hopper told reporters she was optimistic that Trump would not impose tariffs on solar imports.</p>
<p>"The president wants to create jobs and increase energy security and economic prosperity, and that is the story of the solar industry," she said. "I think that is entirely resonant with his rhetoric and his concern."</p>
<p>___</p>
<p>Follow Matthew Daly: http://twitter.com/MatthewDalyWDC</p> | true | 0 | lowcost solar panels imported china countries caused serious injury american manufacturers us trade commission ruled friday raising possibility trump administration imposing tariffs could double price solar panels abroad 40 vote international trade commission sets twomonth review period panel must recommend remedy president donald trump final decision tariffs expected january continue reading white house spokeswoman natalie strom said trump examine facts make determination reflects best interests united states us solar manufacturing sector contributes energy security economic prosperity georgiabased suniva inc oregonbased solarworld americas brought case saying flood imports pushed brink extinction suniva declared bankruptcy solarworld lay threequarters workforce cheap imports led boom us solar industry rooftop installations surged tenfold since 2011 main trade group solar industry many governors oppose tariffs saying could cause sharp price hike would lead drop solar installations 50 percent two years abigail ross hopper president ceo solar energy industries association called trade commissions vote disappointing nearly 9000 us solar companies 260000 americans employ advertisement foreignowned companies brought business failures attempting exploit american trade laws gain bailout bad investments hopper said warning potential tariffs could double price solar installations lowering us demand risking billions dollars investment sunivas us operations based georgia companys majority owner china solarworld americas subsidiary german solar giant solarworld declared insolvency last month suniva hailed ruling president trumps hands decide whether america continue capability manufacture energy source company said statement president trump remedy injury relief ensures us energy dominance includes healthy us solar ecosystem prevents china proxies owning sun trump cozied solar industry coal fossil fuels considered sympathetic imposing tariffs solar imports part america first agenda governors four solarfriendly states nevada colorado massachusetts north carolina oppose tariff warning could jeopardize industry cited study showing global tariff could cause solar installations drop 50 percent two years crushing blow states push renewable energy contribute climate change requested tariff could inflict devastating blow states solar industries lead unprecedented job loss steep cost states economies two republicans two democrats wrote letter thursday trade commission group former us military officials also urged trump administration reject solar tariffs noting defense department nations largest energy consumer follows federal law calling pentagon procure 25 percent energy renewable sources 2025 suniva called case matter fairness even better manufacturing methods lower costs dramatically improved efficiency company suffered substantial losses due global imports suniva said petition company declared bankruptcy spring laying 190 employees closing production sites georgia michigan solarworld americas meanwhile trimmed workforce 1300 300 cuts likely nearly 30 factories shut wake surging imports legacy pioneering american industry hangs balance said juergen stein ceo president solarworld americas believe promise solar energy sustainability independence realized healthy american manufacturing supply growing us demand stein said statement associated press hopper countered tariff would likely decrease number us manufacturers reduced demand us solar industry employs 260000 people fewer 2000 involved making solar panels like made suniva solarworld half solar jobs installation another 66000 sales distribution development 38000 jobs involve manufacture inverters racks products related solar panels hopper told reporters optimistic trump would impose tariffs solar imports president wants create jobs increase energy security economic prosperity story solar industry said think entirely resonant rhetoric concern ___ follow matthew daly httptwittercommatthewdalywdc | 519 |
<p>Oil prices pulled back on Monday, as doubts arose over whether a meeting of global crude producers next week will result in an extension of output cuts.</p>
<p>Light, sweet crude for December delivery fell 70 cents, or 1.2%, to $55.85 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, declined 88 cents, or 1.4%, to $61.84 a barrel.</p>
<p>Continue Reading Below</p>
<p>The Organization of the Petroleum Exporting Countries and other producers including Russia will meet on Nov. 30 and review whether to extend the production cuts due to expire in March 2018. The deal aims to reduce a glut of global stocks to their five-year average.</p>
<p>"We're expecting a potential extension of the deal, that's the general market consensus, OPEC knows that it needs to continue doing what it's doing because its targets haven't been reached," said Mustafa Ansari, energy economist at development bank Arab Petroleum Investments Corp.</p>
<p>However, while Saudi Arabia has expressed its dedication to extending the agreement, investors are less sure of Russia's commitment as a major participant outside of the cartel.</p>
<p>"There seems to be some equivocation by the Russians about extending the OPEC deal," said John Kilduff, founding partner at Again Capital. "With the door being left open, you're seeing the market take a hit on a potential unraveling."</p>
<p>Oil prices have rallied in recent months to two-year highs, aided by increased geopolitical tensions in major oil-producing nations including Saudi Arabia, along with expectations of an extension to the cuts. Prices ended the week lower Friday for the first time in six weeks.</p>
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<p>"Markets are in a wait-and-see mode ahead of the OPEC meeting later this month," said consultancy Global Risk Management in a note.</p>
<p>Analysts also warned that U.S. shale production was likely to respond quickly to the higher prices.</p>
<p>"Even if they [OPEC] do extend the deal, I don't see too significant a price rise because the market understands even more than ever before that shale production can respond immediately," Mr. Ansari said.</p>
<p>Baker Hughes reported on Friday that the number of U.S. rigs drilling for oil was unchanged at 738, having risen by nine the previous week.</p>
<p>Gasoline futures fell 0.5% to $1.7356 a gallon and diesel futures lost 1.4% to $1.9191 a gallon.</p>
<p>Write to Sarah McFarlane at [email protected] and Stephanie Yang at [email protected]</p>
<p>Oil prices pulled back Monday as doubts arose over whether a meeting of global crude producers next week would result in an extension of output cuts.</p>
<p>Light, sweet crude for December settled down 46 cents, or 0.8%, to $56.09 a barrel on the New York Mercantile Exchange. Brent, the global benchmark, declined 50 cents, or 0.8%, to $62.22 a barrel.</p>
<p>The Organization of the Petroleum Exporting Countries and other producers including Russia are scheduled to meet Nov. 30 and review whether to extend the production cuts due to expire in March 2018. The deal aims to reduce a glut of global stocks to their five-year average.</p>
<p>While Saudi Arabia has expressed its dedication to extending the agreement, investors are less sure of Russia's commitment as a major participant outside of the cartel.</p>
<p>"There seems to be some equivocation by the Russians about extending the OPEC deal," said John Kilduff, founding partner at Again Capital. "With the door being left open, you're seeing the market take a hit on a potential unraveling."</p>
<p>Oil prices have rallied to two-year highs in recent months, aided by increased geopolitical tensions in major oil-producing nations including Saudi Arabia, and expectations of an extension to the cuts.</p>
<p>"We're expecting a potential extension of the deal, that's the general market consensus, OPEC knows that it needs to continue doing what it's doing because its targets haven't been reached," said Mustafa Ansari, energy economist at development bank Arab Petroleum Investments Corp.</p>
<p>Analysts warn that since oil has already priced in an extended reduction of OPEC output, any disappointing news could lead to a sharp drop for prices.</p>
<p>"With many market participants anticipating a full year 2018 extension of the 1.8 mb/d output cut, anything less could easily produce a selloff sequel to the May meeting meltdown," RBC Capital Markets analysts said Monday. "The stakes for this meeting are high indeed and it is a 'Go Big or Go Home' event in our view."</p>
<p>As U.S. shale production has increased and crude stockpiles have built up in recent weeks, the possibility of more U.S. supply also dampened market sentiment.</p>
<p>"Even if they [OPEC] do extend the deal, I don't see too significant a price rise because the market understands even more than ever before that shale production can respond immediately," Mr. Ansari said.</p>
<p>Baker Hughes reported Friday the number of U.S. rigs drilling for oil was unchanged at 738, having risen by nine the previous week.</p>
<p>Gasoline futures fell 0.05% to $1.7438 a gallon and diesel futures lost 0.7% to $1.9321 a gallon.</p>
<p>Write to Stephanie Yang at [email protected] and Sarah McFarlane at [email protected]</p>
<p>(END) Dow Jones Newswires</p>
<p>November 20, 2017 17:07 ET (22:07 GMT)</p> | true | 0 | oil prices pulled back monday doubts arose whether meeting global crude producers next week result extension output cuts light sweet crude december delivery fell 70 cents 12 5585 barrel new york mercantile exchange brent global benchmark declined 88 cents 14 6184 barrel continue reading organization petroleum exporting countries producers including russia meet nov 30 review whether extend production cuts due expire march 2018 deal aims reduce glut global stocks fiveyear average expecting potential extension deal thats general market consensus opec knows needs continue targets havent reached said mustafa ansari energy economist development bank arab petroleum investments corp however saudi arabia expressed dedication extending agreement investors less sure russias commitment major participant outside cartel seems equivocation russians extending opec deal said john kilduff founding partner capital door left open youre seeing market take hit potential unraveling oil prices rallied recent months twoyear highs aided increased geopolitical tensions major oilproducing nations including saudi arabia along expectations extension cuts prices ended week lower friday first time six weeks advertisement markets waitandsee mode ahead opec meeting later month said consultancy global risk management note analysts also warned us shale production likely respond quickly higher prices even opec extend deal dont see significant price rise market understands even ever shale production respond immediately mr ansari said baker hughes reported friday number us rigs drilling oil unchanged 738 risen nine previous week gasoline futures fell 05 17356 gallon diesel futures lost 14 19191 gallon write sarah mcfarlane sarahmcfarlanewsjcom stephanie yang stephanieyangwsjcom oil prices pulled back monday doubts arose whether meeting global crude producers next week would result extension output cuts light sweet crude december settled 46 cents 08 5609 barrel new york mercantile exchange brent global benchmark declined 50 cents 08 6222 barrel organization petroleum exporting countries producers including russia scheduled meet nov 30 review whether extend production cuts due expire march 2018 deal aims reduce glut global stocks fiveyear average saudi arabia expressed dedication extending agreement investors less sure russias commitment major participant outside cartel seems equivocation russians extending opec deal said john kilduff founding partner capital door left open youre seeing market take hit potential unraveling oil prices rallied twoyear highs recent months aided increased geopolitical tensions major oilproducing nations including saudi arabia expectations extension cuts expecting potential extension deal thats general market consensus opec knows needs continue targets havent reached said mustafa ansari energy economist development bank arab petroleum investments corp analysts warn since oil already priced extended reduction opec output disappointing news could lead sharp drop prices many market participants anticipating full year 2018 extension 18 mbd output cut anything less could easily produce selloff sequel may meeting meltdown rbc capital markets analysts said monday stakes meeting high indeed go big go home event view us shale production increased crude stockpiles built recent weeks possibility us supply also dampened market sentiment even opec extend deal dont see significant price rise market understands even ever shale production respond immediately mr ansari said baker hughes reported friday number us rigs drilling oil unchanged 738 risen nine previous week gasoline futures fell 005 17438 gallon diesel futures lost 07 19321 gallon write stephanie yang stephanieyangwsjcom sarah mcfarlane sarahmcfarlanewsjcom end dow jones newswires november 20 2017 1707 et 2207 gmt | 534 |
<p />
<p>President Donald Trump was elected in part because of his championing of income tax reform, with promises of a simplified structure of tax rates for individuals and lower tax rates on corporations. Yet at no time during the campaign did the president signal that the way his administration would pay for those moves would involve taking away one of the most popular and widely used tax breaks in the income tax system. Now, though, lawmakers are reportedly looking at removing the upfront tax deduction for traditional 401(k) contributions, and some proposals have even suggested taking away part of the tax deferral that 401(k) plans provide. With most Americans already saving an inadequate amount toward their retirement, changes to the rules would only take away a key incentive for setting money aside for the future and punish those who prudently plan for their retirement.</p>
<p>Continue Reading Below</p>
<p>How Congress might change your 401(k)</p>
<p>One big problem involved in corporate tax reform is that it would be costly. Cutting tax rates from 35% to 15% would result in a drop in revenue, and many lawmakers want to ensure that any tax reform legislation is revenue-neutral. To achieve that, Congress would have to couple tax cuts with ways of raising revenue.</p>
<p>Image source: Getty Images.</p>
<p>One of the largest tax benefits Americans get comes from the exclusion from income of money that they save in 401(k) plans. According to the latest report from the Joint Committee on Taxation, the exclusion of contributions to and earnings of defined contribution plans cost the federal government more than $90 billion in potential tax revenue in 2016. Estimates have that number rising to $146 billion by 2020, and the total over the five-year period from 2016 to 2020 is almost $584 billion.</p>
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<p>The key proposal Congress is reportedly looking at treats all 401(k) contributions as if they were Roth contributions. That would take away upfront tax benefits in exchange for making earnings and appreciation tax-free going forward. By doing so, the federal government believes it could raise $1.5 trillion in additional tax revenue over the next decade, providing an ample source of funding for tax cuts elsewhere.</p>
<p>An even bigger threat could come from measures to change the tax-deferred nature of 401(k)s. Right now, any income and gains your 401(k) generates don't get taxed until you make withdrawals. But one proposal would impose a 15% tax on annual gains within 401(k) plans. For long-term stock investors, that could put 401(k) plans at a disadvantage to simple taxable accounts, where one can defer capital gains tax simply by not selling shares. Proponents of the measure suggest that the move would raise between $48 billion and $60 billion in annual tax revenue between 2018 and 2025.</p>
<p>Why would President Trump raise taxes?</p>
<p>After all the talk of tax cuts during the campaign, it seems like a complete about-face to be talking about tax increases. However, the justification some lawmakers have come up with involves the potential impact on investment values that could come from corporate tax reform. As the argument goes, if taxes on corporate income go down, then there would be an immediate increase in after-tax earnings, which in turn should produce a rise in share prices. For the government to impose a tax on that share-price increase is, in effect, a way to balance out the tax-created bump.</p>
<p>Image source: Getty Images.</p>
<p>However, the fact that Republican lawmakers are even contemplating such measures comes as a shock to those who have followed the political pendulum swing over time. For years, it has been Democrats who have looked at 401(k)s as a source of tax inequity, and Democratic presidential candidate Hillary Clinton suggested reducing the value of tax deductions for high-income earners on their 401(k) contributions. <a href="https://www.fool.com/retirement/general/2013/04/21/will-obama-really-confiscate-your-retirement-savin.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Budgets from former President Barack Obama Opens a New Window.</a> included provisions that would have limited 401(k) savings for the wealthy, and some policymakers have even suggested that 401(k)s should be abolished entirely. In that light, for attacks on 401(k)s to come from the other side of the aisle shows how the world in Washington has once again turned upside down.</p>
<p>Still, the key question is how much of President Trump's base of loyal supporters truly cares about 401(k) tax breaks. For those who face unemployment and economic hardship, huge deductions for retirement savings are just one more sign of how income inequality can compound because of tax policy. If you have modest incomes and pay low tax rates, then a Roth-style 401(k) is often a better option over the long run -- as long as Roth accounts remain truly tax-free and don't also end up on the chopping block in Congress' search for revenue.</p>
<p>What to do</p>
<p>You can expect more details on President Trump's tax plan this week, but it's not too soon to let your lawmakers know that 401(k) deductions are an important component of your retirement savings strategy. Changing the rules on retirement savers when it's too late for them to adjust accordingly is unfair, no matter which side of the aisle is behind such a measure, and urging lawmakers to respect past planning is essential in order to keep America's retirement savings problem from getting even worse.</p>
<p>The $16,122 Social Security bonus most retirees completely overlook</p>
<p>If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: One easy trick could pay you as much as $16,122 more...each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. <a href="http://www.fool.com/mms/mark/ecap-foolcom-social-security?aid=8727&amp;source=irreditxt0000002&amp;ftm_cam=ryr-ss-intro-report&amp;ftm_pit=3186&amp;ftm_veh=article_pitch&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Simply click here to discover how to learn more about these strategies Opens a New Window.</a>.</p>
<p>The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | president donald trump elected part championing income tax reform promises simplified structure tax rates individuals lower tax rates corporations yet time campaign president signal way administration would pay moves would involve taking away one popular widely used tax breaks income tax system though lawmakers reportedly looking removing upfront tax deduction traditional 401k contributions proposals even suggested taking away part tax deferral 401k plans provide americans already saving inadequate amount toward retirement changes rules would take away key incentive setting money aside future punish prudently plan retirement continue reading congress might change 401k one big problem involved corporate tax reform would costly cutting tax rates 35 15 would result drop revenue many lawmakers want ensure tax reform legislation revenueneutral achieve congress would couple tax cuts ways raising revenue image source getty images one largest tax benefits americans get comes exclusion income money save 401k plans according latest report joint committee taxation exclusion contributions earnings defined contribution plans cost federal government 90 billion potential tax revenue 2016 estimates number rising 146 billion 2020 total fiveyear period 2016 2020 almost 584 billion advertisement key proposal congress reportedly looking treats 401k contributions roth contributions would take away upfront tax benefits exchange making earnings appreciation taxfree going forward federal government believes could raise 15 trillion additional tax revenue next decade providing ample source funding tax cuts elsewhere even bigger threat could come measures change taxdeferred nature 401ks right income gains 401k generates dont get taxed make withdrawals one proposal would impose 15 tax annual gains within 401k plans longterm stock investors could put 401k plans disadvantage simple taxable accounts one defer capital gains tax simply selling shares proponents measure suggest move would raise 48 billion 60 billion annual tax revenue 2018 2025 would president trump raise taxes talk tax cuts campaign seems like complete aboutface talking tax increases however justification lawmakers come involves potential impact investment values could come corporate tax reform argument goes taxes corporate income go would immediate increase aftertax earnings turn produce rise share prices government impose tax shareprice increase effect way balance taxcreated bump image source getty images however fact republican lawmakers even contemplating measures comes shock followed political pendulum swing time years democrats looked 401ks source tax inequity democratic presidential candidate hillary clinton suggested reducing value tax deductions highincome earners 401k contributions budgets former president barack obama opens new window included provisions would limited 401k savings wealthy policymakers even suggested 401ks abolished entirely light attacks 401ks come side aisle shows world washington turned upside still key question much president trumps base loyal supporters truly cares 401k tax breaks face unemployment economic hardship huge deductions retirement savings one sign income inequality compound tax policy modest incomes pay low tax rates rothstyle 401k often better option long run long roth accounts remain truly taxfree dont also end chopping block congress search revenue expect details president trumps tax plan week soon let lawmakers know 401k deductions important component retirement savings strategy changing rules retirement savers late adjust accordingly unfair matter side aisle behind measure urging lawmakers respect past planning essential order keep americas retirement savings problem getting even worse 16122 social security bonus retirees completely overlook youre like americans youre years behind retirement savings handful littleknown social security secrets could help ensure boost retirement income example one easy trick could pay much 16122 moreeach year learn maximize social security benefits think could retire confidently peace mind simply click discover learn strategies opens new window motley fool disclosure policy opens new window | 578 |
<p>A former Oxford student and Rhodes scholar at the University of Cape Town was filmed furiously smashing a cell phone camera out of a student’s hands after the student videotaped him disrupting a lecture as part of a social justice statement.</p>
<p>Ntokozo Qwabe caused a ruckus by hopping on a law school lecture hall table and banging his stick while chanting. After a student took out his phone and began filming Qwabe’s loud disturbances, Qwabe took his stick and bashed the cell phone out of the student’s hands. The following is footage captured from the student’s phone:</p>
<p>Ntokozo Qwabe, Rhodes scholar &amp; former <a href="https://twitter.com/UniofOxford" type="external">@UniofOxford</a> student, intimidates UCT students &amp; hits phone out of filming student's hand with stick <a href="https://t.co/hFGZwOvaNe" type="external">pic.twitter.com/hFGZwOvaNe</a></p>
<p>Other students continued filming the scene, as <a href="http://www.thesouthafrican.com/i-should-have-whipped-the-bastard-ntokozo-qwabe-says-of-white-uct-student/" type="external">captured</a> below:</p>
<p>Qwabe and his fellow protesters shouted that they were performing a “shutdown” at the university lecture hall, where they were protesting “white arrogance” and “black oppression.” As faculty members asked that they step down from the tables on which they were hopping and chanting, one of them repeated over a loudspeaker, “Can white arrogance move?” Other black protesters flipped their middle fingers to the second camera, saying, “You will not victimize me for s**t.”</p>
<p>The protesters insisted the law lecture "cannot continue."</p>
<p>“A shutdown is a shutdown,” one protester was filmed saying. “Operations cannot continue while we suffer as black people.”</p>
<p>After footage of the scene circulated on the internet, Qwabe <a href="http://www.thecollegefix.com/post/29172/" type="external">posted</a> on Facebook that he “did not touch the student[…] only his phone.” Later after further thought, he added to Facebook that he wished he had “whipped the white apartheid settler colonial entitlement out of the bastard,” because the white student had taken a video of him without his consent. The following is the entirety of his latest rant on Facebook:</p>
<p>It is NOT true that I ‘assaulted’ and ‘whipped with a stick’ a white student during our shutdown of the arrogant UCT Law Faculty yesterday!</p>
<p>Although I wish I’d actually not been a good law abiding citizen &amp; whipped the white apartheid settler colonial entitlement out of the bastard – who continued to video record us without our consent – this is not what happened as the media is reporting.</p>
<p>As the video footage klearly shows, we were singing peacefully &amp; waiting for the lecture to be officially called off, and the students to exit the lecture venue – because the Law Faculty had no business continuing with lectures when we had shut down the rest of the university. Contrary to what our delusional toxic superiority complex tells us, we are NOT special as law students! The Law Faculty will continue being shut down like the rest of the university!</p>
<p>Anyways, so, while singing peacefully, the said white student kept video recording us. A black womxn I was with repeatedly asked him nicely to stop recording her. He then turned the camera my way &amp; I asked him nicely to stop. When he refused, I used my protest stick (which I carry around for cultural purposes) to push the phone out of his hand onto the floor. He picked it up &amp; continued to video, at which point I came closer to him &amp; told him to switch it the fuck off. He then kindly put it back onto his pocket &amp; that was that.</p>
<p>You see, no ONE was touched – let alone assaulted during the incident. Unless the bastard’s phone is a ‘person’ under South Afrikan law, of course, and would like to lay a charge of assault. In which case, comrade phone can go ahead &amp; lay this charge. I mean who am I to stop a whole assaulted phone from invoking its rights lol!</p>
<p>Otherwise, people must please stop annoying us about this petty non-issue invented by the media. While word has it that the instruction to video record us came from the Dean of Law (a whole womxn of colour!), we are klear that we will not be subjected to such white violence. The violent anthropologisingof articulations of black pain without black people’s consent is as old as settler colonial domination itself. We refuse to continue operating under the white gaze!</p>
<p>So ke, please. No more questions and interview requests on this non-incident. There is no story here, and I’m definitely not about to further engage the white media’s meek attempts to found one! If anything, we should put the white media on perpetual voicemail &amp; not take anything it says on the student movement seriously! Rather rely on firsthand accounts of those on the ground. Otherwise bye!</p>
<p>Phamberi!</p>
<p><a href="https://www.facebook.com/hashtag/dismantlewhitearrogance?source=feed_text&amp;story_id=195275414217460" type="external">#DismantleWhiteArrogance</a></p>
<p><a href="https://www.facebook.com/hashtag/shutdownforfreeeducation?source=feed_text&amp;story_id=195275414217460" type="external">#ShutdownForFreeEducation</a></p>
<p><a href="https://www.facebook.com/hashtag/izwelethu?source=feed_text&amp;story_id=195275414217460" type="external">#IzweLethu</a></p>
<p>Presumably after receiving much-needed rebuke from his elders, Qwabe stubbornly posted to Facebook, “Older black people who want to silence us on the basis that they fought against apartheid need to shut the f**k up!!! We are here because you failed us! So please!”</p>
<p>Qwabe is the recipient of the prestigious Rhodes scholarship, which includes 13,658 UK pounds per year in addition to covering university and college fees, living expenses, and up to three years of study at the University of Oxford. The scholarship was named after Cecil Rhodes, the former prime minister of the Cape Colony in South Africa. Ironically, Qwabe was in the <a href="http://www.thecollegefix.com/post/25578/" type="external">news</a> just last December for forcibly removing a plaque commemorating Rhodes at Oxford and demanding the late prime minister’s statue be taken down because he was an “ardent advocate of colonialism.”</p>
<p>“Whipped the white apartheid settler colonial entitlement out of the bastard."</p>
<p>Ntokozo Qwabe's wish for what he could have done to the student who filmed his protest</p>
<p>Just earlier this year, Qwabe had made a young white waitress cry after he left her a note that read in all caps, “WE WILL GIVE TIP WHEN YOU RETURN THE LAND.” Later, he <a href="http://www.breitbart.com/london/2016/04/29/rhodes-must-fall-agitator-boasts-made-white-waitress-cry/" type="external">boasted</a> about it on his Facebook page, gleefully and proudly describing how he made the young girl “start[s] shaking” and “burst[s] into typical white tears” after he left her the note.</p>
<p>After a long rant about how he watched a bunch of “white people” drop “white tears” at the cafe, Qwabe had concluded:</p>
<p>Moral of the story: the time has come when no white person will be absolved. We are tired of “not all white people” and all other bullshit. We are here, and we want the stolen land back. No white person will be out here living their best life while we are out here being a landless and dispossessed black mass. NO white person shall rest. It is irrelevant whether you personally have land/wealth or you don’t. Go to your fellow white people &amp; mobilise for them to give us the land back. That will be the starting point of all our interactions from now. We will agitate all our spaces with the big question: WHERE IS THE LAND?</p>
<p>Follow Pardes Seleh on <a href="https://twitter.com/PardesSeleh" type="external">Twitter</a>.</p> | true | 0 | former oxford student rhodes scholar university cape town filmed furiously smashing cell phone camera students hands student videotaped disrupting lecture part social justice statement ntokozo qwabe caused ruckus hopping law school lecture hall table banging stick chanting student took phone began filming qwabes loud disturbances qwabe took stick bashed cell phone students hands following footage captured students phone ntokozo qwabe rhodes scholar amp former uniofoxford student intimidates uct students amp hits phone filming students hand stick pictwittercomhfgzwovane students continued filming scene captured qwabe fellow protesters shouted performing shutdown university lecture hall protesting white arrogance black oppression faculty members asked step tables hopping chanting one repeated loudspeaker white arrogance move black protesters flipped middle fingers second camera saying victimize st protesters insisted law lecture continue shutdown shutdown one protester filmed saying operations continue suffer black people footage scene circulated internet qwabe posted facebook touch student phone later thought added facebook wished whipped white apartheid settler colonial entitlement bastard white student taken video without consent following entirety latest rant facebook true assaulted whipped stick white student shutdown arrogant uct law faculty yesterday although wish id actually good law abiding citizen amp whipped white apartheid settler colonial entitlement bastard continued video record us without consent happened media reporting video footage klearly shows singing peacefully amp waiting lecture officially called students exit lecture venue law faculty business continuing lectures shut rest university contrary delusional toxic superiority complex tells us special law students law faculty continue shut like rest university anyways singing peacefully said white student kept video recording us black womxn repeatedly asked nicely stop recording turned camera way amp asked nicely stop refused used protest stick carry around cultural purposes push phone hand onto floor picked amp continued video point came closer amp told switch fuck kindly put back onto pocket amp see one touched let alone assaulted incident unless bastards phone person south afrikan law course would like lay charge assault case comrade phone go ahead amp lay charge mean stop whole assaulted phone invoking rights lol otherwise people must please stop annoying us petty nonissue invented media word instruction video record us came dean law whole womxn colour klear subjected white violence violent anthropologisingof articulations black pain without black peoples consent old settler colonial domination refuse continue operating white gaze ke please questions interview requests nonincident story im definitely engage white medias meek attempts found one anything put white media perpetual voicemail amp take anything says student movement seriously rather rely firsthand accounts ground otherwise bye phamberi dismantlewhitearrogance shutdownforfreeeducation izwelethu presumably receiving muchneeded rebuke elders qwabe stubbornly posted facebook older black people want silence us basis fought apartheid need shut fk failed us please qwabe recipient prestigious rhodes scholarship includes 13658 uk pounds per year addition covering university college fees living expenses three years study university oxford scholarship named cecil rhodes former prime minister cape colony south africa ironically qwabe news last december forcibly removing plaque commemorating rhodes oxford demanding late prime ministers statue taken ardent advocate colonialism whipped white apartheid settler colonial entitlement bastard ntokozo qwabes wish could done student filmed protest earlier year qwabe made young white waitress cry left note read caps give tip return land later boasted facebook page gleefully proudly describing made young girl starts shaking bursts typical white tears left note long rant watched bunch white people drop white tears cafe qwabe concluded moral story time come white person absolved tired white people bullshit want stolen land back white person living best life landless dispossessed black mass white person shall rest irrelevant whether personally landwealth dont go fellow white people amp mobilise give us land back starting point interactions agitate spaces big question land follow pardes seleh twitter | 613 |
<p />
<p>Shake Shack(NYSE: SHAK) delivered another blowout earnings report last week. The stock jumped 11% the day after the results came out, and they have continued to climb since then.</p>
<p>Continue Reading Below</p>
<p>Image source: Shake Shack.</p>
<p>The better-burger chain once again topped estimates on both the top and bottom lines, and it has now beaten earnings expectations in all seven of its quarters since going public. Same-store sales were up a modest 2.9%, but that was seen as a positive at a time when a lot of its peers are complaining about a "restaurant recession." Overall revenue jumped 40% thanks to a crop of high-performing new stores.</p>
<p>Let's take a look at three key points management underscored in its earnings call.</p>
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<p>In January, Shake Shack launched its first chicken sandwich, the ChickenShack, nationally after testing it to a warm reception at its three Brooklyn locations. The sandwich -- which features a crispy, all-natural, antibiotic-free chicken breast with lettuce, pickles, and buttermilk herb mayo served on a Martin's potato bun -- like Shake Shack's burgers, helped propel comparable sales to nearly 10% in the first quarter, and its popularity has persisted.</p>
<p>CEO Randy Garutti said the ChickenShack continues to be a top-three selling menu item. It also helps the company diversify its protein risk and serves as a platform for further innovation.Shake Shack recently introduced a Salt and Pepper Honey Chicken sandwich at its three Brooklyn locations.</p>
<p>The company is also planning to expand its limited-time-offering strategy next year to include one burger and one chicken sandwich, the first of which will be Barbecue Chicken.</p>
<p>The success of the ChickenShack should pave the way for further menu innovation, allowing the company to reach a broader audience and boost excitement around the brand.</p>
<p>Just a few weeks ago, Shake Shack launched a mobile app allowing customers to order remotely. The app gives customers the opportunity to skip the line at its often crowded restaurants, and it could even help Shake Shack smooth out its service.</p>
<p>Initially, the company tested the app at just one location, Midtown East in Manhattan, but it has already expanded the mobile ordering tool to two more restaurants in New York. Management said the test has gone "incredibly well" so far.</p>
<p>Besides reducing wait times, CEO Garutti also said the app "opens the door for future endless opportunities." Among those could be catering and delivery -- Shake Shack has not officially partnered with any delivery service, but Garutti said PostMates and DoorDash are its biggest partners. He said there are no plans for delivery through the app at this time, but the company is very much interested in third-party delivery.</p>
<p>The primary reason for the stock's spike last week was the acceleration, once again, of its new store opening guidance. Shake Shack said it now expects 19 new company-operated stores this year instead of 18, and 21 to 22 new company-operated restaurants next year. Considering as early as last year, management was projecting just 10 new company-operated store openings annually, its real estate development has accelerated dramatically, pushing up revenue and profits in the process.</p>
<p>Because of its brand and ability to drive traffic, Shake Shack has become a sought-after partner by landlords. That attractiveness allows the company to be picky about its location selection. On the call, Garutti said the company could open 50 Shacks if it wanted to, but by being selective about locations, personnel, and other such factors, it's growing at the appropriate pace to ensure the future success of the brand.</p>
<p>New store openings have continued to outperform expectations. While management expects the crop of 2017 to have more modest first-year sales figures, the company's expanding real estate pipeline is a sign of its long-term growth potential, which will be the biggest key to the stock's success. Management had originally projected that the U.S. market would have room for 450 Shacks (with 64 currently in operation), but as new store openings accelerate, that number could easily move higher.</p>
<p>Forget the 2016 Election: 10 stocks we like better than Shake Shack Donald Trump was just elected president, and volatility is up. But here's why you should ignore the election:</p>
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<p><a href="http://infotron.fool.com/infotrack/click?url=http%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fecap-foolcom-bbn-election%3Faid%3D8867%26source%3Disaeditxt0000468%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6454%26ftm_veh%3Dbbn_article_pitch&amp;impression=b4d9f0b0-5c8e-46e0-b27c-e33fae37a650&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Click here Opens a New Window.</a> to learn about these picks!</p>
<p>*Stock Advisor returns as of November 7, 2016.</p>
<p><a href="http://my.fool.com/profile/TMFHobo/info.aspx" type="external">Jeremy Bowman Opens a New Window.</a> owns shares of Shake Shack. The Motley Fool is short Shake Shack. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=isiedilnk018048&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://www.fool.com/knowledge-center/motley.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">considering a diverse range of insights Opens a New Window.</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | shake shacknyse shak delivered another blowout earnings report last week stock jumped 11 day results came continued climb since continue reading image source shake shack betterburger chain topped estimates top bottom lines beaten earnings expectations seven quarters since going public samestore sales modest 29 seen positive time lot peers complaining restaurant recession overall revenue jumped 40 thanks crop highperforming new stores lets take look three key points management underscored earnings call advertisement january shake shack launched first chicken sandwich chickenshack nationally testing warm reception three brooklyn locations sandwich features crispy allnatural antibioticfree chicken breast lettuce pickles buttermilk herb mayo served martins potato bun like shake shacks burgers helped propel comparable sales nearly 10 first quarter popularity persisted ceo randy garutti said chickenshack continues topthree selling menu item also helps company diversify protein risk serves platform innovationshake shack recently introduced salt pepper honey chicken sandwich three brooklyn locations company also planning expand limitedtimeoffering strategy next year include one burger one chicken sandwich first barbecue chicken success chickenshack pave way menu innovation allowing company reach broader audience boost excitement around brand weeks ago shake shack launched mobile app allowing customers order remotely app gives customers opportunity skip line often crowded restaurants could even help shake shack smooth service initially company tested app one location midtown east manhattan already expanded mobile ordering tool two restaurants new york management said test gone incredibly well far besides reducing wait times ceo garutti also said app opens door future endless opportunities among could catering delivery shake shack officially partnered delivery service garutti said postmates doordash biggest partners said plans delivery app time company much interested thirdparty delivery primary reason stocks spike last week acceleration new store opening guidance shake shack said expects 19 new companyoperated stores year instead 18 21 22 new companyoperated restaurants next year considering early last year management projecting 10 new companyoperated store openings annually real estate development accelerated dramatically pushing revenue profits process brand ability drive traffic shake shack become soughtafter partner landlords attractiveness allows company picky location selection call garutti said company could open 50 shacks wanted selective locations personnel factors growing appropriate pace ensure future success brand new store openings continued outperform expectations management expects crop 2017 modest firstyear sales figures companys expanding real estate pipeline sign longterm growth potential biggest key stocks success management originally projected us market would room 450 shacks 64 currently operation new store openings accelerate number could easily move higher forget 2016 election 10 stocks like better shake shack donald trump elected president volatility heres ignore election investing geniuses tom david gardner spent long time beating market matter whos white house fact newsletter run decade motley fool stock advisor tripled market david tom revealed believe ten best stocks opens new window investors buy right nowand shake shack wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns november 7 2016 jeremy bowman opens new window owns shares shake shack motley fool short shake shack try foolish newsletter services free 30 days opens new window fools may hold opinions believe considering diverse range insights opens new window makes us better investors motley fool disclosure policy opens new window | 531 |
<p>TIDMTSCO</p>
<p>FORM 8.3</p>
<p>Continue Reading Below</p>
<p>PUBLIC OPENING POSITION DISCLOSURE/DEALING DISCLOSURE BY</p>
<p>A PERSON WITH INTERESTS IN RELEVANT SECURITIES REPRESENTING 1% OR MORE</p>
<p>Rule 8.3 of the Takeover Code (the "Code")</p>
<p>1. KEY INFORMATION</p>
<p>(a) Full name of discloser: Majedie</p>
<p>Advertisement</p>
<p>Asset</p>
<p>Management</p>
<p>Limited</p>
<p>(b) Owner or controller of interests and short positions</p>
<p>disclosed, if different from 1(a):</p>
<p>The naming of nominee or vehicle companies is insufficient.</p>
<p>For a trust, the trustee(s), settlor and beneficiaries</p>
<p>must be named.</p>
<p>(c) Name of offeror/offeree in relation to whose relevant</p>
<p>securities this form relates: TESCO PLC</p>
<p>Use a separate form for each offeror/offeree</p>
<p>(d) If an exempt fund manager connected with an offeror/offeree,</p>
<p>state this and specify identity of offeror/offeree:</p>
<p>(e) Date position held/dealing undertaken: 30 January</p>
<p>For an opening position disclosure, state the latest 2018</p>
<p>practicable date prior to the disclosure</p>
<p>(f) In addition to the company in 1(c) above, is the No</p>
<p>discloser making disclosures in respect of any other</p>
<p>party to the offer?</p>
<p>If it is a cash offer or possible cash offer, state</p>
<p>"N/A"</p>
<p>2. POSITIONS OF THE PERSON MAKING THE DISCLOSURE</p>
<p>If there are positions or rights to subscribe to disclose in more than</p>
<p>one class of relevant securities of the offeror or offeree named in 1(c),</p>
<p>copy table 2(a) or (b) (as appropriate) for each additional class of</p>
<p>relevant security.</p>
<p>(a) Interests and short positions in the relevant securities of</p>
<p>the offeror or offeree to which the disclosure relates following the</p>
<p>dealing (if any)</p>
<p>Class of relevant security: ORD 5P</p>
<p>Short</p>
<p>Interests positions</p>
<p>Number % Number %</p>
<p>(1) Relevant securities owned and/or controlled: 313,566,650 3.83</p>
<p>(2) Cash-settled derivatives:</p>
<p>(3) Stock-settled derivatives (including options)</p>
<p>and agreements to purchase/sell:</p>
<p>TOTAL: 313,566,650 3.83</p>
<p>All interests and all short positions should be disclosed.</p>
<p>Details of any open stock-settled derivative positions (including traded</p>
<p>options), or agreements to purchase or sell relevant securities, should</p>
<p>be given on a Supplemental Form 8 (Open Positions).</p>
<p>(b) Rights to subscribe for new securities (including directors'</p>
<p>and other employee options)</p>
<p>Class of relevant security in relation to which subscription</p>
<p>right exists:</p>
<p>Details, including nature of the rights concerned</p>
<p>and relevant percentages:</p>
<p>3. DEALINGS (IF ANY) BY THE PERSON MAKING THE DISCLOSURE</p>
<p>Where there have been dealings in more than one class of relevant</p>
<p>securities of the offeror or offeree named in 1(c), copy table 3(a), (b),</p>
<p>(c) or (d) (as appropriate) for each additional class of relevant</p>
<p>security dealt in.</p>
<p>The currency of all prices and other monetary amounts should be stated.</p>
<p>(a) Purchases and sales</p>
<p>Class of relevant</p>
<p>security Purchase/sale Number of securities Price per unit</p>
<p>ORD 5P Buy 1,798,583 209.1536</p>
<p>ORD 5P Buy 1,053,438 208.9771</p>
<p>(b) Cash-settled derivative transactions</p>
<p>Class of Product description Nature of dealing Number of Price</p>
<p>relevant e.g. CFD e.g. opening/closing a long/short position, increasing/reducing reference per</p>
<p>security a long/short position securities unit</p>
<p>(c) Stock-settled derivative transactions (including options)</p>
<p>(i) Writing, selling, purchasing or varying</p>
<p>Class of Product Writing, Number of Exercise Type Expiry Option</p>
<p>relevant description purchasing, securities price e.g. American, European etc. date money</p>
<p>security e.g. call selling, to which per paid/</p>
<p>option varying option unit received</p>
<p>etc. relates per</p>
<p>unit</p>
<p>(ii) Exercise</p>
<p>Class of Product description Exercising/ Number of Exercise</p>
<p>relevant e.g. call option exercised securities price per</p>
<p>security against unit</p>
<p>(d) Other dealings (including subscribing for new securities)</p>
<p>Class of relevant Nature of dealing Details Price per unit</p>
<p>security e.g. subscription, conversion (if applicable)</p>
<p>4. OTHER INFORMATION</p>
<p>(a) Indemnity and other dealing arrangements</p>
<p>Details of any indemnity or option arrangement, or</p>
<p>any agreement or understanding, formal or informal,</p>
<p>relating to relevant securities which may be an inducement</p>
<p>to deal or refrain from dealing entered into by the</p>
<p>person making the disclosure and any party to the</p>
<p>offer or any person acting in concert with a party</p>
<p>to the offer:</p>
<p>Irrevocable commitments and letters of intent should</p>
<p>not be included. If there are no such agreements,</p>
<p>arrangements or understandings, state "none"</p>
<p>None</p>
<p>(b) Agreements, arrangements or understandings relating to</p>
<p>options or derivatives</p>
<p>Details of any agreement, arrangement or understanding,</p>
<p>formal or informal, between the person making the</p>
<p>disclosure and any other person relating to:</p>
<p>(i) the voting rights of any relevant securities under</p>
<p>any option; or</p>
<p>(ii) the voting rights or future acquisition or disposal</p>
<p>of any relevant securities to which any derivative</p>
<p>is referenced:</p>
<p>If there are no such agreements, arrangements or understandings,</p>
<p>state "none"</p>
<p>None</p>
<p>(c) Attachments</p>
<p>Is a Supplemental Form 8 (Open Positions) attached? NO</p>
<p>Date of disclosure: 31 January 2018</p>
<p>Contact name: James Tanqueray</p>
<p>Telephone number: 0207 618 3900</p>
<p>Public disclosures under Rule 8 of the Code must be made to a Regulatory</p>
<p>Information Service.</p>
<p>The Panel's Market Surveillance Unit is available for consultation in</p>
<p>relation to the Code's disclosure requirements on +44 (0)20 7638 0129.</p>
<p>The Code can be viewed on the Panel's website at</p>
<p>www.thetakeoverpanel.org.uk.</p>
<p>This announcement is distributed by Nasdaq Corporate Solutions on behalf</p>
<p>of Nasdaq Corporate Solutions clients.</p>
<p>The issuer of this announcement warrants that they are solely</p>
<p>responsible for the content, accuracy and originality of the information</p>
<p>contained therein.</p>
<p>Source: Majedie Asset Management Ltd via Globenewswire</p>
<p>(END) Dow Jones Newswires</p>
<p>January 31, 2018 05:40 ET (10:40 GMT)</p> | true | 0 | tidmtsco form 83 continue reading public opening position disclosuredealing disclosure person interests relevant securities representing 1 rule 83 takeover code code 1 key information full name discloser majedie advertisement asset management limited b owner controller interests short positions disclosed different 1a naming nominee vehicle companies insufficient trust trustees settlor beneficiaries must named c name offerorofferee relation whose relevant securities form relates tesco plc use separate form offerorofferee exempt fund manager connected offerorofferee state specify identity offerorofferee e date position helddealing undertaken 30 january opening position disclosure state latest 2018 practicable date prior disclosure f addition company 1c discloser making disclosures respect party offer cash offer possible cash offer state na 2 positions person making disclosure positions rights subscribe disclose one class relevant securities offeror offeree named 1c copy table 2a b appropriate additional class relevant security interests short positions relevant securities offeror offeree disclosure relates following dealing class relevant security ord 5p short interests positions number number 1 relevant securities owned andor controlled 313566650 383 2 cashsettled derivatives 3 stocksettled derivatives including options agreements purchasesell total 313566650 383 interests short positions disclosed details open stocksettled derivative positions including traded options agreements purchase sell relevant securities given supplemental form 8 open positions b rights subscribe new securities including directors employee options class relevant security relation subscription right exists details including nature rights concerned relevant percentages 3 dealings person making disclosure dealings one class relevant securities offeror offeree named 1c copy table 3a b c appropriate additional class relevant security dealt currency prices monetary amounts stated purchases sales class relevant security purchasesale number securities price per unit ord 5p buy 1798583 2091536 ord 5p buy 1053438 2089771 b cashsettled derivative transactions class product description nature dealing number price relevant eg cfd eg openingclosing longshort position increasingreducing reference per security longshort position securities unit c stocksettled derivative transactions including options writing selling purchasing varying class product writing number exercise type expiry option relevant description purchasing securities price eg american european etc date money security eg call selling per paid option varying option unit received etc relates per unit ii exercise class product description exercising number exercise relevant eg call option exercised securities price per security unit dealings including subscribing new securities class relevant nature dealing details price per unit security eg subscription conversion applicable 4 information indemnity dealing arrangements details indemnity option arrangement agreement understanding formal informal relating relevant securities may inducement deal refrain dealing entered person making disclosure party offer person acting concert party offer irrevocable commitments letters intent included agreements arrangements understandings state none none b agreements arrangements understandings relating options derivatives details agreement arrangement understanding formal informal person making disclosure person relating voting rights relevant securities option ii voting rights future acquisition disposal relevant securities derivative referenced agreements arrangements understandings state none none c attachments supplemental form 8 open positions attached date disclosure 31 january 2018 contact name james tanqueray telephone number 0207 618 3900 public disclosures rule 8 code must made regulatory information service panels market surveillance unit available consultation relation codes disclosure requirements 44 020 7638 0129 code viewed panels website wwwthetakeoverpanelorguk announcement distributed nasdaq corporate solutions behalf nasdaq corporate solutions clients issuer announcement warrants solely responsible content accuracy originality information contained therein source majedie asset management ltd via globenewswire end dow jones newswires january 31 2018 0540 et 1040 gmt | 553 |
<p>With all of the talk from the left about President Trump’s supposed obstruction of justice – read my <a href="" type="internal">complete legal breakdown here</a> to see how strained such accusations are – it’s easy to forget just how easily the left glossed over multiple instance of activity bordering on obstruction during the Obama years. In fact, in my book <a href="https://www.amazon.com/People-Vs-Barack-Obama-Administration/dp/1476765138" type="external">The People vs. Barack Obama: The Criminal Case Against The Obama Administration</a>, I laid out a variety of instances in which the Obama administration interfered in the administration of justice under 18 USC 1503. For those who haven’t memorized the code yet, here it is:</p>
<p>Whoever corruptly, or by threats or force, or by any threatening letter or communication, endeavors to influence, intimidate, or impede any grand or petit juror, or officer in or of any court of the United States, or officer who may be serving at any examination or other proceeding before any United States magistrate judge or other committing magistrate, in the discharge of his duty…or corruptly or by threats or force, or by any threatening letter or communication, influences, obstructs, or impedes, or endeavors to influence, obstruct, or impede, the due administration of justice, shall be punished as provided in subsection (b).</p>
<p>Subsection (b) involves imprisonment for 10 years maximum, a fine, or both.</p>
<p>So, here are some of the times the Obama administration bordered on breaking this law – or broke it outright:</p>
<p>1. The George Zimmerman Prosecution. While the Attorney General was investigating the Zimmerman shooting of Trayvon Martin, President Obama stated, “I’m the head of the executive branch, and the attorney general reports to me, so I’ve got to be careful about my statements to make sure that we’re not impairing any investigation that’s taking place right now.” But then Obama went on to impair that investigation: “When I think about this boy, I think about my own kids. And I think every parent in America should be able to understand why it is absolutely imperative that we investigate every aspect of this…If I had a son, he’d look like Trayvon.” The DOJ promptly deployed its Community Relations Service to Sanford, Florida, to expend thousands of taxpayer dollars facilitating marches, demonstrations, and rallies. The DOJ would go on to set up a tip line for people to call in with stories of Zimmerman’s racism, and Obama would later suggest that Zimmerman was a racist. He concluded, “if a white male teen was involved in the same kind of scenario…from top to bottom, both the outcome and the aftermath might have been different.”</p>
<p>2. Protecting The New Black Panthers. When the New Black Panthers wielded billy clubs outside of a voting place in Philadelphia, the DOJ stopped any investigation. As J. Christian Adams, then a Justice Department lawyer, wrote, “I believe the dismissal of the Black Panther case was motivated by a lawless hostility toward equal enforcement of the law.” NBPP head Malik Shabazz later admitted that the Obama administration “owed us…favors” because of their help in the election.</p>
<p>3. The Firing Of AmeriCorps Inspector General Gerald Walpin. On June 12, 2009, Obama fired Walpin. Walpin had been appointed by President Bush in 2007, and stepped on the toes of one of Obama’s friends, Sacramento Mayor Kevin Johnson. In April 2008, Walpin took charge of an investigation into allegations that a California nonprofit headed by Johnson had received a grant of $850,000, which was diverted for nefarious purposes, and that AmeriCorps staff had been used to recruit for Johnson’s charity. Walpin recommended suspension of Johnson from AmeriCorps. Walpin refused to lift the suspension. So the US attorney’s office, led by Lawrence Brown, decided to go around Walpin and lift the suspension after allowing Johnson to pay a fine. Walpin wrote a report to congress. Less than two months later, Norman Eisen, special counsel to the president for ethics and government reform, allegedly called Walpin and told him, “The president wants me to tell you that he really appreciates your service, but it’s time to move on.” The Wall Street Journal reported, “the evidence suggests that [Obama’s] White House fired a public official who refused to roll over to protect a Presidential crony.” An investigation from Senator Charles Grassley (R-IA) and Representative Darrell Issa (R-CA) found that Walpin had uncovered alleged sexual misconduct by Johnson.</p>
<p>4. Obama’s Interference In Navy Court-Martials. Obama said he wanted alleged victims of sexual assault in the military to be “prosecuted, stripped of their positions, court-martialed, fired, dishonorably discharged.” The problem: Obama is head of the military courts. In June 2013, Navy Judge Commander Marcus Fulton issued a ruling suggesting that Obama’s language could lead to the exculpation of sexual offenders, since “A member of the public would not hear the President’s statement to be a simple admonition to hold members accountable.”</p>
<p>5. Fast and Furious. <a href="http://www.washingtontimes.com/news/2017/jun/7/eric-holder-slammed-fast-and-furious-obstruction/" type="external">Just last week</a>, the House Oversight Committee released a 300 page report with a brutal take-down of Eric Holder. The report states, “More than five years after <a href="http://www.washingtontimes.com/topics/brian-terry/" type="external">Brian</a>’s murder, the Terry family still wonders about key details of Operation Fast and Furious. The Justice Department’s obstruction of Congress’s investigation contributed to the Terry family’s inability to find answers.” Holder said he didn’t know anything about Fast and Furious before Brian Terry’s killing. But the report says that the Justice Department knew full well about the program. Holder ended up being held in contempt of Congress.</p>
<p>6. Hillary’s Obstruction. <a href="c" type="external">According to Andrew McCarthy</a>, Hillary Clinton “attempted to destroy about 30 emails related to the 2012 Benghazi massacre…. Obviously, these emails were kept from the congressional committees that investigated the Benghazi massacre.” This violates another obstruction provision governing the destruction of government documents pertinent to an investigation. The Obama administration, McCarthy points out, knew about the missing documents for months. Obama himself said of Hillary, “She would never intentionally put America in any kind of jeopardy.” And his attorney general, according to former FBI director James Comey, pressured him to downplay the Hillary investigation.</p>
<p>7. The Michael Brown Case. Just as with the Zimmerman case, Obama sounded off early and often on the Brown case, and deployed federal resources in an effort to smear Officer Darren Wilson. After Brown’s death, amid riots in Ferguson, Missouri, Obama stated, “The death of Michael Brown is heartbreaking, and Michelle and I send our deepest condolences to his family and his community at this very difficult time. As Attorney General Holder has indicated the Department of Justice is investigating the situation along with the local officials, and they will continue to direct resources to the case as needed.” Before the grand jury verdict on Darren Wilson was released, Obama said, “the African American community is not just making this up.”</p>
<p>Obstruction of justice is a rather broad charge. But if we’re going to hold Trump to account – which, as he is president of the United States, we should – then we ought to hold everybody to account. Including the Obama administration.</p> | true | 0 | talk left president trumps supposed obstruction justice read complete legal breakdown see strained accusations easy forget easily left glossed multiple instance activity bordering obstruction obama years fact book people vs barack obama criminal case obama administration laid variety instances obama administration interfered administration justice 18 usc 1503 havent memorized code yet whoever corruptly threats force threatening letter communication endeavors influence intimidate impede grand petit juror officer court united states officer may serving examination proceeding united states magistrate judge committing magistrate discharge dutyor corruptly threats force threatening letter communication influences obstructs impedes endeavors influence obstruct impede due administration justice shall punished provided subsection b subsection b involves imprisonment 10 years maximum fine times obama administration bordered breaking law broke outright 1 george zimmerman prosecution attorney general investigating zimmerman shooting trayvon martin president obama stated im head executive branch attorney general reports ive got careful statements make sure impairing investigation thats taking place right obama went impair investigation think boy think kids think every parent america able understand absolutely imperative investigate every aspect thisif son hed look like trayvon doj promptly deployed community relations service sanford florida expend thousands taxpayer dollars facilitating marches demonstrations rallies doj would go set tip line people call stories zimmermans racism obama would later suggest zimmerman racist concluded white male teen involved kind scenariofrom top bottom outcome aftermath might different 2 protecting new black panthers new black panthers wielded billy clubs outside voting place philadelphia doj stopped investigation j christian adams justice department lawyer wrote believe dismissal black panther case motivated lawless hostility toward equal enforcement law nbpp head malik shabazz later admitted obama administration owed usfavors help election 3 firing americorps inspector general gerald walpin june 12 2009 obama fired walpin walpin appointed president bush 2007 stepped toes one obamas friends sacramento mayor kevin johnson april 2008 walpin took charge investigation allegations california nonprofit headed johnson received grant 850000 diverted nefarious purposes americorps staff used recruit johnsons charity walpin recommended suspension johnson americorps walpin refused lift suspension us attorneys office led lawrence brown decided go around walpin lift suspension allowing johnson pay fine walpin wrote report congress less two months later norman eisen special counsel president ethics government reform allegedly called walpin told president wants tell really appreciates service time move wall street journal reported evidence suggests obamas white house fired public official refused roll protect presidential crony investigation senator charles grassley ria representative darrell issa rca found walpin uncovered alleged sexual misconduct johnson 4 obamas interference navy courtmartials obama said wanted alleged victims sexual assault military prosecuted stripped positions courtmartialed fired dishonorably discharged problem obama head military courts june 2013 navy judge commander marcus fulton issued ruling suggesting obamas language could lead exculpation sexual offenders since member public would hear presidents statement simple admonition hold members accountable 5 fast furious last week house oversight committee released 300 page report brutal takedown eric holder report states five years brians murder terry family still wonders key details operation fast furious justice departments obstruction congresss investigation contributed terry familys inability find answers holder said didnt know anything fast furious brian terrys killing report says justice department knew full well program holder ended held contempt congress 6 hillarys obstruction according andrew mccarthy hillary clinton attempted destroy 30 emails related 2012 benghazi massacre obviously emails kept congressional committees investigated benghazi massacre violates another obstruction provision governing destruction government documents pertinent investigation obama administration mccarthy points knew missing documents months obama said hillary would never intentionally put america kind jeopardy attorney general according former fbi director james comey pressured downplay hillary investigation 7 michael brown case zimmerman case obama sounded early often brown case deployed federal resources effort smear officer darren wilson browns death amid riots ferguson missouri obama stated death michael brown heartbreaking michelle send deepest condolences family community difficult time attorney general holder indicated department justice investigating situation along local officials continue direct resources case needed grand jury verdict darren wilson released obama said african american community making obstruction justice rather broad charge going hold trump account president united states ought hold everybody account including obama administration | 678 |
<p>U.S. health officials said Friday they want tobacco companies to make all cigarettes with such low levels of nicotine that they are no longer addictive, part of a sweeping regulatory overhaul that threatens Big Tobacco's main moneymaker.</p>
<p>The Food and Drug Administration also said it would encourage smokers to switch to products such as e-cigarettes and smokeless tobacco that are less dangerous than cigarettes. The so-called harm-reduction strategy is a break by the U.S. government from an abstinence-only approach to fighting tobacco-related diseases and deaths.</p>
<p>Continue Reading Below</p>
<p>Shares of major tobacco companies, which have been reaping growing profits in the U.S. market even as the number of smokers dwindles, tumbled Friday on the surprise move. Marlboro maker Altria Group Inc. fell 10%, while British American Tobacco PLC, maker of Camel cigarettes, dropped 8.5%, erasing tens of billions of market value.</p>
<p>"The problem isn't just nicotine, the problem is the delivery mechanism, " FDA Commissioner Scott Gottlieb said at a press conference Friday.</p>
<p>"Cigarettes will likely remain incredibly toxic.... We may be able to reach a day when the most harmful products will no longer be capable of addicting our children," he said.</p>
<p>Dr. Gottlieb said the FDA's new approach would consider "a continuum of risk for nicotine delivery," from combustible products such as cigarettes to replacement therapies like nicotine gums. Nicotine hooks people on cigarettes, but nicotine itself doesn't cause cancer, heart disease or lung disease, he noted. It is other harmful compounds in cigarette smoke that kill 480,000 people in the U.S. each year, according to the Centers for Disease Control and Prevention.</p>
<p>In addition to pursuing regulation to "render cigarettes minimally addictive," Dr. Gottlieb said the FDA would consider a ban on menthol cigarettes.</p>
<p>Advertisement</p>
<p>The announcement is the biggest step by the U.S. government to curb smoking since a landmark legal settlement in 1998. In addition to paying more than $100 billion to help states pay for health care, tobacco companies agreed to restrictions on the use of cartoons in marketing, as well as transit advertising, billboards and free product samples.</p>
<p>"This is a huge switch from the 'tobacco-free world'. approach to tobacco and nicotine by U.S. government agencies," said David Sweanor, a Canadian law professor and tobacco expert who supports the harm-reduction approach.</p>
<p>The FDA began regulating the industry in 2009 but that move in some ways proved beneficial to Big Tobacco by grandfathering in cigarettes already on the market and eliminating regulatory uncertainty. The FDA's new stance "represents a paradigm shift in regulatory risk for U.S. tobacco companies," Stifel analyst Christopher Growe told clients in a note Friday.</p>
<p>Altria, which supported the 2009 legislation that gave the FDA authority to reduce nicotine levels, said "any proposed rule such as a nicotine product standard must be based on science and evidence, must not lead to unintended consequences and must be technically achievable."</p>
<p>BAT's U.S. subsidiary Reynolds American, which also sells nicotine gum, e-cigarettes and smokeless tobacco, said: "We are well prepared and look forward to participating in a thorough process to develop a comprehensive plan for tobacco and nicotine regulation."</p>
<p>Imperial Brands PLC, which sells the Winston and Kool brands, said "it's too early to understand the practical implications" of the FDA's new position. Philip Morris International Inc., which doesn't sell products in the U.S. but has applications pending before the FDA, didn't respond to a request for comment.</p>
<p>Some tobacco analysts were skeptical, saying such regulation would take years to develop and would likely be litigated. Others questioned the public-health benefit, suggesting smokers would just smoke more cigarettes to compensate for the lower levels of nicotine.</p>
<p>Citigroup analyst Adam Spielman said he doesn't believe the FDA will be able to lower nicotine to nonaddictive levels because defining that level would be difficult and there would be political opposition. "We don't believe the proposal to reduce nicotine in cigarettes dramatically is practical," Mr. Spielman said.</p>
<p>Nicotine levels in cigarettes can be reduced in different ways. Manufacturers can adjust the blend of tobacco leaves or use different types of paper or filters. Nicotine can also be stripped from the leaf in the manufacturing process.</p>
<p>But products with very low levels of nicotine have never garnered a significant share of the U.S. market. In 1989, Philip Morris Cos., the company now known as Altria, introduced an ultralow-nicotine cigarette called Next De-Nic, created through a process that stripped the majority of the nicotine from the tobacco leaf similar to the way caffeine is removed from coffee beans.</p>
<p>The FDA also said Friday it will allow more time for makers of e-cigarettes and vaping products to submit products for agency review. Those that were on the market in August 2016 won't be subject to review until 2021 or 2022.</p>
<p>The FDA's shift comes as the agency considers whether to approve new health-related marketing claims for several cigarette alternatives. In April, Reynolds American submitted applications to market six styles of Camel Snus tobacco pouches as being less harmful than cigarettes. Philip Morris International also has a health-claim application pending for a new device that heats tobacco instead of burning it. Analysts said the FDA's new position could bode well for such products.</p>
<p>Saabira Chaudhuri contributed to this article</p>
<p>Write to Jennifer Maloney at [email protected]</p>
<p>(END) Dow Jones Newswires</p>
<p>July 28, 2017 17:26 ET (21:26 GMT)</p> | true | 0 | us health officials said friday want tobacco companies make cigarettes low levels nicotine longer addictive part sweeping regulatory overhaul threatens big tobaccos main moneymaker food drug administration also said would encourage smokers switch products ecigarettes smokeless tobacco less dangerous cigarettes socalled harmreduction strategy break us government abstinenceonly approach fighting tobaccorelated diseases deaths continue reading shares major tobacco companies reaping growing profits us market even number smokers dwindles tumbled friday surprise move marlboro maker altria group inc fell 10 british american tobacco plc maker camel cigarettes dropped 85 erasing tens billions market value problem isnt nicotine problem delivery mechanism fda commissioner scott gottlieb said press conference friday cigarettes likely remain incredibly toxic may able reach day harmful products longer capable addicting children said dr gottlieb said fdas new approach would consider continuum risk nicotine delivery combustible products cigarettes replacement therapies like nicotine gums nicotine hooks people cigarettes nicotine doesnt cause cancer heart disease lung disease noted harmful compounds cigarette smoke kill 480000 people us year according centers disease control prevention addition pursuing regulation render cigarettes minimally addictive dr gottlieb said fda would consider ban menthol cigarettes advertisement announcement biggest step us government curb smoking since landmark legal settlement 1998 addition paying 100 billion help states pay health care tobacco companies agreed restrictions use cartoons marketing well transit advertising billboards free product samples huge switch tobaccofree world approach tobacco nicotine us government agencies said david sweanor canadian law professor tobacco expert supports harmreduction approach fda began regulating industry 2009 move ways proved beneficial big tobacco grandfathering cigarettes already market eliminating regulatory uncertainty fdas new stance represents paradigm shift regulatory risk us tobacco companies stifel analyst christopher growe told clients note friday altria supported 2009 legislation gave fda authority reduce nicotine levels said proposed rule nicotine product standard must based science evidence must lead unintended consequences must technically achievable bats us subsidiary reynolds american also sells nicotine gum ecigarettes smokeless tobacco said well prepared look forward participating thorough process develop comprehensive plan tobacco nicotine regulation imperial brands plc sells winston kool brands said early understand practical implications fdas new position philip morris international inc doesnt sell products us applications pending fda didnt respond request comment tobacco analysts skeptical saying regulation would take years develop would likely litigated others questioned publichealth benefit suggesting smokers would smoke cigarettes compensate lower levels nicotine citigroup analyst adam spielman said doesnt believe fda able lower nicotine nonaddictive levels defining level would difficult would political opposition dont believe proposal reduce nicotine cigarettes dramatically practical mr spielman said nicotine levels cigarettes reduced different ways manufacturers adjust blend tobacco leaves use different types paper filters nicotine also stripped leaf manufacturing process products low levels nicotine never garnered significant share us market 1989 philip morris cos company known altria introduced ultralownicotine cigarette called next denic created process stripped majority nicotine tobacco leaf similar way caffeine removed coffee beans fda also said friday allow time makers ecigarettes vaping products submit products agency review market august 2016 wont subject review 2021 2022 fdas shift comes agency considers whether approve new healthrelated marketing claims several cigarette alternatives april reynolds american submitted applications market six styles camel snus tobacco pouches less harmful cigarettes philip morris international also healthclaim application pending new device heats tobacco instead burning analysts said fdas new position could bode well products saabira chaudhuri contributed article write jennifer maloney jennifermaloneywsjcom end dow jones newswires july 28 2017 1726 et 2126 gmt | 568 |
<p>When Wang Tingting, a Shanghai sales assistant, ditched her iPhone 5 last year for a Huawei P9 Plus, she noticed little difference: Both phones run WeChat, the app she and millions of other Chinese consumers use the most.</p>
<p>"I don't miss the iPhone at all," said Ms. Wang, 24 years old.</p>
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<p>That sentiment undermines Apple Inc.'s efforts in its largest market outside the U.S., just as it is expected to launch its much-anticipated 10th-anniversary iPhone this fall.</p>
<p>The WeChat app from Tencent Holdings Ltd., with nearly one billion monthly active users, alone has captured nearly 35% of China's smartphone users' entire monthly time on mobile apps, according to data from QuestMobile.</p>
<p>Fans like Ms. Wang use WeChat to message friends, pay restaurant bills, hail cabs, play games and stream videos. This year, WeChat added "mini programs." This feature allows users to access apps stored in the cloud, so the apps can be used without being downloaded or stored on a device, giving users one less reason to buy an iPhone instead of cheaper domestic brands.</p>
<p>Skeptical investors are asking whether consumers in China will pay $1,000 for a new iPhone, when they spend more than 60% of their phone time inside a system from Tencent or from rivals Baidu Inc. and Alibaba Group Holding Ltd.</p>
<p>"That's the question: Is Apple losing its edge?" said Katy Huberty of Morgan Stanley, who remains optimistic about Apple's prospects in China.</p>
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<p>Apple declined to comment.</p>
<p>Once the No. 3 player in China, Apple's iPhone is now the No. 4 smartphone brand by market share behind local rivals Oppo and Vivo, from BBK Electronics Corp., and Huawei Technologies Co., according to JL Warren Capital, a market-research firm focused on China. The iPhone's market share has fallen below 10% in China, from a peak of 13% in 2015.</p>
<p>Because of WeChat, in part, 50% of iPhone owners stayed with Apple when buying a new phone, according to independent analyst Ben Thompson of Stratechery, who highlighted the WeChat threat in a recent note. The figure is 80% for the rest of the world. That has turned Apple into just another vendor in China, Mr. Thompson wrote recently -- "a hazardous place to be."</p>
<p>Other surveys show Apple has stronger brand loyalty than competitors. A Morgan Stanley study found 74% of China's iPhone owners would stay with Apple, compared with retention rates of 24% for Oppo and 19% for Vivo.</p>
<p>The iPhone maintains a 70% share of the high-priced smartphone market, according to Morgan Stanley, and Apple reported a 90% year-over-year increase in app store sales in 2016. "We continue to be very enthusiastic about our opportunity in China," Apple Chief Executive Tim Cook told analysts in May.</p>
<p>Still, iPhone troubles have contributed to a steep sales drop for Apple in its Greater China market, which includes Hong Kong and Taiwan. It was the company's only market to report a sales decline in the first half of the fiscal year. Revenue fell 13% in the period, after a 6.4% drop in the same period a year ago.</p>
<p>Analysts expect Apple to release a 10th-anniversary iPhone this fall with a new design and features like wireless charging and facial recognition. They say its success largely depends on sales in China.</p>
<p>As an indication of the market's importance, Apple recently named its first executive with oversight of its China business, Isabel Ge Mahe. Her job includes keeping close to the market and ensuring Apple has the right features to appeal to Chinese buyers.</p>
<p>On Saturday, Apple removed apps that help users circumvent China's internet censorship, a move that may help the firm win some favor with Chinese authorities.</p>
<p>Apple has made changes to iOS 11, its coming operating system, to improve the QR code functionality popularized by WeChat and other Chinese apps. It also has developed features that enable iPhone owners to use their phone number as an Apple ID and to filter out text-message scams that inundate many smartphone users in China.</p>
<p>Tailoring software for the market could be critical to keeping the iPhone competitive. Otherwise, Mr. Thompson wrote, Apple runs the risk that the phone's appearance becomes the only thing that matters when Chinese consumers buy a new device.</p>
<p>Such a shift potentially would force Apple to overhaul its entire business model, moving to a system where it releases a new-looking phone annually rather than every other year, as it does currently.</p>
<p>Apple has long had a certain cachet with consumers who value style and brand as much as function. That distinction is losing its edge. Ren Yanmei, 56, of Zhengzhou, recently switched from an iPhone to a Xiaomi phone, using it to read news, send texts and chat by video with her daughter. "If a phone has WeChat, I don't care about the brand," she says.</p>
<p>--Junya Qian in Shanghai contributed to this article.</p>
<p>(END) Dow Jones Newswires</p>
<p>July 30, 2017 07:14 ET (11:14 GMT)</p> | true | 0 | wang tingting shanghai sales assistant ditched iphone 5 last year huawei p9 plus noticed little difference phones run wechat app millions chinese consumers use dont miss iphone said ms wang 24 years old continue reading sentiment undermines apple incs efforts largest market outside us expected launch muchanticipated 10thanniversary iphone fall wechat app tencent holdings ltd nearly one billion monthly active users alone captured nearly 35 chinas smartphone users entire monthly time mobile apps according data questmobile fans like ms wang use wechat message friends pay restaurant bills hail cabs play games stream videos year wechat added mini programs feature allows users access apps stored cloud apps used without downloaded stored device giving users one less reason buy iphone instead cheaper domestic brands skeptical investors asking whether consumers china pay 1000 new iphone spend 60 phone time inside system tencent rivals baidu inc alibaba group holding ltd thats question apple losing edge said katy huberty morgan stanley remains optimistic apples prospects china advertisement apple declined comment 3 player china apples iphone 4 smartphone brand market share behind local rivals oppo vivo bbk electronics corp huawei technologies co according jl warren capital marketresearch firm focused china iphones market share fallen 10 china peak 13 2015 wechat part 50 iphone owners stayed apple buying new phone according independent analyst ben thompson stratechery highlighted wechat threat recent note figure 80 rest world turned apple another vendor china mr thompson wrote recently hazardous place surveys show apple stronger brand loyalty competitors morgan stanley study found 74 chinas iphone owners would stay apple compared retention rates 24 oppo 19 vivo iphone maintains 70 share highpriced smartphone market according morgan stanley apple reported 90 yearoveryear increase app store sales 2016 continue enthusiastic opportunity china apple chief executive tim cook told analysts may still iphone troubles contributed steep sales drop apple greater china market includes hong kong taiwan companys market report sales decline first half fiscal year revenue fell 13 period 64 drop period year ago analysts expect apple release 10thanniversary iphone fall new design features like wireless charging facial recognition say success largely depends sales china indication markets importance apple recently named first executive oversight china business isabel ge mahe job includes keeping close market ensuring apple right features appeal chinese buyers saturday apple removed apps help users circumvent chinas internet censorship move may help firm win favor chinese authorities apple made changes ios 11 coming operating system improve qr code functionality popularized wechat chinese apps also developed features enable iphone owners use phone number apple id filter textmessage scams inundate many smartphone users china tailoring software market could critical keeping iphone competitive otherwise mr thompson wrote apple runs risk phones appearance becomes thing matters chinese consumers buy new device shift potentially would force apple overhaul entire business model moving system releases newlooking phone annually rather every year currently apple long certain cachet consumers value style brand much function distinction losing edge ren yanmei 56 zhengzhou recently switched iphone xiaomi phone using read news send texts chat video daughter phone wechat dont care brand says junya qian shanghai contributed article end dow jones newswires july 30 2017 0714 et 1114 gmt | 524 |
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<p>IBM (NYSE: IBM) bears often highlight Big Blue's lack of revenue growth for 17 straight quarters, the slow growth of its cloud business, and the currency headwinds which incessantly gobble up its overseas profits. But despite those challenges, IBM has made some promising moves this year. Let's look back at three of its best.</p>
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<p>IBM's Watson Center at Marina Bay, Singapore. Image source: IBM.</p>
<p>Intel (NASDAQ: INTC) currently controls about 99% ofthe data center chip market, making it tough for IBM's Power CPUs to gain much ground. That's why IBM teamed up with Nvidia (NASDAQ: NVDA) and paired its Power CPUs with Nvidia's high-end Tesla GPUs for machine learning and AI purposes. Nvidia claims that its Tesla K80 GPU can run certain science applications "significantly faster" than Intel's Xeon 7120 CPU.</p>
<p>Last year, IBM claimed that pairing theTesla K80 with its Power CPUs enabled its Watson AI platform to answer questions 1.7 times faster. It also partnered with Nvidia and the U.S. Department of Energy to install its Power8 CPUs withTesla P100 GPUs into two new supercomputers by 2018. This May, <a href="http://www.fool.com/investing/2016/05/26/ibm-teams-up-with-nvidia-for-faster-virtual-cloud.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">IBM announced Opens a New Window.</a> that it would start offering Tesla M60 GPUs to its cloud-based enterprise clients tohelp them "deploy fewer, more powerful cloud servers while churning through complex jobs faster."</p>
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<p>This partnership strengthens IBM's <a href="http://www.fool.com/investing/general/2015/11/24/ibm-vs-intel-corporation-the-data-center-battle-es.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Open Power Opens a New Window.</a> initiative, which "open sources" Power-based server designs with third-party vendors to boost sales of Power CPUs. Customers who use Power-based servers could also be more likely to buy additional services from IBM's higher-growth "strategic imperatives" of cloud, mobile, social, analytics, and security.</p>
<p>In June, IBM announced that it was partnering with networking giant Cisco (NASDAQ: CSCO) to provide analytics capabilities at the "edge" of networks. The partnership combinesIBM's Watson IoT (Internet of Things) and business analytics platforms with Cisco's edge analytics to analyze data from a wide variety of devices in remote locations with limited bandwidth.</p>
<p>IBM states that the service's target companies include oil rigs, factories, shipping companies, and mines. By monitoring equipment in real-time with wireless connections, IBM claims that maintenance costs could be reduced "by up to 50 percent" as productivity is boosted "by 25 percent." The data gathered from those devices should make Watson, a core component of the company's Cognitive Solutions business, more effective at predictive analytics.</p>
<p>IBM CEO Ginni Rometty. Image source: IBM.</p>
<p>IBM and Cisco extended that partnership later that month with the creation of cloud-based workplace tools andapps integrated with Watson. That partnership combines IBM's Watson, analytics, email, and social platforms with Cisco's collaboration (business messaging, meeting, and calling) solutions. IBM believes that as Watson gathers data from that platform, it can offer workers "real-time advice" for handling tasks and boosting workplace efficiency.</p>
<p>In mid-August, <a href="http://www.fool.com/investing/2016/08/21/ibm-seals-a-win-win-cloud-partnership-with-workday.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">IBM announced Opens a New Window.</a> thatWorkday (NYSE: WDAY), a provider of enterprise cloud apps for managing finances and human resources, had adopted IBM Cloud as its primary platform for development and testing. Workday will also eventually use the IBM cloud for other purposes as part of a multi-year agreement.</p>
<p>Workday's platform helps companies staff, pay, and organize their workforces. It employs analytics and machine learning to help companies make financial and workforce-related decisions. Therefore, the partnership complements IBM's recent enterprise deals with Cisco.</p>
<p>IBM and Workday already worked together prior to the deal. IBM acquired Meteorix, one of Workday's top service partners, last year. It also uses Workday's Human Capital Management platform to manage its own workforce. Demand for Workday's services is strong -- analysts expect its revenue to rise 34% this year and31% next year.</p>
<p>IBM's partnerships with Nvidia, Cisco, and Workday all bolster its higher-growth strategic imperatives, which accounted for38% of its revenues over the past 12 months. IBM has already announced orclosed ten acquisitions this year to strengthen those businesses with new technologies and inorganic sales growth.</p>
<p>IBM still faces plenty of near-term headwinds, but investors should also take note of Big Blue's accomplishments over the past year. These individual partnerships might not boost IBM's sales growth back into positive territory on their own, but they represent key building blocks for the company's higher-growth businesses.</p>
<p>A secret billion-dollar stock opportunity The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, <a href="http://www.fool.com/mms/mark/ecap-foolcom-apple-wearable?aid=6965&amp;source=irbeditxt0000017&amp;ftm_cam=rb-wearable-d&amp;ftm_pit=2668&amp;ftm_veh=article_pitch&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">just click here Opens a New Window.</a>.</p>
<p><a href="http://my.fool.com/profile/TMFSunLion/info.aspx" type="external">Leo Sun Opens a New Window.</a> owns shares of Cisco Systems. The Motley Fool owns shares of and recommends Nvidia and Workday. The Motley Fool recommends Cisco Systems and Intel. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=isiedilnk018048&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://www.fool.com/knowledge-center/motley.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">considering a diverse range of insights Opens a New Window.</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | ibm nyse ibm bears often highlight big blues lack revenue growth 17 straight quarters slow growth cloud business currency headwinds incessantly gobble overseas profits despite challenges ibm made promising moves year lets look back three best continue reading ibms watson center marina bay singapore image source ibm intel nasdaq intc currently controls 99 ofthe data center chip market making tough ibms power cpus gain much ground thats ibm teamed nvidia nasdaq nvda paired power cpus nvidias highend tesla gpus machine learning ai purposes nvidia claims tesla k80 gpu run certain science applications significantly faster intels xeon 7120 cpu last year ibm claimed pairing thetesla k80 power cpus enabled watson ai platform answer questions 17 times faster also partnered nvidia us department energy install power8 cpus withtesla p100 gpus two new supercomputers 2018 may ibm announced opens new window would start offering tesla m60 gpus cloudbased enterprise clients tohelp deploy fewer powerful cloud servers churning complex jobs faster advertisement partnership strengthens ibms open power opens new window initiative open sources powerbased server designs thirdparty vendors boost sales power cpus customers use powerbased servers could also likely buy additional services ibms highergrowth strategic imperatives cloud mobile social analytics security june ibm announced partnering networking giant cisco nasdaq csco provide analytics capabilities edge networks partnership combinesibms watson iot internet things business analytics platforms ciscos edge analytics analyze data wide variety devices remote locations limited bandwidth ibm states services target companies include oil rigs factories shipping companies mines monitoring equipment realtime wireless connections ibm claims maintenance costs could reduced 50 percent productivity boosted 25 percent data gathered devices make watson core component companys cognitive solutions business effective predictive analytics ibm ceo ginni rometty image source ibm ibm cisco extended partnership later month creation cloudbased workplace tools andapps integrated watson partnership combines ibms watson analytics email social platforms ciscos collaboration business messaging meeting calling solutions ibm believes watson gathers data platform offer workers realtime advice handling tasks boosting workplace efficiency midaugust ibm announced opens new window thatworkday nyse wday provider enterprise cloud apps managing finances human resources adopted ibm cloud primary platform development testing workday also eventually use ibm cloud purposes part multiyear agreement workdays platform helps companies staff pay organize workforces employs analytics machine learning help companies make financial workforcerelated decisions therefore partnership complements ibms recent enterprise deals cisco ibm workday already worked together prior deal ibm acquired meteorix one workdays top service partners last year also uses workdays human capital management platform manage workforce demand workdays services strong analysts expect revenue rise 34 year and31 next year ibms partnerships nvidia cisco workday bolster highergrowth strategic imperatives accounted for38 revenues past 12 months ibm already announced orclosed ten acquisitions year strengthen businesses new technologies inorganic sales growth ibm still faces plenty nearterm headwinds investors also take note big blues accomplishments past year individual partnerships might boost ibms sales growth back positive territory represent key building blocks companys highergrowth businesses secret billiondollar stock opportunity worlds biggest tech company forgot show something wall street analysts fool didnt miss beat theres small company thats powering brandnew gadgets coming revolution technology think stock price nearly unlimited room run early intheknow investors one click opens new window leo sun opens new window owns shares cisco systems motley fool owns shares recommends nvidia workday motley fool recommends cisco systems intel try foolish newsletter services free 30 days opens new window fools may hold opinions believe considering diverse range insights opens new window makes us better investors motley fool disclosure policy opens new window | 583 |
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<p>Auto executives say they can adapt to taxes or other curbs on imports, even as industry advocates insist such moves will dent sales and eat into profit.</p>
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<p>President Donald Trump, traveling to Detroit Wednesday to say his administration will reopen a review of fuel-economy targets, has threatened to upend the North American Free Trade Agreement. The 23-year-old pact led to tens of billions of dollars in new Mexico investments by car companies and their suppliers.</p>
<p>Analysts, including the prominent Center for Automotive Research, say border taxes or other proposed tariffs could add $2,000 to the average price of a vehicle, or about 5%. A prominent dealer association traveled to Washington last week to warn lawmakers of a 2.5% sales decline predicted if policy makers’ proposed changes take hold.</p>
<p>House Republicans have proposed a so-called border adjustment—taxing imports but not exports—as part of a plan to cut the corporate tax rate. Mr. Trump has separately talked about a border tax targeted at companies that move jobs outside the U.S. and then ship products back in.</p>
<p>Auto industry officials say sticker shock is a nonstarter, and insist they can deal with disruption—even if they don’t welcome it.</p>
<p>“The last thing you want to do is to adjust your price,” Carlos Ghosn, heading the Renault SA/ Nissan Motor Co. alliance,&#160; said in an interview. “You’re going to absorb the cost the best way you can.”</p>
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<p>Mr. Ghosn, speaking after a short trip to Washington, encouraged the Trump administration to move fast on Nafta changes. Nissan is short on capacity, he said, and new rules for lower corporate taxes or higher tariffs at the border could bolster the case for a new U.S. factory.</p>
<p>For every car built in North America there are typically hundreds of companies supplying everything from steel body panels to radio knobs. Many locate near assembly plants in part to minimize shipping costs.</p>
<p>If executives like Mr. Ghosn start shifting more work to the U.S., many components makers say they will go along with them—even if that means physically relocating manufacturing operations from Mexico to the U.S. Ford Motor Co. (NYSE:F) scrapped plans for a new Mexican factory in January, forcing parts makers who had contracts to supply the abandoned plant to reassess their plans.</p>
<p>American Axle &amp; Manufacturing Inc. (NYSE:AXL), a Detroit auto supplier, said tariffs or other changes at the border could reverse the flood of work it has sent to Mexico in recent years. Advances in automation and the ability to transport tooling from one factory to another could aid the shift.</p>
<p>“We’ve got the flexibility to move our equipment,” CEO David Dauch said in a conference call with analysts last month.</p>
<p>A border tax that requires more content to be made in the U.S. could also shift more jobs from Mexico to the U.S., but that wouldn’t be painless, Bruce McDonald, the CEO of vehicle seat manufacturer Adient, said in a recent interview. “It is quite easy to move, it’s just got to be economic to do so,” he said. “If that production moved to the U.S., I would guess the cost equation would have to change.”</p>
<p>Matt Simoncini, chief executive of Lear Corp. (NYSE:LEA), an Adient rival, said relocating certain components to the U.S. would take between a year and 18 months, and add as much as 10% to capital expenditures. “Nothing really too incredibly dramatic on the investment side,” he said during a conference call to discuss earnings in January.</p>
<p>Even noncomponent suppliers to the auto industry, such as Illinois-based Magid Glove &amp; Safety Manufacturing, are ready if sourcing requirements are pushed deep into the supply chain. Manufacturing a variety of equipment for factory workers, including cut-resistant clothing, Magid is using 80,000 square-feet of production space near Chicago, but has another 300,000 square feet on standby.</p>
<p>“If Donald Trump is going to kick open the door, we’re ready to walk through it,” Dan Zukowski, Magid’s director of automotive sales said. Currently, certain customers pay a little more for American-made equipment for various reasons, but the company offers supplies made in other markets for customers looking to contain costs.</p>
<p>Not everything will be easy to change.</p>
<p>Delphi Automotive PLC (NYSE:DLPH) says the industry won’t be able to adapt as quickly on some parts, such as automotive wire harnesses, or bundles of electrical cables, which are labor intensive and considered a cheap commodity.</p>
<p>“Any disruption to that quite frankly is going to add significant cost,” Delphi CEO Kevin Clark told analysts on a conference call last month. “I would tell you as I look at products and manufacturing process, that is not a product line that I see actually being able to move to the United States,” he said.</p>
<p>Mr. Zukowski’s gloves and certain other protective gear play by the same rules.</p>
<p>More labor-intensive materials, such as leather gloves that require intense human focus, likely still need to be produced in lower-cost markets outside the U.S., he said.</p>
<p>“The industry manufacturing process is still in the stone age when it comes to producing certain items such as cut and sew products” and regulations related to shell-coated gloves. He says Magid offers relatively good wages and benefits in the U.S., and the company’s customers decide if a Made in the U.S.A. label is worth investing in.</p> | true | 0 | auto executives say adapt taxes curbs imports even industry advocates insist moves dent sales eat profit continue reading president donald trump traveling detroit wednesday say administration reopen review fueleconomy targets threatened upend north american free trade agreement 23yearold pact led tens billions dollars new mexico investments car companies suppliers analysts including prominent center automotive research say border taxes proposed tariffs could add 2000 average price vehicle 5 prominent dealer association traveled washington last week warn lawmakers 25 sales decline predicted policy makers proposed changes take hold house republicans proposed socalled border adjustmenttaxing imports exportsas part plan cut corporate tax rate mr trump separately talked border tax targeted companies move jobs outside us ship products back auto industry officials say sticker shock nonstarter insist deal disruptioneven dont welcome last thing want adjust price carlos ghosn heading renault sa nissan motor co alliance160 said interview youre going absorb cost best way advertisement mr ghosn speaking short trip washington encouraged trump administration move fast nafta changes nissan short capacity said new rules lower corporate taxes higher tariffs border could bolster case new us factory every car built north america typically hundreds companies supplying everything steel body panels radio knobs many locate near assembly plants part minimize shipping costs executives like mr ghosn start shifting work us many components makers say go along themeven means physically relocating manufacturing operations mexico us ford motor co nysef scrapped plans new mexican factory january forcing parts makers contracts supply abandoned plant reassess plans american axle amp manufacturing inc nyseaxl detroit auto supplier said tariffs changes border could reverse flood work sent mexico recent years advances automation ability transport tooling one factory another could aid shift weve got flexibility move equipment ceo david dauch said conference call analysts last month border tax requires content made us could also shift jobs mexico us wouldnt painless bruce mcdonald ceo vehicle seat manufacturer adient said recent interview quite easy move got economic said production moved us would guess cost equation would change matt simoncini chief executive lear corp nyselea adient rival said relocating certain components us would take year 18 months add much 10 capital expenditures nothing really incredibly dramatic investment side said conference call discuss earnings january even noncomponent suppliers auto industry illinoisbased magid glove amp safety manufacturing ready sourcing requirements pushed deep supply chain manufacturing variety equipment factory workers including cutresistant clothing magid using 80000 squarefeet production space near chicago another 300000 square feet standby donald trump going kick open door ready walk dan zukowski magids director automotive sales said currently certain customers pay little americanmade equipment various reasons company offers supplies made markets customers looking contain costs everything easy change delphi automotive plc nysedlph says industry wont able adapt quickly parts automotive wire harnesses bundles electrical cables labor intensive considered cheap commodity disruption quite frankly going add significant cost delphi ceo kevin clark told analysts conference call last month would tell look products manufacturing process product line see actually able move united states said mr zukowskis gloves certain protective gear play rules laborintensive materials leather gloves require intense human focus likely still need produced lowercost markets outside us said industry manufacturing process still stone age comes producing certain items cut sew products regulations related shellcoated gloves says magid offers relatively good wages benefits us companys customers decide made usa label worth investing | 554 |
<p>Hurricane Harvey forced refineries that make up nearly 5% of U.S. fuel-making capacity to shut down, and more facilities remained under threat as the storm moved through the heart of the nation's oil and gas infrastructure.</p>
<p>Valero Energy Corp., Flint Hills Resources and Citgo Petroleum Corp. closed refineries in and around Corpus Christi, Texas, that can handle a combined 840,000 barrels-a-day of crude oil before Harvey made landfall as a Category 4 hurricane nearby Friday night.</p>
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<p>"Valero's Corpus Christi and Three Rivers refineries are conducting a thorough assessment of refinery status and potential impacts from hurricane Harvey's landfall," Valero said in a statement Saturday. The company didn't estimate when the refineries, which can process a combined 380,000 barrels a day, would restart.</p>
<p>While Harvey lost some of its power after moving inland Saturday, becoming a tropical storm by early afternoon, its worst impact on the U.S. supply of gasoline and other fuels may yet be to come.</p>
<p>More than 3 million barrels of refining capacity is located around Houston, 200 miles north of Corpus Christi, and Port Arthur further east along the Gulf Coast, which could get anywhere from 15 inches to 30 inches of rain as the storm passes through over the weekend and into next week. Harvey is expected to linger over the area until Tuesday.</p>
<p>Most refiners in the Houston area remained operational early Saturday as they wait to see extent of flooding. Long-term refinery outages could cause fuel shortages and drive up the price of gasoline significantly as more than one third of U.S. refining capacity is in the storm's path.</p>
<p>Concerns over the impact of refinery closures on U.S. fuel supplies caused gasoline prices in futures markets to whipsaw in recent days. The RBOB October gasoline contract price spiked nearly 10 cents a gallon on Wednesday and Thursday, to $1.59/gallon. But on Friday, the price dropped back to $1.54/gallon as some investors felt the hurricane impact on a still-oversupplied market might be short-lived.</p>
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<p>Exxon Mobil Corp., Marathon Petroleum Corp. and Philips 66, which operate refineries near Houston, said they were monitoring the storm but hadn't made announcements of any closures.</p>
<p>Exxon's Gulf Coast refineries, including its 560,000-barrel-a-day Baytown refinery outside Houston, and its 365,000-barrel-a-day refinery in Beaumont, Texas, "are still operating as normal," said spokeswoman Suann Guthrie.</p>
<p>The Gulf Coast is the largest refining hub in the world and the epicenter of U.S. gasoline production. The Texas portion of the coast alone is home to more than 4.9 million barrels a day of refining capacity, out of more than 19 million barrels overall, according to the U.S. Energy Information Administration and analysts.</p>
<p>Clint Follette, a partner at Boston Consulting Group, said refineries in the storm's path that hadn't closed may have already lowered capacity and reduced staff as they await a final decision on the threat of flooding.</p>
<p>"Flooding can take a refinery down for a substantial period of time," Mr. Follette said. "Inspection, repairs, getting things up and running and restoring power, can be costly and time consuming."</p>
<p>Past storms to hit the Gulf Coast, including hurricanes Rita and Katrina in 2005, caused crude prices to rise between 4% and 6%. During Katrina, gasoline prices soared by as much as 70 cents a gallon in some parts of the country immediately after the storm, while shortages lingered for days.</p>
<p>The last hurricane to hit Texas was Hurricane Ike in 2008, when oil prices were falling amid the financial crisis. Ike forced more than a dozen refineries to close, largely due to flooding. Exxon Mobil's Baytown refinery, one of the nation's largest, took more than a month to start up again. Ike did less damage to refineries than Katrina but still caused prices to spike by 30 cents a gallon in the Southeast.</p>
<p>Another concern for refiners is the potential loss of power caused by the storm. More than 200,000 customers were already without power Saturday, according to utility AEP Texas.</p>
<p>Outages can also affect vital pipelines that supply gasoline to other parts of the country. Following Hurricane Katrina, the Colonial pipeline, which carries fuel from the Gulf Coast north to New York, was shut down for 55 hours.</p>
<p>To get the line pumping again, Colonial had to race against the clock to restore electricity after the Gulf Coast's power grid collapsed as it competed with federal authorities to get its hands on emergency generators and coaxed utilities to restore power.</p>
<p>Colonial spokeswoman Malesia Dunn said Saturday there hadn't been any impact to the company's lines and operations.</p>
<p>After Katrina, the departments of Energy and Homeland Security asked energy companies to stock up on emergency generators.</p>
<p>Phillips 66 spokesman Rich Johnson said that following Katrina the company made improvements to its storm water protection systems to guard its electrical equipment from floodwaters.</p>
<p>Marathon Petroleum said it has also hardened some of its refineries where appropriate to protect against storm and wind damage.</p>
<p>Write to Christopher M. Matthews at [email protected] and Dan Molinski at [email protected]</p>
<p>(END) Dow Jones Newswires</p>
<p>August 26, 2017 15:17 ET (19:17 GMT)</p> | true | 0 | hurricane harvey forced refineries make nearly 5 us fuelmaking capacity shut facilities remained threat storm moved heart nations oil gas infrastructure valero energy corp flint hills resources citgo petroleum corp closed refineries around corpus christi texas handle combined 840000 barrelsaday crude oil harvey made landfall category 4 hurricane nearby friday night continue reading valeros corpus christi three rivers refineries conducting thorough assessment refinery status potential impacts hurricane harveys landfall valero said statement saturday company didnt estimate refineries process combined 380000 barrels day would restart harvey lost power moving inland saturday becoming tropical storm early afternoon worst impact us supply gasoline fuels may yet come 3 million barrels refining capacity located around houston 200 miles north corpus christi port arthur east along gulf coast could get anywhere 15 inches 30 inches rain storm passes weekend next week harvey expected linger area tuesday refiners houston area remained operational early saturday wait see extent flooding longterm refinery outages could cause fuel shortages drive price gasoline significantly one third us refining capacity storms path concerns impact refinery closures us fuel supplies caused gasoline prices futures markets whipsaw recent days rbob october gasoline contract price spiked nearly 10 cents gallon wednesday thursday 159gallon friday price dropped back 154gallon investors felt hurricane impact stilloversupplied market might shortlived advertisement exxon mobil corp marathon petroleum corp philips 66 operate refineries near houston said monitoring storm hadnt made announcements closures exxons gulf coast refineries including 560000barreladay baytown refinery outside houston 365000barreladay refinery beaumont texas still operating normal said spokeswoman suann guthrie gulf coast largest refining hub world epicenter us gasoline production texas portion coast alone home 49 million barrels day refining capacity 19 million barrels overall according us energy information administration analysts clint follette partner boston consulting group said refineries storms path hadnt closed may already lowered capacity reduced staff await final decision threat flooding flooding take refinery substantial period time mr follette said inspection repairs getting things running restoring power costly time consuming past storms hit gulf coast including hurricanes rita katrina 2005 caused crude prices rise 4 6 katrina gasoline prices soared much 70 cents gallon parts country immediately storm shortages lingered days last hurricane hit texas hurricane ike 2008 oil prices falling amid financial crisis ike forced dozen refineries close largely due flooding exxon mobils baytown refinery one nations largest took month start ike less damage refineries katrina still caused prices spike 30 cents gallon southeast another concern refiners potential loss power caused storm 200000 customers already without power saturday according utility aep texas outages also affect vital pipelines supply gasoline parts country following hurricane katrina colonial pipeline carries fuel gulf coast north new york shut 55 hours get line pumping colonial race clock restore electricity gulf coasts power grid collapsed competed federal authorities get hands emergency generators coaxed utilities restore power colonial spokeswoman malesia dunn said saturday hadnt impact companys lines operations katrina departments energy homeland security asked energy companies stock emergency generators phillips 66 spokesman rich johnson said following katrina company made improvements storm water protection systems guard electrical equipment floodwaters marathon petroleum said also hardened refineries appropriate protect storm wind damage write christopher matthews christophermatthewswsjcom dan molinski danmolinskiwsjcom end dow jones newswires august 26 2017 1517 et 1917 gmt | 536 |
<p>It's the big, bad "B word" that no investor wants to hear: bankruptcy.</p>
<p>When a company files for bankruptcy protection, chances are its shares will lose most -- if not all -- of their value, and that the company will be delisted from its exchange. That's bad news for shareholders.</p>
<p>Continue Reading Below</p>
<p>But here's a fact that may surprise some investors: The securities of companies in bankruptcy can and often do keep trading, as there is <a href="http://www.sec.gov/investor/pubs/bankrupt.htm" type="external">no federal law Opens a New Window.</a> that prohibits trading stocks in bankrupt companies. What investors need to know, however, is that trading in the shares of a company under bankruptcy protection is <a href="http://www.finra.org/investors/alerts/investing-bankrupt-company-high-risk-venture" type="external">incredibly risky</a>, and could result in the loss of your entire investment.</p>
<p>If a company in your portfolio has filed for bankruptcy, here's a primer to get you up to speed on what you should expect, and a look at just why it's so risky to trade in the delisted shares of bankrupt companies.</p>
<p>Chapter 7 vs. Chapter 11Companies typically file for one of two types of bankruptcy protection under the federal tax code known as Chapter 7 or Chapter 11.</p>
<p>A Chapter 7 filing is the more nuclear option. It means that the company stops operating and all its assets are put up for sale by a court-appointed trustee, with the proceeds divvied up to the company's debtors in order of the seniority of the debt.</p>
<p>A Chapter 11 filing means that the company may undergo reorganization and continue to operate. Still, a Chapter 11 doesn't rule out the possibility of the sale. The entire company may be sold in what is called a Section 363 sale with the court's approval. That is generally not a good thing for shareholders, as there is typically not enough cash left over from the sale to compensate stock investors.</p>
<p>Regardless, in the event of Chapter 7 or Chapter 11, Lynn M. LoPucki, a professor at the UCLA School of Law and the founder of the UCLA-LoPucki Bankruptcy Database, warns shareholders to keep their expectations low.</p>
<p>"If a shareholder sees a company they own shares in has filed Chapter 7, it is near certain they'll receive nothing," he said. "If they see a company has filed Chapter 11, it's highly probable they will receive nothing."</p>
<p>Chapter 11 reorganization and investor compensationWhen a Chapter 11 filing doesn't result in a Section 363 sale, however, it may provide a small glimmer of hope for investors seeking to recoup at least some of their money. That's because reorganization plans sometimes include provisions for shareholder relief.</p>
<p>To reorganize under Chapter 11, a company must negotiate a reorganization plan with a government-appointed committee of company stakeholders, which is typically made up of creditors and can also include company stockholders. The plan will stipulate how much of the company's debt it will pay off, how much it will discharge, and it may also offer shareholders some sort of compensation for their shares.</p>
<p>The plan is typically put to a vote, but even if creditors or stockholders reject the plan, the court may still determine that the plan is fair and should be implemented. (For more information on how reorganization plans are structured, see the <a href="http://www.sec.gov/investor/pubs/bankrupt.htm" type="external">SEC's Corporate Bankruptcy page Opens a New Window.</a>.)</p>
<p>In a small number of cases, shareholders may receive substantial compensation -- such as cash or shares in the new company -- if the company that filed for Chapter 11 protection was in relatively good health and chose to pursue bankruptcy protection for strategic reasons. Reorganizing under Chapter 11, for instance, can help a company to <a href="http://articles.latimes.com/1988-11-29/business/fi-383_1_manville-corp" type="external">reduce payments owed for damage claims Opens a New Window.</a>.</p>
<p>But more often than not, shareholders of bankrupt companies see little to no compensation for their investments. Cases in which old shares may be exchanged for shares in the newly reorganized companies are especially uncommon. A study by then-UCLA law student Andrew Wood -- using information from the UCLA-LoPucki database -- found that among 42 Chapter 11 reorganizations taking place between 2009 and 2010, just four included "substantial" recoveries for equity holders in the form of shares in the newly reorganized companies.</p>
<p>In many cases, shareholders were offered the right to purchase new warrants -- which allow investors to buy new shares in the reorganized company at a set price before a certain date -- in the reorganized companies. But Wood noted that the companies didn't provide projections for the warrant values and couldn't be considered as anything more than a "nominal" recovery for shareholders.</p>
<p>"By purchasing the warrants instead of receiving them, the classes being given these rights would in fact be giving up additional value, not receiving new value," Wood wrote.</p>
<p>Theoretically, if the company's share price exceeds the set price in the warrant, investors can in fact make money by exercising the warrant and selling the shares at market value. If the company's shares don't exceed the set price, however, investors are out of luck.</p>
<p>"The warrants are a way of making investors feel like they're getting something even though in the majority of cases, they're getting nothing," LoPucki said.</p>
<p>Trading after bankruptcy: a high-risk gambleCompanies that file for Chapter 11 bankruptcy protection often fail to meet the listing requirements of the major exchanges -- and are subsequently delisted. Still, they may continue to trade <a href="https://www.thealertinvestor.com/unraveling-the-mystery-of-over-the-counter-trading/" type="external">over-the-counter Opens a New Window.</a> through the interdealer quotation systems OTC Bulletin Board, which is operated by the Financial Industry Regulatory Authority, or OTC Pink, run by OTC Markets Group. (OTC Pink was once known as "The Pink Sheets," a name that harkened back to the days when stock quotations for over-the-counter securities were <a href="http://scholarship.law.cornell.edu/cgi/viewcontent.cgi?article=3592&amp;context=clr" type="external">printed on pink paper Opens a New Window.</a>.) Bankrupt companies typically have the letter "Q" appended to the end of their stock symbols to denote the bankruptcy.</p>
<p>Such shares can trade relatively actively in the over-the-counter market, according to a <a href="http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1343765" type="external">study by Rutgers University and Temple University of 602 companies Opens a New Window.</a> that filed for Chapter 11 bankruptcy protection between 1998 and 2006. More than 50 percent of the 602 stocks traded on any given day, including companies that had been undergoing the Chapter 11 process for as long as three years. But researchers found that, for the most part, investing in the stocks of the bankrupt companies in their sample didn't pay off, noting that "betting on these stocks on average generates large losses," generating median monthly returns of negative-15%.</p>
<p>Given such outcomes -- and the high likelihood that investors will receive no compensation for their shares through company reorganizations plans -- why do some investors snap up shares of Chapter 11 companies?</p>
<p>For one thing, investors may be subjected to misinformation. FINRA issued an <a href="http://www.finra.org/investors/alerts/investing-bankrupt-company-high-risk-venture" type="external">Investor Alert Opens a New Window.</a> in 2009 warning that, following General Motors' bankruptcy, investors may have been led astray by rumors about GM stock through newsletters, online message boards, and websites.</p>
<p>Investors may also operate under the false assumption that once a company has emerged from bankruptcy, their old stocks will regain value. In fact, the opposite is true: most reorganization plans, once put into effect, cancel existing shares. Only "new" shares -- those issued by the reorganized company under a new trading symbol -- have value.</p>
<p>"Investors should understand that buying common stock of companies in Chapter 11 bankruptcy is extremely risky and can lead to financial loss," FINRA said in its Investor Alert.</p>
<p>In the case of GM, investors who held shares of the company before its reorganization saw their equity holdings cancelled in March, 2011. Per the company's reorganization plan, they did not receive any shares of the "new" GM.</p>
<p>For his part, LoPucki suspects that many investors don't understand the odds, and continue to cling to the hope that they might hit on the rare case of a company recovering and notching investors big returns, like the case of AMR Corp., the parent company of American Airlines, which emerged from bankruptcy under a reorganization plan that The Wall Street Journal called a " <a href="http://www.wsj.com/articles/SB10001424052702303456104579489282879045884" type="external">bonanza for investors Opens a New Window.</a>."</p>
<p>The story of American Airlines notwithstanding, though, investors should remember that its case is an exception, not the rule, when it comes to shareholder returns in the wake of a company's bankruptcy.</p>
<p>"For the vast majority of shareholders," LoPucki said, "your shares are going to be wiped out."</p>
<p><a href="http://www.thealertinvestor.com/" type="external">An Alert Investor is a smarter investor Opens a New Window.</a>.</p>
<p>This article originally appeared at <a href="https://www.thealertinvestor.com/what-a-corporate-bankruptcy-means-for-shareholders/" type="external">The Alert Investor Opens a New Window.</a>.</p>
<p>The article <a href="http://www.fool.com/investing/general/2016/02/23/what-a-corporate-bankruptcy-means-for-shareholders.aspx" type="external">What a Corporate Bankruptcy Means for Shareholders Opens a New Window.</a> originally appeared on Fool.com.</p>
<p><a href="http://my.fool.com/profile/TheAlertInvestor/info.aspx?source=eptfxblnk0000004" type="external">TheAlertInvestor Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool recommends General Motors. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=eptfxblnk0000004" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://wiki.fool.com/Motley?source=eptfxblnk0000004" type="external">considering a diverse range of insights Opens a New Window.</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?source=eptfxblnk0000004" type="external">disclosure policy Opens a New Window.</a>.</p>
<p>Copyright 1995 - 2016 The Motley Fool, LLC. All rights reserved. The Motley Fool has a <a href="http://www.fool.com/help/index.htm?display=about02" type="external">disclosure policy Opens a New Window.</a>.</p>
<p>Advertisement</p> | true | 0 | big bad b word investor wants hear bankruptcy company files bankruptcy protection chances shares lose value company delisted exchange thats bad news shareholders continue reading heres fact may surprise investors securities companies bankruptcy often keep trading federal law opens new window prohibits trading stocks bankrupt companies investors need know however trading shares company bankruptcy protection incredibly risky could result loss entire investment company portfolio filed bankruptcy heres primer get speed expect look risky trade delisted shares bankrupt companies chapter 7 vs chapter 11companies typically file one two types bankruptcy protection federal tax code known chapter 7 chapter 11 chapter 7 filing nuclear option means company stops operating assets put sale courtappointed trustee proceeds divvied companys debtors order seniority debt chapter 11 filing means company may undergo reorganization continue operate still chapter 11 doesnt rule possibility sale entire company may sold called section 363 sale courts approval generally good thing shareholders typically enough cash left sale compensate stock investors regardless event chapter 7 chapter 11 lynn lopucki professor ucla school law founder uclalopucki bankruptcy database warns shareholders keep expectations low shareholder sees company shares filed chapter 7 near certain theyll receive nothing said see company filed chapter 11 highly probable receive nothing chapter 11 reorganization investor compensationwhen chapter 11 filing doesnt result section 363 sale however may provide small glimmer hope investors seeking recoup least money thats reorganization plans sometimes include provisions shareholder relief reorganize chapter 11 company must negotiate reorganization plan governmentappointed committee company stakeholders typically made creditors also include company stockholders plan stipulate much companys debt pay much discharge may also offer shareholders sort compensation shares plan typically put vote even creditors stockholders reject plan court may still determine plan fair implemented information reorganization plans structured see secs corporate bankruptcy page opens new window small number cases shareholders may receive substantial compensation cash shares new company company filed chapter 11 protection relatively good health chose pursue bankruptcy protection strategic reasons reorganizing chapter 11 instance help company reduce payments owed damage claims opens new window often shareholders bankrupt companies see little compensation investments cases old shares may exchanged shares newly reorganized companies especially uncommon study thenucla law student andrew wood using information uclalopucki database found among 42 chapter 11 reorganizations taking place 2009 2010 four included substantial recoveries equity holders form shares newly reorganized companies many cases shareholders offered right purchase new warrants allow investors buy new shares reorganized company set price certain date reorganized companies wood noted companies didnt provide projections warrant values couldnt considered anything nominal recovery shareholders purchasing warrants instead receiving classes given rights would fact giving additional value receiving new value wood wrote theoretically companys share price exceeds set price warrant investors fact make money exercising warrant selling shares market value companys shares dont exceed set price however investors luck warrants way making investors feel like theyre getting something even though majority cases theyre getting nothing lopucki said trading bankruptcy highrisk gamblecompanies file chapter 11 bankruptcy protection often fail meet listing requirements major exchanges subsequently delisted still may continue trade overthecounter opens new window interdealer quotation systems otc bulletin board operated financial industry regulatory authority otc pink run otc markets group otc pink known pink sheets name harkened back days stock quotations overthecounter securities printed pink paper opens new window bankrupt companies typically letter q appended end stock symbols denote bankruptcy shares trade relatively actively overthecounter market according study rutgers university temple university 602 companies opens new window filed chapter 11 bankruptcy protection 1998 2006 50 percent 602 stocks traded given day including companies undergoing chapter 11 process long three years researchers found part investing stocks bankrupt companies sample didnt pay noting betting stocks average generates large losses generating median monthly returns negative15 given outcomes high likelihood investors receive compensation shares company reorganizations plans investors snap shares chapter 11 companies one thing investors may subjected misinformation finra issued investor alert opens new window 2009 warning following general motors bankruptcy investors may led astray rumors gm stock newsletters online message boards websites investors may also operate false assumption company emerged bankruptcy old stocks regain value fact opposite true reorganization plans put effect cancel existing shares new shares issued reorganized company new trading symbol value investors understand buying common stock companies chapter 11 bankruptcy extremely risky lead financial loss finra said investor alert case gm investors held shares company reorganization saw equity holdings cancelled march 2011 per companys reorganization plan receive shares new gm part lopucki suspects many investors dont understand odds continue cling hope might hit rare case company recovering notching investors big returns like case amr corp parent company american airlines emerged bankruptcy reorganization plan wall street journal called bonanza investors opens new window story american airlines notwithstanding though investors remember case exception rule comes shareholder returns wake companys bankruptcy vast majority shareholders lopucki said shares going wiped alert investor smarter investor opens new window article originally appeared alert investor opens new window article corporate bankruptcy means shareholders opens new window originally appeared foolcom thealertinvestor opens new window position stocks mentioned motley fool recommends general motors try foolish newsletter services free 30 days opens new window fools may hold opinions believe considering diverse range insights opens new window makes us better investors motley fool disclosure policy opens new window copyright 1995 2016 motley fool llc rights reserved motley fool disclosure policy opens new window advertisement | 889 |
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<p>8point3 Energy Partners' (NASDAQ: CAFD) shares have been thrown for another loop this week, this time because sponsor First Solar (NASDAQ: FSLR) says it's looking into strategic alternatives for its stake in the yieldco, which is code for wanting to sell its shares. That sparked SunPower (NASDAQ: SPWR) into its own strategic review and could end up with a new co-sponsor, liquidation, or an outright sale of the company.</p>
<p>Continue Reading Below</p>
<p>First Solar's move comes as the company changes strategic directions, something <a href="https://www.fool.com/investing/2017/03/29/first-solar-and-sunpower-make-a-strategic-shift-at.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">I highlighted last week Opens a New Window.</a>. The solar manufacturer wants to put less emphasis on its project development business and sell more components and services to developers rather than building systems itself. As it's made that strategic shift it makes less sense to own a stake in 8point3 Energy Partners, particularly if the yieldco won't be able to buy projects the company is selling long-term (which I'll cover below). And that's why First Solar may be jumping ship.</p>
<p>Image source: First Solar.</p>
<p>The news of a strategic review may be grabbing the headlines today, but 8point3 Energy Partners also reported earnings for the first fiscal quarter of 2017. And once again it beat its own expectations.</p>
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<p>Revenue was $9.9 million, net loss was $5.3 million, adjusted EBITDA hit $13.1 million, and cash available for distribution was $22.1 million in the quarter. Guidance had been for $9.3 million to $9.8 million in revenue, adjusted EBITDA of $11.8 million to $12.6 million, and CAFD of $19.8 million to $12.6 million. Given the long history of beating results it's safe to say that 2017 guidance for $91.5 million to $101.0 million in CAFD is an underestimate as well.</p>
<p>Image source: SunPower.</p>
<p>Management also revealed that its project level CAFD guidance of $122.0 million to $131.5 million for the year is based on a P90 statistical measure (a 90% confidence level). If we use the P50 measure, where 50% of estimates are above and 50% fall below, the project level CAFD is around $140 million. In other words, after paying for debt, operating expenses, and dividends it's likely there will be around $24.5 million in excess cash this year that can be used to pay down debt, buy projects, or just stay on the balance sheet.</p>
<p>As you can see with results, the announcement that First Solar wants out doesn't have a lot to do with operations, it has to do with where First Solar sees its future. When 8point3 Energy Partners was formed both First Solar and SunPower saw a huge future in project development and the yieldco was a great way to monetize those assets. But as the yieldco's yield has gone up it's become harder to buy projects from sponsors. Combine that with the strategic shift of both sponsors away from project development to more component sales and it may not make sense to have the yieldco anymore.</p>
<p>Official news that 8point3 Energy Partners likely won't be able to buy the 280 MW California Flats and 40 MW Cuyama projects from First Solar may have been the last straw. If project development isn't in the future and the yieldco can't buy the projects First Solar is developing, why own a stake in 8point3 at all?</p>
<p>I see three options for 8point3 Energy Partners after this week's announcement.</p>
<p>For sponsors First Solar and SunPower, a sale of some sort could be great for their businesses. First Solar is focusing on upgrading manufacturing to its Series 6 product and while it doesn't need the cash it never hurts to have an even more solid balance sheet. If a full sale goes through, SunPower could use the ~$400 million in proceeds to shore up its balance sheet and invest in new products for the future. Management has been focused on cash preservation this year, so a sale may be a short-term boost. As strange as it seems, even at a low price a sale of the yieldco may be good for both sponsors.</p>
<p>No matter what option is chosen, I don't think this is bad news short-term for 8point3 Energy Partners' stock. Management will likely be able to squeeze more value from the company than the market is pricing in and if a big sponsor like Total steps in the future for the company could be even brighter. This may force a strategic shift for the yieldco to buying assets from third party developers or adding project debt, two things the current management team has avoided. But it may take some time for this to play out and right now the uncertainty isn't pleasing investors in the market.</p>
<p>10 stocks we like better than 8point3 Energy PartnersWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*</p>
<p>David and Tom just revealed what they believe are the <a href="http://infotron.fool.com/infotrack/click?url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=ad19619a-1978-4be9-9eb9-e029ace8fca4&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now... and 8point3 Energy Partners wasn't one of them! That's right -- they think these 10 stocks are even better buys.</p>
<p><a href="http://infotron.fool.com/infotrack/click?url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=ad19619a-1978-4be9-9eb9-e029ace8fca4&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Click here Opens a New Window.</a> to learn about these picks!</p>
<p>*Stock Advisor returns as of April 3, 2017</p>
<p><a href="http://my.fool.com/profile/TMFFlushDraw/info.aspx" type="external">Travis Hoium Opens a New Window.</a> owns shares of 8point3 Energy Partners, First Solar, SunPower, and Total. The Motley Fool recommends Total. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | 8point3 energy partners nasdaq cafd shares thrown another loop week time sponsor first solar nasdaq fslr says looking strategic alternatives stake yieldco code wanting sell shares sparked sunpower nasdaq spwr strategic review could end new cosponsor liquidation outright sale company continue reading first solars move comes company changes strategic directions something highlighted last week opens new window solar manufacturer wants put less emphasis project development business sell components services developers rather building systems made strategic shift makes less sense stake 8point3 energy partners particularly yieldco wont able buy projects company selling longterm ill cover thats first solar may jumping ship image source first solar news strategic review may grabbing headlines today 8point3 energy partners also reported earnings first fiscal quarter 2017 beat expectations advertisement revenue 99 million net loss 53 million adjusted ebitda hit 131 million cash available distribution 221 million quarter guidance 93 million 98 million revenue adjusted ebitda 118 million 126 million cafd 198 million 126 million given long history beating results safe say 2017 guidance 915 million 1010 million cafd underestimate well image source sunpower management also revealed project level cafd guidance 1220 million 1315 million year based p90 statistical measure 90 confidence level use p50 measure 50 estimates 50 fall project level cafd around 140 million words paying debt operating expenses dividends likely around 245 million excess cash year used pay debt buy projects stay balance sheet see results announcement first solar wants doesnt lot operations first solar sees future 8point3 energy partners formed first solar sunpower saw huge future project development yieldco great way monetize assets yieldcos yield gone become harder buy projects sponsors combine strategic shift sponsors away project development component sales may make sense yieldco anymore official news 8point3 energy partners likely wont able buy 280 mw california flats 40 mw cuyama projects first solar may last straw project development isnt future yieldco cant buy projects first solar developing stake 8point3 see three options 8point3 energy partners weeks announcement sponsors first solar sunpower sale sort could great businesses first solar focusing upgrading manufacturing series 6 product doesnt need cash never hurts even solid balance sheet full sale goes sunpower could use 400 million proceeds shore balance sheet invest new products future management focused cash preservation year sale may shortterm boost strange seems even low price sale yieldco may good sponsors matter option chosen dont think bad news shortterm 8point3 energy partners stock management likely able squeeze value company market pricing big sponsor like total steps future company could even brighter may force strategic shift yieldco buying assets third party developers adding project debt two things current management team avoided may take time play right uncertainty isnt pleasing investors market 10 stocks like better 8point3 energy partnerswhen investing geniuses david tom gardner stock tip pay listen newsletter run decade motley fool stock advisor tripled market david tom revealed believe 10 best stocks opens new window investors buy right 8point3 energy partners wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns april 3 2017 travis hoium opens new window owns shares 8point3 energy partners first solar sunpower total motley fool recommends total motley fool disclosure policy opens new window | 534 |
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<p>U.S. companies are preparing to invest again after years on the sidelines, and rising interest rates are unlikely to impede them.</p>
<p>Continue Reading Below</p>
<p>Executives have grown more optimistic about growth, in part anticipating that President-elect Donald Trump's administration and Republican congressional majorities will bring regulatory rollbacks, corporate tax breaks and increased infrastructure spending.</p>
<p>The Federal Reserve last month signaled interest rates would rise at a faster pace than previously projected, showing increasing optimism about the U.S. economy as it unanimously approved its second rate increase in a decade.</p>
<p>Despite years of near-zero interest rates that made borrowing cheap, many big U.S. corporations have been hoarding cash or plowing money into safer pursuits in the wake of the recession. Some, like General Motors Co. and railroad CSX Corp., borrowed to prop up pension plans. Others, including Home Depot Inc. and Yum Brands Inc., used cheap debt to repurchase shares. Meanwhile, overall spending on building new factories or upgrading aging equipment languished.</p>
<p>That is likely to change soon.</p>
<p>"We could be in store for a significant [capital-expenditure] boom," said Charles Mulford, an accounting professor at Georgia Institute of Technology in Atlanta.</p>
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<p>Steel company Klöckner &amp; Co., which generates about 40% of its sales from its 50 sites in the U.S., expects to increase spending on steel-shaping machinery here in the coming year. The German company delayed such U.S. investments when demand slowed from industrial customers that make everything from railcars to storage tanks for oil producers.</p>
<p>Rising interest rates won't interfere with the planned investments, said Gisbert Rühl, chairman of Klöckner's management board. "If we have to pay 100 basis points more, that's not an issue for us," Mr. Rühl said. "Even 200 basis points is not an issue...It's still cheap." Fed officials have signaled that they expect to raise rates by another 0.75 percentage point this year, likely in three quarter-point moves.</p>
<p>The new optimism could mean the U.S. is poised to emerge from a pattern that has frustrated the usual business investment cycle. During downturns, businesses typically cut capital investment -- spending that increases or improves physical assets like buildings, equipment and computers. As the economy picks up, they rapidly ramp up spending, or risk being overtaken by more aggressive competitors.</p>
<p>Business investment dropped sharply during the financial crisis, falling more than 17% for S&amp;P 500 companies in the 12 months after Lehman Brothers' September 2008 collapse. But even as the economy recovered, total expenditures took three years to regain the precrisis level, according to data from S&amp;P Dow Jones Indices.</p>
<p>Companies saw little reason to invest when U.S. economic growth was sluggish. Quarterly gross domestic product has averaged an annualized 1.5% growth since the Lehman collapse, compared with a decadeslong average -- going back to 1930 -- of more than 3%.</p>
<p>Another culprit was a resistance among corporate leaders to lower the minimum rate of return on investment -- known as a hurdle rate -- they would accept from new spending, largely out of fear of disappointing shareholders.</p>
<p>"If returns are down and your hurdle rate hasn't changed, you'll stop investing," said William Plummer, finance chief at construction rental firm United Rentals Inc.</p>
<p>Instead, many businesses pursued safer alternatives. In 2015 alone, companies in the Russell 3000 index bought back nearly $700 billion of their own shares, the most since 2007, according to research firm Birinyi Associates Inc. Last year through November, those firms spent another $488 billion on buybacks.</p>
<p>Companies in the S&amp;P 1500 pumped $550 billion into their pensions between 2008 and Nov. 30 last year, according to Mercer Investment Consulting LLC.</p>
<p>"Businesses simply haven't adjusted to a world of low interest rates," said Paul Ashworth, chief North American economist for Capital Economics Ltd., a research firm. "They're still looking for 5% or 6% returns, or 10% returns, on investment projects, and not realizing the cost of borrowing is actually much lower."</p>
<p>Some companies continue to promise returns echoing those common before the financial crisis. General Electric Co., for example, in 2016 tied pay for its executives to a 16% to 18% benchmark for return on capital, in addition to measures of profitability and growth in cash and earnings.</p>
<p>A GE spokeswoman said investors expect returns in that range.</p>
<p>Many executives believed the Fed would raise interest rates relatively soon after the recession ended, said Aldo Pagliari, chief financial officer at toolmaker Snap-On Inc. That led companies to put off lowering their estimates of what it would cost to raise money to fund upgrades or new projects.</p>
<p>"If you look at 2009, 2010, or 2011, no one thought rates would stay that low," he said. Snap-On now estimates cost of capital at roughly 9.2%, down just slightly from the 10% it assumed before the financial crisis.</p>
<p>In 2010, videogame retailer GameStop Corp. committed to spend $300 million on share repurchases and $200 million on new stores and other investments. The company had built up cash on its balance sheet and executives felt they needed to return some to shareholders in the absence of better alternatives. "The interest-rate environment wasn't giving you anything for parked cash," said Robert Lloyd, GameStop's finance chief.</p>
<p>More recently, the company has shifted tactics. GameStop has boosted capital spending to roughly $160 million in 2016 from $125 million in 2013 for store refurbishments and expansion into new categories like collectibles. Last year, it cut its buyback in half. "It was the right thing for us to diversify the company and make those investments," Mr. Lloyd said.</p> | true | 0 | us companies preparing invest years sidelines rising interest rates unlikely impede continue reading executives grown optimistic growth part anticipating presidentelect donald trumps administration republican congressional majorities bring regulatory rollbacks corporate tax breaks increased infrastructure spending federal reserve last month signaled interest rates would rise faster pace previously projected showing increasing optimism us economy unanimously approved second rate increase decade despite years nearzero interest rates made borrowing cheap many big us corporations hoarding cash plowing money safer pursuits wake recession like general motors co railroad csx corp borrowed prop pension plans others including home depot inc yum brands inc used cheap debt repurchase shares meanwhile overall spending building new factories upgrading aging equipment languished likely change soon could store significant capitalexpenditure boom said charles mulford accounting professor georgia institute technology atlanta advertisement steel company klöckner amp co generates 40 sales 50 sites us expects increase spending steelshaping machinery coming year german company delayed us investments demand slowed industrial customers make everything railcars storage tanks oil producers rising interest rates wont interfere planned investments said gisbert rühl chairman klöckners management board pay 100 basis points thats issue us mr rühl said even 200 basis points issueits still cheap fed officials signaled expect raise rates another 075 percentage point year likely three quarterpoint moves new optimism could mean us poised emerge pattern frustrated usual business investment cycle downturns businesses typically cut capital investment spending increases improves physical assets like buildings equipment computers economy picks rapidly ramp spending risk overtaken aggressive competitors business investment dropped sharply financial crisis falling 17 sampp 500 companies 12 months lehman brothers september 2008 collapse even economy recovered total expenditures took three years regain precrisis level according data sampp dow jones indices companies saw little reason invest us economic growth sluggish quarterly gross domestic product averaged annualized 15 growth since lehman collapse compared decadeslong average going back 1930 3 another culprit resistance among corporate leaders lower minimum rate return investment known hurdle rate would accept new spending largely fear disappointing shareholders returns hurdle rate hasnt changed youll stop investing said william plummer finance chief construction rental firm united rentals inc instead many businesses pursued safer alternatives 2015 alone companies russell 3000 index bought back nearly 700 billion shares since 2007 according research firm birinyi associates inc last year november firms spent another 488 billion buybacks companies sampp 1500 pumped 550 billion pensions 2008 nov 30 last year according mercer investment consulting llc businesses simply havent adjusted world low interest rates said paul ashworth chief north american economist capital economics ltd research firm theyre still looking 5 6 returns 10 returns investment projects realizing cost borrowing actually much lower companies continue promise returns echoing common financial crisis general electric co example 2016 tied pay executives 16 18 benchmark return capital addition measures profitability growth cash earnings ge spokeswoman said investors expect returns range many executives believed fed would raise interest rates relatively soon recession ended said aldo pagliari chief financial officer toolmaker snapon inc led companies put lowering estimates would cost raise money fund upgrades new projects look 2009 2010 2011 one thought rates would stay low said snapon estimates cost capital roughly 92 slightly 10 assumed financial crisis 2010 videogame retailer gamestop corp committed spend 300 million share repurchases 200 million new stores investments company built cash balance sheet executives felt needed return shareholders absence better alternatives interestrate environment wasnt giving anything parked cash said robert lloyd gamestops finance chief recently company shifted tactics gamestop boosted capital spending roughly 160 million 2016 125 million 2013 store refurbishments expansion new categories like collectibles last year cut buyback half right thing us diversify company make investments mr lloyd said | 608 |
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<p>Back in December, package-delivery giant FedEx (NYSE: FDX) reported a <a href="https://www.fool.com/investing/2016/12/23/fedex-delivers-a-rare-earnings-disappointment.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">rare earnings miss Opens a New Window.</a> for the second quarter of its 2017 fiscal year. On Tuesday afternoon, the company reported an even bigger earnings miss for the third quarter.</p>
<p>Continue Reading Below</p>
<p>To some extent, FedEx's recent issues can be attributed to temporary factors. FedEx executives still expect the company to meet its full-year guidance for adjusted earnings per share. Nevertheless, if the company doesn't get back on track quickly, management risks squandering its hard-won credibility with investors.</p>
<p>For Q3, revenue jumped 18% year over year, from $12.7 billion to $15.0 billion. However, nearly all of this growth represented the impact of acquiring TNT Express last year. The TNT Express segment contributed $1.8 billion of revenue last quarter. Without it, revenue would have risen by just 4% to $13.2 billion.</p>
<p>Furthermore, FedEx's adjusted EPS declined 6% year over year during the quarter, from $2.51 to $2.35. This showing missed the average analyst estimate of $2.62 by a country mile. By contrast, FedEx posted <a href="https://www.fool.com/investing/2016/09/20/fedex-earnings-a-solid-start-to-fiscal-2017.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">20% year-over-year growth Opens a New Window.</a> in adjusted EPS just two quarters earlier.</p>
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<p>FedEx posted a disappointing decline in earnings last quarter. Image source: Pixabay.</p>
<p>One major cause of the weak Q3 earnings results was an increase in fuel prices during the quarter. While FedEx passes fuel costs through to customers in the form of fuel surcharges, there's a lag between when fuel prices rise and when FedEx increases its surcharges.</p>
<p>Management also noted that the express and ground-delivery businesses both had one less operating day last quarter compared with Q3 of fiscal 2016. Finally, network expansion at FedEx Ground continues to weigh on that segment's profit margin.</p>
<p>Going segment by segment, it's clear that FedEx faced pressure across the board last quarter. Adjusted operating income declined 7% (to $555 million) for the express segment and fell 8% (to $515 million) for the ground segment.</p>
<p>However, FedEx's smallest major operating segment continued to pose the biggest problems. FedEx Freight reported a 27% plunge in operating income, despite 3% revenue growth. The segment's operating margin fell to a dismal 2.7%, compared with the company's target of earning double-digit margins in each segment.</p>
<p>One encouraging piece of news in the FedEx earnings report was that the company slashed its fiscal 2017 capex forecast by $300 million, from $5.6 billion to $5.3 billion. This savings will come from lower spending at FedEx Ground.</p>
<p>In recent years, FedEx has invested enormous amounts of cash to expand its ground delivery capacity. It has continued to do so despite declining margins in that segment. Year to date, the ground segment's operating margin is just 11.9%, compared with around 17% two years ago. About half of that decline can be attributed to an accounting change and an acquisition -- but the rest reflects overcapacity.</p>
<p>In the past, FedEx's management has been very defensive about the ground segment's massive capital spending. Cutting back on capacity expansion should help FedEx stabilize that segment's profit margin at long last. It will also drive free cash flow higher.</p>
<p>FedEx also continues to work through the integration of TNT Express. It expects the process to take about four years. By fiscal 2020, FedEx expects the express segment's operating income to rise by $1.2 billion to $1.5 billion relative to fiscal 2017, which would represent a roughly 50% increase. Merger synergies will drive much of that earnings growth.</p>
<p>Despite the poor showing last quarter, FedEx's management maintained the company's full-year forecast that adjusted EPS will reach $11.85 to $12.35, up from $10.80 a year ago.</p>
<p>Achieving this target could be difficult. EPS will have to rise 15% year over year next quarter just to hit the bottom end of the range. Reaching the high end of the guidance range would require a 30% surge in EPS during Q4.</p>
<p>It's important for FedEx to at least reach the bottom of this range to preserve management's credibility. A third consecutive earnings miss could lead investors to question whether FedEx executives are having trouble managing the business following its recent acquisitions.</p>
<p>That said, FedEx's long-term forecast shows the massive potential for earnings growth as the company integrates TNT Express. If FedEx can also get its ground and freight segments back on track in the next few years, FedEx stock could continue to shine.</p>
<p>10 stocks we like better than FedExWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*</p>
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<p><a href="http://my.fool.com/profile/TMFGemHunter/info.aspx" type="external">Adam Levine-Weinberg Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool recommends FedEx. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | back december packagedelivery giant fedex nyse fdx reported rare earnings miss opens new window second quarter 2017 fiscal year tuesday afternoon company reported even bigger earnings miss third quarter continue reading extent fedexs recent issues attributed temporary factors fedex executives still expect company meet fullyear guidance adjusted earnings per share nevertheless company doesnt get back track quickly management risks squandering hardwon credibility investors q3 revenue jumped 18 year year 127 billion 150 billion however nearly growth represented impact acquiring tnt express last year tnt express segment contributed 18 billion revenue last quarter without revenue would risen 4 132 billion furthermore fedexs adjusted eps declined 6 year year quarter 251 235 showing missed average analyst estimate 262 country mile contrast fedex posted 20 yearoveryear growth opens new window adjusted eps two quarters earlier advertisement fedex posted disappointing decline earnings last quarter image source pixabay one major cause weak q3 earnings results increase fuel prices quarter fedex passes fuel costs customers form fuel surcharges theres lag fuel prices rise fedex increases surcharges management also noted express grounddelivery businesses one less operating day last quarter compared q3 fiscal 2016 finally network expansion fedex ground continues weigh segments profit margin going segment segment clear fedex faced pressure across board last quarter adjusted operating income declined 7 555 million express segment fell 8 515 million ground segment however fedexs smallest major operating segment continued pose biggest problems fedex freight reported 27 plunge operating income despite 3 revenue growth segments operating margin fell dismal 27 compared companys target earning doubledigit margins segment one encouraging piece news fedex earnings report company slashed fiscal 2017 capex forecast 300 million 56 billion 53 billion savings come lower spending fedex ground recent years fedex invested enormous amounts cash expand ground delivery capacity continued despite declining margins segment year date ground segments operating margin 119 compared around 17 two years ago half decline attributed accounting change acquisition rest reflects overcapacity past fedexs management defensive ground segments massive capital spending cutting back capacity expansion help fedex stabilize segments profit margin long last also drive free cash flow higher fedex also continues work integration tnt express expects process take four years fiscal 2020 fedex expects express segments operating income rise 12 billion 15 billion relative fiscal 2017 would represent roughly 50 increase merger synergies drive much earnings growth despite poor showing last quarter fedexs management maintained companys fullyear forecast adjusted eps reach 1185 1235 1080 year ago achieving target could difficult eps rise 15 year year next quarter hit bottom end range reaching high end guidance range would require 30 surge eps q4 important fedex least reach bottom range preserve managements credibility third consecutive earnings miss could lead investors question whether fedex executives trouble managing business following recent acquisitions said fedexs longterm forecast shows massive potential earnings growth company integrates tnt express fedex also get ground freight segments back track next years fedex stock could continue shine 10 stocks like better fedexwhen investing geniuses david tom gardner stock tip pay listen newsletter run decade motley fool stock advisor tripled market david tom revealed believe 10 best stocks opens new window investors buy right fedex wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns february 6 2017 adam levineweinberg opens new window position stocks mentioned motley fool recommends fedex motley fool disclosure policy opens new window | 562 |
<p>General Electric Co. slashed its 2017 projections as new Chief Executive John Flannery started to outline his restructuring plans, setting a goal to exit more than $20 billion of the struggling conglomerate's businesses.</p>
<p>"Our results are unacceptable to say the least," Mr. Flannery said on a conference call Friday, noting that his review of the company is exhaustive and everything is on the table. "Things will not stay the same at GE."</p>
<p>Continue Reading Below</p>
<p>Mr. Flannery, who came into the job in August and recently became chairman with the early exit of Jeff Immelt, has expressed an urgency to reduce costs and rethink the sprawling company. In addition to lowering earnings targets by a third, the company Friday cut its forecast for 2017 cash flow by half from a July projection.</p>
<p>GE shares fell 17 cents in Friday-afternoon trading to $23.41, after tumbling as much as 7% earlier in the day. The stock had fallen 25% this year, erasing nearly $80 billion in market value even as the stock market has surged to record highs.</p>
<p>"We need to make some major changes," Mr. Flannery said. He is focusing on shifting the culture of the company, he said, and working with the board to change compensation plans to better align policy with investors.</p>
<p>The Boston company's third-quarter earnings fell as it incurred hefty restructuring charges, reporting a profit of $1.8 billion, down from $2 billion a year earlier. Excluding restructuring charges and other items, adjusted per-share earnings fell to 29 cents from 32 cents, still well below Wall Street expectations of 49 cents.</p>
<p>Impairments and restructuring charges during the period dented GE's per-share earnings by 16 cents.</p>
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<p>Mr. Flannery is slated to update investors at a Nov. 13 meeting on the details of his strategic review. He has already been cutting jobs, research operations and executive perks, like corporate jets.</p>
<p>GE said it is looking to streamline its portfolio of businesses by more than $20 billion in the next 1 to 2 years, without providing details. Mr. Flannery said the company has many strong divisions but also "a number of other businesses which drain investment and management resources without the prospects for a substantial reward."</p>
<p>The company lowered its adjusted 2017 per share profit target to $1.05-$1.10 from a previous view of $1.60-$1.70. Analysts currently expect earnings of $1.53 a share in 2017.</p>
<p>Cash flow from operating activities is now projected to be about $7 billion, a steep revision from the previous view of $12 billion to $14 billion, with a big part of the drop coming from the power division, which primarily makes turbines for gas and coal-fire power plants.</p>
<p>In an interview, Mr. Flannery said he was surprised with the results from the power business, GE's largest, putting the blame squarely on the former management of the division. He said the other divisions of the company were "quite strong" when looking at their orders.</p>
<p>"I'm disappointed in the power business. Deeply," Mr. Flannery said, noting there was an overestimation of demand in the power market, along with too much inventory and not enough cost cuts to adjust to the pressures.</p>
<p>"We have not run the business well of late," he said. GE expanded the division, now its largest by revenue, following the acquisition of Alstom SA's power plant assets in 2015.</p>
<p>The drop in cash flow has raised persistent questions about how the company will fund its dividend, pensions and capital investments. On Friday, Mr. Flannery said the current cash flow projections aren't going to be the norm at GE, but the company is looking to balance investing in growth and paying the dividend.</p>
<p>He said investors should think of 2018 as a "reset year" but wouldn't commit to the company maintaining its dividend at the current level. Mr. Flannery had previously pledged the dividend wouldn't change, but said Friday that his view is "continuing to evolve."</p>
<p>"Expected bad. Got bad," said analyst Scott Davis, CEO of Melius Research, noting the quarterly results raise questions about whether the company is fixable. "Pressure to break this up just went through the roof."</p>
<p>GE is ahead of its goal to cut $1 billion in industrial costs this year, cutting $500 million in the third quarter and hitting $1.2 billion for the year so far. Earlier this year, GE set a goal to cut $1 billion in such costs this year and next, under pressure from activist investor Trian Fund Management, which recently gained a seat on the company's board.</p>
<p>Mr. Flannery said he would look at potential changes to the board, which was mostly appointed during Mr. Immelt's time running the company. "The board is big at 18 people, there is no doubt about that, and that is one of the topics being discussed," he said.</p>
<p>Incoming Chief Financial Officer Jamie Miller said the company would simplify how it reports results. It will revise how it measures free cash flow to be in line with others in the industry with a "back to basics approach," she said.</p>
<p>Mr. Flannery already has called on company leaders to review their divisions and plans to streamline the company's global research efforts, which could include shutting down research centers in Shanghai, Munich and Rio de Janeiro, people familiar with the matter have said.</p>
<p>GE's revenue jumped 14% to $33.5 billion in its third quarter, up from $29.3 billion a year earlier. Analysts had expected revenue of $32.56 billion, boosted by a merger of GE's oil-and-gas unit with Baker Hughes.</p>
<p>Oil-and-gas revenue rose 81% from a year ago driven by Baker Hughes; without the new assets, revenue fell 7%. Revenue growth was mixed with aviation and health care businesses expanding, but power, lighting and transportation all shrinking. Transportation revenues dropped 14%.</p>
<p>--Cara Lombardo contributed to this article.</p>
<p>Write to Thomas Gryta at [email protected]</p>
<p>(END) Dow Jones Newswires</p>
<p>October 20, 2017 13:19 ET (17:19 GMT)</p> | true | 0 | general electric co slashed 2017 projections new chief executive john flannery started outline restructuring plans setting goal exit 20 billion struggling conglomerates businesses results unacceptable say least mr flannery said conference call friday noting review company exhaustive everything table things stay ge continue reading mr flannery came job august recently became chairman early exit jeff immelt expressed urgency reduce costs rethink sprawling company addition lowering earnings targets third company friday cut forecast 2017 cash flow half july projection ge shares fell 17 cents fridayafternoon trading 2341 tumbling much 7 earlier day stock fallen 25 year erasing nearly 80 billion market value even stock market surged record highs need make major changes mr flannery said focusing shifting culture company said working board change compensation plans better align policy investors boston companys thirdquarter earnings fell incurred hefty restructuring charges reporting profit 18 billion 2 billion year earlier excluding restructuring charges items adjusted pershare earnings fell 29 cents 32 cents still well wall street expectations 49 cents impairments restructuring charges period dented ges pershare earnings 16 cents advertisement mr flannery slated update investors nov 13 meeting details strategic review already cutting jobs research operations executive perks like corporate jets ge said looking streamline portfolio businesses 20 billion next 1 2 years without providing details mr flannery said company many strong divisions also number businesses drain investment management resources without prospects substantial reward company lowered adjusted 2017 per share profit target 105110 previous view 160170 analysts currently expect earnings 153 share 2017 cash flow operating activities projected 7 billion steep revision previous view 12 billion 14 billion big part drop coming power division primarily makes turbines gas coalfire power plants interview mr flannery said surprised results power business ges largest putting blame squarely former management division said divisions company quite strong looking orders im disappointed power business deeply mr flannery said noting overestimation demand power market along much inventory enough cost cuts adjust pressures run business well late said ge expanded division largest revenue following acquisition alstom sas power plant assets 2015 drop cash flow raised persistent questions company fund dividend pensions capital investments friday mr flannery said current cash flow projections arent going norm ge company looking balance investing growth paying dividend said investors think 2018 reset year wouldnt commit company maintaining dividend current level mr flannery previously pledged dividend wouldnt change said friday view continuing evolve expected bad got bad said analyst scott davis ceo melius research noting quarterly results raise questions whether company fixable pressure break went roof ge ahead goal cut 1 billion industrial costs year cutting 500 million third quarter hitting 12 billion year far earlier year ge set goal cut 1 billion costs year next pressure activist investor trian fund management recently gained seat companys board mr flannery said would look potential changes board mostly appointed mr immelts time running company board big 18 people doubt one topics discussed said incoming chief financial officer jamie miller said company would simplify reports results revise measures free cash flow line others industry back basics approach said mr flannery already called company leaders review divisions plans streamline companys global research efforts could include shutting research centers shanghai munich rio de janeiro people familiar matter said ges revenue jumped 14 335 billion third quarter 293 billion year earlier analysts expected revenue 3256 billion boosted merger ges oilandgas unit baker hughes oilandgas revenue rose 81 year ago driven baker hughes without new assets revenue fell 7 revenue growth mixed aviation health care businesses expanding power lighting transportation shrinking transportation revenues dropped 14 cara lombardo contributed article write thomas gryta thomasgrytawsjcom end dow jones newswires october 20 2017 1319 et 1719 gmt | 608 |
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<p>Another case of bear spray failure occurred in Montana on September 4th at about 8 a.m.&#160; The bear charged through bear spray to get at Tom Sommers. Sommers was unable to get the safety off his spray can and dropped it as the bear closed with him. He then accessed a pistol, but was unable to shoot before the bear swatted his hand down. As the bear attacked him, it stood on his hand/gun, so he could not shoot.</p>
<p><a href="https://www.facebook.com/profile.php?id=100008276372092" type="external">From facebook.com</a>:</p>
<p>(Tom Sommers) And partner Dan both pulled out pepper spray. Dan sprayed but Toms spray didn’t work so bear came after Tom. Tom ran behind a tree, bear kept coming. apparently bear chased Tom around tree twice, Tom got his pistol out turned to shoot, bear knocked his hand down. Tom hit ground. bear bit through thigh then put toms head in his mouth. while head in mouth tom tried to shoot bear in neck but bear stepped on hand /gun. Tom said he could hear his skull cracking. thought that was it. Dan shot bear at 2 feet with pepper spray. that’s all it took. bear ran off and tom shot at it but said he couldn’t see anything from all the blood and pepper spray in his face. 4 hours later after several hours on back of mule he is alive and in hospital. great spirits. was laughing. hope I did his story justice.</p>
<p>Some interesting things to note about this failure of bear spray to prevent the attack. Tom would have had time to use his pistol if he had not fumbled with the bear spray first. He almost had time to use it, twice, even after wasting 3-4 seconds with the bear spray.&#160; It was only after the bear was sprayed at extremely close range (2 feet) that the bear stopped the attack. Then Tom fired a shot. Whether it was the spray or the shot or both that kept the bear from returning is uncertain.&#160;&#160; <a href="https://www.yahoo.com/news/grizzly-bear-mauls-bow-hunter-southwestern-montana-222750802.html" type="external">From yahoo.com</a>:</p>
<p>“The bear just flat-out charged us,” said Tom Sommer, as he recovered in a Montana hospital on Tuesday afternoon. He said it closed the 30-foot (9-meter) distance in 3 or 4 seconds.</p>
<p>The attack on Sommers is reminiscent of the&#160; <a href="http://gunwatch.blogspot.com.au/2016/10/bear-spray-failure-in-montana-video.html" type="external">attack on Todd Orr</a>&#160;that happened in the same area less than a year ago.&#160; In that bear spray failure, the bear also charged through a cloud of spray. Todd Orr also relied on bear spray instead of his pistol, and was unable to use the pistol while the bear was mauling him. Orr was alone when attacked.</p>
<p>Both Orr and Sommers yelled at the bear to “let them know they were there”. It was the wrong decision in both of their cases.&#160; Both bears attacked when they were yelled at. Both men sustained severe injuries to their head that required dozens of stitches. Both were fortunate to survive.</p>
<p>Sommers injuries after his attack</p>
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<p>Orr recovering in the hospital after his attack.</p>
<p>There are numerous flaws in the “studies” that show bear spray to be effective.&#160; A skeptical article by the Bear Attack Examiner, Dave Smith, tears apart the idea that studies have shown bear spray to be more effective than firearms.</p>
<p>&#160;A thorough review the research on firearms and bear spray reveals that it’s not possible to make a legitimate comparison of bear spray to firearms, and that Smith’s research on bear spray and firearms is flawed and biased.</p>
<p>The Bear Attack Examiner goes on to show selection bias in the study by Tom Smith.&#160; All 269 incidents used to classify gun defenses were incidents involving aggressive bears, while less than a third of the bear spray incidents involve aggressive bears.&#160;&#160; Dave Smith goes on to write:</p>
<p>A far more significant problem is that the results of Tom Smith’s study on firearms are inconsistent with the results of a 1999 study by Miller and Tutterrow on Characteristics of Nonsport Mortalities to Brown and Black Bears and&#160; <a href="http://www.bearbiology.com/fileadmin/tpl/Downloads/URSUS/Vol_11/Miller_Tutterrow_Vol_11.pdf" type="external">Human Injuries from Bears in Alaska</a>. Miller &amp; Tutterrow examined more than 2,000 incidents from 1970 to 1996 when people killed bears in defense of life of property, and less than 2% of the people involved reported injuries. Instead of offering a meaningful explanation for major differences between the two studies on firearms vs bears, Smith and Herrero claimed there were no previous studies on firearms vs. bears.</p>
<p>Bear spray can be a useful tool. It is good for conditioning non-aggressive bears to avoid humans. The claim that it is more effective at stopping bears than firearms is unwarranted. Smith explains the advantages of bear spray.&#160;&#160; <a href="https://craigmedred.news/2017/06/29/bear-spray-yes-or-no/" type="external">From craigmedred.news</a>:</p>
<p>Lighter than a gun; requires less training; no risk of an accidental, fatal shooting; and no real skill required for use.</p>
<p>“So fine, go to bear spray,” he said, “but realize you’re giving up something.”</p>
<p>There is simply not enough evidence to conclude – as some have – that bear spray is more effective than a firearm, Smith said, and the attack on Johnson at Pogo Mine underlines that. Smith is deeply critical of government officials for suggesting bear spray might be more effective than a firearm.</p>
<p>He is of the belief that it was only a matter of time before the growing faith in bear spray got someone killed. He’s not alone.</p>
<p>Bear spray has had a number of spectacular failures. It has had numerous successes.</p>
<p>Editor’s Note:&#160;As a person who loves the outdoors and has the utmost respect for the animals that call it home, I rarely blame the animal for attacking intruders. &#160;This is most evident in California with the continual sprawl into the mountain lions habitat and the occasional attack that follows.</p>
<p>With that being said…when interactions DO occur…your life may very well be on the line. &#160;I have seen people shrug off pepper spray and mace. &#160;Why we assume that a wild animal who feels it has a reason to attack you in the first place will just tuck tail and run I have no idea. &#160;If you choose to go that route, that’s on you and I hope it works out. &#160;But with a firearm you get several deterants wrapped into one. &#160;First, the loud crack of the gun firing may stop an attack, second the muzzle flash helping with matters to drive off the attacking animal. &#160;And finally, in the wild where Darwin’s law is paramount, guns can KILL the threat before it kills you. &#160;Regrettable, but as much as I love nature and the animals within, I love breathing just a little more.</p>
<p>Food for thought.</p>
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<p>We have no tolerance for comments containing violence, racism, vulgarity, profanity, all caps, or discourteous behavior. Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse.</p> | true | 0 | another case bear spray failure occurred montana september 4th 8 am160 bear charged bear spray get tom sommers sommers unable get safety spray dropped bear closed accessed pistol unable shoot bear swatted hand bear attacked stood handgun could shoot facebookcom tom sommers partner dan pulled pepper spray dan sprayed toms spray didnt work bear came tom tom ran behind tree bear kept coming apparently bear chased tom around tree twice tom got pistol turned shoot bear knocked hand tom hit ground bear bit thigh put toms head mouth head mouth tom tried shoot bear neck bear stepped hand gun tom said could hear skull cracking thought dan shot bear 2 feet pepper spray thats took bear ran tom shot said couldnt see anything blood pepper spray face 4 hours later several hours back mule alive hospital great spirits laughing hope story justice interesting things note failure bear spray prevent attack tom would time use pistol fumbled bear spray first almost time use twice even wasting 34 seconds bear spray160 bear sprayed extremely close range 2 feet bear stopped attack tom fired shot whether spray shot kept bear returning uncertain160160 yahoocom bear flatout charged us said tom sommer recovered montana hospital tuesday afternoon said closed 30foot 9meter distance 3 4 seconds attack sommers reminiscent the160 attack todd orr160that happened area less year ago160 bear spray failure bear also charged cloud spray todd orr also relied bear spray instead pistol unable use pistol bear mauling orr alone attacked orr sommers yelled bear let know wrong decision cases160 bears attacked yelled men sustained severe injuries head required dozens stitches fortunate survive sommers injuries attack 160 orr recovering hospital attack numerous flaws studies show bear spray effective160 skeptical article bear attack examiner dave smith tears apart idea studies shown bear spray effective firearms 160a thorough review research firearms bear spray reveals possible make legitimate comparison bear spray firearms smiths research bear spray firearms flawed biased bear attack examiner goes show selection bias study tom smith160 269 incidents used classify gun defenses incidents involving aggressive bears less third bear spray incidents involve aggressive bears160160 dave smith goes write far significant problem results tom smiths study firearms inconsistent results 1999 study miller tutterrow characteristics nonsport mortalities brown black bears and160 human injuries bears alaska miller amp tutterrow examined 2000 incidents 1970 1996 people killed bears defense life property less 2 people involved reported injuries instead offering meaningful explanation major differences two studies firearms vs bears smith herrero claimed previous studies firearms vs bears bear spray useful tool good conditioning nonaggressive bears avoid humans claim effective stopping bears firearms unwarranted smith explains advantages bear spray160160 craigmedrednews lighter gun requires less training risk accidental fatal shooting real skill required use fine go bear spray said realize youre giving something simply enough evidence conclude bear spray effective firearm smith said attack johnson pogo mine underlines smith deeply critical government officials suggesting bear spray might effective firearm belief matter time growing faith bear spray got someone killed hes alone bear spray number spectacular failures numerous successes editors note160as person loves outdoors utmost respect animals call home rarely blame animal attacking intruders 160this evident california continual sprawl mountain lions habitat occasional attack follows saidwhen interactions occuryour life may well line 160i seen people shrug pepper spray mace 160why assume wild animal feels reason attack first place tuck tail run idea 160if choose go route thats hope works 160but firearm get several deterants wrapped one 160first loud crack gun firing may stop attack second muzzle flash helping matters drive attacking animal 160and finally wild darwins law paramount guns kill threat kills 160regrettable much love nature animals within love breathing little food thought 160 tolerance comments containing violence racism vulgarity profanity caps discourteous behavior thank partnering us maintain courteous useful public environment engage reasonable discourse | 632 |
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<p>Image source: Stockmonkeys.com via Flickr.</p>
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<p>Fresh on the heels of reporting success in a late-stage study of a drug for spinal muscular atrophy, or SMA, Biogen Inc. (NASDAQ: BIIB) shares rocketed higher this afternoon amid merger rumors. While no specific companies have said publicly that they're trying to acquire Biogen, The Wall Street Journal reports that both Allergan plc(NYSE: AGN) and Merck &amp; Co (NYSE: MRK) are kicking the company's tires. Could a mega-deal be in the works?</p>
<p>Biogen is the market-share-leading manufacturer of treatments used to to control symptoms in multiple sclerosis patients. MS is a central nervous system disease that's caused by damage to the myelin sheath surrounding nerve fibers. As that damage progresses, symptoms of MS, such as fatigue and pain, worsen.</p>
<p>The market for MS therapies is valued at about $19 billion per year, and Biogen controls about 38% market share across a slate of top-selling medications. The company's best sellers include oral MS drug Tecfidera and injection-based drugs Avonex, Plegridy, and Tysabri. All four of those drugs are billion-dollar blockbuster medications.</p>
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<p>Image source: Biogen Inc.</p>
<p>Recently, Biogen reported second-quarter results and announced that longtime CEO George Scangos will step down. Sales in the quarter grew 12% to $2.9 billion versus last year, and cost-cutting allowed earnings per share, or EPS, to increase 23% to $5.21.</p>
<p>The company's solid second-quarter results come in the wake of a disappointing failure of a next-generation MS drug under development. The drug, anti-lingo, was being evaluated as the first MS therapy able to target MS symptoms by repairing damage to the myelin sheath. Unfortunately, the drug was surprisingly ineffective in trials, casting significant doubt on its future.</p>
<p>Scangos' decision to leave Biogen may or may not have been influenced by the high-profile stumble of anti-lingo, but even if it was, it's still hard to deny the success Scangos has enjoyed during his tenure. Since taking over the helm in 2010, Biogen's sales and profit have grown leaps and bounds.</p>
<p>In light of the emerging rumors of an acquisition, Scangos' decision to leave is even more intriguing. Scangos detailed plans earlier this year to spin off two fast-growing hemophilia drugs as a separate business to unlock shareholder value. Those two drugs, Eloctate and Alprolix, generated a combined $205 million in sales last quarter, up from $128 million in the same quarter a year ago. Scangos' plans to spin off the hemophilia franchise, though, were recently pushed back to early 2017.</p>
<p>Perhaps Scangos' decision to leave is the result of interest in the board to unlock more value by selling the entire company, rather than selling off specific drugs. Pushing out the spinoff of the hemophilia drugs may add conviction to that thinking, because doing so gives potential acquirers of Biogen additional time to consider what they'd like to do with the drugs.</p>
<p>With a market cap of nearly $70 billion, Biogen is an industry Goliath, and that means only the deepest-pocketed of its competitors might be in a position to buy the company outright.</p>
<p>Merck &amp; Co. is clearly big enough to digest such a transaction, but it's more intriguing to me that Allergan could be in the hunt.</p>
<p>Previously, Allergan had planned to merge with Pfizer Inc. in the biggest M&amp;A deal in healthcare history, but that deal was sidelined earlier this year when the Treasury Department closed tax inversion loopholes that made the merger less appealing to Pfizer.</p>
<p>The dismantling of the merger left Allergan investors wondering how Allergan would overcome a mountain of debt accumulated from past acquisitions, and what steps management would take to grow sales in the future.</p>
<p>The FTC recently answered the first question when it cleared the sale of Allergan's generics business to Teva Pharmaceutical for$33.4 billionin cash and 100.3 million shares of Teva stock worth$5.4 billion. Allergan announced it closed on that deal today, and thus the cash infusion seemingly gives it room to consider an acquisition of this size.</p>
<p>Over at Merck &amp; Co, sales have stagnated because of patent expiration, and that's likely got management searching eagerly for ways to kick-start growth. In the second quarter, Merck &amp; Co.'s sales inched up by only 0.5% to $9.8 billion.</p>
<p>Merck &amp; Co's sales slowdown is tied in part to a drop-off in demand for Remicade, an autoimmune disease drug with $339 million in Q2 sales. The launch of a Remicade biosimilar that works similarly, but that's not an identical copy of Remicade, caused Merck &amp; Co.'s Remicade revenue to slip 26% versus a year ago.</p>
<p>Since Remicade is creating a big headwind Merck &amp; Co. would like to overcome, it wouldn't be too surprising to learn that it's putting its$1.2 billion in quarterly net income and $26 billion in cash and investments to work with a deal.</p>
<p>Biogen's board hasn't yet responded to the rumors, and investors should never buy a stock because of M&amp;A chatter. Still, there's plenty of reason to own Biogen stock on its own.Biogen expects to deliver non-GAAP EPS of at least $19.70 per share this year, and industry watchers think EPS could reach $20.95 next year. At current prices, that means investors can buy this stock for less than 16 times forward earnings. That may not be as cheap as some other large-cap biotechs, but it's not an unreasonable price to pay for a growing company like this.</p>
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<p><a href="http://my.fool.com/profile/EBCapitalMarkets/info.aspx" type="external">Todd Campbell Opens a New Window.</a> has no position in any stocks mentioned.Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may have positions in the companies mentioned. Like this article? Follow him onTwitter, where he goes by the handle <a href="https://twitter.com/ebcapital" type="external">@ebcapital Opens a New Window.</a>, to see more articles like this.The Motley Fool owns shares of and recommends Biogen. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=isiedilnk018048&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://wiki.fool.com/Motley" type="external">considering a diverse range of insights Opens a New Window.</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | image source stockmonkeyscom via flickr continue reading fresh heels reporting success latestage study drug spinal muscular atrophy sma biogen inc nasdaq biib shares rocketed higher afternoon amid merger rumors specific companies said publicly theyre trying acquire biogen wall street journal reports allergan plcnyse agn merck amp co nyse mrk kicking companys tires could megadeal works biogen marketshareleading manufacturer treatments used control symptoms multiple sclerosis patients ms central nervous system disease thats caused damage myelin sheath surrounding nerve fibers damage progresses symptoms ms fatigue pain worsen market ms therapies valued 19 billion per year biogen controls 38 market share across slate topselling medications companys best sellers include oral ms drug tecfidera injectionbased drugs avonex plegridy tysabri four drugs billiondollar blockbuster medications advertisement image source biogen inc recently biogen reported secondquarter results announced longtime ceo george scangos step sales quarter grew 12 29 billion versus last year costcutting allowed earnings per share eps increase 23 521 companys solid secondquarter results come wake disappointing failure nextgeneration ms drug development drug antilingo evaluated first ms therapy able target ms symptoms repairing damage myelin sheath unfortunately drug surprisingly ineffective trials casting significant doubt future scangos decision leave biogen may may influenced highprofile stumble antilingo even still hard deny success scangos enjoyed tenure since taking helm 2010 biogens sales profit grown leaps bounds light emerging rumors acquisition scangos decision leave even intriguing scangos detailed plans earlier year spin two fastgrowing hemophilia drugs separate business unlock shareholder value two drugs eloctate alprolix generated combined 205 million sales last quarter 128 million quarter year ago scangos plans spin hemophilia franchise though recently pushed back early 2017 perhaps scangos decision leave result interest board unlock value selling entire company rather selling specific drugs pushing spinoff hemophilia drugs may add conviction thinking gives potential acquirers biogen additional time consider theyd like drugs market cap nearly 70 billion biogen industry goliath means deepestpocketed competitors might position buy company outright merck amp co clearly big enough digest transaction intriguing allergan could hunt previously allergan planned merge pfizer inc biggest mampa deal healthcare history deal sidelined earlier year treasury department closed tax inversion loopholes made merger less appealing pfizer dismantling merger left allergan investors wondering allergan would overcome mountain debt accumulated past acquisitions steps management would take grow sales future ftc recently answered first question cleared sale allergans generics business teva pharmaceutical for334 billionin cash 1003 million shares teva stock worth54 billion allergan announced closed deal today thus cash infusion seemingly gives room consider acquisition size merck amp co sales stagnated patent expiration thats likely got management searching eagerly ways kickstart growth second quarter merck amp cos sales inched 05 98 billion merck amp cos sales slowdown tied part dropoff demand remicade autoimmune disease drug 339 million q2 sales launch remicade biosimilar works similarly thats identical copy remicade caused merck amp cos remicade revenue slip 26 versus year ago since remicade creating big headwind merck amp co would like overcome wouldnt surprising learn putting its12 billion quarterly net income 26 billion cash investments work deal biogens board hasnt yet responded rumors investors never buy stock mampa chatter still theres plenty reason biogen stock ownbiogen expects deliver nongaap eps least 1970 per share year industry watchers think eps could reach 2095 next year current prices means investors buy stock less 16 times forward earnings may cheap largecap biotechs unreasonable price pay growing company like secret billiondollar stock opportunity worlds biggest tech company forgot show something wall street analysts fool didnt miss beat theres small company thats powering brandnew gadgets coming revolution technology think stock price nearly unlimited room run early intheknow investors one click opens new window todd campbell opens new window position stocks mentionedtodd owns eb capital markets llc eb capitals clients may positions companies mentioned like article follow ontwitter goes handle ebcapital opens new window see articles like thisthe motley fool owns shares recommends biogen try foolish newsletter services free 30 days opens new window fools may hold opinions believe considering diverse range insights opens new window makes us better investors motley fool disclosure policy opens new window | 676 |
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<p>Insurance requires you to think about bad occurrences … medical problems, car accidents, emergency home repairs. But although it may sound pessimistic to dwell on what could happen (carpe diem, anyone?), it’s important to protect yourself from some of life’s biggest surprises.</p>
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<p>When it comes to protecting your home, it’s not just about safeguarding against structural damage or theft—it’s just as much about feeling secure in where you live. If disaster strikes, your focus should be on reclaiming your sense of stability. The last thing you should worry about is money.</p>
<p>We spoke to LearnVest Planning Services certified financial planner Ellen Derrick—and some real homeowners—about the top 11 things you should know about homeowner’s insurance.</p>
<p>1. What It Covers</p>
<p>A typical policy will pay for damage to your property and your possessions in the event of certain storms, fire, theft or vandalism. Like renter’s insurance, it also provides liability coverage if someone gets hurt on your property and decides to sue. Homeowner’s insurance also covers shelter costs, so you don’t have to face crazy hotel bills if you’re temporarily displaced from your house.</p>
<p>Homeowner’s insurance can protect belongings outside the home, too. If something is stolen from your car, auto insurance won’t cover it—but your homeowners policy likely will. “Most policies will cover your belongings when they are traveling with you,” Derrick says. “If you have a $1,200 laptop and it gets lost by the airline, call your insurance agent—right after you file the claim with the airline, of course.”</p>
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<p>2. What It Doesn’t Cover</p>
<p>A standard policy has exclusions, including earth movements (landslides, earthquakes, sinkholes), power failure, war, nuclear hazard, government action, faulty zoning, bad repair or workmanship, defective maintenance and flooding. Windstorms are typically covered, including tornadoes, although insurance companies exclude tornadoes or hurricanes in some high-risk areas.</p>
<p>Water damage is tricky. As a rule of thumb, water from above (rainwater or a burst pipe in an upstairs apartment) is usually covered, but water from below (backed-up sewers or ground flooding) generally isn’t. If your region is prone to floods and earthquakes, you should consider supplemental coverage.</p>
<p>3. Why You Should Shop Around</p>
<p>Before committing to a policy, take the time to research an agent whom you trust—preferably one with good reviews online or via a personal recommendation. It’s certainly something that Ramzy Ayyad, who struggled to receive benefits following a house fire in November 2008, recommends that prospective homeowners do. “I had to deal with a rude adjuster,” he says. After complaining assertively to the adjuster’s boss, Ayyad finally received a check for the damages—but the process was exhausting.</p>
<p>By contrast, Terri Corcoran has nothing but glowing reviews for her adjuster. After a snowstorm caused a major leak in Corcoran’s laundry room, an insurance agent came to her home to assess the damage—and promptly determined that the entire room needed to be redone. “They wrote me a check on the spot for what it should cost,” Corcoran says. “I was really impressed by how the company responded!”</p>
<p>Bottom line? Don’t just shop for a policy. Make sure you also select the best agent.</p>
<p>4. Which Preventive Actions Can Reduce Premiums</p>
<p>It may sound like common sense to have a working smoke detector, but did you know that it might also help you land a lower insurance quote? The same goes for a burglar alarm. According to insuranceagents.com, you can reduce your premium by about 5% if you install something as a simple as a deadbolt, and up 15-20% for a burglar alarm system.</p>
<p>Insurance companies price your premium based on how much risk they foresee, so you can reduce the premium by reducing your liability risk, thanks to some smart preventive measures. For example, if you have a pool, you may be able to reduce the likelihood of a claim—and thus, possibly lower your premium—by installing a fence and a pool cover to minimize the risk of a neighborhood kid wandering onto your property and falling in.</p>
<p>5. How Replacement Coverage Differs From Market Value</p>
<p>There are two key distinctions that every homeowner should know: “replacement cost” versus “market value.” Replacement cost covers repairing or replacing your entire home. Market value is how much someone would pay to buy your home and accompanying land in its current downtrodden condition.</p>
<p>When you’re considering the type of coverage to take out, a policy that’s based on market value is typically less expensive but, as State Farm puts it, “for a cash-strapped homeowner, buying a policy based on market value offers the best chance to recoup at least partial expenses after a loss.” In other words, you won’t recoup as much in the event of a serious disaster.</p>
<p>For those who have a good emergency fund in place, Derrick says that there is a way to possibly get more substantial coverage and still pay lower premiums: “You might consider getting a policy that covers more in terms of replacing or rebuilding your property, but with a higher deductible.”</p>
<p>6. Why You Shouldn’t Wait to File a Claim</p>
<p>When buying a policy, make sure to ask about time limits to report a claim, and then abide by them! If you wait too long, you may not be eligible for benefits—especially if waiting has made the problem worse. David Baxter works for a residential and commercial restoration company in Florida, and he remembers a customer with water damage who waited almost a month to do anything about it. “When the mold set in, and he decided to call, his insurance didn’t cover him because it was outside of the 14-day window required for reporting the problem,” Baxter says.</p>
<p>7. Why You Should Write Everything Down</p>
<p>Senen Garcia, a lawyer in Coconut Grove, Fla., represents homeowners against insurance companies that fail to pay out on valid claims. He’s seen many denied claims because people don’t keep good enough records. “Homeowners must document everything that occurs during a loss, do as much as possible to mitigate [the loss]—and document such mitigation,” Garcia says.</p>
<p>In addition to saving receipts, contracts and appraisals, document phone calls by writing down who you spoke to and when. And be sure to stow it in a secure place! Don’t want to invest in a safe? Consider keeping digital copies online using a program like Dropbox.</p>
<p>8. How Jewelry Is Covered</p>
<p>When David Cohen lost his wife’s rings, he was relieved that his homeowner’s policy covered jewelry—but it was only up to a maximum of $3,000. “My wife gave me her rings to hold,” he says. “So I promptly put them in my jacket pocket … and then forgot about the rings when I took the jacket to the cleaners. As you can imagine, they were gone.”</p>
<p>Within three weeks, the Cohens received a check from their insurance company, but they were still out a good deal of money because his wife’s engagement ring was worth $6,000 alone. The lesson? When signing up for homeowner’s insurance, note the limits on jewelry. “Most people don’t realize that things like wedding rings aren’t usually covered by the basic limits in their policies,” Derrick says. “You can get an appraisal at your jeweler, and then consider buying a supplemental policy to cover it.”</p>
<p>9. Why Good Maintenance Matters</p>
<p>Insurance companies would rather pay as little as possible to repair damage, so they prize early detection and prevention. Deacon Hayes and his wife paid for a routine checkup on their air conditioner because they live in Arizona and wanted to make sure that the system was ready for summer. “The specialist told us that the unit was on its last legs because of a hail storm,” Hayes recalls. Thanks to his diligence, Hayes’s insurance policy ended up paying for a new $4,000 A/C unit.</p>
<p>According to Derrick, one very important thing to keep an eye on is your water bill. “If you notice an unusual spike or trend upward (and it’s not just because it’s 100 degrees outside, and you’re watering your lawn more), you could have a leak somewhere,” she says. “Finding the source early could save you from dealing with a bigger headache when a major pipe bursts.”</p>
<p>10. How to Save by Bundling</p>
<p>One way to save money is to bundle your homeowner’s insurance with other policies that you already own. “But don’t just buy a bunch of policies in order to ‘save’ money,” Derrick cautions. “For example, it makes a lot of sense to have your car and homeowner’s policies with the same company because you’ll usually get some kind of discount. However, if you don’t have a need for life insurance, don’t buy a policy just because the agent says you’ll save money on other policies.” After all, if you’re spending money on something that you don’t need, where are the savings?</p>
<p>11. When to File a Claim</p>
<p>A large section of Richard Clayman’s wooden backyard fence came down in a storm. “I didn’t think there was any way my homeowner’s policy would cover it—and my neighbors assured me that it wouldn’t,” he says. But he called his insurance company, just in case. “The agent asked how high (the fence was), what kind of wood it was and how much of it needed replacing. Next thing you know, I get a $700 check in the mail!”</p>
<p>Theresa Roma has a similar story: A bad windstorm took roof shingles off her house, and she almost didn’t file a claim because it didn’t feel worthwhile. In the end, she received over $25,000 for a new roof.</p>
<p>The obvious mishaps aside (fire, major flood, etc.), it can be beneficial to file a claim when in doubt, but Derrick cautions restraint. “Don’t file a bunch of frivolous claims,” she says. “The claims history for your property is also what determines your rates, so it’s better not to cry wolf, unless you have a real claim.” The repercussion if you file needlessly? A possible uptick in your premium.</p>
<p>Read More from LearnVest:</p>
<p><a href="http://www.learnvest.com/2013/08/buying-a-house-how-much-can-you-afford/" type="external">Buying a House: How Much Can You Afford? Opens a New Window.</a></p>
<p><a href="http://www.learnvest.com/2013/08/are-you-behaving-like-a-poor-person/" type="external">Are You Behaving Like a Poor Person? Opens a New Window.</a></p>
<p><a href="http://www.learnvest.com/2013/08/your-commute-could-be-bad-for-your-marriage-123/" type="external">Your Commute Could Be Bad for Your Marriage Opens a New Window.</a></p>
<p><a href="http://www.learnvest.com/2013/08/bad-credit-it-could-cost-you-a-job-123/" type="external">Bad Credit? It Could Cost You a Job Opens a New Window.</a></p>
<p><a href="http://www.learnvest.com/knowledge-center/personal-escrow-101-what-you-need-to-know/" type="external">Personal Escrow 101: What You Need to Know Opens a New Window.</a></p>
<p>Information shown is for illustrative purposes only and is not intended as investment advice. Please consult a financial advisor for advice specific to your financial situation.</p> | true | 0 | insurance requires think bad occurrences medical problems car accidents emergency home repairs although may sound pessimistic dwell could happen carpe diem anyone important protect lifes biggest surprises continue reading comes protecting home safeguarding structural damage theftits much feeling secure live disaster strikes focus reclaiming sense stability last thing worry money spoke learnvest planning services certified financial planner ellen derrickand real homeownersabout top 11 things know homeowners insurance 1 covers typical policy pay damage property possessions event certain storms fire theft vandalism like renters insurance also provides liability coverage someone gets hurt property decides sue homeowners insurance also covers shelter costs dont face crazy hotel bills youre temporarily displaced house homeowners insurance protect belongings outside home something stolen car auto insurance wont cover itbut homeowners policy likely policies cover belongings traveling derrick says 1200 laptop gets lost airline call insurance agentright file claim airline course advertisement 2 doesnt cover standard policy exclusions including earth movements landslides earthquakes sinkholes power failure war nuclear hazard government action faulty zoning bad repair workmanship defective maintenance flooding windstorms typically covered including tornadoes although insurance companies exclude tornadoes hurricanes highrisk areas water damage tricky rule thumb water rainwater burst pipe upstairs apartment usually covered water backedup sewers ground flooding generally isnt region prone floods earthquakes consider supplemental coverage 3 shop around committing policy take time research agent trustpreferably one good reviews online via personal recommendation certainly something ramzy ayyad struggled receive benefits following house fire november 2008 recommends prospective homeowners deal rude adjuster says complaining assertively adjusters boss ayyad finally received check damagesbut process exhausting contrast terri corcoran nothing glowing reviews adjuster snowstorm caused major leak corcorans laundry room insurance agent came home assess damageand promptly determined entire room needed redone wrote check spot cost corcoran says really impressed company responded bottom line dont shop policy make sure also select best agent 4 preventive actions reduce premiums may sound like common sense working smoke detector know might also help land lower insurance quote goes burglar alarm according insuranceagentscom reduce premium 5 install something simple deadbolt 1520 burglar alarm system insurance companies price premium based much risk foresee reduce premium reducing liability risk thanks smart preventive measures example pool may able reduce likelihood claimand thus possibly lower premiumby installing fence pool cover minimize risk neighborhood kid wandering onto property falling 5 replacement coverage differs market value two key distinctions every homeowner know replacement cost versus market value replacement cost covers repairing replacing entire home market value much someone would pay buy home accompanying land current downtrodden condition youre considering type coverage take policy thats based market value typically less expensive state farm puts cashstrapped homeowner buying policy based market value offers best chance recoup least partial expenses loss words wont recoup much event serious disaster good emergency fund place derrick says way possibly get substantial coverage still pay lower premiums might consider getting policy covers terms replacing rebuilding property higher deductible 6 shouldnt wait file claim buying policy make sure ask time limits report claim abide wait long may eligible benefitsespecially waiting made problem worse david baxter works residential commercial restoration company florida remembers customer water damage waited almost month anything mold set decided call insurance didnt cover outside 14day window required reporting problem baxter says 7 write everything senen garcia lawyer coconut grove fla represents homeowners insurance companies fail pay valid claims hes seen many denied claims people dont keep good enough records homeowners must document everything occurs loss much possible mitigate lossand document mitigation garcia says addition saving receipts contracts appraisals document phone calls writing spoke sure stow secure place dont want invest safe consider keeping digital copies online using program like dropbox 8 jewelry covered david cohen lost wifes rings relieved homeowners policy covered jewelrybut maximum 3000 wife gave rings hold says promptly put jacket pocket forgot rings took jacket cleaners imagine gone within three weeks cohens received check insurance company still good deal money wifes engagement ring worth 6000 alone lesson signing homeowners insurance note limits jewelry people dont realize things like wedding rings arent usually covered basic limits policies derrick says get appraisal jeweler consider buying supplemental policy cover 9 good maintenance matters insurance companies would rather pay little possible repair damage prize early detection prevention deacon hayes wife paid routine checkup air conditioner live arizona wanted make sure system ready summer specialist told us unit last legs hail storm hayes recalls thanks diligence hayess insurance policy ended paying new 4000 ac unit according derrick one important thing keep eye water bill notice unusual spike trend upward 100 degrees outside youre watering lawn could leak somewhere says finding source early could save dealing bigger headache major pipe bursts 10 save bundling one way save money bundle homeowners insurance policies already dont buy bunch policies order save money derrick cautions example makes lot sense car homeowners policies company youll usually get kind discount however dont need life insurance dont buy policy agent says youll save money policies youre spending money something dont need savings 11 file claim large section richard claymans wooden backyard fence came storm didnt think way homeowners policy would cover itand neighbors assured wouldnt says called insurance company case agent asked high fence kind wood much needed replacing next thing know get 700 check mail theresa roma similar story bad windstorm took roof shingles house almost didnt file claim didnt feel worthwhile end received 25000 new roof obvious mishaps aside fire major flood etc beneficial file claim doubt derrick cautions restraint dont file bunch frivolous claims says claims history property also determines rates better cry wolf unless real claim repercussion file needlessly possible uptick premium read learnvest buying house much afford opens new window behaving like poor person opens new window commute could bad marriage opens new window bad credit could cost job opens new window personal escrow 101 need know opens new window information shown illustrative purposes intended investment advice please consult financial advisor advice specific financial situation | 989 |
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<p>Image source: Dexcom.</p>
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<p>The Centers for Diseases Control and Prevention estimates that more than 29 million Americans have diabetes,a chronic disease that inhibits the body's ability to produce or effectively utilize insulin. Patients with diabetes often have difficulty regulating the amount of glucose in their blood, which can lead to a variety of adverse health outcomes.</p>
<p>Treating diabetes is both complicated and costly. The American Diabetes Association estimates that we spent $245 billion to treat diabetes in 2012 alone, which was roughly one out of every five dollars spent on healthcare.</p>
<p>One of the most interesting diabetes-treatment technologies that has emerged in recent years is the continuous glucose monitor, or CGM. These devices are worn on the body and constantly monitor blood glucose levels, which gives patients and providers data that they need to make therapeutic decisions.</p>
<p>Dexcom(NASDAQ: DXCM), a mid-cap company that has been growing like a weed for more than a decade, is a leader in the CGM space. The company has been a <a href="http://www.fool.com/investing/general/2015/05/07/the-best-company-for-investing-in-the-diabetes-mar.aspx?source=eptfxblnk0000004" type="external">home run Opens a New Window.</a> for investors, up more than fourfold since it came public and smashing the returns of the market in general.</p>
<p>I recently sat down with Kevin Sayer, the CEO of Dexcom, to discuss where his company is today and what kind of innovations are possible in the years ahead.</p>
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<p>Following is an edited transcript of our conversation.</p>
<p>Brian Feroldi: If you could just quickly update us on some of your recent results. You said on the call, revenue up 10 times from 2010. You guys were GAAP profitable for the, I think, second time ever --</p>
<p>Kevin Sayer: Second time ever.</p>
<p>Feroldi: -- during the quarter. Congratulations on that. You have, what, 140,000-plus patients, something like that, around the world you estimated, and for 2016, you're forecasting 35% growth?</p>
<p>Sayer: 35% to 40%.</p>
<p>Feroldi: That's phenomenal.</p>
<p>Sayer: A revenue range of $540 million to $565 million.</p>
<p>Feroldi:Obviously, the business is really firing on all cylinders, and personally, I've been incredibly impressed with how fast you've grown. A couple of years ago, I remember, I believe it was Terry [Gregg, Dexcom's previous CEO] who said you guys set an internal target of something like 40% annualized growth for the company. I kind of chuckled to myself, like, "Well, all right."</p>
<p>Sayer: That's still what we do, because if you grow 40% every year, you double every two years. That's how we look at it. Those 40%s, 40% of $400 million is a lot more than 40% of $250 [million] was last year, so those targets get big, but we're still so under-penetrated, even in our U.S. core market, and there's plenty of space for growth there. With the cadence of new products we have coming out combined with the cadence of products we've launched the past couple years, we'll address different patient needs, which will enable us to expand and, we believe, keep that up.</p>
<p>Feroldi: All right. That's great. Your most recent offering is called the G5 with Share?</p>
<p>Sayer: G5 Mobile with Share. In fact, I'm wearing a sensor today. I don't know if you've seen this, but that is what a patient experiences with the G5 app.</p>
<p>The G5 system, for example, that's the glucose value. You can see I don't move much. Here's an interesting thing you'll appreciate. This is the first medical device ever without a printed user guide. It's all right there available at your fingertips on the phone. If you have a problem, you want to call Dexcom, you touch that, you touch that, you hit "call," and you've got them on the phone.</p>
<p>Feroldi: That's nice.</p>
<p>Sayer: This makes the interaction for somebody with diabetes and the device very similar to what they have in the rest of their life, and it makes it much easier. It'll just get better and better and better as we learn.</p>
<p>We're only on iPhone now. We will file the Android app in the first half of this year and hopefully get it approved toward the end of the year. Then, the Follow app, to be able to follow people, is available on Android and on Apple.</p>
<p>Feroldi: That's just through the cloud, correct?</p>
<p>Sayer: That's through the cloud. Again, with this app, the data transmits to the cloud. If I turn it on, that symbol here, the triangle, is the Share app. I'm not sharing my data with anybody right now, but that's a multicolor triangle. Then, you pick up to five people you share your data with. Then, those followers and the app for the people that follow you is called Follow. They set their own alert alarm settings. For example, if you're a parent and you want to follow your kid, rather than setting the alert every time they go below 70, you can say, if they go below 70 for an hour.</p>
<p>What's been interesting about Share is the psychological dynamic we created among families, because parents are always worried about their kids with diabetes, and some parents have been very, "OK, I've got Share. I can know. This is good. It gives me comfort." Others have become micromanagers, and so kids have to make rules. My cousin's daughter has type 1 diabetes, and she's on the Dexcom system, and I got them on the Share system. When I talked to her after she got it, I said, "So, do you let your dad follow you?" "Yeah." Her grandparents, or my aunt and uncle, I said, "How about your grandparents?" She said, "Noooo."</p>
<p>Her mom's a math teacher, and her mom's more numbers-driven than my cousin is. They're divorced. "Do you let your mom follow you?" "Working on that one." It is a different dynamic, and for kids at school, at college in particular, they'll just turn the parents off for the weekend, and then the parents go, "What's going on here?" Married couples, the married couples have to have rules. "You can't bug me. You could do" -- it's a dynamic that we thought might happen but we really weren't prepared for. The anecdotal conversation's really fun, but what a valuable tool.</p>
<p>Feroldi: Sure. Obviously, you still have to calibrate the system. Can you do that right on the app?</p>
<p>Sayer: Twice a day. That feature right there, you just enter your blood glucose value right there as it's showed. I hit the meter. Since I don't have diabetes, I'll just enter what I was going, and there it is. The calibration's factored in. You enter it right there.</p>
<p>Feroldi: OK. That's great.</p>
<p>Sayer: Just so much easier.</p>
<p>Feroldi: That obviously creates a unique option for, say, providers. Do you guys allow providers to follow their patients as well?</p>
<p>Sayer: We allow five followers for every patient, and providers can follow if the patients want them to and invite them to. It raises a very interesting question. Having been around diabetes yourself, there is a very divided feeling among endocrinologists, "Do I every want to see all that data real-time?"</p>
<p>Feroldi: That's my next question.</p>
<p>Sayer: There are a few physicians who follow patients when they start them up on CGM. There are others I've talked to who, they don't want to be that involved in their patients' lives. They more want to teach them how to run their lives rather than get involved. It's a mix across the board.</p>
<p>Feroldi: ... because it could open up some potential legal issues.</p>
<p>Sayer: Liability. Yeah.</p>
<p>Feroldi: Absolutely. Especially for, say, a small endocrinology practice that has one provider versus a big office that has multiple staff and can do it.</p>
<p>Sayer: Absolutely.</p>
<p>Feroldi: Technologically, it's there ...</p>
<p>Sayer: It's open for the patient and the care provider to decide what they want to do.</p>
<p>Feroldi: OK, that's great. That's really exciting. Obviously, it's a big hit. This product was also launched worldwide?</p>
<p>Sayer: It was launched in our five biggest countries in Europe, yes. We launched them both at the same time.</p>
<p>Feroldi: OK. What do payers think of this? You guys have obviously had a lot of success with payers in the U.S. I know that you're still having some problems with international.</p>
<p>Sayer: You know what? Internationally, we've achieved a good level of reimbursement in Sweden, and our business more than doubled in that geography last year, so it has been great where we have reimbursement. We're working hard on Germany, France, and the U.K., and we'd like to see something happen certainly over the next 12 months in a couple of those countries.</p>
<p>The other places, there's some limited reimbursement in the Netherlands. There is reimbursement in Switzerland, but it's country to country, and it's one by one. They may pay for it differently and may put different restrictions around CGM. It's tough to manage. That's why we are expanding and setting up a European headquarters.</p>
<p>Feroldi: Scotland, correct?</p>
<p>Sayer: Yeah, Scotland's going to be our choice of our headquarters. Then, we'll add bodies in some of these other countries because we really need more people on the street to hear what's going on. We can't let people determine the fate of our product without us really being involved. While our distributors have been great, we've grown our international business as fast as our U.S., and we have maybe four or five international employees total. The distributors have done a great job, but we need feet on the street for clinical studies, for reimbursement, for stuff like that so we can be involved in the process and know what's going on.</p>
<p>Feroldi: For educating providers, providing clinical support, all those kind of things that are obviously super-critical to getting the product off the ground.</p>
<p>Sayer: We just need to do a little more. That's why we're going to do that overseas.</p>
<p>Feroldi: How is reimbursement in the U.S. going? I know that you guys enjoyed pretty wide --</p>
<p>Sayer: We're covered by 98% of private pay and about 15 states for Medicaid now.</p>
<p>Feroldi: Fifteen?</p>
<p>Sayer: Fifteen, yeah. Medicare, we're working on, and we can talk more about that later if you'd like. I would say with the payers, the coverage is, by and large, good. It goes in cycles. For some period of time, one payer would we real good, and another one would give you trouble. Anytime you bill insurance directly, that's what you're going to deal with.</p>
<p>We very publicly stated our goal is to move CGM to the pharmacy because we think it'll be much easier for a patient to go to the drugstore, order their CGM supplies, and pick them up there if they're in stock or have them delivered the next day, and have that be the reorder process. If you have any prescriptions at a pharmacy, you don't ever get the opportunity not to reorder. It just happens.</p>
<p>We think that would be a much better reimbursement model for our patients. We've got several of the payers to flip to pharmacy benefit, but it's been slower than we'd like. We've talked about on some of our previous earnings calls there's inconsistent interpretation of pre-authorization policies. For example, one geography will say, "OK, we don't need to do anything, and we'll approve this." Others will apply them strictly. It's really a question of time and training, but over time, that's where CGM needs to be purchased. People need to go be able to just pick it up.</p>
<p>Feroldi: Sure. From a cost perspective, obviously it's a higher direct cost, but one would think that given that CGM does change the patient's behavior, hopefully it prevents the highs, it prevents the lows, and you could eventually show that there's a cost savings in the long term to getting them on CGM?</p>
<p>Sayer: That's a great point. Cost-benefit over time in our industry's going to be extremely important. The drug companies are all facing that now as you read everything going on at all the diabetes drug companies. The cost-benefit equation in the U.S. is relatively simple if you just look at hypoglycemia. If it costs X dollars a year, and let's say a patient spends between $2,500 and $5,000 a year, depending upon what equipment they buy and how long they wear their sensors, but for full-time use, if you avoid one serious hypoglycemic event and one hospitalization, that's $15,000 to $20,000.</p>
<p>We can justify on hypoglycemia spending alone, pretty much cost justify that in the U.S. That's tougher in Europe, where hospitalization doesn't cost near as much money, but over time, the health benefits of staying within a tighter range I think will prove to have an excellent cost-benefit as well.</p>
<p>We've got a study going on in Europe now with the Swedish investigator where he's run patients for a long time on CGM where we'll get some longer-term healthcare benefit data that should be useful for reimbursement in Europe. We've got a study going on in the U.S. that we call the Diamond Study, where we're taking 200 patients, and they're multiple-daily injection patients, putting them on CGM and comparing them to another 200-patient cohort and comparing everything about those patients for a six-month period. We'll publish the first data on that study in the second half of the year, but that'll be a series of publications over a year because there's smaller groups within the study, and it will take a while to finish it all, but we believe we can document the utility of CGM in these studies.</p>
<p>A1C coming down is always a good benefit, and it's nice, but some people run too low. If you run too low and your A1C goes up a point or half a point, but you avoid a bunch of hypo events, that's a better outcome, too. I think we'll see a lot of good data from that study, and we see great data. A lot of drug companies use CGM in their drug trials as a secondary outcome, it's not a primary outcome yet, to watch the glucose variability in the patients that they're treating.</p>
<p>We've seen very fascinating results with a lot of the compounds that are discussed in the investment community, all these new type 2 drugs. You run them a month on CGM without the drug, and then you run them at various times of the trial, and you see what the drugs do. Very good measure and remarkable results. That's one of the reasons we believe there's a great type 2 market for us over time as well.</p>
<p>Feroldi: Sure. To me, this is something that payers should be jumping at. I know that currently, depending on the payer, there's lots of documentation that they demand, which slows down the process, or they push higher and higher copays toward the patient. Is the goal to take a study like this, and if it shows a cost-benefit, to take that to payers and say, "Let's remove these barriers, let's get more people on it"?</p>
<p>Sayer: Yes. We would love to do that with the study. I think the neatest thing, though, about this Gen 5 system and where we're headed with our technology, we're ultimately not going to need the studies. We'll have the data for every patient in the payer's database over time. One of the investments we say we're going to make this year is in an advanced data platform. When we get that advanced data platform built, one of the key legs of that platform is going to be payer data.</p>
<p>Theoretically, we could walk into Cignaand say, "You have 22,312 patients on our system. Here's how they're doing, and here's your 500 problem patients, and boom, b-boom, b-boom." I can even see the day sometime where that'll be part of the equation in getting CGM reimbursed that we have to show those type of outcomes and have that type of interaction with the payers.</p>
<p>Feroldi: That's wonderful, and I think that's, like you said, with going to the pharmacy will also increase convenience, and ...</p>
<p>Sayer: Accountability, because through a pharmacy system, as we have learned at the payers, through the pharmacy information systems, they track every single prescription and everything. It's not quite the same on the durable medical equipment side. For example, they can't tell whether a patient uses a Medtronic (NYSE: MDT) or a Dexcom sensor. They both have the same reimbursement code in the system, whereas in pharmacy, we'll have an individual unique identifier that can track us. We think there's a bunch of other benefits there.</p>
<p>Feroldi: That's great. On your call, you mentioned that obviously you've been working toward Medicare. It's been slow, but you guys are taking a three-pronged approach. Is one of the big barriers there that they want you to have a replacement claim where patients can dose off the CGM data?</p>
<p>Sayer: That is the barrier that CGM established initially that since you can't dose off this, you're not replacing anything else, so it looks like --</p>
<p>Feroldi: It's just an additional cost.</p>
<p>Sayer: -- an additional cost to the system. Our first step on that, and that's the administrative arm of our three-pronged approach, is to try and get a non-injunctive claim. As we said on the earnings call, we've had meetings with the FDA for quite a long time on this matter, and we're going to learn a lot in the next two or three months, and in May, when we have the earnings call, we'll talk a lot more about it and give you guys, everybody, some clearer guidance as to what we think's going to happen.</p>
<p>Feroldi: You already have that claim in Europe. Is that correct?</p>
<p>Sayer: We have that claim in Europe.</p>
<p>Feroldi: OK, so there's a precedent already for --</p>
<p>Sayer: There's a precedent there.</p>
<p>Feroldi: -- a regulatory body giving you the thumbs-up on that?</p>
<p>Sayer: Yeah.</p>
<p>Feroldi: OK. Is that just based on, essentially, accuracy data when compared to finger sticks?</p>
<p>Sayer: It's based on the accuracy data that we have filed in Europe previously. One of the reasons we're comfortable with the dosing claim is we have run... first of all, we have a huge database of all the clinical trials that we've run, so we know under various scenarios what can happen if a patient makes an error of some kind.</p>
<p>For example, you just saw my CGM value, and I calibrated it, the 97 number that was there. What happens if you put 300 in instead of 97, because you had syrup on your finger from the pancake that you ate? We have algorithms; we can then simulate your data and say, "OK, this is what would happen, and this would be the error. What would happen to the patient in the event that their readings were that much too high?" We've simulated data on the low side as well.</p>
<p>There's a lot of science behind our belief that our device is good enough for a dosing claim now. The FDA's indicated to us that the current G5 system with the current algorithm should be accurate enough, and we've had a lot of discussions about the data required to get there and post-market data that they would be interested in. We'll know more about that. Like I said, there's meetings scheduled over the next two months that are going to be critical in that process. In May, we'll say more.</p>
<p>A lot of our patients dose now, and surveys that I've seen done by independent entities outside of us ask the question, "Do you dose with your CGM in there?" There's a lot of "yeses."</p>
<p>Feroldi: That means they're being honest.</p>
<p>Sayer: That means they're being honest. FDA knows this. That's why they're pushing us to get the claim and determine the limits of the system that, is it really good enough to do that? Those are the things we're working on with the agency.</p>
<p>Feroldi: OK, that's great. Do you ultimately see you guys making a push into the hospital market, if somebody came into the hospital with diabetes, they'd stick one of these on them?</p>
<p>Sayer: Yeah. In fact, when Terry came back to the business in 2007, that's what he wanted to do. He really felt this could grow rapidly as a hospital-based technology, and it didn't turn out that way. We had a partnership with Edwards Lifesciences that has gone by the wayside, but I believe with our new technologies, the Gen 6 sensor is a platform where the algorithm can be adjusted to have no calibrations, for example. We've simulated data. We've run studies and looked at it. You might be able to just put a sensor on a patient as they walk in the door.</p>
<p>As you think about what we're doing with Verily, our first goal with them is to make a disposable, low-cost transmitter as well. If you think about the hospital market, we could put a low-cost, disposable sensor on any patient with type 2 diabetes when they came in or even any other patient, with our Bluetooth capability, track it through the system. You have a wonderful means of measuring health. In cardiovascular wards, a very large percentage of those people have type 2 diabetes, and they spend a lot of time sticking fingers.</p>
<p>We are looking at that conversely with the 35% to 40% growth we're projecting next year and the over-50% growth we've had the past several years. We've had a hard time just taking care of all that we're doing, but I think that is a huge market for us in the future. I think gestational diabetes would be a huge market for this as well. We will look at other markets where glucose needs to be measured and have an influence on health outcomes.</p>
<p>Feroldi: Right. There's only so much that you do at one given time, so it makes sense. I know you said in your earnings call that now that you've launched Share, first off, you've seen tremendous patient demand. Second off, your phone's ringing off the hook essentially, with people having both questions about how to use it as well as probably just general iPhone questions.</p>
<p>Sayer: Yeah. We have learned a lot about people's iPhones. While a Dexcom receiver, all of them are exactly the same. I guarantee you if we took our phone into the lab and had our guys look at them, we would find they all do something different. Your email may download once every minute. Hers may download every two seconds. Mine may be every five minutes, and we've seen phones have emails that ask for a download every second, but when you're fighting a Wi-Fi radio like that for Bluetooth signal, you can see choppy results. We've learned a lot of intricacies about the iPhone to make sure that the data's all captured properly.</p>
<p>Feroldi: Is this going to repeat itself once you guys are available on the Android, which is obviously probably even more challenging?</p>
<p>Sayer: One of the reasons we've taken a longer time with Android is to make sure we understand it all. There are so many Android phones, we're going to have to pick some models and support them. We're not going to be able to go say, "This works on every Android phone," but we'll give a reasonable number of choices. We are learning.</p>
<p>Feroldi: If we could dig in a little bit to the Verily/Google [Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL)] partnership, obviously very exciting. I particularly like that you said that Dexcom has really talked to Google about your regulatory expertise, and they're teaching you about their electronic expertise, and it seems like a nice partnership.</p>
<p>Sayer: It's a wonderful partnership, and I'll go back to your background. Having worked in diabetes and in regulatory, you know how we always think in diabetes. Imagine being a cell phone manufacturer that throws away one model and launches a new one every six months. Those guys think really, really, really fast, and technology moves very, very fast for them. They have connections with suppliers, manufacturers, engineering talent that we don't have. As we met with them early on in the negotiations, they looked at us and said, "Everybody with diabetes should have this. You guys, we've got to make this grow."</p>
<p>They showed us their vision, and our joint vision is some day make that transmitter a Band-Aid that you throw away every time but make it cost effective to whereby we take cost out of the system, and we can still make money and everything works, but if CGM's a Band-Aid ... you've seen the size of the systems. Think how much less invasive that is in a child's life or a pregnant mom with gestational diabetes. If you're just wearing a Band-Aid on the back of your arm, nobody will even know what's going on. We think we can do that. That's the vision to make this that small and that easy to use.</p>
<p>They attack those electronic solutions, and they've made us think differently, "Well, yeah, we could do it that way, or we could do it this way." There's a lot of back-and-forth exchange of thoughts. Then, ultimately, when we get our data platform built... Dexcom, we're going to build our own platform to get the data, but there certainly will be Google Analytics capabilities and Verily analytics capabilities that can come into play with this. We'll start exploring that as well.</p>
<p>We're now just getting to the point with all the G5 Mobile patients to whereby we have a very substantial database of patient data flowing in every day. We've never had a bunch of data scientists sit down and run through, "OK, if we wanted to apply an algorithm to these 50,000 people, or how many, what can we learn? What is the general learning that we can learn and we can do here?" I think there's tremendous opportunity.</p>
<p>If you look out even a little further with it, that cloud data, when you have cloud algorithms or machine learning integrated up there talking back to patients, that's a lot easier than changing the physical form of a device from a regulatory process or running a new algorithm that you have to load on a transmitter or a phone or whatever. I think there's going to be some amazing changes and opportunities in diabetes over the next several years. It's going to be really remarkable.</p>
<p>Feroldi: I've got to ask. When you say "Band-Aid," you literally mean stick it on, no insertion, and somehow ...</p>
<p>Sayer: I mean Band-Aid. No, with our system, there will always be insertion because it's based on a wire, and right now, that wire inserts with a needle, but you can see the day where the needle goes away. We've tested needle-less sensors where maybe it's just a push-down through a form. We are working toward things like that to take costs down. I'm not sure how the Band-Aid will be inserted yet. That's a Dexcom task in the Google partnership, and that's one of our biggest variables is how are we going to do the insertion?</p>
<p>Any way you can take cost out is good, and to make a device where you have a needle and a spring and plastic, it's always going to be pretty expensive because it has to work 100% of the time for these people, for these patients. I think you could see a day where we have an insertion system without a needle.</p>
<p>Feroldi: That would be obviously very exciting and especially from a patient and provider training perspective.</p>
<p>Sayer: Wouldn't that be lovely?</p>
<p>Feroldi: Yeah. If you --</p>
<p>Sayer: One of the products that you may not be aware of, and we've talked about this on our calls, our next big launch, or our next big real physical milestone, is we have a new insertion system, a new transmitter, that we'll file in the first half of this year and we'd like to launch in the second half. Our next insertion system is a button push. Peel off the tape, put it on your skin, push the button, throw it out. That's all. It's all housed inside an egg-shaped insertion device to make it much, much easier for patients, and the transmitter profile is much lower than the current product.</p>
<p>Feroldi: Would that be your Gen 6 system?</p>
<p>Sayer: No, we'll do it on the Gen 5 system, and then Gen 6 will incorporate the same insertion technology. It's easier to make that physical change first with Gen 5, so we're only filing 1 change. Then, when we go to the next product, we file the next change, which is the Gen 6 sensor, which is a completely new sensor, with a different glucose computation algorithm.</p>
<p>Feroldi: You guys have always gotten more and more accurate. I assume that that's going to be a big initiative.</p>
<p>Sayer: There are two, there's really three features with Gen 6 that are very visible. Number 1, we're going to cut it down to a single calibration a day after start-up. Number 2, we are going to extend the life. Our goal is to extend the life to 10 days, because we know patients wear these longer than 10 days now anyway. We just as well have a 10-day life. The other very obvious physical feature is there's a blocking layer in the membranes that will block interference from other compounds. Our sensor now is labeled that if you take acetaminophen, there's an artificial rise. We're going to block all the drugs and eliminate that artificial noise.</p>
<p>Feroldi: That'd be great.</p>
<p>Sayer: There's a bunch of other very sophisticated scientific tweaks in the algorithm that'll just... you're right. We always go for more accuracy. We will go for more accuracy yet again, but we also want to give the patients an easier experience, and a single calibration a day through our research is very, very important. If all you got to do is wake up in the morning, stick your finger once, and go, and then imagine that with the dosing claim, boy, that's a good life. That's a good thing.</p>
<p>Feroldi: With the 10-day sensor, correct?</p>
<p>Sayer: Ten-day is what we're going to go for labeling.</p>
<p>Feroldi: What would that do to your revenue model?</p>
<p>Sayer: That's an interesting question, and there are two ways to look at it. The most optimistic business case for Dexcom obviously would be is we bill it, we get paid a certain amount per day from the payers, so you get paid that for the 10 days. My belief is we'll probably pick somewhere between seven and 10 and pass some cost savings onto payers and the patients as well. That's one of the [inaudible] we look at in the future as far as moving to pharmacy. With that 10-day sensor and increased pricing, maybe there are things we could work out with payers that'd get us to pharmacy quicker if we have a more per-day, more days of revenue model in the sensor.</p>
<p>Feroldi: That happened previously, correct? You guys increased --</p>
<p>Sayer: We went from three to seven.</p>
<p>Feroldi: Yep, and you guys --</p>
<p>Sayer: We got more, yeah.</p>
<p>Feroldi: Right. You increased it, which obviously does great things for margins.</p>
<p>Sayer: Yes, but when that happened, we were a $20 million company. Now that we're a $400 million to $600 million company, we're a little bigger deal, so I don't think the rubber stamp on going from approximately between 70 and 75 to 100 and 105, I don't think that'll be a rubber stamp. It's something we've got to run the study and get the product approved. We'll be very deliberate in our commercial strategy with respect to pricing on the product. One of the barriers is cost. It is for all these devices. To the extent we can take the cost out of the system for patients and still do well by our business, we're going to do that.</p>
<p>Feroldi: It seems like it's a win-win-win. It's a win for Dexcom, it's a win for patients, and it's a win for payers.</p>
<p>Sayer: A win for payers because, yeah, they get better outcomes, yeah.</p>
<p>Feroldi: Right, especially if you guys get that all-important replacement claim, which they can theoretically use even less strips over time.</p>
<p>Sayer: Fewer strips over time.</p>
<p>Feroldi: That's great.</p>
<p>Sayer: Theoretically, you'd only use the one or two used to calibrate, and that'd be it. You can take that cost out of the model.</p>
<p>Feroldi: If we could touch on your pump partnerships really fast. You guys have launched products with Johnson &amp; Johnson (NYSE: JNJ)as well as Tandem Diabetes (NASDAQ: TNDM). Can you just let us know how that's going?</p>
<p>Sayer: In Europe, the Vibe [from Johnson &amp; Johnson] has been very well accepted, and J&amp;J has done very good with that product. I think they are growing in market share in every country where the Vibe has been launched. That's been a good European launch for us. They haven't been out in the U.S., only in '15, but I think there's pretty good traction so far, same with Tandem. They launched their Gen 4 integrated system in the fourth quarter.</p>
<p>The issue with both those systems is what I said earlier. They're Gen 4 integrated, and now patients can share and have Gen 5 data. We've been moving at a pace a little faster than our pump partners, and we've encouraged them to keep up. I would tell you --</p>
<p>Feroldi: You guys set the bar high.</p>
<p>Sayer: I tell you, over the past several months, we've seen all of them step up and go faster. They've all realized, I think, the value of the phone, that there can be apps that we can possible integrate and do things with.</p>
<p>We've also worked with some smaller pump companies. We have a partnership with Bigfoot, who's very visible in the diabetes community, the former Asante pump that's run by Bryan Mazlish and Jeffrey Brewer, who used to be the CEO over at JDRF. They're taking a very unique approach to what they want to do with the sensor-augmented system. I think the FDA's very warm to these systems. There's trials going on all over the world on this stuff, but it's all going to get back to cost and outcomes when all said and done.</p>
<p>I believe personally there's going to be a range of solutions for type 1 and intensive type 2 treatment that will start at the high end with those systems, but we're going to be able to give patients who don't want to wear a pump an incredible experience with the sensor. Then, as we start, we see software being developed by a number of companies that tell you what to do. The guys make fun of me. I keep telling them I want a Staples "Easy" button on our app that I'm sitting here at 99, what my thing says, and I'm about to eat breakfast, I want to hit a button that tells me what to do.</p>
<p>To the extent we can gather data from possibly an accelerometer or we can gather data from an insulin pump that computes insulin on board so we can have things similar to the bolus calculator used by the pump companies for pen patients. There are Bluetooth pens being developed. If we get every Bluetooth pen dose in our app, and we plan on filing an app later this year that would accept insulin information as well, we're going to offer a range of solutions for these people that will be very cost-effective.</p>
<p>Certainly, the sensor-augmented pump systems will be part of the solution, but I think the solution's much broader than that, but we all believe, we believe, obviously, that Dexcom CGM should be part of it for everybody.</p>
<p>Feroldi: Sure. You need the data to make those decisions.</p>
<p>Sayer: You need the data to make the decision. Meters have never been labeled for dosing. There is no device that's ever been labeled for dosing insulin. The reason that the authorities let meters be used in dosing is because they hold them to a very high accuracy standard. You do know, have a pretty good indication exactly what your blood sugar is to make a decision, but there's no labeling on a meter that says, "Based on this labeling, you can dose." This will be the first. The FDA's being very thoughtful. We're being very thoughtful. We want to make sure we do it right.</p>
<p>Feroldi: I've heard that the "artificial pancreas," it's going to be a couple of intermediate steps to get there.</p>
<p>Sayer: It'll be done in steps.</p>
<p>Feroldi: Obviously, one of the big first ones is just the replacement claim, which is the big step for you guys. What happens, what do you see as happening after that?</p>
<p>Sayer: The first step already happened with Medtronic's 530G pump that shut off insulin delivery if a pump was low, and as the FDA outlined the steps, that was the first step they wanted to happen. I think what you'll see then, as I look at our pump partners, you'll see things like a predictive shutoff. When we predict you're going to go low, they would shut it off. Johnson &amp; Johnson talks about a hyper-hypo minimizer algorithm whereby if it sees you're going low, it would decrease insulin delivery. If it sees you're going high, it would increase insulin delivery based on an algorithm. I believe Tandem is doing work like that. I know Insuletis doing work like that as well.</p>
<p>It will happen in steps, and it will be interesting to see how far we go. I think the most useful application, in my own mind ... I'll be very simplistic. If you could just control them at night when they're sleeping, because during the day, if we're giving you a steady data feed and more information than you get now about, "Gee, you're low, you ought to do something," or, "Gee, you're high, you ought to do something," or, "Hey, did you just exercise? Because you seem to be going down real fast." When we can have interaction like that, that'll be wonderful, but while patients are sleeping, if these algorithms can really adjust insulin dosing and take care of patients, I think that would be a wonderful advance as well.</p>
<p>Again, where it gets interesting is going to be the cost and the benefit. You weigh the benefit of that thing that controls you at night and how much that's going to cost you versus our share system that wakes up your significant other that's there in the room with you or your parents in the room next door. You might get the same outcome. This is going to be an amazing time in diabetes. There's all these solutions coming to the front. How are the payers going to sort through it? What cases do we have to make to payers? How do we get it all approved so patients have the best outcome and a variety of choices?</p>
<p>Feroldi: Do you think that the agency's comfortable with having a device that would do as you say, minimize the basal rate or increase it, even if was just overnight?</p>
<p>Sayer: I think they're getting there, and I think the trials they're making these companies run are very extensive. I know it's a goal of the agencies and the understand it very well. Trials have been going on in this area for a long time. It's not like they don't have a data set. They do have a data set. Practical use will be different, so it'll be interesting to watch how big ... I got to believe there's going to be pretty large post-market studies for these things to make sure that they work properly. I think the agency's open to that, and they want to. We'll just have to see how it goes.</p>
<p>Feroldi: How has the medical device tax affected you guys?</p>
<p>Sayer: We sell directly to consumers, so the medical device tax has not had much of an effect on Dexcom. Our professional product we sell to physicians we pay medical device tax on, so we're in a nice place with respect to the medical device tax.</p>
<p>Feroldi: OK. If it was repealed, it wouldn't have much of an effect on your business, but you guys haven't been hurt on the revenue side?</p>
<p>Sayer: We've not been hurt like the other companies.</p>
<p>Feroldi: As you think about as your business scales, how do you prioritize showing profits on the bottom line versus continually reinvesting given all the opportunities that you guys have?</p>
<p>Sayer: As a former chief financial officer, this is the question I hope everybody always asks me because the numbers are where I'm always comfortable. Last year, we grew 55% at the top line, and our cash-based results more than doubled, but we didn't keep everything we added to the top line. We continued to reinvest. I think, given where we are as a company, that reinvestment's going to be very, very critical.</p>
<p>We're not competing against the Sisters of the Poor here. Medtronic and Abbott are large companies. They're going to spend, so for us to go into batten-down-the-hatches, generate-a-bunch-of-profits mode would be a horrible, horrible decision. The flip side of that is we need to show our shareholders that this business is leverage-able. We've attained 70% gross margins on our revenues -- 70% margin's pretty good.</p>
<p>Like I said, our cash-based operating income doubled from last year. In the fourth quarter, our cash-based net income was something like 22% of sales. That's when you back out all the stock compensation and some of the, like the charge for the Google technologies. When you back out all that stuff, that shows very good leverage in a quarter where we spent heavily on direct-to-consumer advertising. We continue to spend heavily on R&amp;D, but the product pipeline has to keep coming.</p>
<p>If we don't continue to invest in R&amp;D and get these new products out in studies, then the growth slows down, so it is a balancing act. Our overall goal is, other than extraordinary items, to grow the bottom line a lot faster than we grow the top while continuing to reinvest. We've been able to do that so far.</p>
<p>Now, in 2016, aside from our regular expense growth, we have 4 key initiatives that we're going to spend, and we've told investors, we give them very specific guidance, up to $40 million on our Verily partnership, our advanced data platform, our European expansion, and a new factory in Arizona, where we're going to build sensors.</p>
<p>We never thought we'd run out of capacity in San Diego, but as we look at the Verily partnership, we look at the pump partners all hitting their strides, we look at the type 2 operation, we look at a hospital market like you talked about, we decided it's imperative that we create some more capacity. Two years out when we might hit our max capacity in San Diego, we have another facility up and running.</p>
<p>We have four very strategic initiatives that we're spending on outside of the norm, but we'll still grow our cash-based results over the course of the year.</p>
<p>Feroldi: That's interesting that you're going to be investing in manufacturing in the United States versus, say, overseas. Is that because the process is so automated that the cost savings if you go overseas isn't worth it?</p>
<p>Sayer: We're looking to automate a lot of our processes, and our processes are so proprietary, we wanted to keep them here. One of the reasons we picked Arizona... we studied several geographies in the U.S. That's an hour plane ride from San Diego, so a lot of our executives can still supervise and be involved in that. As a growing company, we feel the need still to be very much in control. This isn't a cookie-cutter operation where you can go open a plant up in Mexico and it just goes. If building sensors were easy, there'd be a lot more companies in the business. It isn't, and so we need a level of control.</p>
<p>Feroldi: Funny you bring that up. On the competition front, I've personally been amazed that there hasn't been a flood of sensor companies that have come into the market, because the pump market has certainly been seeing new players, has seen very aggressive expansion. Why do you think that you guys essentially, in my mind, have the sensor market, essentially, it's been you and Medtronic, and that's it?</p>
<p>Sayer: It's hard. Honest to goodness, you can make sensors that work in a small clinical study, and then when you've got to make millions of them, it is not an easy business. A lot of the technologies have come and gone, or companies start up, but they don't see a way to scale. It's tough. The demands of these patients, this thing's got to be good. Your life depends on it. There are a lot of start-up sensor companies now, and we look at all of them. If anything interests us, we take a look, but so far, we're very happy with our own technology.</p>
<p>Commercializing it is different. It's like the pump companies. You come from the pump world. Our head R&amp;D guy at MiniMed when I was there used to say something real interesting, "It costs quite a bit to make that pump, but it costs a whole lot more to put the 1-800 number on the back of it." That's the learning that all these start-up companies get to.</p>
<p>Feroldi: Takes a heck of a lot of capital to get over that hump and scale the organization. Essentially, manufacturing, customer support, are essentially barriers to entry.</p>
<p>Sayer: They are, in addition to technology, both of them.</p>
<p>Feroldi: Quickly, if we could touch on, you mentioned that you launched a direct-to-consumer campaign that was in print, and you guys seem to drive record visits to your website, record impressions. I'm sure your phone was ringing off the hook. You obviously saw a lot of success with that, and you said that you're going to continue that?</p>
<p>Sayer: We are.</p>
<p>Feroldi: Indefinitely, or just as long as it makes sense?</p>
<p>Sayer: Certainly for the first half of this year, and we'll continue what we did in the fourth quarter or the first half of this year with the G5 Mobile. Then, we'll re-evaluate, but I think the days of not going to consumers are over. I think we need to go directly to patients.</p>
<p>I'll give you the perfect example. I was talking with somebody who was very close to me in their 40s just diagnosed with type 1. I showed them my CGM. Never heard of it, never seen it. Knows me very well. "This is what you do?" "Yeah." "Why hasn't my doctor told me about this?" "Don't know, but you should go talk to your physician and get on it." There's still awareness hurdles that we just got to overcome.</p>
<p>I'm a patient on the caregiver side, but in most cases, when you walk into your caregiver and say, "I want that," they're pretty open to it, particularly those that understand CGM. Now, why they don't offer it to everybody that walks in the door, that would be our dream. It's just not there yet with any device or any drug, but to the extent we can make more progress with awareness with patients and providers, that's where our campaigns will go this year on both fronts.</p>
<p>Feroldi: What kind of penetration rates do you think CGM has in, say, into the U.S. type 1 market? There's about 1,500,000 or so type 1s.</p>
<p>Sayer: You look at the U.S. market as 1,500,000. We've said our total patient base is somewhere around 140,000 to 150,000 with 20%, 25% of that overseas, so you can extrapolate us. We're somewhere above 100,000 patients in the U.S. Between us and Medtronic, I think it's somewhere in the 15% to 20%, but 10% to 20% range certainly. It's come up a lot. We also said on a call we nearly doubled our patient base last year. It was a busy year, so penetration really started to spike last year.</p>
<p>I'm not quite sure why a type 1 wouldn't want to wear a sensor, having experience. The data is just so rich and so valuable in your life. That's why we're coming at this from a variety of different solutions. With phone connectivity, with the sharing, decreasing the footprint and the size and all the things I talked about earlier will just appeal to more people. How high can penetration get? Gosh, I'd be very disappointed if we didn't get to 70% to 80% penetration in the type 1 market for CGM over time.</p>
<p>Feroldi: Theoretically, if payers see data and they see cost savings, they'll lower the barriers, they'll make it more accessible.</p>
<p>Sayer: They'll do that. You know what? That's our job, too. I don't think we've done a perfect job of laying out the cost of CGM versus the benefit of CGM. I think, over time, particular gathering this data in the cloud from our patients, we're going to be able to gather some certainly better outcome data, and the insurance companies can track the cost data. That outcome data will become evident on the next few earnings calls.</p>
<p>Feroldi: Again, your growth is especially impressive considering that the trend over the last two or three years is really to push more of the cost of care directly to the patient. We saw deductibles rise. We've seen patients with $5,000 deductibles, so when you --</p>
<p>Sayer: It's awful. The phone calls are awful. The emails are awful. "My daughter has type 1. They raised my deductible to $10,000. I can't afford CGM. What can you do for me?" Responding back to those emails is the worst part of my day. The other bad emails, in all honesty, are the 64-year-old people who are going to turn 65 and, "I'm not going to be eligible for your device next week. What can you do?" We need to fix that.</p>
<p>Feroldi: Right. Hopefully, that's something that fixes itself over time as you made the case to payers.</p>
<p>Sayer: Over time. You bet.</p>
<p>The article <a href="http://www.fool.com/investing/general/2016/03/13/the-motley-fool-sits-down-with-the-ceo-of-dexcom-i.aspx" type="external">The Motley Fool Sits Down With the CEO of Dexcom Inc.</a> originally appeared on Fool.com.</p>
<p>Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. <a href="http://my.fool.com/profile/TMFTypeoh/info.aspx?source=eptfxblnk0000004" type="external">Brian Feroldi Opens a New Window.</a> owns shares of Alphabet (A shares), Alphabet (C shares), and Insulet. The Motley Fool owns shares of and recommends Alphabet (A shares) and Alphabet (C shares). The Motley Fool owns shares of Medtronic. The Motley Fool recommends Insulet and Johnson &amp; Johnson. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=eptfxblnk0000004" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://wiki.fool.com/Motley?source=eptfxblnk0000004" type="external">considering a diverse range of insights Opens a New Window.</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?source=eptfxblnk0000004" type="external">disclosure policy Opens a New Window.</a>.</p>
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The Motley Fool has a <a href="http://www.fool.com/help/index.htm?display=about02" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | image source dexcom continue reading centers diseases control prevention estimates 29 million americans diabetesa chronic disease inhibits bodys ability produce effectively utilize insulin patients diabetes often difficulty regulating amount glucose blood lead variety adverse health outcomes treating diabetes complicated costly american diabetes association estimates spent 245 billion treat diabetes 2012 alone roughly one every five dollars spent healthcare one interesting diabetestreatment technologies emerged recent years continuous glucose monitor cgm devices worn body constantly monitor blood glucose levels gives patients providers data need make therapeutic decisions dexcomnasdaq dxcm midcap company growing like weed decade leader cgm space company home run opens new window investors fourfold since came public smashing returns market general recently sat kevin sayer ceo dexcom discuss company today kind innovations possible years ahead advertisement following edited transcript conversation brian feroldi could quickly update us recent results said call revenue 10 times 2010 guys gaap profitable think second time ever kevin sayer second time ever feroldi quarter congratulations 140000plus patients something like around world estimated 2016 youre forecasting 35 growth sayer 35 40 feroldi thats phenomenal sayer revenue range 540 million 565 million feroldiobviously business really firing cylinders personally ive incredibly impressed fast youve grown couple years ago remember believe terry gregg dexcoms previous ceo said guys set internal target something like 40 annualized growth company kind chuckled like well right sayer thats still grow 40 every year double every two years thats look 40s 40 400 million lot 40 250 million last year targets get big still underpenetrated even us core market theres plenty space growth cadence new products coming combined cadence products weve launched past couple years well address different patient needs enable us expand believe keep feroldi right thats great recent offering called g5 share sayer g5 mobile share fact im wearing sensor today dont know youve seen patient experiences g5 app g5 system example thats glucose value see dont move much heres interesting thing youll appreciate first medical device ever without printed user guide right available fingertips phone problem want call dexcom touch touch hit call youve got phone feroldi thats nice sayer makes interaction somebody diabetes device similar rest life makes much easier itll get better better better learn iphone file android app first half year hopefully get approved toward end year follow app able follow people available android apple feroldi thats cloud correct sayer thats cloud app data transmits cloud turn symbol triangle share app im sharing data anybody right thats multicolor triangle pick five people share data followers app people follow called follow set alert alarm settings example youre parent want follow kid rather setting alert every time go 70 say go 70 hour whats interesting share psychological dynamic created among families parents always worried kids diabetes parents ok ive got share know good gives comfort others become micromanagers kids make rules cousins daughter type 1 diabetes shes dexcom system got share system talked got said let dad follow yeah grandparents aunt uncle said grandparents said noooo moms math teacher moms numbersdriven cousin theyre divorced let mom follow working one different dynamic kids school college particular theyll turn parents weekend parents go whats going married couples married couples rules cant bug could dynamic thought might happen really werent prepared anecdotal conversations really fun valuable tool feroldi sure obviously still calibrate system right app sayer twice day feature right enter blood glucose value right showed hit meter since dont diabetes ill enter going calibrations factored enter right feroldi ok thats great sayer much easier feroldi obviously creates unique option say providers guys allow providers follow patients well sayer allow five followers every patient providers follow patients want invite raises interesting question around diabetes divided feeling among endocrinologists every want see data realtime feroldi thats next question sayer physicians follow patients start cgm others ive talked dont want involved patients lives want teach run lives rather get involved mix across board feroldi could open potential legal issues sayer liability yeah feroldi absolutely especially say small endocrinology practice one provider versus big office multiple staff sayer absolutely feroldi technologically sayer open patient care provider decide want feroldi ok thats great thats really exciting obviously big hit product also launched worldwide sayer launched five biggest countries europe yes launched time feroldi ok payers think guys obviously lot success payers us know youre still problems international sayer know internationally weve achieved good level reimbursement sweden business doubled geography last year great reimbursement working hard germany france uk wed like see something happen certainly next 12 months couple countries places theres limited reimbursement netherlands reimbursement switzerland country country one one may pay differently may put different restrictions around cgm tough manage thats expanding setting european headquarters feroldi scotland correct sayer yeah scotlands going choice headquarters well add bodies countries really need people street hear whats going cant let people determine fate product without us really involved distributors great weve grown international business fast us maybe four five international employees total distributors done great job need feet street clinical studies reimbursement stuff like involved process know whats going feroldi educating providers providing clinical support kind things obviously supercritical getting product ground sayer need little thats going overseas feroldi reimbursement us going know guys enjoyed pretty wide sayer covered 98 private pay 15 states medicaid feroldi fifteen sayer fifteen yeah medicare working talk later youd like would say payers coverage large good goes cycles period time one payer would real good another one would give trouble anytime bill insurance directly thats youre going deal publicly stated goal move cgm pharmacy think itll much easier patient go drugstore order cgm supplies pick theyre stock delivered next day reorder process prescriptions pharmacy dont ever get opportunity reorder happens think would much better reimbursement model patients weve got several payers flip pharmacy benefit slower wed like weve talked previous earnings calls theres inconsistent interpretation preauthorization policies example one geography say ok dont need anything well approve others apply strictly really question time training time thats cgm needs purchased people need go able pick feroldi sure cost perspective obviously higher direct cost one would think given cgm change patients behavior hopefully prevents highs prevents lows could eventually show theres cost savings long term getting cgm sayer thats great point costbenefit time industrys going extremely important drug companies facing read everything going diabetes drug companies costbenefit equation us relatively simple look hypoglycemia costs x dollars year lets say patient spends 2500 5000 year depending upon equipment buy long wear sensors fulltime use avoid one serious hypoglycemic event one hospitalization thats 15000 20000 justify hypoglycemia spending alone pretty much cost justify us thats tougher europe hospitalization doesnt cost near much money time health benefits staying within tighter range think prove excellent costbenefit well weve got study going europe swedish investigator hes run patients long time cgm well get longerterm healthcare benefit data useful reimbursement europe weve got study going us call diamond study taking 200 patients theyre multipledaily injection patients putting cgm comparing another 200patient cohort comparing everything patients sixmonth period well publish first data study second half year thatll series publications year theres smaller groups within study take finish believe document utility cgm studies a1c coming always good benefit nice people run low run low a1c goes point half point avoid bunch hypo events thats better outcome think well see lot good data study see great data lot drug companies use cgm drug trials secondary outcome primary outcome yet watch glucose variability patients theyre treating weve seen fascinating results lot compounds discussed investment community new type 2 drugs run month cgm without drug run various times trial see drugs good measure remarkable results thats one reasons believe theres great type 2 market us time well feroldi sure something payers jumping know currently depending payer theres lots documentation demand slows process push higher higher copays toward patient goal take study like shows costbenefit take payers say lets remove barriers lets get people sayer yes would love study think neatest thing though gen 5 system headed technology ultimately going need studies well data every patient payers database time one investments say going make year advanced data platform get advanced data platform built one key legs platform going payer data theoretically could walk cignaand say 22312 patients system heres theyre heres 500 problem patients boom bboom bboom even see day sometime thatll part equation getting cgm reimbursed show type outcomes type interaction payers feroldi thats wonderful think thats like said going pharmacy also increase convenience sayer accountability pharmacy system learned payers pharmacy information systems track every single prescription everything quite durable medical equipment side example cant tell whether patient uses medtronic nyse mdt dexcom sensor reimbursement code system whereas pharmacy well individual unique identifier track us think theres bunch benefits feroldi thats great call mentioned obviously youve working toward medicare slow guys taking threepronged approach one big barriers want replacement claim patients dose cgm data sayer barrier cgm established initially since cant dose youre replacing anything else looks like feroldi additional cost sayer additional cost system first step thats administrative arm threepronged approach try get noninjunctive claim said earnings call weve meetings fda quite long time matter going learn lot next two three months may earnings call well talk lot give guys everybody clearer guidance thinks going happen feroldi already claim europe correct sayer claim europe feroldi ok theres precedent already sayer theres precedent feroldi regulatory body giving thumbsup sayer yeah feroldi ok based essentially accuracy data compared finger sticks sayer based accuracy data filed europe previously one reasons comfortable dosing claim run first huge database clinical trials weve run know various scenarios happen patient makes error kind example saw cgm value calibrated 97 number happens put 300 instead 97 syrup finger pancake ate algorithms simulate data say ok would happen would error would happen patient event readings much high weve simulated data low side well theres lot science behind belief device good enough dosing claim fdas indicated us current g5 system current algorithm accurate enough weve lot discussions data required get postmarket data would interested well know like said theres meetings scheduled next two months going critical process may well say lot patients dose surveys ive seen done independent entities outside us ask question dose cgm theres lot yeses feroldi means theyre honest sayer means theyre honest fda knows thats theyre pushing us get claim determine limits system really good enough things working agency feroldi ok thats great ultimately see guys making push hospital market somebody came hospital diabetes theyd stick one sayer yeah fact terry came back business 2007 thats wanted really felt could grow rapidly hospitalbased technology didnt turn way partnership edwards lifesciences gone wayside believe new technologies gen 6 sensor platform algorithm adjusted calibrations example weve simulated data weve run studies looked might able put sensor patient walk door think verily first goal make disposable lowcost transmitter well think hospital market could put lowcost disposable sensor patient type 2 diabetes came even patient bluetooth capability track system wonderful means measuring health cardiovascular wards large percentage people type 2 diabetes spend lot time sticking fingers looking conversely 35 40 growth projecting next year over50 growth weve past several years weve hard time taking care think huge market us future think gestational diabetes would huge market well look markets glucose needs measured influence health outcomes feroldi right theres much one given time makes sense know said earnings call youve launched share first youve seen tremendous patient demand second phones ringing hook essentially people questions use well probably general iphone questions sayer yeah learned lot peoples iphones dexcom receiver exactly guarantee took phone lab guys look would find something different email may download every minute may download every two seconds mine may every five minutes weve seen phones emails ask download every second youre fighting wifi radio like bluetooth signal see choppy results weve learned lot intricacies iphone make sure datas captured properly feroldi going repeat guys available android obviously probably even challenging sayer one reasons weve taken longer time android make sure understand many android phones going pick models support going able go say works every android phone well give reasonable number choices learning feroldi could dig little bit verilygoogle alphabet nasdaq goognasdaq googl partnership obviously exciting particularly like said dexcom really talked google regulatory expertise theyre teaching electronic expertise seems like nice partnership sayer wonderful partnership ill go back background worked diabetes regulatory know always think diabetes imagine cell phone manufacturer throws away one model launches new one every six months guys think really really really fast technology moves fast connections suppliers manufacturers engineering talent dont met early negotiations looked us said everybody diabetes guys weve got make grow showed us vision joint vision day make transmitter bandaid throw away every time make cost effective whereby take cost system still make money everything works cgms bandaid youve seen size systems think much less invasive childs life pregnant mom gestational diabetes youre wearing bandaid back arm nobody even know whats going think thats vision make small easy use attack electronic solutions theyve made us think differently well yeah could way could way theres lot backandforth exchange thoughts ultimately get data platform built dexcom going build platform get data certainly google analytics capabilities verily analytics capabilities come play well start exploring well getting point g5 mobile patients whereby substantial database patient data flowing every day weve never bunch data scientists sit run ok wanted apply algorithm 50000 people many learn general learning learn think theres tremendous opportunity look even little cloud data cloud algorithms machine learning integrated talking back patients thats lot easier changing physical form device regulatory process running new algorithm load transmitter phone whatever think theres going amazing changes opportunities diabetes next several years going really remarkable feroldi ive got ask say bandaid literally mean stick insertion somehow sayer mean bandaid system always insertion based wire right wire inserts needle see day needle goes away weve tested needleless sensors maybe pushdown form working toward things like take costs im sure bandaid inserted yet thats dexcom task google partnership thats one biggest variables going insertion way take cost good make device needle spring plastic always going pretty expensive work 100 time people patients think could see day insertion system without needle feroldi would obviously exciting especially patient provider training perspective sayer wouldnt lovely feroldi yeah sayer one products may aware weve talked calls next big launch next big real physical milestone new insertion system new transmitter well file first half year wed like launch second half next insertion system button push peel tape put skin push button throw thats housed inside eggshaped insertion device make much much easier patients transmitter profile much lower current product feroldi would gen 6 system sayer well gen 5 system gen 6 incorporate insertion technology easier make physical change first gen 5 filing 1 change go next product file next change gen 6 sensor completely new sensor different glucose computation algorithm feroldi guys always gotten accurate assume thats going big initiative sayer two theres really three features gen 6 visible number 1 going cut single calibration day startup number 2 going extend life goal extend life 10 days know patients wear longer 10 days anyway well 10day life obvious physical feature theres blocking layer membranes block interference compounds sensor labeled take acetaminophen theres artificial rise going block drugs eliminate artificial noise feroldi thatd great sayer theres bunch sophisticated scientific tweaks algorithm thatll youre right always go accuracy go accuracy yet also want give patients easier experience single calibration day research important got wake morning stick finger go imagine dosing claim boy thats good life thats good thing feroldi 10day sensor correct sayer tenday going go labeling feroldi would revenue model sayer thats interesting question two ways look optimistic business case dexcom obviously would bill get paid certain amount per day payers get paid 10 days belief well probably pick somewhere seven 10 pass cost savings onto payers patients well thats one inaudible look future far moving pharmacy 10day sensor increased pricing maybe things could work payers thatd get us pharmacy quicker perday days revenue model sensor feroldi happened previously correct guys increased sayer went three seven feroldi yep guys sayer got yeah feroldi right increased obviously great things margins sayer yes happened 20 million company 400 million 600 million company little bigger deal dont think rubber stamp going approximately 70 75 100 105 dont think thatll rubber stamp something weve got run study get product approved well deliberate commercial strategy respect pricing product one barriers cost devices extent take cost system patients still well business going feroldi seems like winwinwin win dexcom win patients win payers sayer win payers yeah get better outcomes yeah feroldi right especially guys get allimportant replacement claim theoretically use even less strips time sayer fewer strips time feroldi thats great sayer theoretically youd use one two used calibrate thatd take cost model feroldi could touch pump partnerships really fast guys launched products johnson amp johnson nyse jnjas well tandem diabetes nasdaq tndm let us know thats going sayer europe vibe johnson amp johnson well accepted jampj done good product think growing market share every country vibe launched thats good european launch us havent us 15 think theres pretty good traction far tandem launched gen 4 integrated system fourth quarter issue systems said earlier theyre gen 4 integrated patients share gen 5 data weve moving pace little faster pump partners weve encouraged keep would tell feroldi guys set bar high sayer tell past several months weve seen step go faster theyve realized think value phone apps possible integrate things weve also worked smaller pump companies partnership bigfoot whos visible diabetes community former asante pump thats run bryan mazlish jeffrey brewer used ceo jdrf theyre taking unique approach want sensoraugmented system think fdas warm systems theres trials going world stuff going get back cost outcomes said done believe personally theres going range solutions type 1 intensive type 2 treatment start high end systems going able give patients dont want wear pump incredible experience sensor start see software developed number companies tell guys make fun keep telling want staples easy button app im sitting 99 thing says im eat breakfast want hit button tells extent gather data possibly accelerometer gather data insulin pump computes insulin board things similar bolus calculator used pump companies pen patients bluetooth pens developed get every bluetooth pen dose app plan filing app later year would accept insulin information well going offer range solutions people costeffective certainly sensoraugmented pump systems part solution think solutions much broader believe believe obviously dexcom cgm part everybody feroldi sure need data make decisions sayer need data make decision meters never labeled dosing device thats ever labeled dosing insulin reason authorities let meters used dosing hold high accuracy standard know pretty good indication exactly blood sugar make decision theres labeling meter says based labeling dose first fdas thoughtful thoughtful want make sure right feroldi ive heard artificial pancreas going couple intermediate steps get sayer itll done steps feroldi obviously one big first ones replacement claim big step guys happens see happening sayer first step already happened medtronics 530g pump shut insulin delivery pump low fda outlined steps first step wanted happen think youll see look pump partners youll see things like predictive shutoff predict youre going go low would shut johnson amp johnson talks hyperhypo minimizer algorithm whereby sees youre going low would decrease insulin delivery sees youre going high would increase insulin delivery based algorithm believe tandem work like know insuletis work like well happen steps interesting see far go think useful application mind ill simplistic could control night theyre sleeping day giving steady data feed information get gee youre low ought something gee youre high ought something hey exercise seem going real fast interaction like thatll wonderful patients sleeping algorithms really adjust insulin dosing take care patients think would wonderful advance well gets interesting going cost benefit weigh benefit thing controls night much thats going cost versus share system wakes significant thats room parents room next door might get outcome going amazing time diabetes theres solutions coming front payers going sort cases make payers get approved patients best outcome variety choices feroldi think agencys comfortable device would say minimize basal rate increase even overnight sayer think theyre getting think trials theyre making companies run extensive know goal agencies understand well trials going area long time like dont data set data set practical use different itll interesting watch big got believe theres going pretty large postmarket studies things make sure work properly think agencys open want well see goes feroldi medical device tax affected guys sayer sell directly consumers medical device tax much effect dexcom professional product sell physicians pay medical device tax nice place respect medical device tax feroldi ok repealed wouldnt much effect business guys havent hurt revenue side sayer weve hurt like companies feroldi think business scales prioritize showing profits bottom line versus continually reinvesting given opportunities guys sayer former chief financial officer question hope everybody always asks numbers im always comfortable last year grew 55 top line cashbased results doubled didnt keep everything added top line continued reinvest think given company reinvestments going critical competing sisters poor medtronic abbott large companies theyre going spend us go battendownthehatches generateabunchofprofits mode would horrible horrible decision flip side need show shareholders business leverageable weve attained 70 gross margins revenues 70 margins pretty good like said cashbased operating income doubled last year fourth quarter cashbased net income something like 22 sales thats back stock compensation like charge google technologies back stuff shows good leverage quarter spent heavily directtoconsumer advertising continue spend heavily rampd product pipeline keep coming dont continue invest rampd get new products studies growth slows balancing act overall goal extraordinary items grow bottom line lot faster grow top continuing reinvest weve able far 2016 aside regular expense growth 4 key initiatives going spend weve told investors give specific guidance 40 million verily partnership advanced data platform european expansion new factory arizona going build sensors never thought wed run capacity san diego look verily partnership look pump partners hitting strides look type 2 operation look hospital market like talked decided imperative create capacity two years might hit max capacity san diego another facility running four strategic initiatives spending outside norm well still grow cashbased results course year feroldi thats interesting youre going investing manufacturing united states versus say overseas process automated cost savings go overseas isnt worth sayer looking automate lot processes processes proprietary wanted keep one reasons picked arizona studied several geographies us thats hour plane ride san diego lot executives still supervise involved growing company feel need still much control isnt cookiecutter operation go open plant mexico goes building sensors easy thered lot companies business isnt need level control feroldi funny bring competition front ive personally amazed hasnt flood sensor companies come market pump market certainly seeing new players seen aggressive expansion think guys essentially mind sensor market essentially medtronic thats sayer hard honest goodness make sensors work small clinical study youve got make millions easy business lot technologies come gone companies start dont see way scale tough demands patients things got good life depends lot startup sensor companies look anything interests us take look far happy technology commercializing different like pump companies come pump world head rampd guy minimed used say something real interesting costs quite bit make pump costs whole lot put 1800 number back thats learning startup companies get feroldi takes heck lot capital get hump scale organization essentially manufacturing customer support essentially barriers entry sayer addition technology feroldi quickly could touch mentioned launched directtoconsumer campaign print guys seem drive record visits website record impressions im sure phone ringing hook obviously saw lot success said youre going continue sayer feroldi indefinitely long makes sense sayer certainly first half year well continue fourth quarter first half year g5 mobile well reevaluate think days going consumers think need go directly patients ill give perfect example talking somebody close 40s diagnosed type 1 showed cgm never heard never seen knows well yeah hasnt doctor told dont know go talk physician get theres still awareness hurdles got overcome im patient caregiver side cases walk caregiver say want theyre pretty open particularly understand cgm dont offer everybody walks door would dream yet device drug extent make progress awareness patients providers thats campaigns go year fronts feroldi kind penetration rates think cgm say us type 1 market theres 1500000 type 1s sayer look us market 1500000 weve said total patient base somewhere around 140000 150000 20 25 overseas extrapolate us somewhere 100000 patients us us medtronic think somewhere 15 20 10 20 range certainly come lot also said call nearly doubled patient base last year busy year penetration really started spike last year im quite sure type 1 wouldnt want wear sensor experience data rich valuable life thats coming variety different solutions phone connectivity sharing decreasing footprint size things talked earlier appeal people high penetration get gosh id disappointed didnt get 70 80 penetration type 1 market cgm time feroldi theoretically payers see data see cost savings theyll lower barriers theyll make accessible sayer theyll know thats job dont think weve done perfect job laying cost cgm versus benefit cgm think time particular gathering data cloud patients going able gather certainly better outcome data insurance companies track cost data outcome data become evident next earnings calls feroldi growth especially impressive considering trend last two three years really push cost care directly patient saw deductibles rise weve seen patients 5000 deductibles sayer awful phone calls awful emails awful daughter type 1 raised deductible 10000 cant afford cgm responding back emails worst part day bad emails honesty 64yearold people going turn 65 im going eligible device next week need fix feroldi right hopefully thats something fixes time made case payers sayer time bet article motley fool sits ceo dexcom inc originally appeared foolcom suzanne frey executive alphabet member motley fools board directors brian feroldi opens new window owns shares alphabet shares alphabet c shares insulet motley fool owns shares recommends alphabet shares alphabet c shares motley fool owns shares medtronic motley fool recommends insulet johnson amp johnson try foolish newsletter services free 30 days opens new window fools may hold opinions believe considering diverse range insights opens new window makes us better investors motley fool disclosure policy opens new window copyright 1995 2016 motley fool llc rights reserved motley fool disclosure policy opens new window | 4,394 |
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<p>Stocks seen little changed; EUR/USD 1.1755-58; bund yield 0.456%; Brent crude $55.77; gold $1273.30</p>
<p>-Spain Tense as Catalonia Moves Toward Secession</p>
<p>-Siemens to Sell 17.34% Stake in Osram</p>
<p>-Tesco to Review Contracts and Centralize Orders, CFO Says</p>
<p>Watch For: Eurozone retail PMI; ECB accounts of its last monetary policy discussions; no major earnings scheduled</p>
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<p>Headline News:</p>
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<p>Catalonia set a course toward declaring its secession from Spain as soon as Monday after separatist parties requested the regional parliament convene that day to review the results of this week's independence vote, injecting further tension in the standoff with the Spanish government.</p>
<p>The request came on Wednesday as Catalan President Carles Puigdemont made a televised address in which he took issue with a speech Spain's king made the previous evening admonishing Catalonia's leaders for "inadmissible disloyalty." Addressing the monarch, Mr. Puigdemont said his speech had "disappointed many in Catalonia, who appreciate you...[and] expected another tone from you, a plea for dialogue and harmony."</p>
<p>Two separatist parties that control Catalonia's parliament petitioned Mr. Puigdemont to discuss the official results of Sunday's referendum on independence, advancing the wealthy Spanish region toward declaring a split with Spain. Mr. Puigdemont, who has been at the head of Catalonia's secession push and is a member of one of the parties, said this week Catalan leaders "will act over the weekend or early next week."</p>
<p>Stocks:</p>
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<p>European stock markets are seen little moved at Thursday's open, with DAX futures down 15 points, with FTSE 100 futures 2 points higher.</p>
<p>Japanese equities struggled for direction despite a weaker yen, even as other markets in the region were broadly higher.</p>
<p>The Nikkei Stock Average was nearly unchanged in morning trade, with the market facing more resistance as the benchmark index nears its 2015 peak, which was the highest since 1996.</p>
<p>"In a few hours traders may move but for now they are struggling for new trading cues, good or bad," said Masashi Murata, currency strategist at Brown Brothers Harriman.</p>
<p>Trading in the region was muted as several key markets were shut for holidays. Markets in South Korea and China are closed for the entire week, while Hong Kong was shut on Thursday. Elsewhere, Australia's S&amp;P/ASX 200 gained 0.2%.</p>
<p>U.S. stocks saw a modest rise Wednesday, with major benchmarks notching the latest in a series of record finishes after a round of strong economic data. The S&amp;P 500 rose 0.1%, while the Nasdaq Composite eked out a gain of less than 0.1%. The Dow industrials rose by around 20 points, or 0.1%, to finish near 22,662.</p>
<p>Corporate News:</p>
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<p>Siemens said on Wednesday that is selling its 17.34% stake in lighting manufacturer Osram Licht.</p>
<p>Siemens said it would use the net proceeds from the sale of its Osram shareholding for general corporate purposes. The stake is equal to about 18.16 million ordinary Osram shares. The stake would be around $1.43 billion based on Wednesday's closing price.</p>
<p>U.K. supermarket giant Tesco aims to further reduce costs by centralizing orders and giving larger volumes to some of its suppliers, said its finance chief, Alan Stewart.</p>
<p>"We have been operating on a decentralized and more fragmented basis," said Mr. Stewart in an interview with CFO Journal. The grocer is now working with suppliers and potential suppliers to "get the most out of contracts" when they are up for renewal, he added.</p>
<p>Forex:</p>
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<p>The dollar steadied in Asia, with the WSJ Dollar Index up 0.1% at 86.64.</p>
<p>The U.S. currency had wavered Wednesday as investors consider the implications of a change in Federal Reserve leadership.</p>
<p>President Donald Trump is expected to announce his nomination for Federal Reserve chair in the coming weeks. Chairwoman Janet Yellen, Fed governor Jerome Powell and former Governor Kevin Warsh are all in the running for the job.</p>
<p>"Tuesday's pause in the U.S. dollar rally appears to be taking a more decisive turn...as market participants consider President Trump's short-list of Fed Chair candidates," said analysts at Scotiabank in a research note.</p>
<p>A change in U.S. central-bank leadership has the potential to reshape monetary policy, investors say. Tighter monetary policy typically supports the dollar by making U.S. assets more attractive to yield-seeking investors. Investors are also watching U.S. data this week.</p>
<p>The euro slipped against the buck in Asia. The currency has been buffeted in recent days by political turmoil in the Catalan region of Spain.</p>
<p>At 0350 GMT, USD/JPY was 112.74-75, EUR/USD was 1.1755-58 and GBP/USD was 1.3239-41.</p>
<p>Bonds:</p>
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<p>France's new May 2028 OAT, a government bond that will be launched at an auction Thursday, may get demand from investors searching for yield, said Marc-Henri Thoumin, rates strategist at Societe Generale.</p>
<p>"The low-volatility environment and the ensuing hunt for yield should offer some support" even if -- according to grey markets where bonds trade before their launch -- the May 2028 OAT offers a "slightly less generous" yield pick-up over the May 2027 OAT than what the May 2027 OAT had at the time of its launch over the May 2026 OAT, he said.</p>
<p>The French Treasury Agency launches the new long 10-year OAT and reopens its existing November 2025 OAT and May 2048 OAT, offering EUR7.5 billion to EUR8.5 billion in total.</p>
<p>Credit default swaps should outperform corporate bonds, especially as the European Central Bank gets set to taper its QE program, according to HSBC strategists.</p>
<p>HSBC has long thought CDS should outperform bonds given the size of the positive basis--CDS spreads minus cash bond spreads--since the ECB started buying corporate bonds in 2016. Analysts generally expect the ECB to announce tapering this year and implement it in 2018.</p>
<p>U.S. government bond prices held steady Wednesday, showing signs of stabilization after a recent selloff.</p>
<p>The yield on the benchmark 10-year U.S. Treasury note settled at 2.332%, unchanged from Tuesday. Yields drifted near the flat line in afternoon trading after jumping earlier in the session, when data showed service sector activity across the U.S. accelerated in September.</p>
<p>Energy:</p>
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<p>Crude oil futures were hovering near 2-week lows in Asian trade, after losses in the U.S. on continued concerns of fuel demand easing while U.S. fuel output edged higher.</p>
<p>The price weakness comes despite upbeat data on oil storage level, with the Energy Information Administration reporting that crude stockpiles shrank by 6 million barrels last week, exceeding the 300,000 barrel decline analysts were expecting. For Asia, trading for the rest of the week will stay muted as key oil consuming nations China and South Korea are shut for holidays.</p>
<p>At 0205 GMT, Nymex crude was down 0.2% at $49.89 a barrel, while Brent was down less than 0.1% at $55.77.</p>
<p>Metals:</p>
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<p>London spot gold prices were slightly weaker in Asia as caution dominated ahead of Friday's U.S. jobs report.</p>
<p>Gold has been pressured recently by positive U.S. economic data that has fuelled expectations of another rate increase this year and a strong jobs report could add to the negative sentiment. The absence of Chinese buyers due to holidays and an ongoing inauspicious period for Indian gold buyers has also weakened physical buying support.</p>
<p>At 0211 GMT, gold was down 0.1% at $1,273.30/troy ounce.</p>
<p>Base metals were mostly lower in thin Asia trading.</p>
<p>While snags in mine supplies and a fall in inventories of aluminum and zinc have provided some support to those metals, investors are likely to be circumspect until the transition in China's government later this month. Expectations are that fiscal stimulus measures could slow and metals demand moderate in coming weeks and months.</p>
<p>At 0327 GMT, three-month copper futures on the LME were up 0.1%, while aluminum and zinc were down 0.4% and 0.9% respectively.</p>
<p>Write to [email protected]</p>
<p>(MORE TO FOLLOW) Dow Jones Newswires</p>
<p>October 05, 2017 00:12 ET (04:12 GMT)</p> | true | 0 | snapshot continue reading stocks seen little changed eurusd 1175558 bund yield 0456 brent crude 5577 gold 127330 spain tense catalonia moves toward secession siemens sell 1734 stake osram tesco review contracts centralize orders cfo says watch eurozone retail pmi ecb accounts last monetary policy discussions major earnings scheduled advertisement headline news catalonia set course toward declaring secession spain soon monday separatist parties requested regional parliament convene day review results weeks independence vote injecting tension standoff spanish government request came wednesday catalan president carles puigdemont made televised address took issue speech spains king made previous evening admonishing catalonias leaders inadmissible disloyalty addressing monarch mr puigdemont said speech disappointed many catalonia appreciate youand expected another tone plea dialogue harmony two separatist parties control catalonias parliament petitioned mr puigdemont discuss official results sundays referendum independence advancing wealthy spanish region toward declaring split spain mr puigdemont head catalonias secession push member one parties said week catalan leaders act weekend early next week stocks european stock markets seen little moved thursdays open dax futures 15 points ftse 100 futures 2 points higher japanese equities struggled direction despite weaker yen even markets region broadly higher nikkei stock average nearly unchanged morning trade market facing resistance benchmark index nears 2015 peak highest since 1996 hours traders may move struggling new trading cues good bad said masashi murata currency strategist brown brothers harriman trading region muted several key markets shut holidays markets south korea china closed entire week hong kong shut thursday elsewhere australias samppasx 200 gained 02 us stocks saw modest rise wednesday major benchmarks notching latest series record finishes round strong economic data sampp 500 rose 01 nasdaq composite eked gain less 01 dow industrials rose around 20 points 01 finish near 22662 corporate news siemens said wednesday selling 1734 stake lighting manufacturer osram licht siemens said would use net proceeds sale osram shareholding general corporate purposes stake equal 1816 million ordinary osram shares stake would around 143 billion based wednesdays closing price uk supermarket giant tesco aims reduce costs centralizing orders giving larger volumes suppliers said finance chief alan stewart operating decentralized fragmented basis said mr stewart interview cfo journal grocer working suppliers potential suppliers get contracts renewal added forex dollar steadied asia wsj dollar index 01 8664 us currency wavered wednesday investors consider implications change federal reserve leadership president donald trump expected announce nomination federal reserve chair coming weeks chairwoman janet yellen fed governor jerome powell former governor kevin warsh running job tuesdays pause us dollar rally appears taking decisive turnas market participants consider president trumps shortlist fed chair candidates said analysts scotiabank research note change us centralbank leadership potential reshape monetary policy investors say tighter monetary policy typically supports dollar making us assets attractive yieldseeking investors investors also watching us data week euro slipped buck asia currency buffeted recent days political turmoil catalan region spain 0350 gmt usdjpy 1127475 eurusd 1175558 gbpusd 1323941 bonds frances new may 2028 oat government bond launched auction thursday may get demand investors searching yield said marchenri thoumin rates strategist societe generale lowvolatility environment ensuing hunt yield offer support even according grey markets bonds trade launch may 2028 oat offers slightly less generous yield pickup may 2027 oat may 2027 oat time launch may 2026 oat said french treasury agency launches new long 10year oat reopens existing november 2025 oat may 2048 oat offering eur75 billion eur85 billion total credit default swaps outperform corporate bonds especially european central bank gets set taper qe program according hsbc strategists hsbc long thought cds outperform bonds given size positive basiscds spreads minus cash bond spreadssince ecb started buying corporate bonds 2016 analysts generally expect ecb announce tapering year implement 2018 us government bond prices held steady wednesday showing signs stabilization recent selloff yield benchmark 10year us treasury note settled 2332 unchanged tuesday yields drifted near flat line afternoon trading jumping earlier session data showed service sector activity across us accelerated september energy crude oil futures hovering near 2week lows asian trade losses us continued concerns fuel demand easing us fuel output edged higher price weakness comes despite upbeat data oil storage level energy information administration reporting crude stockpiles shrank 6 million barrels last week exceeding 300000 barrel decline analysts expecting asia trading rest week stay muted key oil consuming nations china south korea shut holidays 0205 gmt nymex crude 02 4989 barrel brent less 01 5577 metals london spot gold prices slightly weaker asia caution dominated ahead fridays us jobs report gold pressured recently positive us economic data fuelled expectations another rate increase year strong jobs report could add negative sentiment absence chinese buyers due holidays ongoing inauspicious period indian gold buyers also weakened physical buying support 0211 gmt gold 01 127330troy ounce base metals mostly lower thin asia trading snags mine supplies fall inventories aluminum zinc provided support metals investors likely circumspect transition chinas government later month expectations fiscal stimulus measures could slow metals demand moderate coming weeks months 0327 gmt threemonth copper futures lme 01 aluminum zinc 04 09 respectively write paullarkinswsjcom follow dow jones newswires october 05 2017 0012 et 0412 gmt | 844 |
<p>British euroskeptics have been predicting the demise of the euro since before the single currency was even launched. For 25 years, they have been warning that it is doomed to failure, that it is a "burning building with no exits."</p>
<p>Its supposed imminent collapse was one reason why some Brexiters said it was essential that Britain quit the European Union. Others argued that the only way for the eurozone to save itself was to turn itself into the superstate of euroskeptic nightmares, complete with mutualized debt and fiscal transfers, riding roughshod over national sovereignty.</p>
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<p>That narrative has suffered many setbacks over the past few years, and last week it suffered another when Standard &amp; Poor's restored Portugal's sovereign debt rating to investment grade, triggering a sharp rally in its 10-year bonds and driving the yield down to 2.53%, the lowest since January 2016.</p>
<p>This marked another important milestone in the country's recovery from a severe financial crisis that forced Lisbon to seek a bailout from the rest of the eurozone and the International Monetary Fund. With Portuguese growth expected to hit 2.8% this year and unemployment back to around 9%, one of the weakest links in the eurozone looks increasingly secure.</p>
<p>From an economic perspective, it's puzzling why British euroskeptics, who mostly claim to be conservatives, should be so neuralgic about the euro. Conservatives typically believe in sound money, that the key to prosperity is finding ways to boost productivity, not via gimmicks such as devaluation, deficit spending and loose money.</p>
<p>Indeed, during the coalition government years, many British conservatives berated Chancellor George Osborne for abandoning his tough fiscal targets too quickly and criticized the Bank of England's money-printing. Yet when they look across the Channel, these critics suddenly discovered their inner Keynesian, blaming all the eurozone's misfortunes on an inability to devalue and spend borrowed money.</p>
<p>In fact, Portugal has achieved the kind of turnaround of which British conservatives can only dream. The country turned a budget deficit of 9% in 2012 into a deficit of just 1.5% in 2016, compared with a U.K. budget deficit in the year to March 2017 of 2.4%. It turned a current-account deficit of 6% into a surplus of 0.7%, compared with a U.K. current-account deficit of 4.4%. And Portugal has grown its exports as a percentage of gross domestic output from 29% to 45%, compared with just 28% in the U.K.</p>
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<p>It has done this without the help of a devaluation, let alone fiscal integration or debt mutualization. Instead, Portugal owes its recovery in large part to determined supply side reforms -- as was also true of the even more impressive turnarounds in the fortunes of Ireland and Spain.</p>
<p>The reason that British conservatives failed to spot this eurozone recovery is that they aren't, in fact, as conservative as they think. Seared into the British political memory is the repeated failure of successive governments to maintain the value of sterling against gold in the 1920s, the dollar in the '60s and '70s and the deutschemark in the '90s. The lesson the British establishment drew from economic history -- in particular the recoveries that followed the decision to abandon the gold standard in 1932 and quit the European Exchange Rate Mechanism in 1992 -- is that currency flexibility is the key ingredient to economic success.</p>
<p>But it should now be clear, not least from failure of the two big plunges in sterling in 2008 and post-Brexit last year to deliver the expected recoveries in the U.K.'s current account position, that this was the wrong lesson.</p>
<p>The key to the recoveries that followed the devaluations of 1932 and 1997 wasn't so much the fall in the exchange rate but the dramatic easing of credit conditions, constrained by the mechanics of the gold standard and by the high interest rates needed to defend sterling in the ERM, rather than the value of sterling.</p>
<p>The reason the eurozone didn't collapse like the gold standard, as British euroskeptics insisted it would, was because it managed to keep credit flowing, thanks to a common central bank that provided enough cheap liquidity to enable countries to achieve an orderly deleveraging.</p>
<p>That isn't to deny that mistakes were made during the euro crisis that made the crisis for countries like Portugal worse than it needed to be.</p>
<p>It took too long to fix the problems in the eurozone banking system, which meant that despite the action of the European Central Bank, the flow of credit was still impeded. This was compounded by inefficiencies in national insolvency regimes, which continue to delay the restructuring of bad debts, acting as a further drag on the credit flows.</p>
<p>The ECB was also too slow to spot the deflationary consequences of structural overhauls designed to restore competitiveness by reducing relative prices including wages. As a result, real interest rates remained growth-sappingly high until the ECB belatedly launched its quantitative easing program.</p>
<p>Nor would anyone claim that either Portugal or the eurozone is yet out of the woods.</p>
<p>Portugal's very high levels of public and private bad debt leave it vulnerable to a shock despite its improved growth outlook. Like many eurozone countries, it needs to further boost its productivity if it is to remove all doubts about its long-term debt sustainability.</p>
<p>Nonetheless, Portugal's recovery is a reminder that the euro's collapse isn't inevitable and that it's survival need not depend on the eurozone turning itself into a superstate -- just as the U.K.'s continuing imbalances are a reminder that a flexible currency can be a curse if it allows governments to duck hard decisions.</p>
<p>(END) Dow Jones Newswires</p>
<p>September 20, 2017 18:55 ET (22:55 GMT)</p> | true | 0 | british euroskeptics predicting demise euro since single currency even launched 25 years warning doomed failure burning building exits supposed imminent collapse one reason brexiters said essential britain quit european union others argued way eurozone save turn superstate euroskeptic nightmares complete mutualized debt fiscal transfers riding roughshod national sovereignty continue reading narrative suffered many setbacks past years last week suffered another standard amp poors restored portugals sovereign debt rating investment grade triggering sharp rally 10year bonds driving yield 253 lowest since january 2016 marked another important milestone countrys recovery severe financial crisis forced lisbon seek bailout rest eurozone international monetary fund portuguese growth expected hit 28 year unemployment back around 9 one weakest links eurozone looks increasingly secure economic perspective puzzling british euroskeptics mostly claim conservatives neuralgic euro conservatives typically believe sound money key prosperity finding ways boost productivity via gimmicks devaluation deficit spending loose money indeed coalition government years many british conservatives berated chancellor george osborne abandoning tough fiscal targets quickly criticized bank englands moneyprinting yet look across channel critics suddenly discovered inner keynesian blaming eurozones misfortunes inability devalue spend borrowed money fact portugal achieved kind turnaround british conservatives dream country turned budget deficit 9 2012 deficit 15 2016 compared uk budget deficit year march 2017 24 turned currentaccount deficit 6 surplus 07 compared uk currentaccount deficit 44 portugal grown exports percentage gross domestic output 29 45 compared 28 uk advertisement done without help devaluation let alone fiscal integration debt mutualization instead portugal owes recovery large part determined supply side reforms also true even impressive turnarounds fortunes ireland spain reason british conservatives failed spot eurozone recovery arent fact conservative think seared british political memory repeated failure successive governments maintain value sterling gold 1920s dollar 60s 70s deutschemark 90s lesson british establishment drew economic history particular recoveries followed decision abandon gold standard 1932 quit european exchange rate mechanism 1992 currency flexibility key ingredient economic success clear least failure two big plunges sterling 2008 postbrexit last year deliver expected recoveries uks current account position wrong lesson key recoveries followed devaluations 1932 1997 wasnt much fall exchange rate dramatic easing credit conditions constrained mechanics gold standard high interest rates needed defend sterling erm rather value sterling reason eurozone didnt collapse like gold standard british euroskeptics insisted would managed keep credit flowing thanks common central bank provided enough cheap liquidity enable countries achieve orderly deleveraging isnt deny mistakes made euro crisis made crisis countries like portugal worse needed took long fix problems eurozone banking system meant despite action european central bank flow credit still impeded compounded inefficiencies national insolvency regimes continue delay restructuring bad debts acting drag credit flows ecb also slow spot deflationary consequences structural overhauls designed restore competitiveness reducing relative prices including wages result real interest rates remained growthsappingly high ecb belatedly launched quantitative easing program would anyone claim either portugal eurozone yet woods portugals high levels public private bad debt leave vulnerable shock despite improved growth outlook like many eurozone countries needs boost productivity remove doubts longterm debt sustainability nonetheless portugals recovery reminder euros collapse isnt inevitable survival need depend eurozone turning superstate uks continuing imbalances reminder flexible currency curse allows governments duck hard decisions end dow jones newswires september 20 2017 1855 et 2255 gmt | 535 |
<p>Following is a statement issued by euro zone leaders after an emergency summit of the 17-nation currency area on Thursday.</p>
<p>STATEMENT BY THE HEADS OF STATE OR GOVERNMENT OF THE EURO AREA AND EU INSTITUTIONS</p>
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<p>We reaffirm our commitment to the euro and to do whatever is needed to ensure the financial stability of the euro area as a whole and its Member States. We also reaffirm our determination to reinforce convergence, competitiveness and governance in the euro area. Since the beginning of the sovereign debt crisis, important measures have been taken to stabilize the euro area, reform the rules and develop new stabilization tools. The recovery in the euro area is well on track and the euro is based on sound economic fundamentals. But the challenges at hand have shown the need for more far reaching measures.</p>
<p>Today, we agreed on the following measures:</p>
<p>Greece:</p>
<p>1. We welcome the measures undertaken by the Greek government to stabilize public finances and reform the economy as well as the new package of measures including privatisation recently adopted by the Greek Parliament. These are unprecedented, but necessary, efforts to bring the Greek economy back on a sustainable growth path. We are conscious of the efforts that the adjustment measures entail for the Greek citizens, and are convinced that these sacrifices are indispensable for economic recovery and will contribute to the future stability and welfare of the country.</p>
<p>2. We agree to support a new programme for Greece and, together with the <a href="" type="internal">IMF</a> and the voluntary contribution of the private sector, to fully cover the financing gap. The total official financing will amount to an estimated 109 billion euro. This programme will be designed, notably through lower interest rates and extended maturities, to decisively improve the debt sustainability and refinancing profile of Greece. We call on the IMF to continue to contribute to the financing of the new Greek programme. We intend to use the EFSF as the financing vehicle for the next disbursement. We will monitor very closely the strict implementation of the programme based on the regular assessment by the Commission in liaison with the ECB and the IMF.</p>
<p>3. We have decided to lengthen the maturity of future EFSF loans to Greece to the maximum extent possible from the current 7.5 years to a minimum of 15 years and up to 30 years with a grace period of 10 years. In this context, we will ensure adequate post programme monitoring. We will provide EFSF loans at lending rates equivalent to those of the Balance of Payments facility (currently approx. 3.5 percent), close to, without going below, the EFSF funding cost. We also decided to extend substantially the maturities of the existing Greek facility. This will be accompanied by a mechanism which ensures appropriate incentives to implement the programme.</p>
<p>4. We call for a comprehensive strategy for growth and investment in Greece. We welcome the Commission's decision to create a Task Force which will work with the Greek authorities to target the structural funds on competitiveness and growth, job creation and training. We will mobilise EU funds and institutions such as the EIB towards this goal and relaunch the Greek economy. Member States and the Commission will immediately mobilize all resources necessary in order to provide exceptional technical assistance to help Greece implement its reforms. The Commission will report on progress in this respect in October.</p>
<p>5. The financial sector has indicated its willingness to support Greece on a voluntary basis through a menu of options further strengthening overall sustainability. The net contribution of the private sector is estimated at 37 billion euro. Credit enhancement will be provided to underpin the quality of collateral so as to allow its continued use for access to Eurosystem liquidity operations by Greek banks. We will provide adequate resources to recapitalise Greek banks if needed.</p>
<p>Private sector involvement:</p>
<p>6. As far as our general approach to private sector involvement in the euro area is concerned, we would like to make it clear that Greece requires an exceptional and unique solution.</p>
<p>7. All other euro countries solemnly reaffirm their inflexible determination to honour fully their own individual sovereign signature and all their commitments to sustainable fiscal conditions and structural reforms. The euro area Heads of State or Government fully support this determination as the credibility of all their sovereign signatures is a decisive element for ensuring financial stability in the euro area as a whole.</p>
<p>Stabilisation tools:</p>
<p>8. To improve the effectiveness of the EFSF and of the ESM and address contagion, we agree to increase their flexibility linked to appropriate conditionality, allowing them to:</p>
<p>-- act on the basis of a precautionary programme;</p>
<p>-- finance recapitalisation of financial institutions through loans to governments including in non programme countries;</p>
<p>-- intervene in the secondary markets on the basis of an ECB analysis recognizing the existence of exceptional financial market circumstances and risks to financial stability and on the basis of a decision by mutual agreement of the EFSF/ESM Member States, to avoid contagion.</p>
<p>We will initiate the necessary procedures for the implementation of these decisions as soon as possible.</p>
<p>9. Where appropriate, a collateral arrangement will be put in place so as to cover the risk arising to euro area Member States from their guarantees to the EFSF.</p>
<p>Fiscal consolidation and growth in the euro area:</p>
<p>10. We are determined to continue to provide support to countries under programmes until they have regained market access, provided they successfully implement those programmes. We welcome Ireland and Portugal's resolve to strictly implement their programmes and reiterate our strong commitment to the success of these programmes. The EFSF lending rates and maturities we agreed upon for Greece will be applied also for Portugal and Ireland. In this context, we note Ireland's willingness to participate constructively in the discussions on the Common Consolidated Corporate Tax Base draft directive (CCCTB) and in the structured discussions on tax policy issues in the framework of the Euro+ Pact framework.</p>
<p>11. All euro area Member States will adhere strictly to the agreed fiscal targets, improve competitiveness and address macro-economic imbalances. Public deficits in all countries except those under a programme will be brought below 3 percent by 2013 at the latest. In this context, we welcome the budgetary package recently presented by the Italian government which will enable it to bring the deficit below 3 percent in 2012 and to achieve balance budget in 2014. We also welcome the ambitious reforms undertaken by Spain in the fiscal, financial and structural area. As a follow up to the results of bank stress tests, Member States will provide backstops to banks as appropriate.</p>
<p>12. We will implement the recommendations adopted in June for reforms that will enhance our growth. We invite the Commission and the EIB to enhance the synergies between loan programmes and EU funds in all countries under EU/IMF assistance. We support all efforts to improve their capacity to absorb EU funds in order to stimulate growth and employment, including through a temporary increase in co-financing rates.</p>
<p>Economic governance:</p>
<p>13. We call for the rapid finalization of the legislative package on the strengthening of the Stability and Growth Pact and the new macro economic surveillance. Euro area members will fully support the Polish Presidency in order to reach agreement with the European Parliament on voting rules in the preventive arm of the Pact.</p>
<p>14. We commit to introduce by the end of 2012 national fiscal frameworks as foreseen in the fiscal frameworks directive.</p>
<p>15. We agree that reliance on external credit ratings in the EU regulatory framework should be reduced, taking into account the Commission's recent proposals in that direction, and we look forward to the Commission proposals on credit ratings agencies.</p>
<p>16. We invite the President of the European Council, in close consultation with the President of the Commission and the President of the Eurogroup, to make concrete proposals by October on how to improve working methods and enhance crisis management in the euro area.</p>
<p>Advertisement</p> | true | 0 | following statement issued euro zone leaders emergency summit 17nation currency area thursday statement heads state government euro area eu institutions continue reading reaffirm commitment euro whatever needed ensure financial stability euro area whole member states also reaffirm determination reinforce convergence competitiveness governance euro area since beginning sovereign debt crisis important measures taken stabilize euro area reform rules develop new stabilization tools recovery euro area well track euro based sound economic fundamentals challenges hand shown need far reaching measures today agreed following measures greece 1 welcome measures undertaken greek government stabilize public finances reform economy well new package measures including privatisation recently adopted greek parliament unprecedented necessary efforts bring greek economy back sustainable growth path conscious efforts adjustment measures entail greek citizens convinced sacrifices indispensable economic recovery contribute future stability welfare country 2 agree support new programme greece together imf voluntary contribution private sector fully cover financing gap total official financing amount estimated 109 billion euro programme designed notably lower interest rates extended maturities decisively improve debt sustainability refinancing profile greece call imf continue contribute financing new greek programme intend use efsf financing vehicle next disbursement monitor closely strict implementation programme based regular assessment commission liaison ecb imf 3 decided lengthen maturity future efsf loans greece maximum extent possible current 75 years minimum 15 years 30 years grace period 10 years context ensure adequate post programme monitoring provide efsf loans lending rates equivalent balance payments facility currently approx 35 percent close without going efsf funding cost also decided extend substantially maturities existing greek facility accompanied mechanism ensures appropriate incentives implement programme 4 call comprehensive strategy growth investment greece welcome commissions decision create task force work greek authorities target structural funds competitiveness growth job creation training mobilise eu funds institutions eib towards goal relaunch greek economy member states commission immediately mobilize resources necessary order provide exceptional technical assistance help greece implement reforms commission report progress respect october 5 financial sector indicated willingness support greece voluntary basis menu options strengthening overall sustainability net contribution private sector estimated 37 billion euro credit enhancement provided underpin quality collateral allow continued use access eurosystem liquidity operations greek banks provide adequate resources recapitalise greek banks needed private sector involvement 6 far general approach private sector involvement euro area concerned would like make clear greece requires exceptional unique solution 7 euro countries solemnly reaffirm inflexible determination honour fully individual sovereign signature commitments sustainable fiscal conditions structural reforms euro area heads state government fully support determination credibility sovereign signatures decisive element ensuring financial stability euro area whole stabilisation tools 8 improve effectiveness efsf esm address contagion agree increase flexibility linked appropriate conditionality allowing act basis precautionary programme finance recapitalisation financial institutions loans governments including non programme countries intervene secondary markets basis ecb analysis recognizing existence exceptional financial market circumstances risks financial stability basis decision mutual agreement efsfesm member states avoid contagion initiate necessary procedures implementation decisions soon possible 9 appropriate collateral arrangement put place cover risk arising euro area member states guarantees efsf fiscal consolidation growth euro area 10 determined continue provide support countries programmes regained market access provided successfully implement programmes welcome ireland portugals resolve strictly implement programmes reiterate strong commitment success programmes efsf lending rates maturities agreed upon greece applied also portugal ireland context note irelands willingness participate constructively discussions common consolidated corporate tax base draft directive ccctb structured discussions tax policy issues framework euro pact framework 11 euro area member states adhere strictly agreed fiscal targets improve competitiveness address macroeconomic imbalances public deficits countries except programme brought 3 percent 2013 latest context welcome budgetary package recently presented italian government enable bring deficit 3 percent 2012 achieve balance budget 2014 also welcome ambitious reforms undertaken spain fiscal financial structural area follow results bank stress tests member states provide backstops banks appropriate 12 implement recommendations adopted june reforms enhance growth invite commission eib enhance synergies loan programmes eu funds countries euimf assistance support efforts improve capacity absorb eu funds order stimulate growth employment including temporary increase cofinancing rates economic governance 13 call rapid finalization legislative package strengthening stability growth pact new macro economic surveillance euro area members fully support polish presidency order reach agreement european parliament voting rules preventive arm pact 14 commit introduce end 2012 national fiscal frameworks foreseen fiscal frameworks directive 15 agree reliance external credit ratings eu regulatory framework reduced taking account commissions recent proposals direction look forward commission proposals credit ratings agencies 16 invite president european council close consultation president commission president eurogroup make concrete proposals october improve working methods enhance crisis management euro area advertisement | 752 |
<p>Jim Edwards, the deputy editor of the Business Insider website, and Slate.com's tech reporter Will Oremus slammed former Mozilla CEO Brendan Eich on the Friday edition of BBC World Service's World Have Your Say program. Edwards likened Eich's $1,000 donation in support of California's Proposition 8 to someone who "donated some money to the KKK." The editor also repeatedly accused the tech executive of "donating money that strip people of their civil rights." The Business Insider editor later compared the former CEO's support of traditional marriage to supporting the "the civil right to own slaves," and defended this comparison, since "slavery is all about stripping other people of their rights, which is what being against gay marriage is all about." Oremus agreed with Edwards in labeling Eich's political donation as "beyond the pale," and defended the internal and external campaign by social leftists to force his departure: [MP3 audio <a href="http://www.newsbusters.org/sites/default/files/2013/2014-04-04-BBC-WHYS-Oremus_Edwards.mp3" type="external">available here</a>]</p>
<p>WILL OREMUS, SENIOR TECHNOLOGY REPORTER, SLATE: ...I think that he was right to step down, and I think that Mozilla was right, ultimately, to apply the pressure on him to step down. Now, I don't think that means that every CEO in America needs to be pushed out for their views on gay marriage. But I think this was a case where you have a company, operating in a liberal Bay Area environment, where it is now a fringe position to be anti-gay rights. It is not considered okay. I think that's a direction that the entire country is going to move in over time, and I think that's a good thing.</p>
<p>BBC host Krupa Padhy brought on the two journalists, along with NewsBusters contributor <a href="http://newsbusters.org/blog/21692" type="external">Kathleen McKinley</a>; former Mozilla employee&#160; Brandon Savage; Breitbart.com's Ben Shapiro; BBC technology reporter Dave Lee; and LGBT activist John Aravosis. Five and half minutes into the half hour-plus discussion, Padhy turned to Oremus and asked for his take on the controversy. The reporter replied by giving his " Mozilla was right...to apply the pressure on him to step down" answer – repeating his main points from his <a href="http://hotair.com/archives/2014/04/04/slate-pro-tip-on-executive-management-only-bad-ceos-oppose-same-sex-marriage/" type="external">Thursday piece</a> on Slate on the issue. Three and a half minutes later, Edwards, who is a <a href="http://www.linkedin.com/pub/jim-edwards/2/b76/a85" type="external">former contributor</a> to the far-left magazine The Nation, along with ideological fellow traveler Salon.com, led into his KKK comparison by outlining a hypothetical meeting between Eich and Apple CEO Tim Cook, and hinted at the fact that Cook is an open homosexual. Shapiro attacked the editor after he dropped the reference to the anti-black, anti-Catholic, anti-Semitic cabal, and highlighted the fact that President Obama once supported traditional marriage:</p>
<p>JIM EDWARDS, INVESTIGATIVE REPORTER, BUSINESS INSIDER: ...We should point out, to Brendan Eich's credit, he did not bring his politics into the workplace; and also, he voluntarily resigned. He wasn't fired. But think of it this way: this is a guy who is the head of the Firefox browser – conceivably would meet Apple CEO Tim Cook – Tim Cook being the head of the most important tech company on the planet probably. These two guys are in a room: one of them believes he has more rights than the other, and that the other guy has fewer human rights than he does. How is Tim Cook supposed to react to that? How is he supposed to deal with that? That's crazy. BEN SHAPIRO: Well, how exactly – how exactly is Eich supposed to respond- EDWARDS: An analogy would be – you know, if this guy had donated some money to the KKK, and was then meeting with a company run by a black CEO. It's just – it's beyond the pale. Once you are donating money that strip people of their civil rights, you have stepped beyond the pale. SHAPIRO: For you to compare – for anybody to compare the position – by the way, held by Barack Obama in 2008...to be pro-traditional marriage...with the KKK just demonstrates the absurdity to which this conversation has now languished. The idea that – that Eich couldn't do business with Tim Cook – obviously, he could.....And again, please name an instance in which Eich's – his personal position on any of this impacted his ability to do business with anyone. I'm still waiting for any evidence of that. This is nothing less than a bullying campaign by a lot of people who don't like anybody who has a religious viewpoint on the issue of marriage. It is religious discrimination by- EDWARDS: I mean, the evidence is right there! You know, the entire Mozilla organization – all the way up to its board of directors – was completely distracted by his extremist opinions on – on gay rights. That is why he's out. He stepped aside, because he derailed the organization almost immediately upon his promotion.</p>
<p>Later, Padhy noted how Savage referenced privacy as a major issue related to the Internet and wondered whether "it's an invasion of his [Eich's] privacy by having this outrage against his position." The former Mozilla employee defended his former colleague's reputation, but Edwards and Oremus pounced to again attack the now former Mozilla executive: [MP3 audio of this exchange <a href="http://www.newsbusters.org/sites/default/files/2013/2014-04-04-BBC-WHYS-Oremus_Edwards2.mp3" type="external">available here</a>]</p>
<p>BRANDON SAVAGE, FORMER MOZILLA EMPLOYEE: I would agree and – and the disclosure of those donation records – I believe was a court decision – and I don't have the facts to back that up, but I believe it was a court decision that those records be disclosed. And if they had never been disclosed, this would never be an issue. You know, Brendan is not out on the corner with a sign saying, I hate gay people. He gave money to an organization, and – and his donation – his right to speak should not – not cause him to lose his job, as along as- EDWARDS: Well, hold on; hold on. There's a flaw in what you're saying there, because he may have made his donation privately, but what his donation was funding was stripping rights from a huge number of people in California. In other words, the effect of his donation was very, very public, and it just seems unfair to me that people should be able to donate secretly and expect that to remain private – when what they're actually doing is an extremely public act. They're stripping people of their civil rights. OREMUS: I agree, and there's a very important distinction to be made here between someone's political views on an issue like tax hikes, or a matter of domestic policy, and someone who take a position that clearly indicates that he believes some people deserve fewer rights than other people. Someone mentioned the phrase 'beyond the pale.' I mean, that's really what we're talking about here. A lot of the people who were criticizing the – the people who put pressure on Eich to step down are – are saying that, well, if Eich has to step down, then everybody has to step down because everyone has some political views that other people disagree with. I think that's – that's certainly true that everyone has controversial views, and we would not want to live in a society where no one can be CEO of an organization unless everybody agrees with every view that they hold. But that's not what anyone is arguing here. What people are saying is that, at this time and place, being against equal rights for gay people is not okay. It's not okay in the way – and these aren't perfect comparisons – but it's not okay in the way that it's not okay to be against interracial marriage, or to be an anti-Semite, or to be a Nazi. There are some things that are not okay, and some things that are okay. And we're saying that this one is not okay, for a guy to be a leader of an organization like Mozilla.</p>
<p>The BBC host then turned to McKinley, who, like Shapiro, cited Obama's past support of traditional marriage, and cited another former colleague of Eich's at Mozilla, who pointed out that he treated everyone there with respect:</p>
<p>KATHLEEN MCKINLEY: Well, I have two points to make: if the CEO of Mozilla could lose his job for a donation that he made for traditional marriage six years ago, then shouldn't President Obama lose his? Because he had a much more open – much more influence on the country by saying he was against gay marriage when he was president. So, it would seem to me that he would be the one who should lose his job for what he believed six years ago at the same time. And the second thing I would like to say is that a gay colleague at Mozilla had said that he [Eich] never discriminated against anyone; he never showed any preference; any difference; never showed any hatred for anyone. So, he was doing a good job, and he wasn't discriminating against anybody. So, if anyone's civil rights are being trashed here, it is his civil rights to be able to give to a political organization of his choice, and not have his job be in jeopardy. I think all people should be chilled by this. And I would think I would agree with that, even if it was several years ago and he was fired for giving a donation to gay rights.</p>
<p>As before with Shapiro, the two left-wing journalists counterattacked with their slams of the former CEO.&#160; Edwards also used the slavery card in his part of the salvo: [MP3 audio of the end of McKinley's remarks above, along with her exchange with Oremus and Edwards <a href="http://www.newsbusters.org/sites/default/files/2013/2014-04-04-BBC-WHYS-McKinley_Edwards.mp3" type="external">available here</a>]</p>
<p>OREMUS: No, I'm sorry – being able – being able to marry anyone you want is a civil right. Being able to be CEO of Mozilla is not a civil right. &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; &#160; MCKINLEY: Being able to give a political donation without being targeted and harassed and witch-hunted is also a civil right. EDWARDS: What if Brendan Eich's position had been, I want the civil right to own slaves? Would he still – would that be okay, because it's just his opinion, right?...It's his opinion, and he wants the right to own slaves. Is that all right? MCKINLEY: How can you compare someone who believes in traditional marriage, which has been the norm in this country up until the last couple of years – including the President of this country until two years ago – how can you compare that to being – owning a slave? Are you saying that Obama believes the same thing – as owning a slave? Is that what you're saying? EDWARDS: I think – I think the comparison is really easy for a couple of reasons – because, first of all, Americans in the South used to literally argue in the favor of the civil right to own slaves. And second of all, slavery is all about stripping other people of their rights – which is what being against gay marriage is all about. So, I'm actually rather pleased with this parallel. OREMUS: And these are all the same arguments that we heard from opponents of civil rights in the 1960s.... MCKINLEY: So you're saying that Obama (audio fades out momentarily) – you're comparing that – up until two years ago, he believed – in the same parallel as owning a slave. That's what you're saying? EDWARDS: Obama makes mistakes like everybody else – like Brendan Eich! MCKINLEY: (laughs) Okay- PADHY: I think what we're trying to get to the point here is – is how do we decide which issues can, kind of, push us to this – to this point? Is it race? Is it gender? Is it your sexuality? Why is gay rights here the issue that has pushed us to this point? OREMUS: Because this is the last major civil – this is – you know, the last frontier of basic civil rights for large groups of people in America. I think this is – this is the civil rights issue of our time. And I think that's why people take it extremely seriously, and put it in a different class than someone's views on other issues of policy. SHAPIRO: I don't think anybody here is arguing, by the way, that Mozilla doesn't have the right to do what it wants to Brendan Eich as far as his political viewpoints. They do have the right, under the Constitution, to do exactly that. I think what we're arguing about is whether it's right or wrong for a company to now be pressured into firing employees for their personal political views, no matter what those views may be. I'm Jewish. If Brendan Eich had been a Holocaust denier, but he treated Jews decently at his company and nothing had – and he had not discriminated against Jews in any of his business dealings, I'd hold exactly the same position.</p> | true | 0 | jim edwards deputy editor business insider website slatecoms tech reporter oremus slammed former mozilla ceo brendan eich friday edition bbc world services world say program edwards likened eichs 1000 donation support californias proposition 8 someone donated money kkk editor also repeatedly accused tech executive donating money strip people civil rights business insider editor later compared former ceos support traditional marriage supporting civil right slaves defended comparison since slavery stripping people rights gay marriage oremus agreed edwards labeling eichs political donation beyond pale defended internal external campaign social leftists force departure mp3 audio available oremus senior technology reporter slate think right step think mozilla right ultimately apply pressure step dont think means every ceo america needs pushed views gay marriage think case company operating liberal bay area environment fringe position antigay rights considered okay think thats direction entire country going move time think thats good thing bbc host krupa padhy brought two journalists along newsbusters contributor kathleen mckinley former mozilla employee160 brandon savage breitbartcoms ben shapiro bbc technology reporter dave lee lgbt activist john aravosis five half minutes half hourplus discussion padhy turned oremus asked take controversy reporter replied giving mozilla rightto apply pressure step answer repeating main points thursday piece slate issue three half minutes later edwards former contributor farleft magazine nation along ideological fellow traveler saloncom led kkk comparison outlining hypothetical meeting eich apple ceo tim cook hinted fact cook open homosexual shapiro attacked editor dropped reference antiblack anticatholic antisemitic cabal highlighted fact president obama supported traditional marriage jim edwards investigative reporter business insider point brendan eichs credit bring politics workplace also voluntarily resigned wasnt fired think way guy head firefox browser conceivably would meet apple ceo tim cook tim cook head important tech company planet probably two guys room one believes rights guy fewer human rights tim cook supposed react supposed deal thats crazy ben shapiro well exactly exactly eich supposed respond edwards analogy would know guy donated money kkk meeting company run black ceo beyond pale donating money strip people civil rights stepped beyond pale shapiro compare anybody compare position way held barack obama 2008to protraditional marriagewith kkk demonstrates absurdity conversation languished idea eich couldnt business tim cook obviously couldand please name instance eichs personal position impacted ability business anyone im still waiting evidence nothing less bullying campaign lot people dont like anybody religious viewpoint issue marriage religious discrimination edwards mean evidence right know entire mozilla organization way board directors completely distracted extremist opinions gay rights hes stepped aside derailed organization almost immediately upon promotion later padhy noted savage referenced privacy major issue related internet wondered whether invasion eichs privacy outrage position former mozilla employee defended former colleagues reputation edwards oremus pounced attack former mozilla executive mp3 audio exchange available brandon savage former mozilla employee would agree disclosure donation records believe court decision dont facts back believe court decision records disclosed never disclosed would never issue know brendan corner sign saying hate gay people gave money organization donation right speak cause lose job along edwards well hold hold theres flaw youre saying may made donation privately donation funding stripping rights huge number people california words effect donation public seems unfair people able donate secretly expect remain private theyre actually extremely public act theyre stripping people civil rights oremus agree theres important distinction made someones political views issue like tax hikes matter domestic policy someone take position clearly indicates believes people deserve fewer rights people someone mentioned phrase beyond pale mean thats really talking lot people criticizing people put pressure eich step saying well eich step everybody step everyone political views people disagree think thats thats certainly true everyone controversial views would want live society one ceo organization unless everybody agrees every view hold thats anyone arguing people saying time place equal rights gay people okay okay way arent perfect comparisons okay way okay interracial marriage antisemite nazi things okay things okay saying one okay guy leader organization like mozilla bbc host turned mckinley like shapiro cited obamas past support traditional marriage cited another former colleague eichs mozilla pointed treated everyone respect kathleen mckinley well two points make ceo mozilla could lose job donation made traditional marriage six years ago shouldnt president obama lose much open much influence country saying gay marriage president would seem would one lose job believed six years ago time second thing would like say gay colleague mozilla said eich never discriminated anyone never showed preference difference never showed hatred anyone good job wasnt discriminating anybody anyones civil rights trashed civil rights able give political organization choice job jeopardy think people chilled would think would agree even several years ago fired giving donation gay rights shapiro two leftwing journalists counterattacked slams former ceo160 edwards also used slavery card part salvo mp3 audio end mckinleys remarks along exchange oremus edwards available oremus im sorry able able marry anyone want civil right able ceo mozilla civil right 160160160160160160160160160160160160160160160160160160160160160160160160160160160160160 160 mckinley able give political donation without targeted harassed witchhunted also civil right edwards brendan eichs position want civil right slaves would still would okay opinion rightits opinion wants right slaves right mckinley compare someone believes traditional marriage norm country last couple years including president country two years ago compare owning slave saying obama believes thing owning slave youre saying edwards think think comparison really easy couple reasons first americans south used literally argue favor civil right slaves second slavery stripping people rights gay marriage im actually rather pleased parallel oremus arguments heard opponents civil rights 1960s mckinley youre saying obama audio fades momentarily youre comparing two years ago believed parallel owning slave thats youre saying edwards obama makes mistakes like everybody else like brendan eich mckinley laughs okay padhy think trying get point decide issues kind push us point race gender sexuality gay rights issue pushed us point oremus last major civil know last frontier basic civil rights large groups people america think civil rights issue time think thats people take extremely seriously put different class someones views issues policy shapiro dont think anybody arguing way mozilla doesnt right wants brendan eich far political viewpoints right constitution exactly think arguing whether right wrong company pressured firing employees personal political views matter views may im jewish brendan eich holocaust denier treated jews decently company nothing discriminated jews business dealings id hold exactly position | 1,045 |
<p>Home prices fell in December to the lowest levels since the housing crisis began in mid-2006, according to the Standard &amp; Poor’s Case-Shiller Home Price Index. While other housing statistics certainly suggest that a recovery may be underway, home prices and <a href="" type="internal">foreclosures</a> continue to point to a struggling market.</p>
<p>Trulia, an online real estate search and marketing site, recently published its Housing Misery Index. The index ranks each state’s housing market by the change in home price and the rate of delinquencies and foreclosures. Looking at housing and economic data from a number of sources, 24/7 Wall St.’s analysis of Trulia’s index finds that the states with worst scores suffer from many of the same problems.</p>
<p>Continue Reading Below</p>
<p><a href="http://www.247wallst.com/2012/02/29/states-with-the-most-miserable-housing-markets/" type="external">This content was originally published on 24/7 Wall St. Opens a New Window.</a></p>
<p>The Housing Misery Index shows the clear impact of the housing market bust on local economies and individual homeowners. The drop in home prices captures the impact on household wealth and consumer spending, Trulia’s chief economist, Jed Kolko, told 24/7 Wall St. in an interview. Meanwhile, delinquencies and foreclosures reflect the number of residents struggling to keep their homes. “Bigger price declines plus more delinquencies and foreclosures equal greater misery,” Kolko says.</p>
<p>Most of the states with the worst housing misery scores are also ones that experienced some of the greatest home construction booms during the first half of the decade. When the market collapsed, states such as Arizona, Nevada, Florida and California became flooded with large inventories of unsold homes and high vacancy rates. According to Kolko, “These states had the most overbuilding during the bubble, and those empty homes have caused prices to fall and are still keeping prices low.”</p>
<p><a href="http://247wallst.com/2012/02/14/the-tencountries-deepest-in-debt/" type="external">Read:&#160;The 10 Countries Deepest in Debt Opens a New Window.</a></p>
<p>Not all of the states with the highest housing scores are suffering from overbuilding during the housing boom. For some, the scores simply reflect permanently weakened home demand that is the result of decades-long industrial decline. In Michigan, for example, home prices have dropped as critical industries, including auto and chemicals, have substantially contracted their operations in the state. The persistent lack of demand for housing simply was made even worse by the nationwide recession.</p>
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<p>In many of the worst-off states, demand is finally on the rise. States like Florida, Arizona and Nevada, which suffered during the housing bust, still appeal to many buyers. These states “are still top retirement destinations and are now more affordable than they have been in years. Low prices will attract people to these areas longer-term as those markets return to normal,” Trulia’s chief economist says.</p>
<p>Of course, for states where the housing collapse was not the result of overbuilding, as is the case for Michigan and Rhode Island, the long-term outlook is not as good. Although home prices are at bargain prices in these states, a meaningful increase in new home buyers is missing. These local economies are suffering from long-term problems that likely will continue after the national housing market has recovered.</p>
<p><a href="http://247wallst.com/2012/02/09/the-states-with-the-most-homes-in-foreclosure/" type="external">Read: The States With the Most Homes in Foreclosure Opens a New Window.</a></p>
<p>These are the 10 states with the most miserable housing markets.</p>
<p>10. Maryland &gt; Housing misery index: 31.6 &gt; Home price decline from peak: 23.7% (12th largest decrease) &gt; Projected home price change (Q3 2011 – Q3 2012): -2.4% (14th largest decrease) &gt; Unemployment (Dec. 2011): 6.7% (15th lowest)</p>
<p>Maryland is the wealthiest state in the country in terms of median household income. It also happens to have the third-lowest poverty rate in the country. Despite this relative wealth, the state’s housing market has suffered from a number of problems. Since their peak, home prices in Maryland have dropped 23.7% — the 12th largest decrease in the nation. Home prices are projected to continue to fall through the third quarter of this year. However, from that quarter through the third quarter of 2013, home prices are expected to turn around, increasing 4.4%.</p>
<p>9. Washington &gt; Housing misery index: 32.8 &gt; Home price decline from peak: 26.6% (8th largest decrease) &gt; Projected home price change (Q3 2011 – Q3 2012): +0.4% (16th smallest increase) &gt; Unemployment (Dec. 2011): 8.5% (17th highest)</p>
<p>Since their prerecession peak in the third quarter of 2007, home prices have fallen 26.6% in Washington. This is the eighth-largest drop from peak in the country. In 2011, relatively few homes were in foreclosure in the state, standing at 1.3% of the total market. By the third quarter of this year, home prices are projected to increase just 0.4%, one of the smallest increases in the country. However, the following year, the market will finally begin to rebound in the state. <a href="" type="internal">Fiserv</a> estimates home values will increase by nearly 10% between Q3 2012 and Q3 2013.</p>
<p>8. Georgia &gt; Housing misery index: 34.0 &gt; Home price decline from peak: 26.0% (10th largest decrease) &gt; Projected home price change (Q3 2011 – Q3 2012): -1.7% (16th largest decrease) &gt; Unemployment (Dec. 2011): 9.7% (8th highest)</p>
<p>Georgia had the fifth-highest rate of foreclosures at the end of 2011, and homes on which owners were delinquent 90 days or more on mortgage payments in the country at 8%. Georgia’s home prices also have fallen 26% since their peak — the 10th-largest drop. This, combined with the fact that home prices are expected to drop by another 1.7% by the third quarter of this year, has caused construction to remain particularly low in many areas. For example, in Atlanta, the state’s largest city, construction continued at less than one-fifth of prehousing bust&#160;levels in January of this year, according to Trulia.</p>
<p>7. Rhode Island &gt; Housing misery index: 34.5 &gt; Home price decline from peak: 27.0% (7th largest decrease) &gt; Projected home price change (Q3 2011 – Q3 2012): -0.5% (23rd largest decrease) &gt; Unemployment (Dec. 2011): 10.8% (3rd highest)</p>
<p>Like Michigan, Rhode Island’s economy has continued to suffer from long-term problems, and residents seem to agree. According to Gallup’s Job Creation poll, fewer employers are hiring in the state than anywhere else in the country at the moment. According to a separate Economic Confidence Poll created by Gallup, just 5.4% of those polled in Rhode Island believe the U.S. economy is in good or excellent shape. From their peak in the second quarter of 2006, home values in the state have fallen 27%, the seventh-biggest decline from peak in the country. Median income is above-average in Rhode Island, but unemployment is at 10.8%, the third-highest rate in the country. According to Fiserv, home values in the state are expected to recover at a rate of just 2.5% per year by the end of 2016, the ninth-lowest rate in the country.</p>
<p>6. Idaho &gt; Housing misery index: 34.5 &gt; Home price decline from peak: 29.3% (6th largest decrease) &gt; Projected home price change (Q3 2011 – Q3 2012): +4.9% (the largest increase) &gt; Unemployment (Dec. 2011): 8.4% (18th highest)</p>
<p>Home prices in Idaho did not begin to significantly drop until 2008. From the third quarter of that year through the third quarter of 2011, home prices fell 29.3%, the third-largest peak-to-current decline in the country. From the third quarter of 2010, prices have dropped 8.3%, the second-largest amount. However, the state is forecast to make an exceptional turnaround. By the third quarter of 2012, home prices are projected to recover by 4.9%. Over the next five years, prices are expected to increase by 7% — the largest increase in the country.</p>
<p>5. Michigan &gt; Housing misery index: 36.6 &gt; Home price decline from peak: 30.1% (5th largest decrease) &gt; Projected home price change (Q3 2011 – Q3 2012): -7.0% (4th largest decrease) &gt; Unemployment (Dec. 2011): 9.3% (10th highest)</p>
<p>During the housing boom, Michigan did not experience a period of rapid industrial growth and home construction. But instead of escaping the worst of the housing boom and bust, Michigan’s home prices and general economy continued to worsen during the second half of the decade along with the rest of the country. From peak value in the third quarter of 2005, home values in Michigan have fallen 30.1%. Additionally, unemployment is 9.3%, the 10th highest rate in the U.S.</p>
<p><a href="http://www.247wallst.com/2012/02/29/states-with-the-most-miserable-housing-markets/" type="external">Read the rest of the story on 24/7 Wall St.</a></p> | true | 0 | home prices fell december lowest levels since housing crisis began mid2006 according standard amp poors caseshiller home price index housing statistics certainly suggest recovery may underway home prices foreclosures continue point struggling market trulia online real estate search marketing site recently published housing misery index index ranks states housing market change home price rate delinquencies foreclosures looking housing economic data number sources 247 wall sts analysis trulias index finds states worst scores suffer many problems continue reading content originally published 247 wall st opens new window housing misery index shows clear impact housing market bust local economies individual homeowners drop home prices captures impact household wealth consumer spending trulias chief economist jed kolko told 247 wall st interview meanwhile delinquencies foreclosures reflect number residents struggling keep homes bigger price declines plus delinquencies foreclosures equal greater misery kolko says states worst housing misery scores also ones experienced greatest home construction booms first half decade market collapsed states arizona nevada florida california became flooded large inventories unsold homes high vacancy rates according kolko states overbuilding bubble empty homes caused prices fall still keeping prices low read160the 10 countries deepest debt opens new window states highest housing scores suffering overbuilding housing boom scores simply reflect permanently weakened home demand result decadeslong industrial decline michigan example home prices dropped critical industries including auto chemicals substantially contracted operations state persistent lack demand housing simply made even worse nationwide recession advertisement many worstoff states demand finally rise states like florida arizona nevada suffered housing bust still appeal many buyers states still top retirement destinations affordable years low prices attract people areas longerterm markets return normal trulias chief economist says course states housing collapse result overbuilding case michigan rhode island longterm outlook good although home prices bargain prices states meaningful increase new home buyers missing local economies suffering longterm problems likely continue national housing market recovered read states homes foreclosure opens new window 10 states miserable housing markets 10 maryland gt housing misery index 316 gt home price decline peak 237 12th largest decrease gt projected home price change q3 2011 q3 2012 24 14th largest decrease gt unemployment dec 2011 67 15th lowest maryland wealthiest state country terms median household income also happens thirdlowest poverty rate country despite relative wealth states housing market suffered number problems since peak home prices maryland dropped 237 12th largest decrease nation home prices projected continue fall third quarter year however quarter third quarter 2013 home prices expected turn around increasing 44 9 washington gt housing misery index 328 gt home price decline peak 266 8th largest decrease gt projected home price change q3 2011 q3 2012 04 16th smallest increase gt unemployment dec 2011 85 17th highest since prerecession peak third quarter 2007 home prices fallen 266 washington eighthlargest drop peak country 2011 relatively homes foreclosure state standing 13 total market third quarter year home prices projected increase 04 one smallest increases country however following year market finally begin rebound state fiserv estimates home values increase nearly 10 q3 2012 q3 2013 8 georgia gt housing misery index 340 gt home price decline peak 260 10th largest decrease gt projected home price change q3 2011 q3 2012 17 16th largest decrease gt unemployment dec 2011 97 8th highest georgia fifthhighest rate foreclosures end 2011 homes owners delinquent 90 days mortgage payments country 8 georgias home prices also fallen 26 since peak 10thlargest drop combined fact home prices expected drop another 17 third quarter year caused construction remain particularly low many areas example atlanta states largest city construction continued less onefifth prehousing bust160levels january year according trulia 7 rhode island gt housing misery index 345 gt home price decline peak 270 7th largest decrease gt projected home price change q3 2011 q3 2012 05 23rd largest decrease gt unemployment dec 2011 108 3rd highest like michigan rhode islands economy continued suffer longterm problems residents seem agree according gallups job creation poll fewer employers hiring state anywhere else country moment according separate economic confidence poll created gallup 54 polled rhode island believe us economy good excellent shape peak second quarter 2006 home values state fallen 27 seventhbiggest decline peak country median income aboveaverage rhode island unemployment 108 thirdhighest rate country according fiserv home values state expected recover rate 25 per year end 2016 ninthlowest rate country 6 idaho gt housing misery index 345 gt home price decline peak 293 6th largest decrease gt projected home price change q3 2011 q3 2012 49 largest increase gt unemployment dec 2011 84 18th highest home prices idaho begin significantly drop 2008 third quarter year third quarter 2011 home prices fell 293 thirdlargest peaktocurrent decline country third quarter 2010 prices dropped 83 secondlargest amount however state forecast make exceptional turnaround third quarter 2012 home prices projected recover 49 next five years prices expected increase 7 largest increase country 5 michigan gt housing misery index 366 gt home price decline peak 301 5th largest decrease gt projected home price change q3 2011 q3 2012 70 4th largest decrease gt unemployment dec 2011 93 10th highest housing boom michigan experience period rapid industrial growth home construction instead escaping worst housing boom bust michigans home prices general economy continued worsen second half decade along rest country peak value third quarter 2005 home values michigan fallen 301 additionally unemployment 93 10th highest rate us read rest story 247 wall st | 890 |
<p><a href="https://www.fool.com/investing/2017/06/20/3-stocks-that-win-on-ubers-implosion.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=e6b07ff4-8125-11e7-8eae-0050569d32b9&amp;utm_source=foxbusiness" type="external">Uber is imploding</a>. Is it time to invest in Lyft instead?</p>
<p>The past year has been non-stop bad news for Uber, the $70 billion&#160;tech " <a href="https://www.fool.com/investing/2017/08/06/duolingo-approaches-tech-unicorn-status.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=e6b07ff4-8125-11e7-8eae-0050569d32b9&amp;utm_source=foxbusiness" type="external">unicorn</a>" company of the ride-sharing market. From&#160;allegations of sexual harassment within the company to an exodus of C-level talent from the company to legal battles with Alphabet subsidiary Waymo, labor disputes, and a complete and utter lack of profits, Uber has done an exceptional job of totaling itself and opening up a lane for Lyft to drive right by.</p>
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<p>Investors may now be tempted to leave Uber stock by the curb, and buy into its archrival Lyft instead. But how exactly does one make an investment in Lyft stock? After all, both Uber and Lyft are private businesses, so technically it should be impossible to buy Lyft shares -- right?</p>
<p>Well, yes and no.</p>
<p>Yes, like Uber, Lyft is a private business. Lyft stock is not listed on any stock market (yet), so you cannot buy it directly. The only people who own Lyft stock today are companies and employees with access to privately held shares. But there's no law saying you can't buy shares in companies that own Lyft shares, and so own Lyft stock indirectly ...</p>
<p>One such backer is none other than General Motors (NYSE: GM). You might think that General Motors and Lyft would be natural enemies. After all, if people shift from buying cars to hailing Lyft cabs to take them from Point A to Point B, well, that would be bad news for General Motors, right?</p>
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<p>But GM is no dummy. They read the writing on the wall last year, and paid $500 million to <a href="https://www.fool.com/investing/2016/08/15/why-would-general-motors-try-to-acquire-lyft.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=e6b07ff4-8125-11e7-8eae-0050569d32b9&amp;utm_source=foxbusiness" type="external">snap up a 9% stake in</a> Lyft in January 2016&#160;-- just in case people do stop buying cars (and also, presumably, to give Lyft drivers an incentive to lease cars from GM). According to data provided by <a href="http://marketintelligence.spglobal.com/" type="external">S&amp;P Global Market Intelligence</a>, this $500 million investment makes GM one of Lyft's largest shareholders today.</p>
<p>Nor is GM the only public company that could find itself lifted by Lyft's success. S&amp;P Global also names publicly traded (i.e. you can buy them) Icahn Enterprises (NASDAQ: IEP), KKR &amp; Co. (NYSE: KKR), Alliance Bernstein Global High Income Fund (NYSE: AWF), and GSV Capital Corp (NASDAQ: GSVC) as all owning stakes&#160;in Lyft. China's Alibaba (NYSE: BABA) and Tencent (NASDAQOTH: TCEHY) are also said to own stakes via their investment arms.</p>
<p>Still, GM's 9% stake in the company makes it by far Lyft's most prominent, publicly traded owner, and thus the most direct route to owning a sizable indirect stake in Lyft stock. Mathematically speaking, for every 11 shares of General Motors stock you buy, you can indirectly own about one share of Lyft -- before Lyft IPOs (if Lyft ever does IPO).</p>
<p>And buying GM stock would also be a pretty cheap way to buy a piece of Lyft stock.</p>
<p>Currently dogged by worries that the American auto market has hit its peak and is beginning a downturn, General Motors stock is for sale -- and it's cheap. S&amp;P Global&#160;data show that while Wall Street analysts expect GM's earnings to take a hit this year, growth could return as early as 2018 -- and earnings growth could average as much as 13% annually over the next five years.</p>
<p>Not everyone agrees with this assessment. In fact, S&amp;P Global data show some analysts predicting that GM's earnings five years out could still be as much as 17% below 2016 levels. But even if that's the case, GM would be earning more than $5 a share in 2021. This worst case scenario would value GM stock at barely 7 times earnings. That wouldn't be as cheap as General Motors stock looks today, when it's valued at only 5.5 times earnings -- but it's still not expensive.</p>
<p>What's more, valuing GM on its own earnings alone runs the risk of ignoring the potential payday from an IPO of Lyft. Let's run one wild-eyed scenario here:</p>
<p>Assume that Uber's loss is Lyft's gain, and that if Uber were to (continue to) implode, it would leave Lyft to pick up the pieces -- and the $70 billion market cap that Uber recently enjoyed. In that case, Lyft could grow more than 12 times in value from the $5.5 billion valuation it had at the time GM bought in early last year. Such a scenario would turn GM's $500 million investment into $6.4 billion, and add 12% to GM's market cap.</p>
<p>Pie in the sky? Maybe. But Lyft is almost certain to enjoy at least some gains from Uber's repeated self-inflicted fender-benders. And 9% of these gains will accrue to Lyft's part-owner GM. Unless and until a more direct route for investing in Lyft stock appears, buying shares of GM seems like a reasonable detour to take.</p>
<p>10 stocks we like better than General MotorsWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*</p>
<p>David and Tom just revealed what they believe are the <a href="http://infotron.fool.com/infotrack/click?url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-static%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=fd8f68e7-c6ee-4cee-9e81-53329f1b3ea2&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=e6b07ff4-8125-11e7-8eae-0050569d32b9&amp;utm_source=foxbusiness" type="external">10 best stocks</a> for investors to buy right now... and General Motors wasn't one of them! That's right -- they think these 10 stocks are even better buys.</p>
<p><a href="http://infotron.fool.com/infotrack/click?url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-static%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=fd8f68e7-c6ee-4cee-9e81-53329f1b3ea2&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=e6b07ff4-8125-11e7-8eae-0050569d32b9&amp;utm_source=foxbusiness" type="external">Click here</a> to learn about these picks!</p>
<p>*Stock Advisor returns as of August 1, 2017</p>
<p>Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. <a href="http://my.fool.com/profile/TMFDitty/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=e6b07ff4-8125-11e7-8eae-0050569d32b9&amp;utm_source=foxbusiness" type="external">Rich Smith</a> owns shares of Alibaba and Alphabet (C shares). The Motley Fool owns shares of and recommends Alphabet (A shares) and Alphabet (C shares). The Motley Fool recommends KKR. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=e6b07ff4-8125-11e7-8eae-0050569d32b9&amp;utm_source=foxbusiness" type="external">disclosure policy</a>.</p> | true | 0 | uber imploding time invest lyft instead past year nonstop bad news uber 70 billion160tech unicorn company ridesharing market from160allegations sexual harassment within company exodus clevel talent company legal battles alphabet subsidiary waymo labor disputes complete utter lack profits uber done exceptional job totaling opening lane lyft drive right continue reading investors may tempted leave uber stock curb buy archrival lyft instead exactly one make investment lyft stock uber lyft private businesses technically impossible buy lyft shares right well yes yes like uber lyft private business lyft stock listed stock market yet buy directly people lyft stock today companies employees access privately held shares theres law saying cant buy shares companies lyft shares lyft stock indirectly one backer none general motors nyse gm might think general motors lyft would natural enemies people shift buying cars hailing lyft cabs take point point b well would bad news general motors right advertisement gm dummy read writing wall last year paid 500 million snap 9 stake lyft january 2016160 case people stop buying cars also presumably give lyft drivers incentive lease cars gm according data provided sampp global market intelligence 500 million investment makes gm one lyfts largest shareholders today gm public company could find lifted lyfts success sampp global also names publicly traded ie buy icahn enterprises nasdaq iep kkr amp co nyse kkr alliance bernstein global high income fund nyse awf gsv capital corp nasdaq gsvc owning stakes160in lyft chinas alibaba nyse baba tencent nasdaqoth tcehy also said stakes via investment arms still gms 9 stake company makes far lyfts prominent publicly traded owner thus direct route owning sizable indirect stake lyft stock mathematically speaking every 11 shares general motors stock buy indirectly one share lyft lyft ipos lyft ever ipo buying gm stock would also pretty cheap way buy piece lyft stock currently dogged worries american auto market hit peak beginning downturn general motors stock sale cheap sampp global160data show wall street analysts expect gms earnings take hit year growth could return early 2018 earnings growth could average much 13 annually next five years everyone agrees assessment fact sampp global data show analysts predicting gms earnings five years could still much 17 2016 levels even thats case gm would earning 5 share 2021 worst case scenario would value gm stock barely 7 times earnings wouldnt cheap general motors stock looks today valued 55 times earnings still expensive whats valuing gm earnings alone runs risk ignoring potential payday ipo lyft lets run one wildeyed scenario assume ubers loss lyfts gain uber continue implode would leave lyft pick pieces 70 billion market cap uber recently enjoyed case lyft could grow 12 times value 55 billion valuation time gm bought early last year scenario would turn gms 500 million investment 64 billion add 12 gms market cap pie sky maybe lyft almost certain enjoy least gains ubers repeated selfinflicted fenderbenders 9 gains accrue lyfts partowner gm unless direct route investing lyft stock appears buying shares gm seems like reasonable detour take 10 stocks like better general motorswhen investing geniuses david tom gardner stock tip pay listen newsletter run decade motley fool stock advisor tripled market david tom revealed believe 10 best stocks investors buy right general motors wasnt one thats right think 10 stocks even better buys click learn picks stock advisor returns august 1 2017 suzanne frey executive alphabet member motley fools board directors rich smith owns shares alibaba alphabet c shares motley fool owns shares recommends alphabet shares alphabet c shares motley fool recommends kkr motley fool disclosure policy | 587 |
<p />
<p>We’ve all heard politicians talk about the importance of a vibrant small-business community to the American economy. Their sound bites exude enthusiasm and support for our entrepreneurial efforts, but what happens after the cameras stop rolling?</p>
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<p>Do their votes actually reflect your best interests as a small-business owner, or do they favor big-donor special interests?</p>
<p>Business owners will be able to size up the loyalty of their lawmakers in upcoming debates on personal taxes. Popular rhetoric holds that increasing taxes on dividends, capital gains and estates will force ultra-rich Americans to pay their fair share. The bipartisan reality is that pending changes to our nation’s tax policy are going to take their toll on small-business owners. Here are the hot points:</p>
<p>Dividends</p>
<p>Since 1997, the S corporation designation has been the most popular form of corporate tax return filed with the IRS. One of the nifty benefits of an S corporation is that it allows shareholders who work in the business to minimize taxes by taking income out of the business in two ways. The first form of compensation is a modest, but reasonable, “market” salary in which employment and income taxes are collected. The second form is through corporate dividend payments, which are taxed at lower rates. Obviously, the more compensation that S corporation business owners direct toward dividends, the more money they save.</p>
<p>Unless Congress acts before the end of the year, the top tax rate for individuals who receive qualified dividends from investments held more than two months is scheduled to rise to 39.6 percent. That’s a big jump from the current figure of 15 percent.</p>
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<p>Capital gains</p>
<p>Currently, individuals pay capital gains taxes on the sale of profit-making investments. For individuals in top tax brackets, the rate is 15 percent. For individuals in lower tax brackets, the rate is a neat 5 percent. Washington, D.C., is currently mulling over changes to capital gains tax rates.</p>
<p>Low or no capital gains tax obligations make it easier for startup entrepreneurs and main-street business owners to attract expansion capital. Individual investors, often referred to as angels, provided more than $19 billion in high-risk funding to small businesses in 2008 and may represent as much as 90 percent of funding for business owners who have exhausted personal savings or can’t yet qualify for bank loans or venture capital funding.</p>
<p>Individual investors have a choice in where they allocate their funds. If Congress reduces the profitability associated with investing in small businesses by boosting capital gains tax obligations, investors will simply shift their dollars to other more secure savings opportunities. That’s not good for small-business owners.</p>
<p>Low capital gains taxes, plus preferences for the sale of qualified small-business stock, also reward business owners. Like private investors, when startup entrepreneurs invest their personal savings in their companies, they hope to one day sell their businesses at a handsome profit.</p>
<p>When it’s time for you to sell your business, wouldn’t you like to keep more of your profits?</p>
<p>Estate taxes</p>
<p>OK, OK, I get it. Estate planning seems like a hot topic for retired individuals, not big, goal-seeking business owners who only see growth and opportunity ahead.</p>
<p>But estate tax law is just one more issue where silence hurts small-business owners. Again, if Congress doesn’t act before the end of the year, federal estate taxes are expected to jump to a top tax rate of 55 percent for non-spouse asset transfers. That’s right: Up to 55 percent of everything you’ve worked for and saved may be gone.</p>
<p>Adding to the tax pain is the dramatic decrease in the exclusion — from $3.5 million down to just $1 million. This change in exclusion is a real killer for average Americans who own just enough to be taxed heavily but don’t have so much money that they can tap lawyers and accountants to help them bypass estate tax obligations.</p>
<p>There are a few different rules for estates that include family-owned businesses. The tax-free exclusion for business-owner estates is $1.3 million, provided the business is inherited by the owner’s children and they remain active in the business for a considerable period. This sounds like a lot of money, but not for businesses that own real estate as part of their business operations.</p>
<p>Having an exclusion from taxes on the first $3.5 million of assets certainly gave Americans more flexibility to keep the rewards of their hard work within their families. Another reason for my concern about estate tax legislation is it tends to hang around for a while. The last time Congress paid serious attention to estate taxes was in 2001.</p>
<p>I’m not a <a href="" type="internal">tea party</a> member, just an entrepreneurial builder, investor, educator and advocate. Americans who put the most on the line to start companies and create the lion’s share of our nation’s new jobs deserve a bigger voice in Washington. But that happens only if small-business owners speak up and monitor how their representatives vote on these important issues.</p>
<p>Susan Schreter is a 20-year veteran of the venture finance community and a university educator in entrepreneurship. She is the founder of TakeCommand, a community service organization that offers the largest centralized database of venture capital funds, angel investment clubs, incubators and microfinance lenders in the U.S. Ask her your questions at [email protected].</p>
<p>* For more articles like this, visit <a href="http://www.businessonmain.com" type="external">www.businessonmain.com</a>. The Fox Business newsroom was not involved in the creation or production of this special advertising section.</p> | true | 0 | weve heard politicians talk importance vibrant smallbusiness community american economy sound bites exude enthusiasm support entrepreneurial efforts happens cameras stop rolling continue reading votes actually reflect best interests smallbusiness owner favor bigdonor special interests business owners able size loyalty lawmakers upcoming debates personal taxes popular rhetoric holds increasing taxes dividends capital gains estates force ultrarich americans pay fair share bipartisan reality pending changes nations tax policy going take toll smallbusiness owners hot points dividends since 1997 corporation designation popular form corporate tax return filed irs one nifty benefits corporation allows shareholders work business minimize taxes taking income business two ways first form compensation modest reasonable market salary employment income taxes collected second form corporate dividend payments taxed lower rates obviously compensation corporation business owners direct toward dividends money save unless congress acts end year top tax rate individuals receive qualified dividends investments held two months scheduled rise 396 percent thats big jump current figure 15 percent advertisement capital gains currently individuals pay capital gains taxes sale profitmaking investments individuals top tax brackets rate 15 percent individuals lower tax brackets rate neat 5 percent washington dc currently mulling changes capital gains tax rates low capital gains tax obligations make easier startup entrepreneurs mainstreet business owners attract expansion capital individual investors often referred angels provided 19 billion highrisk funding small businesses 2008 may represent much 90 percent funding business owners exhausted personal savings cant yet qualify bank loans venture capital funding individual investors choice allocate funds congress reduces profitability associated investing small businesses boosting capital gains tax obligations investors simply shift dollars secure savings opportunities thats good smallbusiness owners low capital gains taxes plus preferences sale qualified smallbusiness stock also reward business owners like private investors startup entrepreneurs invest personal savings companies hope one day sell businesses handsome profit time sell business wouldnt like keep profits estate taxes ok ok get estate planning seems like hot topic retired individuals big goalseeking business owners see growth opportunity ahead estate tax law one issue silence hurts smallbusiness owners congress doesnt act end year federal estate taxes expected jump top tax rate 55 percent nonspouse asset transfers thats right 55 percent everything youve worked saved may gone adding tax pain dramatic decrease exclusion 35 million 1 million change exclusion real killer average americans enough taxed heavily dont much money tap lawyers accountants help bypass estate tax obligations different rules estates include familyowned businesses taxfree exclusion businessowner estates 13 million provided business inherited owners children remain active business considerable period sounds like lot money businesses real estate part business operations exclusion taxes first 35 million assets certainly gave americans flexibility keep rewards hard work within families another reason concern estate tax legislation tends hang around last time congress paid serious attention estate taxes 2001 im tea party member entrepreneurial builder investor educator advocate americans put line start companies create lions share nations new jobs deserve bigger voice washington happens smallbusiness owners speak monitor representatives vote important issues susan schreter 20year veteran venture finance community university educator entrepreneurship founder takecommand community service organization offers largest centralized database venture capital funds angel investment clubs incubators microfinance lenders us ask questions susantakecommandorg articles like visit wwwbusinessonmaincom fox business newsroom involved creation production special advertising section | 536 |
<p>You'd never think that anything about oil industry giant&#160;ExxonMobil&#160;(NYSE: XOM) would be overlooked. As an oil major, and a&#160;Dow Jones Industrial Average&#160;and&#160;S&amp;P 500&#160;component, the company has its finances and reports scrutinized by armies of analysts from around the world. No fewer than 18 analysts sat in on the company's most recent Q2 2017 earnings call.</p>
<p>A lot of the earnings coverage was focused on the fact that the company missed those analysts' earnings expectations, unlike fellow oil major BP&#160;(NYSE: BP), which beat its earnings projections.&#160;In fact, coverage was so focused on Exxon's earnings miss that it virtually ignored a potentially game-changing situation that was revealed on the call.</p>
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<p>"Liza" and "Payara" are the names of two of the petroleum discoveries in a South American offshore exploration block to which Exxon owns the drilling rights. The following map shows the south-central Liza and Payara fields in green, right on top of one another, and a third discovery, named Snoek. (Who comes up with these names?)</p>
<p>Liza, Snoek, and Payara are all part of the large western Stabroek exploration block. Other adjacent ExxonMobil-operated blocks include the northern Kaieteur and the southeastern Canje.</p>
<p>The graphic on the lower left of the slide shows that the Liza-4 exploration well -- in other words, the fourth test well drilled in the Liza field -- was drilled early in the second quarter, while the nearby Payara-2 delineation well was drilled late in the second quarter. Additional exploration wells, called Turbot and Ranger, will be drilled in Q3.</p>
<p>Both Liza-4 and Payara-2 found better-than-expected amounts of petroleum. Liza-4 discovered "more than 197 feet of high-quality oil-bearing sandstone reservoir," according to Jeff Woodbury, ExxonMobil's vice president of investor relations and secretary, who gave the earnings presentation. Meanwhile, Payara-2 discovered 60 feet of high-quality oil-bearing sandstone, which Woodbury announced was "deeper than the previous lowest-known oil in the first Payara well."</p>
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<p>According to the company, this means the 6.6 million acre Stabroek block alone contains 2.3 billion to 2.8 billion recoverable barrels of oil equivalent. And that's just what we know about from a handful of wells. The upcoming Turbot and Ranger test wells -- and subsequent wells planned for Q4 and beyond -- could find even more.</p>
<p>ExxonMobil has moved quickly to exploit its finds in the Guyana Basin. It only made its initial hydrocarbon discovery here -- the first significant one in Guyana's history -- in 2015. Now the company plans to develop the Liza field and expects first oil to flow by 2020, which is incredibly speedy by deepwater standards. Woodbury even referred to the five-year turnaround as "industry-leading."</p>
<p>Phase 1 of the project will see 450 million barrels of oil developed from the field, with production capacity of 120,000 barrels per day and a total cost of $4.4 billion. That works out to less than $10 per barrel. Exxon is projecting double-digit returns at $40 per barrel, which would be impressive.</p>
<p>And there could be more where that came from -- or, rather, from next door to where that came from. ExxonMobil is currently completing 3D seismic testing in the neighboring Kaieteur block and has purchased a stake in "Block 59" in neighboring Suriname. In response to an analyst's question about whether upcoming developments might be accelerated, Woodbury replied that "to the extent that we can standardize that template, I think it's going to allow us to move quicker."</p>
<p>More cheap oil brought online faster than ever sounds like good news to me.</p>
<p>Obviously, any large oil or gas find matters to an oil and gas company. BP, for example, is currently crediting offshore gas finds in nearby Trinidad for much of its new production in 2017. But these offshore Guyana discoveries have additional significance for ExxonMobil.</p>
<p>The company's production numbers have been falling in recent quarters, which should concern investors. Peer BP&#160;saw its numbers go up by 10% in the most recent quarter. For ExxonMobil, whose exploration and production arm has been a drag on overall earnings for years, declining production is the last thing the company needs.</p>
<p>But if Exxon can start bringing these kinds of valuable finds to market more quickly, that could change. Woodbury even said on the earnings call, "We're looking for things like Guyana: with really high quality, really good, if you will, risk-reward structure on how we manage this portfolio going forward."</p>
<p>Now, it won't happen all at once, but the fact that it's happening at all should give investors confidence.</p>
<p>While no oil investment has been immune from the slump in oil prices, ExxonMobil has done just about as well as one could during these troubled times for the industry. But its production numbers have been declining, and its entire production arm has been dragging on the company's finances.</p>
<p>These new discoveries in Guyana -- and the new accelerated timeline the company has adopted for them -- could help to solve both of those problems. Of course, things may not pan out. BP, for example, just wrote down $750 million as a result of unsuccessful offshore operations in Angola.</p>
<p>But smart investors should keep an eye on the company's Guyana operations in subsequent quarters to see if it's really the gold mine it has the potential to be for Exxon.</p>
<p>10 stocks we like better than ExxonMobilWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*</p>
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<p>*Stock Advisor returns as of August 1, 2017</p>
<p><a href="http://my.fool.com/profile/TMFTruth2Power/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=928afc86-7ede-11e7-8eda-0050569d32b9&amp;utm_source=foxbusiness" type="external">John Bromels Opens a New Window.</a> owns shares of Apache. The Motley Fool owns shares of ExxonMobil. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=928afc86-7ede-11e7-8eda-0050569d32b9&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | youd never think anything oil industry giant160exxonmobil160nyse xom would overlooked oil major a160dow jones industrial average160and160sampp 500160component company finances reports scrutinized armies analysts around world fewer 18 analysts sat companys recent q2 2017 earnings call lot earnings coverage focused fact company missed analysts earnings expectations unlike fellow oil major bp160nyse bp beat earnings projections160in fact coverage focused exxons earnings miss virtually ignored potentially gamechanging situation revealed call continue reading liza payara names two petroleum discoveries south american offshore exploration block exxon owns drilling rights following map shows southcentral liza payara fields green right top one another third discovery named snoek comes names liza snoek payara part large western stabroek exploration block adjacent exxonmobiloperated blocks include northern kaieteur southeastern canje graphic lower left slide shows liza4 exploration well words fourth test well drilled liza field drilled early second quarter nearby payara2 delineation well drilled late second quarter additional exploration wells called turbot ranger drilled q3 liza4 payara2 found betterthanexpected amounts petroleum liza4 discovered 197 feet highquality oilbearing sandstone reservoir according jeff woodbury exxonmobils vice president investor relations secretary gave earnings presentation meanwhile payara2 discovered 60 feet highquality oilbearing sandstone woodbury announced deeper previous lowestknown oil first payara well advertisement according company means 66 million acre stabroek block alone contains 23 billion 28 billion recoverable barrels oil equivalent thats know handful wells upcoming turbot ranger test wells subsequent wells planned q4 beyond could find even exxonmobil moved quickly exploit finds guyana basin made initial hydrocarbon discovery first significant one guyanas history 2015 company plans develop liza field expects first oil flow 2020 incredibly speedy deepwater standards woodbury even referred fiveyear turnaround industryleading phase 1 project see 450 million barrels oil developed field production capacity 120000 barrels per day total cost 44 billion works less 10 per barrel exxon projecting doubledigit returns 40 per barrel would impressive could came rather next door came exxonmobil currently completing 3d seismic testing neighboring kaieteur block purchased stake block 59 neighboring suriname response analysts question whether upcoming developments might accelerated woodbury replied extent standardize template think going allow us move quicker cheap oil brought online faster ever sounds like good news obviously large oil gas find matters oil gas company bp example currently crediting offshore gas finds nearby trinidad much new production 2017 offshore guyana discoveries additional significance exxonmobil companys production numbers falling recent quarters concern investors peer bp160saw numbers go 10 recent quarter exxonmobil whose exploration production arm drag overall earnings years declining production last thing company needs exxon start bringing kinds valuable finds market quickly could change woodbury even said earnings call looking things like guyana really high quality really good riskreward structure manage portfolio going forward wont happen fact happening give investors confidence oil investment immune slump oil prices exxonmobil done well one could troubled times industry production numbers declining entire production arm dragging companys finances new discoveries guyana new accelerated timeline company adopted could help solve problems course things may pan bp example wrote 750 million result unsuccessful offshore operations angola smart investors keep eye companys guyana operations subsequent quarters see really gold mine potential exxon 10 stocks like better exxonmobilwhen investing geniuses david tom gardner stock tip pay listen newsletter run decade motley fool stock advisor tripled market david tom revealed believe 10 best stocks opens new window investors buy right exxonmobil wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns august 1 2017 john bromels opens new window owns shares apache motley fool owns shares exxonmobil motley fool disclosure policy opens new window | 592 |
<p />
<p>It didn’t take long for the inner Klansman of Nancy Pelosi and Chuck Schumer to come to the forefront of their racist vitriol once Dr. Ben Carson agreed to be the next Secretary of Housing and Urban Development. &#160;You see, according to Fraulein Pelosi and Herr Schumer, blacks can do anything they want…as long as they stay on the Democrat’s plantation and do as they are told by the more enlightened progressives such as they.</p>
<p>Progressives like Pelosi and Schumer are simply petrified, much like the slave owning Democrats of antebellum, that blacks will turn on them once they realize they don’t have to be in chains anymore. &#160;We saw this with Supreme Court Justice Clarence Thomas during his Senate Confirmation when Liberals tried to keep him “in his place.”</p>
<p>Clarence Thomas&#160;summed it up perfectly in his mic drop response to the baseless allegations that progressives tried to sabotage him with:</p>
<p />
<p>A high tech lynching.</p>
<p>It’s what they tried to do to Justice Thomas and it is what Pelosi and Schumer are trying to do to Dr. Carson. &#160;Just looking at some of their comments about how Carson is just some ignorant black guy who couldn’t possibly have the cognitive capacity to fill the position is just insulting to all people of color.</p>
<p>From Pelosi’s own racist mouth:</p>
<p>“Dr. Ben Carson is a disconcerting and disturbingly unqualified choice to lead a department as complex and consequential as Housing and Urban Development.”</p>
<p>Apparently one of the most brilliant neurosurgeons of our age can’t pick up the intricacies of bureaucracy. &#160;Riiiiiight. &#160;What is really disturbing to Pelosi is not Dr. Carson’s mind but rather the color of his skin.</p>
<p>Pelosi would add:</p>
<p>“Our country deserves a HUD Secretary with the relevant experience to protect the rights of homeowners and renters, particularly in low income and minority communities, and to ensure that everyone in our country can have access to safe and affordable housing without facing discrimination or homelessness.”</p>
<p>“There is no evidence that Dr. Carson brings the necessary credentials to hold a position with such immense responsibilities and impact on families and communities across America.”</p>
<p>First, let me highlight that her statements are full of coded language that a racist uses in order to be racist in public. &#160;All that experience she is talking about is what is known as “the white man’s burden” made famous by Rudyard Kipling’s poem of the same name. &#160;That white educated people must be in charge because the blacks cannot think or act in their own best interest. &#160;It’s been the progressives modus operendi for decades now, trying to keep blacks in their place in order to ensure that they continue to vote for Democrats en masse. &#160;Because Dems know once enough blacks leave the Democrat plantation and show others that life is better pulling yourself up by your own bootstraps and being successful on your own merit that their party will disintegrate.</p>
<p>Credentials? &#160;On discrimination or homelessness?</p>
<p>How about Dr. Carson has nothing BUT experience dealing with this. &#160;Carson was grew up in the 1950’s to a single mother who had to work 3 jobs, usually as a domestic servant just to make sure her son had enough food on the table. &#160;Growing up poor and black in the 50’s. &#160;Overcoming racism and poverty from a single parent home to become a world renowned neurosurgeon seems like a good model in which people could emulate.</p>
<p>Senator Chuck Schumer echoes Pelosi’s claims that blacks need to know their place and stay dependent on the government in his racist attack against Ben Carson saying this:</p>
<p>“I have serious concerns about Dr. Carson’s lack of expertise and experience in dealing with housing issues. Someone who is as anti-government as him is a strange fit for Housing Secretary, to say the least. As he moves through the confirmation process, Americans deserve to know that their potential HUD Secretary is well versed in housing policy and has a vision for federal housing programs that meets the needs of Americans across the country and seeks to provide access to those that we haven’t reached already.”</p>
<p>Let’s take a look at that emboldened part. &#160;Schumer is saying that since Carson is off the Democrat’s plantation he shouldn’t be in charge of so many other people who make up the Democrat’s voting base. &#160;Namely poor blacks who have been bamboozled into thinking that government is always the answer and that they are incapable of succeeding without the governments interference.</p>
<p>It’s the Great Lie&#160;that progressives have been peddling for more than 50 years and racists like Pelosi and Schumer are petrified that after half a century, black people are finally waking up to the fact that they don’t NEED Democrats to be successful. &#160;In fact, blacks are realizing that Democrats are the ones holding them back.</p>
<p>Every time a Clarence Thomas, a Ben Carson, an Allen West or a David Clarke stand up and show they are nobody’s slave the progressive wing of the Democrat party try to, using Justice Thomas’ own words: &#160;lynch them.</p>
<p>Because that’s what slave owners &#160;do to slaves who run away from their&#160;plantation…they lynch ’em. &#160;And that’s what slave masters Pelosi and Schumer are trying to do now. &#160;Calling a world renowned neurosurgeon who grew up in poverty; ignorant and inexperienced to the needs of the poor. &#160;In truth, I doubt there are many people who could relate to the struggles and how to overcome them better than Dr. Carson.</p>
<p>Fellow Liberty Alliance member A.F Branco made this political cartoon to illustrate the point:</p>
<p><a href="" type="internal" /></p>
<p>The only thing it’s missing is Pelosi and Schumer in white hoods setting the cross on fire. &#160;The mainstream media will continue to push this narrative of “the ignorant unqualified black trying to up-jump himself to a position he isn’t qualified for” while Pelosi cackles and Schumer cracks the whip.</p>
<p>Black Conservatives are number one on the hitlist of the progressive left. &#160;Once black people realize that they don’t have to be beholden to the government they will start realizing that they can be successful once they flee the Democrat Plantation.</p>
<p>That’s why the racist wing of the Democrat Party, headed by Nancy Pelosi and Chuck Schumer try so blatantly to destroy any black man or women who steps out on their own and doesn’t toe the progressive line.</p>
<p>That’s why we have to fight against racism. &#160;Support people like Dr. Ben Carson who have the courage to stand up to the racists like Pelosi and Schumer like he has been since 1951. &#160;To fight to make a name for himself, to make a career and to make life that was better than what came before.</p>
<p>That is what he, as a black man, brings to the Department of Housing and Urban Development…and that is what has the left so petrified.</p>
<p>&#160;</p>
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Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse.</p> | true | 0 | didnt take long inner klansman nancy pelosi chuck schumer come forefront racist vitriol dr ben carson agreed next secretary housing urban development 160you see according fraulein pelosi herr schumer blacks anything wantas long stay democrats plantation told enlightened progressives progressives like pelosi schumer simply petrified much like slave owning democrats antebellum blacks turn realize dont chains anymore 160we saw supreme court justice clarence thomas senate confirmation liberals tried keep place clarence thomas160summed perfectly mic drop response baseless allegations progressives tried sabotage high tech lynching tried justice thomas pelosi schumer trying dr carson 160just looking comments carson ignorant black guy couldnt possibly cognitive capacity fill position insulting people color pelosis racist mouth dr ben carson disconcerting disturbingly unqualified choice lead department complex consequential housing urban development apparently one brilliant neurosurgeons age cant pick intricacies bureaucracy 160riiiiiight 160what really disturbing pelosi dr carsons mind rather color skin pelosi would add country deserves hud secretary relevant experience protect rights homeowners renters particularly low income minority communities ensure everyone country access safe affordable housing without facing discrimination homelessness evidence dr carson brings necessary credentials hold position immense responsibilities impact families communities across america first let highlight statements full coded language racist uses order racist public 160all experience talking known white mans burden made famous rudyard kiplings poem name 160that white educated people must charge blacks think act best interest 160its progressives modus operendi decades trying keep blacks place order ensure continue vote democrats en masse 160because dems know enough blacks leave democrat plantation show others life better pulling bootstraps successful merit party disintegrate credentials 160on discrimination homelessness dr carson nothing experience dealing 160carson grew 1950s single mother work 3 jobs usually domestic servant make sure son enough food table 160growing poor black 50s 160overcoming racism poverty single parent home become world renowned neurosurgeon seems like good model people could emulate senator chuck schumer echoes pelosis claims blacks need know place stay dependent government racist attack ben carson saying serious concerns dr carsons lack expertise experience dealing housing issues someone antigovernment strange fit housing secretary say least moves confirmation process americans deserve know potential hud secretary well versed housing policy vision federal housing programs meets needs americans across country seeks provide access havent reached already lets take look emboldened part 160schumer saying since carson democrats plantation shouldnt charge many people make democrats voting base 160namely poor blacks bamboozled thinking government always answer incapable succeeding without governments interference great lie160that progressives peddling 50 years racists like pelosi schumer petrified half century black people finally waking fact dont need democrats successful 160in fact blacks realizing democrats ones holding back every time clarence thomas ben carson allen west david clarke stand show nobodys slave progressive wing democrat party try using justice thomas words 160lynch thats slave owners 160do slaves run away their160plantationthey lynch em 160and thats slave masters pelosi schumer trying 160calling world renowned neurosurgeon grew poverty ignorant inexperienced needs poor 160in truth doubt many people could relate struggles overcome better dr carson fellow liberty alliance member af branco made political cartoon illustrate point thing missing pelosi schumer white hoods setting cross fire 160the mainstream media continue push narrative ignorant unqualified black trying upjump position isnt qualified pelosi cackles schumer cracks whip black conservatives number one hitlist progressive left 160once black people realize dont beholden government start realizing successful flee democrat plantation thats racist wing democrat party headed nancy pelosi chuck schumer try blatantly destroy black man women steps doesnt toe progressive line thats fight racism 160support people like dr ben carson courage stand racists like pelosi schumer like since 1951 160to fight make name make career make life better came black man brings department housing urban developmentand left petrified 160 want stay top stories like others concern great country 2nd amendment constitution etc please click following link subscribe get bullet first newsletter letting know new articles published bullets first newsletter 160 160 160 tolerance comments containing violence 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<p>The Justice Department's new antitrust chief, Makan Delrahim, needed just seven weeks to land himself in the middle of the biggest antitrust case in 20 years.</p>
<p>Mr. Delrahim, confirmed by the Senate Sept. 27, made the decision to file the government lawsuit Monday challenging AT&amp;T Inc.'s planned acquisition of Time Warner Inc. The antitrust division he leads alleged that the vertical combination of AT&amp;T's video distribution with Time Warner's popular cable programming would give the merged firm the power to raise prices and hinder competitors and innovation.</p>
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<p>AT&amp;T criticized the government's arguments as unreasonable and inconsistent with past practice, which has focused primarily on horizontal mergers between direct competitors. It called President Donald Trump's repeated criticisms of Time Warner's CNN the "elephant in the room" in the Justice Department's case, raising questions about political influence. The department said the White House had no role in the decision to sue.</p>
<p>The dispute has set the stage for a major court battle in Washington, the highest-profile antitrust case since the Justice Department sued Microsoft in 1998 on allegations of unlawful monopolization. Microsoft Corp. avoided a breakup of its business but agreed to restrictions on its business conduct.</p>
<p>AT&amp;T Chief Executive Randall Stephenson said the new lawsuit threw the business world into a state of uncertainty about what types of deals and investment are permissible.</p>
<p>Mr. Delrahim, reached by phone, declined to comment on the specifics of the case. But asked about Mr. Stephenson's comment that the lawsuit renders companies unable to know what activity they can engage in, Mr. Delrahim offered a one-word response: "Compete."</p>
<p>Mr. Delrahim, 48 years old, and his family immigrated to the U.S. when he was 9, at the time of the Iranian revolution. He spoke no English when he arrived. He spent his teenage years in California and graduated from the University of California, Los Angeles, and got his legal degree from the George Washington University Law School.</p>
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<p>He developed an interest in patent and antitrust law, as well as an interest in Republican politics.</p>
<p>He spent five years as a staffer to Sen. Orrin Hatch (R., Utah) on the Senate Judiciary Committee, working among other things on legislation that updated the federal law governing what transactions must be submitted for government antitrust review.</p>
<p>Mr. Delrahim moved to the Justice Department's antitrust division from 2003 to 2005, during the George W. Bush administration. During that stint as a department lawyer, he led an investigation into complaints of alleged anticompetitive practices at Clear Channel Communications' radio and concert businesses. The department later closed the probe after the company spun off its concert arm into the separate Live Nation entity.</p>
<p>Separately, Mr. Delrahim served on a bipartisan commission created by Congress to study the modernization of antitrust laws. He spent more than a decade in private practice after his first job at the Justice Department.</p>
<p>Mr. Delrahim in an opinion article last year said Mr. Trump wasn't his first GOP choice for the White House, but he urged Republicans to support Mr. Trump's candidacy, arguing the direction of the Supreme Court was too important to leave to Democrat Hillary Clinton.</p>
<p>After Mr. Trump won the presidential election, Mr. Delrahim joined the White House as a deputy counsel, where he was a key figure in the administration's high court nomination of Neil Gorsuch. Around the time Justice Gorsuch was confirmed in April, the president nominated Mr. Delrahim for the Justice Department antitrust post. The Senate confirmed him on a 73-21 vote.</p>
<p>Some Democrats, most prominently Sen. Elizabeth Warren (D., Mass.), argued Mr. Delrahim would be too friendly to corporations, but others offered their support, believing he would bring cases. That prediction quickly has proven correct.</p>
<p>"I always found him to be an energetic and creative guy. He wasn't there just to warm a seat," said Washington antitrust lawyer Seth Bloom, a former Democratic staffer on the Senate Judiciary Committee who worked with Mr. Delrahim.</p>
<p>Other people under consideration by the Trump administration for the antitrust post included Joshua Wright, a vocal conservative on antitrust matters and former member of the Federal Trade Commission.</p>
<p>Mr. Wright, now a professor at George Mason University and a private practice lawyer, on Tuesday said he wasn't a fan of the AT&amp;T suit, saying it lacked "a sound theoretical foundation and economic evidence" and was unlikely to prevail in court.</p>
<p>President Trump's continued criticisms of CNN, and his pledge as a presidential candidate to block the AT&amp;T-Time Warner deal, are sure to hang over the case.</p>
<p>AT&amp;T had previously avoided the CNN issue. As late as Nov. 9, Mr. Stephenson said he had "no reason to believe" that Mr. Trump's dislike of CNN had affected the Justice Department's work. That tone changed after the lawsuit Monday, when Mr. Stephenson explicitly raised the question of whether the Justice Department's challenge was "all about CNN."</p>
<p>The company also is highlighting a television interview Mr. Delrahim gave last year as a private practice lawyer in which he said the transaction didn't appear to raise major antitrust concerns. In the same interview, Mr. Delrahim said the deal could raise "some concerns and antitrust issues of one distributor owning various content, and it might somehow impact other distributors."</p>
<p>Mr. Delrahim's defenders have said his television remarks were the kind of armchair analysis lawyers frequently provide to reporters after merger announcements, before a factual record has been developed by a government investigation.</p>
<p>The new antitrust chief has said repeatedly that his decision making wasn't influenced by the White House.</p>
<p>"I can't get any more clear than that," Mr. Delrahim said at a Nov. 10 public appearance in California. Some people may try to inject politics into an antitrust review, he said, but "I've got to keep my nose down, be a law enforcer, do what's good [for] the American people."</p>
<p>--Drew FitzGerald contributed to this article.</p>
<p>Write to Brent Kendall at [email protected]</p>
<p>(END) Dow Jones Newswires</p>
<p>November 21, 2017 14:53 ET (19:53 GMT)</p> | true | 0 | justice departments new antitrust chief makan delrahim needed seven weeks land middle biggest antitrust case 20 years mr delrahim confirmed senate sept 27 made decision file government lawsuit monday challenging atampt incs planned acquisition time warner inc antitrust division leads alleged vertical combination atampts video distribution time warners popular cable programming would give merged firm power raise prices hinder competitors innovation continue reading atampt criticized governments arguments unreasonable inconsistent past practice focused primarily horizontal mergers direct competitors called president donald trumps repeated criticisms time warners cnn elephant room justice departments case raising questions political influence department said white house role decision sue dispute set stage major court battle washington highestprofile antitrust case since justice department sued microsoft 1998 allegations unlawful monopolization microsoft corp avoided breakup business agreed restrictions business conduct atampt chief executive randall stephenson said new lawsuit threw business world state uncertainty types deals investment permissible mr delrahim reached phone declined comment specifics case asked mr stephensons comment lawsuit renders companies unable know activity engage mr delrahim offered oneword response compete mr delrahim 48 years old family immigrated us 9 time iranian revolution spoke english arrived spent teenage years california graduated university california los angeles got legal degree george washington university law school advertisement developed interest patent antitrust law well interest republican politics spent five years staffer sen orrin hatch r utah senate judiciary committee working among things legislation updated federal law governing transactions must submitted government antitrust review mr delrahim moved justice departments antitrust division 2003 2005 george w bush administration stint department lawyer led investigation complaints alleged anticompetitive practices clear channel communications radio concert businesses department later closed probe company spun concert arm separate live nation entity separately mr delrahim served bipartisan commission created congress study modernization antitrust laws spent decade private practice first job justice department mr delrahim opinion article last year said mr trump wasnt first gop choice white house urged republicans support mr trumps candidacy arguing direction supreme court important leave democrat hillary clinton mr trump presidential election mr delrahim joined white house deputy counsel key figure administrations high court nomination neil gorsuch around time justice gorsuch confirmed april president nominated mr delrahim justice department antitrust post senate confirmed 7321 vote democrats prominently sen elizabeth warren mass argued mr delrahim would friendly corporations others offered support believing would bring cases prediction quickly proven correct always found energetic creative guy wasnt warm seat said washington antitrust lawyer seth bloom former democratic staffer senate judiciary committee worked mr delrahim people consideration trump administration antitrust post included joshua wright vocal conservative antitrust matters former member federal trade commission mr wright professor george mason university private practice lawyer tuesday said wasnt fan atampt suit saying lacked sound theoretical foundation economic evidence unlikely prevail court president trumps continued criticisms cnn pledge presidential candidate block atampttime warner deal sure hang case atampt previously avoided cnn issue late nov 9 mr stephenson said reason believe mr trumps dislike cnn affected justice departments work tone changed lawsuit monday mr stephenson explicitly raised question whether justice departments challenge cnn company also highlighting television interview mr delrahim gave last year private practice lawyer said transaction didnt appear raise major antitrust concerns interview mr delrahim said deal could raise concerns antitrust issues one distributor owning various content might somehow impact distributors mr delrahims defenders said television remarks kind armchair analysis lawyers frequently provide reporters merger announcements factual record developed government investigation new antitrust chief said repeatedly decision making wasnt influenced white house cant get clear mr delrahim said nov 10 public appearance california people may try inject politics antitrust review said ive got keep nose law enforcer whats good american people drew fitzgerald contributed article write brent kendall brentkendallwsjcom end dow jones newswires november 21 2017 1453 et 1953 gmt | 625 |
<p>In a direct challenge to Tesla Inc., Volvo Cars unveiled its first high-performance electric-car model in Shanghai on Tuesday, doubling down on its commitment to make only electric or hybrid vehicles starting in 2019.</p>
<p>Polestar, a new stand-alone premium electric-vehicle company owned by Volvo, will bring its first two vehicles to market that same year, with Volvo and its Chinese owner Zhejiang Geely Holding Group Co. pledging to invest $755 million to develop the company.</p>
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<p>Polestar will build its cars at a new plant in the western Chinese city of Chengdu, which already hosts a Volvo factory.</p>
<p>"We want to be leaders in electrification," Volvo Chief Executive Hakan Samuelsson at the event.</p>
<p>The launch of the first Polestar marks the latest step in a global shift toward electric vehicles which, led by China, is quickly gathering pace. Last month, the Chinese government told all auto makers, foreign and domestic, to start building EVs by 2019, having also outlined future plans to ban gasoline cars. Beijing is spending billions of dollars on subsidies to boost the efforts of domestic auto makers to develop EVs.</p>
<p>Polestar -- which previously existed as a Volvo model, rather than as a distinct company -- will also be an experiment in marketing cars through smartphone-based subscription plans with monthly payments but no upfront fee. Polestar vehicles will be available only through 2 or 3-year subscription plans, a method some auto analysts believe could become the norm in years ahead.</p>
<p>"We believe that subscription is the future," said Jonathan Goodman, Polestar's chief operating officer.</p>
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<p>The high-performance, low-volume Polestar 1 hybrid coupe -- the vehicle made its debut in Shanghai -- will go on sale in the first half of 2019, followed by the higher-volume, pure-electric Polestar 2 later that year.</p>
<p>The second vehicle is designed to go head-to-head with the Tesla Model 3, said Polestar CEO Thomas Ingenlath, laying down the gauntlet to the California-based pioneer of premium EVs.</p>
<p>Polestar still needs to work out the details of its subscription-based approach, including how much consumers will pay, Mr. Ingenlath conceded, but he said the brand would be "competitive and profitable."</p>
<p>Volvo makes a fifth of its sales in China, and Polestar has the same target here, said Mr. Samuelsson, with Europe and the U.S. also key markets for the new brand.</p>
<p>Tesla is the leading maker of electric premium vehicles, but the broader automotive industry is taking aim at the Silicon Valley upstart. In addition to Volvo's Polestar, the big German premium brands Mercedes-Benz, BMW AG, Audi AG, and Porsche are planning to launch dozens of new high-end electric vehicles and hybrids in the next few years. Maserati, Jaguar, Bentley and other luxury brands are also getting in on the act.</p>
<p>But targeting high-end EV sales is risky, especially in China, some analysts say. While China is the world's biggest EV market, demand for upscale electric cars will be weak for several years, as most auto makers launch bargain vehicles designed to fulfill the government's production quota. Tesla -- which imports cars to China in low volumes -- won't start selling locally assembled cars before the early 2020s, having yet to announce firm plans for a China plant.</p>
<p>"The market for high-end EVs is still very small," said Jing Yang, an associate director at Fitch Ratings.</p>
<p>Mr. Samuelsson dismissed concerns about premium EV demand. He said demand for premium cars is strong and growing in China, claiming Geely ownership would give the company an edge.</p>
<p>"This is our second home," Mr. Samuelsson said. "We are the only [foreign auto] company that really has control over business" in China thanks to Volvo's autonomy within the Geely group, he said, comparing other foreign car makers which must operate through local joint ventures.</p>
<p>Polestar is the latest sign of Geely and Volvo's determination to be at the forefront of the industry's transformation. "Electrification and new energy is the focus of the wider Zhejiang Geely Holding Group," said a Geely spokesman.</p>
<p>The Hangzhou-based firm has emerged as China's leading privately owned Chinese auto maker by sales, with Geely Auto selling over 827,000 cars in the first nine months of 2017, up 80% on the same period last year.</p>
<p>Geely's brand stable is also growing fast. Last year it opened Yuan Cheng, a domestic commercial vehicle maker, before acquiring a controlling stake in Malaysia's Proton and taking over Lotus Cars in May. Lynk &amp; Co., a new marque targeting young buyers with connected cars and innovative service packages, goes on sale in China next month.</p>
<p>Geely previously acquired Volvo from Ford Motor Co. in 2010, and bought the London Taxi Co. -- recently rebadged as the London Electric Vehicle Co. -- in 2013.</p>
<p>William Boston in Berlin contributed to this article</p>
<p>Write to Trefor Moss at [email protected]</p>
<p>(END) Dow Jones Newswires</p>
<p>October 17, 2017 11:09 ET (15:09 GMT)</p> | true | 0 | direct challenge tesla inc volvo cars unveiled first highperformance electriccar model shanghai tuesday doubling commitment make electric hybrid vehicles starting 2019 polestar new standalone premium electricvehicle company owned volvo bring first two vehicles market year volvo chinese owner zhejiang geely holding group co pledging invest 755 million develop company continue reading polestar build cars new plant western chinese city chengdu already hosts volvo factory want leaders electrification volvo chief executive hakan samuelsson event launch first polestar marks latest step global shift toward electric vehicles led china quickly gathering pace last month chinese government told auto makers foreign domestic start building evs 2019 also outlined future plans ban gasoline cars beijing spending billions dollars subsidies boost efforts domestic auto makers develop evs polestar previously existed volvo model rather distinct company also experiment marketing cars smartphonebased subscription plans monthly payments upfront fee polestar vehicles available 2 3year subscription plans method auto analysts believe could become norm years ahead believe subscription future said jonathan goodman polestars chief operating officer advertisement highperformance lowvolume polestar 1 hybrid coupe vehicle made debut shanghai go sale first half 2019 followed highervolume pureelectric polestar 2 later year second vehicle designed go headtohead tesla model 3 said polestar ceo thomas ingenlath laying gauntlet californiabased pioneer premium evs polestar still needs work details subscriptionbased approach including much consumers pay mr ingenlath conceded said brand would competitive profitable volvo makes fifth sales china polestar target said mr samuelsson europe us also key markets new brand tesla leading maker electric premium vehicles broader automotive industry taking aim silicon valley upstart addition volvos polestar big german premium brands mercedesbenz bmw ag audi ag porsche planning launch dozens new highend electric vehicles hybrids next years maserati jaguar bentley luxury brands also getting act targeting highend ev sales risky especially china analysts say china worlds biggest ev market demand upscale electric cars weak several years auto makers launch bargain vehicles designed fulfill governments production quota tesla imports cars china low volumes wont start selling locally assembled cars early 2020s yet announce firm plans china plant market highend evs still small said jing yang associate director fitch ratings mr samuelsson dismissed concerns premium ev demand said demand premium cars strong growing china claiming geely ownership would give company edge second home mr samuelsson said foreign auto company really control business china thanks volvos autonomy within geely group said comparing foreign car makers must operate local joint ventures polestar latest sign geely volvos determination forefront industrys transformation electrification new energy focus wider zhejiang geely holding group said geely spokesman hangzhoubased firm emerged chinas leading privately owned chinese auto maker sales geely auto selling 827000 cars first nine months 2017 80 period last year geelys brand stable also growing fast last year opened yuan cheng domestic commercial vehicle maker acquiring controlling stake malaysias proton taking lotus cars may lynk amp co new marque targeting young buyers connected cars innovative service packages goes sale china next month geely previously acquired volvo ford motor co 2010 bought london taxi co recently rebadged london electric vehicle co 2013 william boston berlin contributed article write trefor moss treformosswsjcom end dow jones newswires october 17 2017 1109 et 1509 gmt | 527 |
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<p>It pays off to take a long-term view to the markets. After all, it's been shown time and time again that investing with a long-term mindset yields greater returns than short-term trading.There can be times, however, when sharp market drops alert investors to risk that's lurking in their portfolios. That's especially true following a major move upward in stock prices, as we've seen in the U.S. since the Great Recession.If Britain's decision to exit the European Union, or Brexit, is taking a larger toll on your portfolio than you expected, it could be because stocks have grown to represent too large a percentage of your portfolio. If that's the case, then it may be time to consider rebalancing your investments.</p>
<p>Last week, citizens of the United Kingdom voted to remove their country from the European Union, a group of sovereign countries that have agreed to work together under a common governing body.</p>
<p>Historically, countries joined the European Union for many reasons, but among the biggest benefits of membership are free trade and the ability for citizens to easily cross borders.</p>
<p>Recently, rising concerns about the U.K.'s wage gap and immigration from Eastern European and war-torn countries have called into doubt the value of those benefits.</p>
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<p>As a result, voters determined by a 52% to 48% vote to go it alone. The Brexit won't officially happen until negotiations with the EU governing body occur, and those negotiations won't begin until the U.K. invokes Article 50 of the Lisbon Treaty, kicking off a two-year time clock for separation.</p>
<p>Rather than invoking Article 50 immediately, Britain's prime minister, David Cameron, a proponent of remaining in the EU, announced he will resign once a successor is picked. His decision makes it unclear when the U.K. will activate Article 50.</p>
<p>Because the U.K.'s separation from the EU raises questions about Europe's economic future and increases the risk that other member countries could follow in the U.K.'s footsteps, the country's decision is having a seismic impact on global stock markets.</p>
<p>The iSharesMSCI EAFE Index ETF , which invests in publicly traded stocks from 21 predominantly European countries, has dropped over 10% since last Thursday's close, and the SPDRS&amp;P 500 ETF , which invests in the largest companies in the United States, has fallen 5.3%.</p>
<p>A quick look under the hood of the MSCI EAFE Index ETF explains why it has fallen so sharply. 19% of its holdings are in U.K. stocks and the U.K., France, and Germany represent 37% of its assets. Additionally, 24% of its assets are invested in financials, which have been hit particularly hard over uncertainty regarding London's ability to remain the capitol of the European financial market.</p>
<p>It may be a bit lit less clear to investors why the S&amp;P 500 ETF is down, but a quick review of the contagion risk facing big U.S. companies may shed some light on the matter.</p>
<p>If future trade agreements negotiated by the U.K. aren't favorable, or they cause various trade wars, then U.K. GDP and wages could suffer. Similarly, GDP and wages in other EU countries that trade with the U.K. could decline too. BecauseEurope is the largest economy in the world, a slowing there could reduce American exports, causing our economy to suffer too.</p>
<p>Risk posed by a slowing Europe is further magnified because a flight to safety is already causing a strengthening of the U.S. Dollar. Since the U.K. vote, thePowerShares DB U.S. Dollar Index ETFis up 3.48% and as it strengthens against the U.K.'s pound sterling and the EU's Euro, it gets increasingly more expensive for Europeans to buy our goods. If prices on U.S. goods increase too much, then companies comprising the S&amp;P 500 could be hit hardest because many of them are multinationals that get a big chunk of their sales from overseas.</p>
<p>Although there's no magic formula to determine how much of your money should be in stocks, a common rule of thumb is that the percentage invested in stocks shouldn't exceed 100 minus your age. For example, a 70-year-old would limit his or her exposure to the stock market to 30%, while a 30-year-old would invest, at the most, 70% of his or her portfolio in stocks.</p>
<p>If your exposure to stocks is higher than this rough calculation, then it may be worth reconsidering your risk tolerance and your personal finances. If in doing so you determine you are too exposed to stocks, then reducing your exposure to stocks and increasing your exposure to other investments may make sense.</p>
<p>Image source: Flickr user <a href="https://www.flickr.com/photos/carbonnyc/" type="external">David Goehring</a>.</p>
<p>While there are other investments that can be considered, most investors should focus the majority of their non-stock portfolio on U.S. bonds.</p>
<p>In the past, global investors seeking safe haven turned to both the EU and the U.S. bond markets. However, with uncertainty growing in the EU, it's not a stretch to assume that most global investors will shift their attention primarily to the United States.That may be happening already.</p>
<p>The iShares20-Year U.S. Treasury Bond ETF is up 5.25% and the SPDR Intermediate Term Treasury ETF is up 1.01% since the Brexit vote. For comparison, 70% of the iShares International Treasury Bond ETFis invested in European bonds and it's lost 0.76% since last Thursday.</p>
<p>Investors with a longer time horizon might benefit more from owning the 20-Year U.S. Treasury Bond ETF than the Intermediate Term Treasury ETF because it offers a higher yield.</p>
<p>Bond prices can and do fluctuatedepending on U.S. interest rate policies and therefore, long bonds are more exposed to interest rate headwinds than intermediate term bonds. Fortunately, investors get compensated for taking on that interest rate risk with a higher yield. Currently,99% of the iShares 20-year U.S. Treasury Bond ETF's holdings are invested in U.S. Treasuries with maturities of 20 years or more. As a result, it's yielding about 2.2%. Meanwhile,the average maturity of U.S. Treasury bonds held in the the Intermediate Term Treasury ETF is only 4.14 years and its yield is 1.74%.</p>
<p>The vast majority of investors should stay the course with their investing. In fact, now may be the perfect time to revisit the amount that gets contributed every month to retirement plans. Increasing contributions now could lower the average cost of investments in portfolios and reward you later. If in reviewing your portfolio you do decide that you've gotten a bit too heavily invested in stocks during the post-Recession rally, the silver lining behind this recent sell-off could be that it reminds you of the importance of diversification.</p>
<p>The article <a href="http://www.fool.com/investing/2016/06/28/after-brexit-heres-which-investments-are-working.aspx" type="external">After Brexit, Are You Diversified Enough?</a> originally appeared on Fool.com.</p>
<p><a href="http://my.fool.com/profile/EBCapitalMarkets/info.aspx?source=eptfxblnk0000004" type="external">Todd Campbell</a> has no position in any stocks mentioned.Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may have positions in the companies mentioned. Like this article? Follow him onTwitter where he goes by the handle <a href="https://twitter.com/ebcapital" type="external">@ebcapital</a> to see more articles like this.The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=eptfxblnk0000004" type="external">free for 30 days</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://wiki.fool.com/Motley?source=eptfxblnk0000004" type="external">considering a diverse range of insights</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?source=eptfxblnk0000004" type="external">disclosure policy</a>.</p>
<p>Copyright 1995 - 2016 The Motley Fool, LLC. All rights reserved. The Motley Fool has a <a href="http://www.fool.com/help/index.htm?display=about02" type="external">disclosure policy</a>.</p> | true | 0 | image source getty images continue reading pays take longterm view markets shown time time investing longterm mindset yields greater returns shortterm tradingthere times however sharp market drops alert investors risk thats lurking portfolios thats especially true following major move upward stock prices weve seen us since great recessionif britains decision exit european union brexit taking larger toll portfolio expected could stocks grown represent large percentage portfolio thats case may time consider rebalancing investments last week citizens united kingdom voted remove country european union group sovereign countries agreed work together common governing body historically countries joined european union many reasons among biggest benefits membership free trade ability citizens easily cross borders recently rising concerns uks wage gap immigration eastern european wartorn countries called doubt value benefits advertisement result voters determined 52 48 vote go alone brexit wont officially happen negotiations eu governing body occur negotiations wont begin uk invokes article 50 lisbon treaty kicking twoyear time clock separation rather invoking article 50 immediately britains prime minister david cameron proponent remaining eu announced resign successor picked decision makes unclear uk activate article 50 uks separation eu raises questions europes economic future increases risk member countries could follow uks footsteps countrys decision seismic impact global stock markets isharesmsci eafe index etf invests publicly traded stocks 21 predominantly european countries dropped 10 since last thursdays close spdrsampp 500 etf invests largest companies united states fallen 53 quick look hood msci eafe index etf explains fallen sharply 19 holdings uk stocks uk france germany represent 37 assets additionally 24 assets invested financials hit particularly hard uncertainty regarding londons ability remain capitol european financial market may bit lit less clear investors sampp 500 etf quick review contagion risk facing big us companies may shed light matter future trade agreements negotiated uk arent favorable cause various trade wars uk gdp wages could suffer similarly gdp wages eu countries trade uk could decline becauseeurope largest economy world slowing could reduce american exports causing economy suffer risk posed slowing europe magnified flight safety already causing strengthening us dollar since uk vote thepowershares db us dollar index etfis 348 strengthens uks pound sterling eus euro gets increasingly expensive europeans buy goods prices us goods increase much companies comprising sampp 500 could hit hardest many multinationals get big chunk sales overseas although theres magic formula determine much money stocks common rule thumb percentage invested stocks shouldnt exceed 100 minus age example 70yearold would limit exposure stock market 30 30yearold would invest 70 portfolio stocks exposure stocks higher rough calculation may worth reconsidering risk tolerance personal finances determine exposed stocks reducing exposure stocks increasing exposure investments may make sense image source flickr user david goehring investments considered investors focus majority nonstock portfolio us bonds past global investors seeking safe turned eu us bond markets however uncertainty growing eu stretch assume global investors shift attention primarily united statesthat may happening already ishares20year us treasury bond etf 525 spdr intermediate term treasury etf 101 since brexit vote comparison 70 ishares international treasury bond etfis invested european bonds lost 076 since last thursday investors longer time horizon might benefit owning 20year us treasury bond etf intermediate term treasury etf offers higher yield bond prices fluctuatedepending us interest rate policies therefore long bonds exposed interest rate headwinds intermediate term bonds fortunately investors get compensated taking interest rate risk higher yield currently99 ishares 20year us treasury bond etfs holdings invested us treasuries maturities 20 years result yielding 22 meanwhilethe average maturity us treasury bonds held intermediate term treasury etf 414 years yield 174 vast majority investors stay course investing fact may perfect time revisit amount gets contributed every month retirement plans increasing contributions could lower average cost investments portfolios reward later reviewing portfolio decide youve gotten bit heavily invested stocks postrecession rally silver lining behind recent selloff could reminds importance diversification article brexit diversified enough originally appeared foolcom todd campbell position stocks mentionedtodd owns eb capital markets llc eb capitals clients may positions companies mentioned like article follow ontwitter goes handle ebcapital see articles like thisthe motley fool position stocks mentioned try foolish newsletter services free 30 days fools may hold opinions believe considering diverse range insights makes us better investors motley fool disclosure policy copyright 1995 2016 motley fool llc rights reserved motley fool disclosure policy | 710 |
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<p>Shares of Inovio Pharmaceuticals (NASDAQ: INO) enjoyed a boost this week after the company achieved another milestone. On Monday, Inovio announced the launch of its second clinical trial for its experimental Zika vaccine. The biotech has emerged as one of the hottest Zika plays on the market. However, I don't think Inovio is necessarily the best Zika stock right now. Here's why.</p>
<p>My primary concern about overhyping Inovio's Zika vaccine is that it's still very early in the process. The first human study began just a couple of months ago. That clinical trial included 40 patients in the U.S. and Canada.</p>
<p>Inovio's second study is in Puerto Rico and will enroll 160 adult patients. Half of the patients will receive the GLS-5700 Zika vaccine developed by Inovio and its partner,GeneOne Life Science. The other half will receive placebo.</p>
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<p>Initiation of these studies is definitely great news. The Zika virus is a major health concern across the world. However, other companies are also in the process of developing potential vaccines for the virus. While Inovio has a head start in advancing to human clinical studies, there's no guarantee the company will retain its lead.</p>
<p>Inovio also has competition from the public sector. The National Institutes of Health (NIH) began a clinical study in early August. This study includes 80 adults, all of whom will receive an experimental vaccine developed by NIH.</p>
<p>That's not the only NIH effort for battling Zika. On Wednesday, a team including researchers from NIH, Florida State University, and Johns Hopkins University announced that they had found two existing drug compounds that both stop the Zika virus from replicating in the body and protect fetal brain cells.</p>
<p>The latter NIH example could pose the greater threat to Inovio's chances. The researchers are focused on finding existing drugs that could treat Zika, which should shorten the lead time for getting on the market.</p>
<p>I think there are currently a couple of better options for investors looking to benefit from the race to fight Zika. OraSure Technologies (NASDAQ: OSUR) and Spectrum Brands (NYSE: SPB) stand out.</p>
<p>OraSure recently won a contract withthe U.S. Department of Health andHuman Services (HHS) to develop rapid Zika tests. The company's OraQuick test is already on the market for rapidly screening patients for Ebola, hepatitis C, and HIV. OraSure is using its OraQuick platform to develop the rapid Zika assays.</p>
<p>Spectrum Brands'product lineup includes mosquito repellents. The company scored some publicity with the recent Olympic Games in Rio as the official insect repellent for the U.S. Soccer team. Spectrum began registering its insect repellents earlier this year in Latin American countries. The company has launched a campaign in the U.S. to educate consumers about how to protect themselves against the Zika virus.</p>
<p>Why are OraSure and Spectrum better investing options right now than Inovio? All three stocks have generated returns of over 30% so far in 2016. However, OraSure and Spectrum are already getting financial benefits from the concerns about Zika. Both companies stand to profit regardless of who ultimately wins regulatory approval for a Zika vaccine. Also, unlike Inovio, OraSure and Spectrum are both profitable.</p>
<p>While I am cautious about setting expectations too highly for Inovio's Zika vaccine at this point, I still like the company's prospects over the long run. There is a real possibility that Inovio develops the most effective vaccine for Zika and reaps the rewards for doing so.</p>
<p>Beyond that, though, Inovio has several other pipeline candidates with solid potential. Cervical dysplasia vaccine VGX-3100 is on track to begin phase 3 testing later this year. Cervical cancer immunotherapy INO-3112, which combines VGX-3100 with DNA-based immune activator encoded for interleukin 12 (IL-12), is in a couple of early-stage studies. Results are expected later in 2016.</p>
<p>Inovio also has other infectious disease vaccines in the works. Multiple early-stage clinical studies are in progress for vaccines to combat Ebola, hepatitis B, hepatitis C, HIV, and MERS.</p>
<p>In my opinion, OraSure and Spectrum Brands are safer Zika plays than Inovio -- for now, at least. But the company's Zika vaccine combined with other pipeline opportunities makes Inovio a stock for long-term investors to consider.</p>
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<p><a href="http://my.fool.com/profile/TMFFishBiz/info.aspx" type="external">Keith Speights Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=isiedilnk018048&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://www.fool.com/knowledge-center/motley.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">considering a diverse range of insights Opens a New Window.</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | image source getty images continue reading shares inovio pharmaceuticals nasdaq ino enjoyed boost week company achieved another milestone monday inovio announced launch second clinical trial experimental zika vaccine biotech emerged one hottest zika plays market however dont think inovio necessarily best zika stock right heres primary concern overhyping inovios zika vaccine still early process first human study began couple months ago clinical trial included 40 patients us canada inovios second study puerto rico enroll 160 adult patients half patients receive gls5700 zika vaccine developed inovio partnergeneone life science half receive placebo advertisement initiation studies definitely great news zika virus major health concern across world however companies also process developing potential vaccines virus inovio head start advancing human clinical studies theres guarantee company retain lead inovio also competition public sector national institutes health nih began clinical study early august study includes 80 adults receive experimental vaccine developed nih thats nih effort battling zika wednesday team including researchers nih florida state university johns hopkins university announced found two existing drug compounds stop zika virus replicating body protect fetal brain cells latter nih example could pose greater threat inovios chances researchers focused finding existing drugs could treat zika shorten lead time getting market think currently couple better options investors looking benefit race fight zika orasure technologies nasdaq osur spectrum brands nyse spb stand orasure recently contract withthe us department health andhuman services hhs develop rapid zika tests companys oraquick test already market rapidly screening patients ebola hepatitis c hiv orasure using oraquick platform develop rapid zika assays spectrum brandsproduct lineup includes mosquito repellents company scored publicity recent olympic games rio official insect repellent us soccer team spectrum began registering insect repellents earlier year latin american countries company launched campaign us educate consumers protect zika virus orasure spectrum better investing options right inovio three stocks generated returns 30 far 2016 however orasure spectrum already getting financial benefits concerns zika companies stand profit regardless ultimately wins regulatory approval zika vaccine also unlike inovio orasure spectrum profitable cautious setting expectations highly inovios zika vaccine point still like companys prospects long run real possibility inovio develops effective vaccine zika reaps rewards beyond though inovio several pipeline candidates solid potential cervical dysplasia vaccine vgx3100 track begin phase 3 testing later year cervical cancer immunotherapy ino3112 combines vgx3100 dnabased immune activator encoded interleukin 12 il12 couple earlystage studies results expected later 2016 inovio also infectious disease vaccines works multiple earlystage clinical studies progress vaccines combat ebola hepatitis b hepatitis c hiv mers opinion orasure spectrum brands safer zika plays inovio least companys zika vaccine combined pipeline opportunities makes inovio stock longterm investors consider secret billiondollar stock opportunity worlds biggest tech company forgot show something wall street analysts fool didnt miss beat theres small company thats powering brandnew gadgets coming revolution technology think stock price nearly unlimited room run early intheknow investors one click opens new window keith speights opens new window position stocks mentioned motley fool position stocks mentioned try foolish newsletter services free 30 days opens new window fools may hold opinions believe considering diverse range insights opens new window makes us better investors motley fool disclosure policy opens new window | 523 |
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<p>RUSH: Yeah. <a href="" type="internal">In the Stack of Things</a> That Are Totally Made-up and Cannot Possibly Be True Today, there’s a Washington Post poll, and do you know what it says? The vast majority of you support Obama’s nuke deal with Iran. That’s what it says. The vast majority of the American people are ready to go, ready to help Obama get the nuke deal done with Iran. Except they’re not told the truth about what the deal is. The primary question in the poll is, “Would you support an Iranian nuclear deal which lifted sanctions on Iran for a pledge from Iran not to develop a nuclear weapon?”</p>
<p>Well, of course, reasonable people say, “Yep, that’s good with me!” But that’s not what the Iranian nuke deal is. They do a poll on an imaginary nuke deal, but that question has no relationship to what the deal currently being discussed is. And, of course, the deal has fallen apart. There are so many misconceptions about this. Everybody thought that the deadline — THE deadline — was today. Now they say, “No, this was just phase one. This was some preliminary thing. This is the framework of a deal. This is not the deal.”</p>
<p>The Drive-Bys were hyping this date, today, as it had to get done or else it was gonna blow up and nothing was ever gonna happen. That simply was never the case. The original drop-dead date for this is sometime in June or July. And what happened here is exactly what the Iranians always do. At the last minute, they made a total change to something they had previously committed to. In this case they said, “You know what? We’re not gonna surrender the enriched uranium that we produced,” and John Kerry said, “But wait! But wait! You said you were!”</p>
<p>The Iranians said, “Well, we changed our mind. We talked to Ali Khomeini, and we changed our mind. We’re not gonna do that.” So we called the Russians, “Hey, can you guys help? Because you essentially sold them the stuff to help ’em make it,” and Putin said, “Yeah, we’ll take the uranium off their hands.” And the Iranians said, “No, we not gonna give up our uranium.” The Russians said, “We’d be happy to take it and hold it in escrow.” (snorts) So then as I say the ayatollah Khamenei came in and said, “Screw all this!”</p>
<p><a href="" type="internal" />So the deadline today is gonna come and go. Whether it’s met or not is irrelevant because the Ayatollah Khamenei said, “This two-phase thing is a bunch of garbage, anyway! Screw this framework stuff. The real drop-dead date is July. That’s what’s now operative.” Of course this is also part and parcel of the way Iran gets things. They get very, very close to what everybody thinks is a deal and they walk away.</p>
<p>Now they’ve gone… See this is March, April, May. (chuckles) They got three or four months here to keep developing uranium, keep running their centrifuges, keep working toward the creation of a nuclear weapon while the talks stall and then resume and then stall and get everybody focused on a new date this summer. It’s exactly what Iran does.</p>
<p>Here, grab sound bite number one and two, John Bolton. Before we get back to Indiana Mike Pence, let me get this out of the way because this not gonna take much. On America’s Newsroom today Bill Hemmer was speaking with Bolton about all of this going on in Iran, and he said, “Now, critics say that the president’s already given way too much. Today’s the day, right? John Kerry said last night, ‘Everybody knows the meaning of tomorrow and tomorrow is today.’ So what does it all mean,” Mr. Bolton?</p>
<p>BOLTON: If they don’t announce it today, they’ll have to announce it on April Fool’s Day. They will declare success because in negotiation, you never fail. But if anybody thinks that Iran has really made any substantial concession here, they’re not listening careful enough, and the Iranians really are never gonna make substantial concessions because they’re determined to get nuclear weapons.</p>
<p>RUSH: Right, and we’re not telling them that they can’t. The only way that… Well, here, he addresses it. Bolton says the only way we’re gonna stop this is to bomb ’em, and we’re not gonna do that, so they’re gonna get the weapon. Hemmer said, “Well, you’re taking a lot of heat, Mr. Bolton, for a piece that you put out last week. You said to stop Iran’s bomb you gotta bomb Iran. You think that’s the only way out here?”</p>
<p>BOLTON: There are only two outcomes here. One is the most likely outcome: Iran gets nuclear weapons. Whether they sign this deal or not, I think there’s a lot of common-sense understanding that they are stringing us along. Look at the prior examples where the Israelis bombed a nuclear reactor in Syria being constructed by North Korea in September of 2007. They set Saddam Hussein’s nuclear weapons program back for a decade by bombing the Osirak reactor in 1991.</p>
<p>RUSH: So his point is that’s about the only leverage we have now is to bomb their facilities. The problem is many of their facilities are way, way down there — way down underground. It’d be tough. You’d need one of those bunker-busting bombs. I don’t know if we still have ’em or if the Democrats outlawed them for being too dangerous. But that’s what it would take. John Bolton has become sort of a fait accompli-ist on this.</p>
<p>They’re gonna get it. Negotiations never fail. No matter what happens, you declare victory. (That’s called “statesmanship,” by the way.) He’s not accusing Obama of that. That’s just what everybody does. At the end of every negotiation, everybody claims victory, whether there is one or not. Now, Bill Richardson. We’ve featured his sound bites on this subject the past couple of weeks, and he was back on CNN today with Chris Cuomo. He just cannot believe what he’s seeing here. Cuomo said, “I know it’s just optics, and I know it’s oversimplification, but it does look like Iran’s getting everything it wants. It looks like they’re running the table here, doesn’t it?”</p>
<p>RICHARDSON: They’re running rampant. They’re moving ahead in Iraq. They’re moving in Syria. With ISIS they are on our side, but they’re causing a lot of problems in the region. You can’t trust ’em. Lastly, Saudi Arabia and Israel; they’re our friends. They’re not happy about this. We gotta find a way in this interim period to get closer to the Saudis, to see if we can breach this relationship, make it better with Israel, ’cause there’s just too much turmoil in the region, and we can’t let Iran get away with everything it’s doing in the region. They are running rampant.</p>
<p>RUSH: We are not stopping them. We do not have an administration that wants to stop them. That’s what everybody seems to have trouble realizing or admitting here. We do not have an administration that wants to stop Iran. It’s just the opposite in fact. There’s a reason that Iran’s running rampant. It’s that nobody’s stopping them. I take that back. The French are trying to. Imagine that. The French are bigger hawks than we are. Of course the Israelis are trying to stop it.</p>
<p>Even some of the other European nations, the P5+1 group. But they can’t do it. They can’t do it without us, and we’re not on the same page with them. This administration does not wants to stop Iran from its ultimate aim: Getting nuclear weapons. Now, they’re not trying to facilitate this happening tomorrow, but they don’t want to stop it. The current deal permits Iran in ten years to have nuclear weapons.</p>
<p>It’s gonna rely on the power of Obama’s charisma and his speeches on it persuading Iran not to use the nuclear weapons that they are going to eventually either obtain or create, produce.</p>
<p>BREAK TRANSCRIPT</p>
<p>RUSH: Jim in Battle Creek, Michigan. Great to have you on the EIB Network, sir. Hello.</p>
<p>CALLER: Hello. Thank you for taking my call and —</p>
<p>RUSH: You bet.</p>
<p>CALLER: — and thank you for all you do for us.</p>
<p>RUSH: Thank you.</p>
<p>CALLER: Now that they’re okay with them building those centrifuges deep in the ground, will it be okay for us to start building nuclear power plants deep in the ground?</p>
<p>RUSH: You mean like the Iranians are doing?</p>
<p>CALLER: Yes.</p>
<p>RUSH: The Iranians are building their nuclear facilities way, way, way down there. I mean, way down there, folks, so that our bombs or anybody else’s bombs can’t get to them.</p>
<p>CALLER: And so if it’s okay for them to do that, is it okay for us to start building nuclear power plants?</p>
<p>RUSH: It’s actually not a bad question. His question, the Iranians maintain that they’re not building nuclear weapons, except that they are. They claim that they’re building nuclear power. They need to build nuclear power to be able to fuel their growing nation. People say, “Wait a minute. You got more oil than you know what to do with.” And they say, “Yeah, but we’re so behind the times, we don’t have any refineries. We have to ship it out.” Which is true, they don’t. “And if we got these embargoes on us, we got they see sanctions, we need nuclear power.”</p>
<p>Their facilities are way underground. His point is we can’t build a nuclear power plant in this country without 10 years of investigations and regulatory filings and all that. Now, what happens if we would build one way underground? The environmentalist wackos would find something. It would probably cause earthquakes if we did it. His point is, why is it okay for the Iranians to do any of this, either build a bomb or nuclear power plants, wherever they’re doing it, and we can’t do diddly-squat? There’s an answer to it. Why can the Iranians and why can’t we? The simplest answer often works. It’s called the Democrat Party.</p> | true | 0 | rush yeah stack things totally madeup possibly true today theres washington post poll know says vast majority support obamas nuke deal iran thats says vast majority american people ready go ready help obama get nuke deal done iran except theyre told truth deal primary question poll would support iranian nuclear deal lifted sanctions iran pledge iran develop nuclear weapon well course reasonable people say yep thats good thats iranian nuke deal poll imaginary nuke deal question relationship deal currently discussed course deal fallen apart many misconceptions everybody thought deadline deadline today say phase one preliminary thing framework deal deal drivebys hyping date today get done else gon na blow nothing ever gon na happen simply never case original dropdead date sometime june july happened exactly iranians always last minute made total change something previously committed case said know gon na surrender enriched uranium produced john kerry said wait wait said iranians said well changed mind talked ali khomeini changed mind gon na called russians hey guys help essentially sold stuff help em make putin said yeah well take uranium hands iranians said gon na give uranium russians said wed happy take hold escrow snorts say ayatollah khamenei came said screw deadline today gon na come go whether met irrelevant ayatollah khamenei said twophase thing bunch garbage anyway screw framework stuff real dropdead date july thats whats operative course also part parcel way iran gets things get close everybody thinks deal walk away theyve gone see march april may chuckles got three four months keep developing uranium keep running centrifuges keep working toward creation nuclear weapon talks stall resume stall get everybody focused new date summer exactly iran grab sound bite number one two john bolton get back indiana mike pence let get way gon na take much americas newsroom today bill hemmer speaking bolton going iran said critics say presidents already given way much todays day right john kerry said last night everybody knows meaning tomorrow tomorrow today mean mr bolton bolton dont announce today theyll announce april fools day declare success negotiation never fail anybody thinks iran really made substantial concession theyre listening careful enough iranians really never gon na make substantial concessions theyre determined get nuclear weapons rush right telling cant way well addresses bolton says way gon na stop bomb em gon na theyre gon na get weapon hemmer said well youre taking lot heat mr bolton piece put last week said stop irans bomb got ta bomb iran think thats way bolton two outcomes one likely outcome iran gets nuclear weapons whether sign deal think theres lot commonsense understanding stringing us along look prior examples israelis bombed nuclear reactor syria constructed north korea september 2007 set saddam husseins nuclear weapons program back decade bombing osirak reactor 1991 rush point thats leverage bomb facilities problem many facilities way way way underground itd tough youd need one bunkerbusting bombs dont know still em democrats outlawed dangerous thats would take john bolton become sort fait accompliist theyre gon na get negotiations never fail matter happens declare victory thats called statesmanship way hes accusing obama thats everybody end every negotiation everybody claims victory whether one bill richardson weve featured sound bites subject past couple weeks back cnn today chris cuomo believe hes seeing cuomo said know optics know oversimplification look like irans getting everything wants looks like theyre running table doesnt richardson theyre running rampant theyre moving ahead iraq theyre moving syria isis side theyre causing lot problems region cant trust em lastly saudi arabia israel theyre friends theyre happy got ta find way interim period get closer saudis see breach relationship make better israel cause theres much turmoil region cant let iran get away everything region running rampant rush stopping administration wants stop thats everybody seems trouble realizing admitting administration wants stop iran opposite fact theres reason irans running rampant nobodys stopping take back french trying imagine french bigger hawks course israelis trying stop even european nations p51 group cant cant without us page administration wants stop iran ultimate aim getting nuclear weapons theyre trying facilitate happening tomorrow dont want stop current deal permits iran ten years nuclear weapons gon na rely power obamas charisma speeches persuading iran use nuclear weapons going eventually either obtain create produce break transcript rush jim battle creek michigan great eib network sir hello caller hello thank taking call rush bet caller thank us rush thank caller theyre okay building centrifuges deep ground okay us start building nuclear power plants deep ground rush mean like iranians caller yes rush iranians building nuclear facilities way way way mean way folks bombs anybody elses bombs cant get caller okay okay us start building nuclear power plants rush actually bad question question iranians maintain theyre building nuclear weapons except claim theyre building nuclear power need build nuclear power able fuel growing nation people say wait minute got oil know say yeah behind times dont refineries ship true dont got embargoes us got see sanctions need nuclear power facilities way underground point cant build nuclear power plant country without 10 years investigations regulatory filings happens would build one way underground environmentalist wackos would find something would probably cause earthquakes point okay iranians either build bomb nuclear power plants wherever theyre cant diddlysquat theres answer iranians cant simplest answer often works called democrat party | 885 |
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<p>Pitching the press is the elusive skill others covet. But unbeknownst to most, it doesn't necessarily require a PR agent or agency (in fact, many of the best pitches come from the product folks and company founders themselves). So what are the secrets great PR people know? Not that many, it turns out. With a little strategy and common sense, you may discover that pitching the press is an easier thing than you think.</p>
<p>Continue Reading Below</p>
<p>Great news, yes? But before you dive in, take heed of a few golden rules:</p>
<p>1. Choose a TargetBut make sure to the best of your ability the target will actually fit. For example, thousands of companies through the years have attempted to pitch Walt Mossberg on products such as <a href="http://www.pcmag.com/article2/0,2817,2495263,00.asp" type="external">network traffic management Opens a New Window.</a> tools. Yet he specializes in covering consumer products that are something even his mother would use. Not a fit at all.</p>
<p>Find out who's covering the topics you're interested in pitching and create a target list of at least 10-15. Perhaps 25.</p>
<p>2. Read the Writer's Prior Articles, ThoroughlyRead with an eye for the writer's interests, preferences, even biases, and think about the way your idea would extend their topic further. (Not "I see you wrote about free <a href="http://www.pcmag.com/article2/0,2817,2288745,00.asp" type="external">cloud storage Opens a New Window.</a>, so how about you write about it again?")</p>
<p>When you make your pitch, let the writer know where you see your idea fitting. Think through the reporter's mind and eyes—how will this be interesting and usable to my readers? How will it meet the criteria of my publication, my boss, and my beat assignment?</p>
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<p>3. Pitch a Story, Not a Company or a Product Believe it or not, your company and product, by themselves, are not interesting enough to make an article topic. But as an example of a trend or a pervasive need, they can shine. Think of what that story might be and imagine what it might look like in the hands of the reporter you've chosen. From that point of view, prepare your pitch. Make your pitch by email first.</p>
<p>Send your pitch to the reporter in a personal and brief message. If the idea is a good one, the reporter may respond right away. If you don't hear back, perhaps the next step is a call. When you call, refer to the earlier message (but don't say "I'm calling to make sure you got my message). Regardless of whether the reporter has seen it or not, re-cap it quickly while also re-forwarding as a courtesy to allow the reporter to see that you did your homework, scan the high points, and have a chance to respond.</p>
<p>4. Respect the Reporter's Right to Make the DecisionIt's tempting to ply the reporter with a strong-armed pitch, but you'll be more successful by respecting his or her right to say yes or no. Your job is to provide them with as many meaningful reasons as possible to have the desire to say yes.</p>
<p>Is the story an exclusive? Is it an idea or slant that hasn't been offered to anybody else? How will it provide that person's readership with information that fits their focus but hasn't been presented from this angle before? All of these ideas will help.</p>
<p>5. Get Straight to the PointThe whole idea of buttering a reporter up to the topic you called for is bad. Clearly you phoned for a reason. With the first words out of your mouth, let them know what it is and why you think it's a good idea. If the reporter agrees, follow through quickly with the next steps. Many stories have been won or lost on the ability to follow through with exactly what's asked for. Make it easy. "Here are the bullet points," not "Here are five one hour videos to watch. Then our administrative assistant will be setting an appointment to determine in advance exactly what you'd be intending to ask." (Game over.)</p>
<p>If the reporter rejects the idea, why? For another person or with another approach could this story be better? Then, with the business of the call handled, you can then visit with the reporter for a bit and catch up if they have the time and are willing. And at that point, they'll know your personal interest is sincere.</p>
<p>6. Be Honest and Clear about Your GoalFor example, I was extremely annoyed to get a message from a regional vendor urgently needing my next available time to discuss their public relations, only to find out the one and only reason for the appointment was to give me a product demo they were hoping I would cover for Forbes. Even worse, it was a product that didn't fit my area of coverage.</p>
<p>These two executives wasted an hour and a half of their time and mine. Not only did they not get coverage, but they had made it highly improbable that I would agree to a return appointment when they genuinely did want to meet to discuss their PR.</p>
<p>7. If You Can't Reach the Reporter, Don't Repeatedly CallDo listen to the reporter's voicemail, however. It will often provide you with clues. For example, the reporter may be on vacation, out sick, has moved to another beat (or even another publication), or may be so adamantly opposed to voicemail you should be aware the message is likely to never be heard (or may even offend them).</p>
<p>If you leave a message, one in a day is ample. If the reporter has left a cell number on the message, refrain from using it unless the matter is genuinely urgent. Reporters truly appreciate the courtesy you extend in reaching out in the ways they prefer.</p>
<p>8. Consider TwitterTwitter can often be a clue to where the reporter is and what they're doing on that day. For example, "I just arrived at <a href="https://www.salesforce.com/dreamforce/DF16/" type="external">Dreamforce Opens a New Window.</a>" would certainly explain why they didn't answer the phone. Time your next contact for after the event. Also, many reporters will respond to Tweets or direct messages through Twitter faster than any other mechanism. Use that advantage, when you can take it, with skill.</p>
<p>There is more to effective PR by far than the initial pitch, of course. But for now, bear in mind that in my own experience as both a PR lead and a columnist, of the hundreds of pitches I've received from professional PR folks, very few meet criteria well. In fact, the last big feature pitch I responded to was from a junior PR agent who had sent a cold email pitch through the publication's general email. But she'd taken the time to check my beat assignment, see what I'd written before, and offer a way to provide some good value add. Then, when I asked for additional items as follow up, she followed through, and did it accurately and quickly. Score!</p>
<p>So the next time you feel the urge to send a mass PR pitch or to hire an agency to do so, save your money and save your breath. But if you're savvy about it, you have at least as much chance to succeed as a hired PR pro. So when you have that great story idea prepared, feel free to send me a (short) email or give me a call. I'll be waiting.</p>
<p>This article <a href="http://www.pcmag.com/article/345578/8-tips-to-make-a-successful-pitch-to-the-press" type="external">originally appeared Opens a New Window.</a> on <a href="http://www.pcmag.com" type="external">PCMag.com Opens a New Window.</a>.</p> | true | 0 | pitching press elusive skill others covet unbeknownst doesnt necessarily require pr agent agency fact many best pitches come product folks company founders secrets great pr people know many turns little strategy common sense may discover pitching press easier thing think continue reading great news yes dive take heed golden rules 1 choose targetbut make sure best ability target actually fit example thousands companies years attempted pitch walt mossberg products network traffic management opens new window tools yet specializes covering consumer products something even mother would use fit find whos covering topics youre interested pitching create target list least 1015 perhaps 25 2 read writers prior articles thoroughlyread eye writers interests preferences even biases think way idea would extend topic see wrote free cloud storage opens new window write make pitch let writer know see idea fitting think reporters mind eyeshow interesting usable readers meet criteria publication boss beat assignment advertisement 3 pitch story company product believe company product interesting enough make article topic example trend pervasive need shine think story might imagine might look like hands reporter youve chosen point view prepare pitch make pitch email first send pitch reporter personal brief message idea good one reporter may respond right away dont hear back perhaps next step call call refer earlier message dont say im calling make sure got message regardless whether reporter seen recap quickly also reforwarding courtesy allow reporter see homework scan high points chance respond 4 respect reporters right make decisionits tempting ply reporter strongarmed pitch youll successful respecting right say yes job provide many meaningful reasons possible desire say yes story exclusive idea slant hasnt offered anybody else provide persons readership information fits focus hasnt presented angle ideas help 5 get straight pointthe whole idea buttering reporter topic called bad clearly phoned reason first words mouth let know think good idea reporter agrees follow quickly next steps many stories lost ability follow exactly whats asked make easy bullet points five one hour videos watch administrative assistant setting appointment determine advance exactly youd intending ask game reporter rejects idea another person another approach could story better business call handled visit reporter bit catch time willing point theyll know personal interest sincere 6 honest clear goalfor example extremely annoyed get message regional vendor urgently needing next available time discuss public relations find one reason appointment give product demo hoping would cover forbes even worse product didnt fit area coverage two executives wasted hour half time mine get coverage made highly improbable would agree return appointment genuinely want meet discuss pr 7 cant reach reporter dont repeatedly calldo listen reporters voicemail however often provide clues example reporter may vacation sick moved another beat even another publication may adamantly opposed voicemail aware message likely never heard may even offend leave message one day ample reporter left cell number message refrain using unless matter genuinely urgent reporters truly appreciate courtesy extend reaching ways prefer 8 consider twittertwitter often clue reporter theyre day example arrived dreamforce opens new window would certainly explain didnt answer phone time next contact event also many reporters respond tweets direct messages twitter faster mechanism use advantage take skill effective pr far initial pitch course bear mind experience pr lead columnist hundreds pitches ive received professional pr folks meet criteria well fact last big feature pitch responded junior pr agent sent cold email pitch publications general email shed taken time check beat assignment see id written offer way provide good value add asked additional items follow followed accurately quickly score next time feel urge send mass pr pitch hire agency save money save breath youre savvy least much chance succeed hired pr pro great story idea prepared feel free send short email give call ill waiting article originally appeared opens new window pcmagcom opens new window | 628 |
<p>"I advise everybody not to save: Spend your money. Most people save all their lives and leave it to somebody else. Money is to be enjoyed." -- Hedy Lamarr</p>
<p>Hedy Lamarr became famous as an actress, co-starring in hits with fellows such as Clark Gable and Spencer Tracy, but she was&#160;also a respected inventor, having developed a radio guidance system for torpedoes, used in World War II. She doesn't appear to have the most money sense, though, if she didn't believe in saving. Most Americans will need to save throughout their working lives to enjoy their lives and especially their retirements.</p>
<p>Continue Reading Below</p>
<p>If you're getting close to retiring or are starting to think about it, here are some key things to know.</p>
<p>Although many of us count the months and years left until we retire, retirement won't be as much fun for some of us as we expected. A 2012 study&#160;from the Employee Benefit Research Institute found that more than 10% of retirees were completely dissatisfied with retirement, with only 49% finding their retirement "very satisfying."</p>
<p>You may be tired of working, but the routine of having a place to go and things to do every day may have been serving you very well. Don't be surprised if you miss your workplace and find yourself restless in retirement. Retirees and seniors watch&#160;more television than anyone else, but that can be isolating and dangerous for their health. It's important to stay active for your physical health, as that can&#160;keep your bones and heart strong. Being social has been shown to pay big dividends, too, such as keeping you mentally and physically healthier and possibly keeping dementia at bay. Online resources can help a lot. At Meetup.com, for example, you can find and join groups of people with shared interests, such as gardening, theater, hiking, or playing board games. Online dating sites, meanwhile, can serve older singles as well as young ones.</p>
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<p>Don't assume that your retirement will last about 20 to 25 years, perhaps from age 65 to 85 or 90. More and more Americans are living well beyond that, sometimes even to 100 and beyond. Be sure to consider the possibility that your retirement might last for 35 years or more -- especially if you retire early. That's a long time. You'll not only need to keep yourself healthy and active as much as possible during that time, but you'll also need your money to be able to last a long time.</p>
<p>One reason to plan conservatively is that you don't know how much healthcare will cost you in retirement. According to Fidelity Investments, a 65-year-old couple retiring this year will spend, on average, about $260,000 out of pocket on healthcare in retirement. And that's just the average! Many people will spend much more, though many will also spend less. You can increase your odds of spending less by getting and staying as healthy as possible, exercising, and eating nutritious foods.</p>
<p>One way to ensure that you don't run out of money before you run out of breath is to buy a deferred fixed annuity, sometimes called longevity insurance. As opposed to an immediate fixed annuity, it doesn't start paying immediately. Instead, the insurer agrees to start paying at a future point, such as when you turn a certain age. For example, a 70-year-old man might spend $50,000 for an annuity that will start paying him about $1,600 per month for the rest of his life beginning at age 85.</p>
<p>You might also consider buying one or more <a href="https://www.fool.com/retirement/2016/01/09/the-pros-and-cons-of-annuities.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=7fe3de0a-59d5-11e7-a1c4-0050569d4be0&amp;utm_source=foxbusiness" type="external">fixed immediate annuities Opens a New Window.</a>, to generate dependable income for the rest of your life. It's kind of like buying yourself a pension. (Variable or indexed annuities can be very problematic, but fixed annuities are simpler, typically with fewer restrictions and fees.) Check out the kind of fixed annuity income you might buy at recent interest rates:</p>
<p>If you don't seem to have enough saved to carry you through retirement, you can make your situation better by cutting back on your spending if you have to. A little Googling will turn up lots of suggestions, such as making extra money from part-time tutoring, relocating to a less expensive home or region, and seeking senior discounts -- which can not only give you a break going to the movies but might also reduce your property taxes. There are lots of ways to <a href="https://www.fool.com/retirement/2017/06/25/12-ways-you-can-get-more-money-in-retirement.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=7fe3de0a-59d5-11e7-a1c4-0050569d4be0&amp;utm_source=foxbusiness" type="external">increase your income in retirement Opens a New Window.</a>.</p>
<p>It's true that as we approach and enter retirement, it's smart to think about shifting some assets from stocks to bonds or more stable securities. But that doesn't mean retirees can't keep a significant portion of their portfolio in the stock market, where it's likely to grow the fastest over many years. Remember that if you have 20 years of retirement ahead of you, a big chunk of your money that you won't need for at least 10 years might remain in stocks.</p>
<p>Be sure to enroll in Medicare on time -- in the month of your 65th birthday or the three months before or after it -- or you may face higher premiums for the rest of your life. Look beyond the "original" Medicare package of Part A and Part B coverage, which many people augment with Part D prescription coverage and Medigap supplemental coverage, and consider <a href="https://www.fool.com/retirement/2017/01/15/should-you-get-a-medicare-advantage-plan.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=7fe3de0a-59d5-11e7-a1c4-0050569d4be0&amp;utm_source=foxbusiness" type="external">Medicare Advantage plans Opens a New Window.</a>. Offered by private insurance companies and regulated by the federal government, they're required to offer at least as much coverage as original Medicare and they often offer more, such as dental, vision, and/or prescription coverage. They may cost you less out of pocket, too. Look into them and run the numbers.</p>
<p>You may be used to just paying taxes on income from your paycheck, but in retirement it's common to receive income from a variety of sources that receive different tax treatments. If you have savings in a regular, taxable brokerage account, for example, you'll face capital gains tax rates on any assets you sell. That's currently 15% for most people for long-term gains (and qualified dividends) and your ordinary income tax rate for short-term gains. Retirement savings accounts get different treatments, too. Money withdrawn from a Roth IRA or Roth 401(k) will be tax-free if you follow the rules. Money taken from a traditional IRA or 401(k) is treated as ordinary income. Even your Social Security income -- up to 85% of it -- can be taxed, if your income exceeds a specified level.</p>
<p>There are some special tax breaks for older folks. For example, those aged 65 or older can use a higher standard deduction than the rest of us. For 2017, the standard deduction is $6,350 for a single filer and $12,700 for those married and filing jointly. But someone who is 65 or older can add an extra&#160;$1,250 or $1,550, depending on whether you're married and/or blind. Your property taxes might be reduced, too, if you're past a certain age. Check with your local tax authorities.</p>
<p>Being deliberate and strategic about when you start collecting Social Security can really pay off. More people begin collecting benefits at 62, the earliest age at which they can do so, than at any other age, but the longer you can delay starting, the bigger your checks will be. It's not generally a huge mistake to start early, though, because while the checks will be smaller, there will be more of them. Starting to collect at 62 can help you be ready to retire sooner. Still, if you can delay and you think you may live an extra-long life, bigger checks can be handy.</p>
<p>If you're married, look into spousal strategies, as they can be extra powerful. For example, if you've earned a lot less over your working life than your spouse, your spouse's benefit checks are likely to be larger. The two of you might, if possible, start collecting your checks early while delaying collecting your spouse's checks, so that they can grow larger. Eventually, when one of you dies, the surviving spouse will get to collect the larger benefit checks.</p>
<p>Finally, understand that no matter how independent you've been for many decades, you'll probably eventually find yourself needing help in retirement. Brace yourself for that, because it can sometimes be hard. Know to expect it and perhaps practice asking for help now and then.</p>
<p>Don't leave your retirement to chance. A little thinking and planning now can make your future decades more successful. It can be smart to consult a financial advisor, too, for help strategizing about your overall retirement plans as well as your Social Security strategy.</p>
<p>The $16,122 Social Security bonus most retirees completely overlook If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $16,122 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after.&#160; <a href="http://www.fool.com/mms/mark/ecap-foolcom-social-security?aid=8727&amp;source=irreditxt0000002&amp;ftm_cam=ryr-ss-intro-report&amp;ftm_pit=3186&amp;ftm_veh=article_pitch&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=7fe3de0a-59d5-11e7-a1c4-0050569d4be0&amp;utm_source=foxbusiness" type="external">Simply click here to discover how to learn more about these strategies Opens a New Window.</a>.</p>
<p>The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=7fe3de0a-59d5-11e7-a1c4-0050569d4be0&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | advise everybody save spend money people save lives leave somebody else money enjoyed hedy lamarr hedy lamarr became famous actress costarring hits fellows clark gable spencer tracy was160also respected inventor developed radio guidance system torpedoes used world war ii doesnt appear money sense though didnt believe saving americans need save throughout working lives enjoy lives especially retirements continue reading youre getting close retiring starting think key things know although many us count months years left retire retirement wont much fun us expected 2012 study160from employee benefit research institute found 10 retirees completely dissatisfied retirement 49 finding retirement satisfying may tired working routine place go things every day may serving well dont surprised miss workplace find restless retirement retirees seniors watch160more television anyone else isolating dangerous health important stay active physical health can160keep bones heart strong social shown pay big dividends keeping mentally physically healthier possibly keeping dementia bay online resources help lot meetupcom example find join groups people shared interests gardening theater hiking playing board games online dating sites meanwhile serve older singles well young ones advertisement dont assume retirement last 20 25 years perhaps age 65 85 90 americans living well beyond sometimes even 100 beyond sure consider possibility retirement might last 35 years especially retire early thats long time youll need keep healthy active much possible time youll also need money able last long time one reason plan conservatively dont know much healthcare cost retirement according fidelity investments 65yearold couple retiring year spend average 260000 pocket healthcare retirement thats average many people spend much though many also spend less increase odds spending less getting staying healthy possible exercising eating nutritious foods one way ensure dont run money run breath buy deferred fixed annuity sometimes called longevity insurance opposed immediate fixed annuity doesnt start paying immediately instead insurer agrees start paying future point turn certain age example 70yearold man might spend 50000 annuity start paying 1600 per month rest life beginning age 85 might also consider buying one fixed immediate annuities opens new window generate dependable income rest life kind like buying pension variable indexed annuities problematic fixed annuities simpler typically fewer restrictions fees check kind fixed annuity income might buy recent interest rates dont seem enough saved carry retirement make situation better cutting back spending little googling turn lots suggestions making extra money parttime tutoring relocating less expensive home region seeking senior discounts give break going movies might also reduce property taxes lots ways increase income retirement opens new window true approach enter retirement smart think shifting assets stocks bonds stable securities doesnt mean retirees cant keep significant portion portfolio stock market likely grow fastest many years remember 20 years retirement ahead big chunk money wont need least 10 years might remain stocks sure enroll medicare time month 65th birthday three months may face higher premiums rest life look beyond original medicare package part part b coverage many people augment part prescription coverage medigap supplemental coverage consider medicare advantage plans opens new window offered private insurance companies regulated federal government theyre required offer least much coverage original medicare often offer dental vision andor prescription coverage may cost less pocket look run numbers may used paying taxes income paycheck retirement common receive income variety sources receive different tax treatments savings regular taxable brokerage account example youll face capital gains tax rates assets sell thats currently 15 people longterm gains qualified dividends ordinary income tax rate shortterm gains retirement savings accounts get different treatments money withdrawn roth ira roth 401k taxfree follow rules money taken traditional ira 401k treated ordinary income even social security income 85 taxed income exceeds specified level special tax breaks older folks example aged 65 older use higher standard deduction rest us 2017 standard deduction 6350 single filer 12700 married filing jointly someone 65 older add extra1601250 1550 depending whether youre married andor blind property taxes might reduced youre past certain age check local tax authorities deliberate strategic start collecting social security really pay people begin collecting benefits 62 earliest age age longer delay starting bigger checks generally huge mistake start early though checks smaller starting collect 62 help ready retire sooner still delay think may live extralong life bigger checks handy youre married look spousal strategies extra powerful example youve earned lot less working life spouse spouses benefit checks likely larger two might possible start collecting checks early delaying collecting spouses checks grow larger eventually one dies surviving spouse get collect larger benefit checks finally understand matter independent youve many decades youll probably eventually find needing help retirement brace sometimes hard know expect perhaps practice asking help dont leave retirement chance little thinking planning make future decades successful smart consult financial advisor help strategizing overall retirement plans well social security strategy 16122 social security bonus retirees completely overlook youre like americans youre years behind retirement savings handful littleknown social security secrets could help ensure boost retirement income example one easy trick could pay much 16122 year learn maximize social security benefits think could retire confidently peace mind after160 simply click discover learn strategies opens new window motley fool disclosure policy opens new window | 848 |
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<p>Image source: White House on Flickr.</p>
<p>Continue Reading Below</p>
<p>Since its inception, the Affordable Care Act has been a controversial law. Though it has undeniably lowered the uninsured rate to record lows -- Gallup pegs the uninsured rate at just 11% as of the first quarter of 2016 -- the ACA, which is more affably known as Obamacare, has seemed to fail consumers in other respects.</p>
<p>For example, when President Obama first introduced the ACA, he touted the ability of consumers to keep their current health plan. However, new minimum essential benefits requirements for ACA plans pushed millions of people off their pre-Obamacare plans, potentially forcing them to change doctors.</p>
<p>The emphasis of the individual mandate also hasn't sat well with the consumer. The individual mandate is the actionable component of Obamacare that requires individuals to purchase health insurance or pay a penalty come tax time. Since 2014, the first year of Obamacare's full implementation in the individual insurance market, this penalty, known as the Shared Responsibility Payment (SRP), has increased from the greater of $95 or 1% of modified adjusted gross income (MAGI) to the greater of $695 or 2.5% of MAGI in 2016. Long story short, consumers don't like being forced to buy health insurance, and they especially don't like paying a penalty for choosing not to purchase it.</p>
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<p>But the biggest issue for Obamacare has always been whether it would be sustainable on a cost basis.</p>
<p>Image source: Getty Images.</p>
<p>On paper, Obamacare looked as if it would go a long way toward curbing premium inflation. It was designed to allow consumers to shop for and compare health plans in a transparent manner through their state's marketplace exchange. The presumption was that if consumers had more transparent information, they would make smarter purchasing decisions.</p>
<p>Obamacare also had certain incentives built in to encourage participation by plenty of insurance companies, with the idea being that more competition would result in competitive prices for the consumer. The risk corridor was a type of risk-pooling introduced with the ACA that, in a nutshell, required overly profitable insurers to contribute to a fund that would be paid out to ACA insurers that were losing excessive amounts of money. The financial backdrop was expected to draw in new participants, ultimately giving them a year or two to right the ship if they priced their premiums too low.</p>
<p>Unfortunately for the consumer, Obamacare's premium inflation curbs have mostly failed.</p>
<p>To begin with, fewer young adults than expected have enrolled in Obamacare. Young adults are typically healthy and frequent the doctor a lot less, so their premium dollars are critical to offsetting the higher costs of treating older and sicker patients. The problem here could very well be that the SRP simply isn't high enough to coerce young adults to enroll. The Kaiser Family Foundation estimated that the average SRP in 2016 could be $969. Now compare that to the lowest-cost bronze plan in each state which could be $2,400 for the year -- and that's on the low end. The two costs aren't even close, and young adults could simply be choosing the cheaper path, which in this case means not buying health insurance.</p>
<p>Image source: Getty Images.</p>
<p>Also, adverse selection has been a problem for insurers. Prior to the implementation of Obamacare, insurers could deny coverage to consumers with pre-existing conditions. However, Obamacare's rules dictate that insurers can't pick and choose who they'll cover. This has allowed sicker individuals who previously had no access to insurance to enroll, which is great for those patients, but has pushed up medical expenses for insurers.</p>
<p>The risk corridor has been an utter disaster, too. According to Highmark, a regional insurer currently suing the federal government over the risk corridor, the federal government had initially promised to provide funding for the risk corridor if there weren't enough funds generated from overly profitable insurers to pay those insurers with big losses on the Obamacare exchanges. It later backed off those claims, instead choosing to run the risk corridor as a budget-neutral entity. The result was that only $362 million was paid out to money-losing insurers out of $2.87 billion in funds requested.</p>
<p>Among the most reliant on the risk corridor were low-cost insurers, such as Obamacare's healthcare cooperatives, or co-ops. Because the risk corridor failed to provide the financial protection that insurers assumed was a guarantee, 16 out of 23 approved co-ops have closed their doors, or announced their intention to close their doors, by the end of the year.</p>
<p>This year, according to an analysis by the Kaiser Family Foundation of the lowest-cost-silver plans in 14 major cities, as well as the publicized insurer rate requests of nearly all 50 states (note, many of these rate requests haven't been finalized with their state's Office of the Insurance Commissioner), Obamacare premiums could rise by an average of 10%, or more. This huge spike in premiums has some pundits suggesting we could be on the verge of a "death spiral," or in simpler terms, a situation where costs rapidly rise, product offerings shrink, and low-risk policyholders run for the sidelines.</p>
<p>Image source: Getty Images.</p>
<p>Just this past week we witnessed our third instance of a national insurer announcing that it was scaling back its Obamacare individual market coverage after hefty losses of approximately $300 million per year. On Monday, Aetna (NYSE: AET) announced that it would be pulling out of all but four states (Nebraska, Delaware, Iowa, and Virginia) almost entirely in the upcoming year, servicing just 242 counties. That's a 69% drop from the 778 counties where it's offering health insurance in 2016. Here are a few of the key points issued from Aetna's press release on Monday:</p>
<p>But this extends well beyond Aetna. Earlier this year, UnitedHealth Group (NYSE: UNH) announced that losses of around a half-billion dollars in 2016 from its ACA plans would necessitate a pullback in its 2017 offerings. When all was said and done, UnitedHealth said it was reducing its offerings to just three states (New York, Nevada, and Virginia) in 2017 from 34 in 2016.</p>
<p>The same story was heard from Humana (NYSE: HUM). The interesting thing about Humana's updated coverage guidance is that it came on the same day the U.S. Justice Department <a href="http://www.fool.com/podcasts/industry-focus/2016-08-17-healthcare-two-big-back-alley-break?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">announced Opens a New Window.</a> that it would block the proposed merger between Aetna and Humana. Aetna had suggested that the cost-savings from combining would allow it to expand its ACA offerings into new states, but the DOJ putting the kibosh on the merger caused both Humana and Aetna to pull back -- albeit Humana did so immediately. Humana is scaling back its coverage from 19 states in 2016 to roughly 11 in 2017, but the real story is that it's cutting the number of counties it's offering coverage in from 1,351 this year to just 156 next year. That's close to a 90% decline.</p>
<p>Without getting into nitty-gritty statistics, the 16 co-ops' failures, coupled with the reduced coverage from three of five national insurers, could result in around 2 million people who are forced to seek a new plan next year. On the flipside, margins for Aetna, UnitedHealth, and Humana should be expected to rise, even with significantly reduced premium revenue from the ACA.</p>
<p>Image source: Getty Images.</p>
<p>Rapidly rising premiums and fewer product choices for the consumer have every hallmark of the beginnings of a death spiral.</p>
<p>However, the one aspect of Obamacare that could provide a saving grace and keep the program from going over the cliff is the high percentage of enrollees receiving Medicaid under the Medicaid expansion, or the Advanced Premium Tax Credit (APTC).</p>
<p>According to data from the Centers for Medicare and Medicaid Services, 85% of all enrollees are receiving some sort of subsidy to help lower their premium cost and/or copay/coinsurance/deductible. Consumers receiving a subsidy are far less likely to drop their coverage, and they're far more likely to be able to absorb large increases in monthly premiums since they're only paying for a fraction of what non-subsidized premium costs would be. With a subsidy, consumers are paying an average of $113 a month in 2016. Without the APTC, the average consumer is exposed to a $408 a month premium.</p>
<p>As long as a majority of enrollees continue to receive a subsidy, the program appears to be sheltered from a death spiral. But it's still unclear whether or not the program can survive over the long-term if fewer low-risk policyholders are enrolled.</p>
<p>A secret billion-dollar stock opportunity The world's biggest tech company forgot to show you something, but a few Wall Street analysts and the Fool didn't miss a beat: There's a small company that's powering their brand-new gadgets and the coming revolution in technology. And we think its stock price has nearly unlimited room to run for early in-the-know investors! To be one of them, <a href="http://www.fool.com/mms/mark/ecap-foolcom-apple-wearable?aid=6965&amp;source=irbeditxt0000017&amp;ftm_cam=rb-wearable-d&amp;ftm_pit=2518&amp;ftm_veh=article_pitch&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">just click here Opens a New Window.</a>.</p>
<p><a href="http://my.fool.com/profile/TMFUltraLong/info.aspx" type="external">Sean Williams Opens a New Window.</a>has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name <a href="http://caps.fool.com/player/tmfultralong.aspx" type="external">TMFUltraLong Opens a New Window.</a>, and check him out on Twitter, where he goes by the handle <a href="http://twitter.com/#%21/TMFUltraLong" type="external">@TMFUltraLong Opens a New Window.</a>.</p>
<p>The Motley Fool recommends UnitedHealth Group. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=isiedilnk018048&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://wiki.fool.com/Motley" type="external">considering a diverse range of insights Opens a New Window.</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | image source white house flickr continue reading since inception affordable care act controversial law though undeniably lowered uninsured rate record lows gallup pegs uninsured rate 11 first quarter 2016 aca affably known obamacare seemed fail consumers respects example president obama first introduced aca touted ability consumers keep current health plan however new minimum essential benefits requirements aca plans pushed millions people preobamacare plans potentially forcing change doctors emphasis individual mandate also hasnt sat well consumer individual mandate actionable component obamacare requires individuals purchase health insurance pay penalty come tax time since 2014 first year obamacares full implementation individual insurance market penalty known shared responsibility payment srp increased greater 95 1 modified adjusted gross income magi greater 695 25 magi 2016 long story short consumers dont like forced buy health insurance especially dont like paying penalty choosing purchase advertisement biggest issue obamacare always whether would sustainable cost basis image source getty images paper obamacare looked would go long way toward curbing premium inflation designed allow consumers shop compare health plans transparent manner states marketplace exchange presumption consumers transparent information would make smarter purchasing decisions obamacare also certain incentives built encourage participation plenty insurance companies idea competition would result competitive prices consumer risk corridor type riskpooling introduced aca nutshell required overly profitable insurers contribute fund would paid aca insurers losing excessive amounts money financial backdrop expected draw new participants ultimately giving year two right ship priced premiums low unfortunately consumer obamacares premium inflation curbs mostly failed begin fewer young adults expected enrolled obamacare young adults typically healthy frequent doctor lot less premium dollars critical offsetting higher costs treating older sicker patients problem could well srp simply isnt high enough coerce young adults enroll kaiser family foundation estimated average srp 2016 could 969 compare lowestcost bronze plan state could 2400 year thats low end two costs arent even close young adults could simply choosing cheaper path case means buying health insurance image source getty images also adverse selection problem insurers prior implementation obamacare insurers could deny coverage consumers preexisting conditions however obamacares rules dictate insurers cant pick choose theyll cover allowed sicker individuals previously access insurance enroll great patients pushed medical expenses insurers risk corridor utter disaster according highmark regional insurer currently suing federal government risk corridor federal government initially promised provide funding risk corridor werent enough funds generated overly profitable insurers pay insurers big losses obamacare exchanges later backed claims instead choosing run risk corridor budgetneutral entity result 362 million paid moneylosing insurers 287 billion funds requested among reliant risk corridor lowcost insurers obamacares healthcare cooperatives coops risk corridor failed provide financial protection insurers assumed guarantee 16 23 approved coops closed doors announced intention close doors end year year according analysis kaiser family foundation lowestcostsilver plans 14 major cities well publicized insurer rate requests nearly 50 states note many rate requests havent finalized states office insurance commissioner obamacare premiums could rise average 10 huge spike premiums pundits suggesting could verge death spiral simpler terms situation costs rapidly rise product offerings shrink lowrisk policyholders run sidelines image source getty images past week witnessed third instance national insurer announcing scaling back obamacare individual market coverage hefty losses approximately 300 million per year monday aetna nyse aet announced would pulling four states nebraska delaware iowa virginia almost entirely upcoming year servicing 242 counties thats 69 drop 778 counties offering health insurance 2016 key points issued aetnas press release monday extends well beyond aetna earlier year unitedhealth group nyse unh announced losses around halfbillion dollars 2016 aca plans would necessitate pullback 2017 offerings said done unitedhealth said reducing offerings three states new york nevada virginia 2017 34 2016 story heard humana nyse hum interesting thing humanas updated coverage guidance came day us justice department announced opens new window would block proposed merger aetna humana aetna suggested costsavings combining would allow expand aca offerings new states doj putting kibosh merger caused humana aetna pull back albeit humana immediately humana scaling back coverage 19 states 2016 roughly 11 2017 real story cutting number counties offering coverage 1351 year 156 next year thats close 90 decline without getting nittygritty statistics 16 coops failures coupled reduced coverage three five national insurers could result around 2 million people forced seek new plan next year flipside margins aetna unitedhealth humana expected rise even significantly reduced premium revenue aca image source getty images rapidly rising premiums fewer product choices consumer every hallmark beginnings death spiral however one aspect obamacare could provide saving grace keep program going cliff high percentage enrollees receiving medicaid medicaid expansion advanced premium tax credit aptc according data centers medicare medicaid services 85 enrollees receiving sort subsidy help lower premium cost andor copaycoinsurancedeductible consumers receiving subsidy far less likely drop coverage theyre far likely able absorb large increases monthly premiums since theyre paying fraction nonsubsidized premium costs would subsidy consumers paying average 113 month 2016 without aptc average consumer exposed 408 month premium long majority enrollees continue receive subsidy program appears sheltered death spiral still unclear whether program survive longterm fewer lowrisk policyholders enrolled secret billiondollar stock opportunity worlds biggest tech company forgot show something wall street analysts fool didnt miss beat theres small company thats powering brandnew gadgets coming revolution technology think stock price nearly unlimited room run early intheknow investors one click opens new window sean williams opens new windowhas material interest companies mentioned article follow caps screen name tmfultralong opens new window check twitter goes handle tmfultralong opens new window motley fool recommends unitedhealth group try 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<p>Image source: Getty.</p>
<p>Continue Reading Below</p>
<p>Now that we're officially into 2017, it's <a href="http://www.fool.com/investing/general/2016/01/05/3-growth-stocks-for-2016.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">time again Opens a New Window.</a>for me <a href="http://www.fool.com/investing/general/2015/01/01/3-top-growth-stocks-for-2015.aspx?source=isesitlnk0000001&amp;mrr=1.00&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">to reveal Opens a New Window.</a> three growth stocksthat I expected to outperform the market in the coming years.</p>
<p>This is now the fourth year running of my new year's prognostications. As is often the case for growth-style, "Rule Breakers" investing, our previous list of ideas have had some big winners and some big losers. 2015 recommendation Ubiquiti Networks (NASDAQ: UBNT) has nearly doubled in value in two years, while Stratasys'(NASDAQ: SSYS)stock price has fallen by 80%. When taken together, 2014's picks have gained an average absolute return of 23%, 2015's have returned 69%, and 2016's have lost 32%.</p>
<p>Starting prices are as of the original publishing dates: 12/30/13, 1/1/15, and 1/5/16. Total return figures include S&amp;P dividends. Zillow split into two classes during 2015; we are tracking "ZG." SolarCity was acquired by Tesla Motors in November 2016 in an all-stock deal; Recent price reflects the equivalent of 0.11 shares of TSLA. Prices and returns are as of 1/2/17. Data source: S&amp;P Capital IQ and S&amp;P Dow Jones Indices.</p>
<p>The volatility of this roller coaster of ups and downs might keep some investors up at night. But over time, the math behind it tends to work out in our favor.</p>
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<p>As of our most recent December issue of Motley FoolRule Breakers, only 40% of our individual recommendations from <a href="https://www.fool.com/premium/rule-breakers/recommendations/active/?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">the past 12 years Opens a New Window.</a> are actually outperforming the S&amp;P 500 over the same time frame. But taken collectively, the portfolio of recommendations has an average absolute return of 83%, which is a full 30 percentage points greater than the 52% the market returned over the same period.</p>
<p>Growth-style investing works best when you allow your biggest winners to run: They compound their returns over time and overcompensate for the losses from the laggards. But it also requires identifying the right companies at the right time and having a lot of patience.</p>
<p>To help identify those big future winners, here are three qualities I always look for in growth companies:</p>
<p>1. Operational performance. When you invest, you're buying a stake in a business, so you want to find businesses that are performing very well. Develop a list of meaningful operational metrics that are relevant to the particular industry, and then look for companies that are killing it where it really counts. This means putting less emphasis on the current P/E ratio, and more on metrics that evaluate business performance.</p>
<p>2. Smart and visionary management. Growth companies are still... growing. This makes them much more sensitive to managerial decisions -- whether good or bad. Look for leaders who are committed to the long-term success of the company. I like CEOs who are either co-founders, or who have a significant ownership stake -- preferably both.</p>
<p>3. Huge market potential. Small companies don't always do so well in price wars. Find industries large enough to support a new player. I look for the company's total annual revenue to be a very small slice of the overall industry.</p>
<p>It's time to fire up the crystal ball once again. Without further ado, here are my three top recommendations for 2017.</p>
<p>1. Illumina(NASDAQ: ILMN) is the global leader in genomic sequencing.</p>
<p>Illumina has run more than 90% of the world's DNA tests, which are increasingly being used to treat existing illnesses or to screen for cancer. But the real catalyst going forward is that -- largely thanks to Illumina's R&amp;D efforts -- the cost of sequencing a human genome has fallen to less than $1,000. This is driving adoption and insurance reimbursement.The total number of people who have had their full genome sequenced increased twentyfold in two years, from 40,000 at the end of 2013 to more than 800,000 by 2015. DNA sequencing may have even helped to explain how <a href="https://www.scientificamerican.com/article/ozzy-osbourne-genome/" type="external">Ozzy Osbourne Opens a New Window.</a> has managed to survive so many decades of rock and roll.</p>
<p>Sixty percent of Illumina's revenue comes from the recurring sale of consumables, so the falling price point of the tests is great for the company's business and margins.Chairman Jay Flatley was the visionary who refined the company's sequencing technology and processes, while CEO Francis deSouza is a bigger-picture systems thinker who will lead the company to the next level.</p>
<p>We think Illumina may have cracked the code of excellent future investor returns.</p>
<p>2. Ellie Mae(NYSE: ELLI) offers a fully automated solution for lenders to use to make mortgage origination loans.</p>
<p>The company's <a href="http://www.elliemae.com/encompass/encompass-overview" type="external">Encompass Opens a New Window.</a> cloud-based software simplifies the extremely complex mortgage process, which allows lenders to close more loans and capture more commissions. Encompass now has 160,000 users, and the $640 of revenue per user in the most recent third quarter was an all-time high.</p>
<p>CEO <a href="https://www.youtube.com/watch?v=PTNqC1wj-8I" type="external">Jonathan Corr Opens a New Window.</a> was instrumental in helping Chairman Sig Anderman build the original Encompass platform, and he really knows the the ins and outs of the industry. The current 1.3 million new construction starts is the highest level of new activity since 2007, and there are expected to be more than $1 trillion of home purchases in 2017.</p>
<p>There are plenty of business opportunities for Ellie Mae to build on in the coming years.</p>
<p>3. 2U (NASDAQ: TWOU) administers graduate education courses over the internet.</p>
<p>The company teams up with larger institutions -- including the University of Southern California, the University of North Carolina, or UC-Berkeley -- to enroll students into existing classes. Programs tend to start small but tend to scale up quickly. For example, UNC had just 19 students in its online MBA program with 2U in 2011, but it has they 729 today, and U.S. News &amp; World Report just ranked it as the <a href="https://requestinfo.onlinemba.unc.edu/index8.html?x=OFB&amp;s=search_brand_google&amp;l=GGL%7CUNC-MBA%7CSEM%7CBRD%7CTIER0%7CBROAD%7CBrand-Plus%7COffline&amp;ef_id=k:p15721521152_c:163244917866_d:c_n:g_ti:kwd-68928655916&amp;gclid=CLn61u2zptECFc1LDQodoxQKUg&amp;gclsrc=aw.ds&amp;experimentid=2873442187" type="external">best online MBA Opens a New Window.</a> program in the nation.</p>
<p>2U markets its program, runs the online platform, and produces content in exchange for taking roughly two-thirds of student tuition.UC-Berkeley recently praised it as "arguably the most successful online degree on the UC Berkeley campus, perhaps in the entire UC system."</p>
<p>Chip Paucek was 2U's co-founder and remains as CEO today. He'll lead the company's growth into an industry with huge upside potential. The U.S. has more than 2,300 four-year colleges, yet 2U's total enrollment is still only around 20,000 students.</p>
<p>We think 2U brings a new meaning to "best in class."</p>
<p>Great businesses produce great results. Illumina, Ellie Mae, and 2U all have smart management teams that focus on the right metrics to profit from some of the largest opportunities in the business world. Great companies like these tend to knock it out of the park at <a href="http://www.fool.com/investing/2016/12/13/2-must-know-investing-tips-from-clayton-christense.aspx?source=isesitlnk0000001&amp;mrr=1.00&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">fulfilling their customer needs Opens a New Window.</a>, which forms the foundation of a competitive advantage that allows them to outperform for years into the future.</p>
<p>At The Motley Fool, we look for long-term winners who use technology, a business model, or culture as an innovative weapon. Each of our three picks for 2017 has recently been profiled in our Motley Fool Explorerservice, which identifies companies well poised to benefit from a developing investment trend. To learn more about Motley Fool Explorerand to see a few of our most recent investing ideas, <a href="http://www.fool.com/free-access/1502/explorer/?aid=8958&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">click here Opens a New Window.</a>.</p>
<p>10 stocks we like better than Illumina When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*</p>
<p>David and Tom just revealed what they believe are the <a href="http://infotron.fool.com/infotrack/click?url=http%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=cb545881-70b0-477f-ba46-82ea2e95ae88&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now and Illumina wasn't one of them! That's right -- they think these 10 stocks are even better buys.</p>
<p><a href="http://infotron.fool.com/infotrack/click?url=http%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-dyn%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=cb545881-70b0-477f-ba46-82ea2e95ae88&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Click here Opens a New Window.</a> to learn about these picks!</p>
<p>*Stock Advisor returns as of January 4, 2017</p>
<p><a href="http://my.fool.com/profile/TMFInnovator/info.aspx" type="external">Simon Erickson Opens a New Window.</a> owns shares of Ellie Mae, Illumina, and Stratasys. The Motley Fool owns shares of and recommends Ellie Mae and Illumina. The Motley Fool recommends 2U, Stratasys, and Ubiquiti Networks. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | image source getty continue reading officially 2017 time opens new windowfor reveal opens new window three growth stocksthat expected outperform market coming years fourth year running new years prognostications often case growthstyle rule breakers investing previous list ideas big winners big losers 2015 recommendation ubiquiti networks nasdaq ubnt nearly doubled value two years stratasysnasdaq ssysstock price fallen 80 taken together 2014s picks gained average absolute return 23 2015s returned 69 2016s lost 32 starting prices original publishing dates 123013 1115 1516 total return figures include sampp dividends zillow split two classes 2015 tracking zg solarcity acquired tesla motors november 2016 allstock deal recent price reflects equivalent 011 shares tsla prices returns 1217 data source sampp capital iq sampp dow jones indices volatility roller coaster ups downs might keep investors night time math behind tends work favor advertisement recent december issue motley foolrule breakers 40 individual recommendations past 12 years opens new window actually outperforming sampp 500 time frame taken collectively portfolio recommendations average absolute return 83 full 30 percentage points greater 52 market returned period growthstyle investing works best allow biggest winners run compound returns time overcompensate losses laggards also requires identifying right companies right time lot patience help identify big future winners three qualities always look growth companies 1 operational performance invest youre buying stake business want find businesses performing well develop list meaningful operational metrics relevant particular industry look companies killing really counts means putting less emphasis current pe ratio metrics evaluate business performance 2 smart visionary management growth companies still growing makes much sensitive managerial decisions whether good bad look leaders committed longterm success company like ceos either cofounders significant ownership stake preferably 3 huge market potential small companies dont always well price wars find industries large enough support new player look companys total annual revenue small slice overall industry time fire crystal ball without ado three top recommendations 2017 1 illuminanasdaq ilmn global leader genomic sequencing illumina run 90 worlds dna tests increasingly used treat existing illnesses screen cancer real catalyst going forward largely thanks illuminas rampd efforts cost sequencing human genome fallen less 1000 driving adoption insurance reimbursementthe total number people full genome sequenced increased twentyfold two years 40000 end 2013 800000 2015 dna sequencing may even helped explain ozzy osbourne opens new window managed survive many decades rock roll sixty percent illuminas revenue comes recurring sale consumables falling price point tests great companys business marginschairman jay flatley visionary refined companys sequencing technology processes ceo francis desouza biggerpicture systems thinker lead company next level think illumina may cracked code excellent future investor returns 2 ellie maenyse elli offers fully automated solution lenders use make mortgage origination loans companys encompass opens new window cloudbased software simplifies extremely complex mortgage process allows lenders close loans capture commissions encompass 160000 users 640 revenue per user recent third quarter alltime high ceo jonathan corr opens new window instrumental helping chairman sig anderman build original encompass platform really knows ins outs industry current 13 million new construction starts highest level new activity since 2007 expected 1 trillion home purchases 2017 plenty business opportunities ellie mae build coming years 3 2u nasdaq twou administers graduate education courses internet company teams larger institutions including university southern california university north carolina ucberkeley enroll students existing classes programs tend start small tend scale quickly example unc 19 students online mba program 2u 2011 729 today us news amp world report ranked best online mba opens new window program nation 2u markets program runs online platform produces content exchange taking roughly twothirds student tuitionucberkeley recently praised arguably successful online degree uc berkeley campus perhaps entire uc system chip paucek 2us cofounder remains ceo today hell lead companys growth industry huge upside potential us 2300 fouryear colleges yet 2us total enrollment still around 20000 students think 2u brings new meaning best class great businesses produce great results illumina ellie mae 2u smart management teams focus right metrics profit largest opportunities business world great companies like tend knock park fulfilling customer needs opens new window forms foundation competitive advantage allows outperform years future motley fool look longterm winners use technology business model culture innovative weapon three picks 2017 recently profiled motley fool explorerservice identifies companies well poised benefit developing investment trend learn motley fool explorerand see recent investing ideas click opens new window 10 stocks like better illumina investing geniuses david tom gardner stock tip pay listen newsletter run decade motley fool stock advisor tripled market david tom revealed believe 10 best stocks opens new window investors buy right illumina wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns january 4 2017 simon erickson opens new window owns shares ellie mae illumina stratasys motley fool owns shares recommends ellie mae illumina motley fool recommends 2u stratasys ubiquiti networks motley fool disclosure policy opens new window | 808 |
<p>Despite falling steadily since June, the price of gold is still up more than 7% year to date. And the upward movement may well continue as fear and volatility creep into the market in reaction to various controversies unfolding outside of Wall Stree. This bodes well for gold miners, whose stocks usually climb with rising gold prices.</p>
<p>Of course, this doesn't mean that all gold miners would make wise investments now. In my view, investors would most benefit from going with an industry leader, the only gold company on the S&amp;P 500: Newmont Mining Corp. (NYSE: NEM).</p>
<p>Continue Reading Below</p>
<p>Since 2015, Newmont's management has proven to shareholders that the company is on the right track. Even with the price of gold falling over the past three years, Newmont's stock has risen more than 27%. In fact, it's the only company among its peers that can show a net rise in its stock price over the period.</p>
<p>Skeptics may contend that Newmont can largely attribute its climb over the past three years to an 84%&#160; <a href="https://www.fool.com/investing/2017/01/19/newmont-mining-had-a-great-2016-will-it-lose-its-l.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=d5a6c58c-669b-11e7-9f70-0050569d4be0&amp;utm_source=foxbusiness" type="external">jump Opens a New Window.</a>&#160;in 2016 -- a year in which investors reacted favorably to several developments at the miner. For example, it commenced gold production at two locations: Merian and Long Canyon. Also, its divestment of Indonesian copper and gold mine Batu Hijau for a total consideration of $1.3 billion pleased shareholders. But to discount Newmont's rise stretching back to 2014 because of its successes in 2016 is illogical; the stocks of Newmont's peers also had gains in 2016. For example,&#160;Yamana Gold (NYSE: AUY) <a href="https://www.fool.com/investing/2017/01/23/yamana-gold-jumped-46-in-2016-can-it-jump-even-hig.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=d5a6c58c-669b-11e7-9f70-0050569d4be0&amp;utm_source=foxbusiness" type="external">rose Opens a New Window.</a> 46%, while&#160;Kinross Gold (NYSE: KGC) <a href="https://www.fool.com/investing/2017/01/25/kinross-gold-soared-65-in-2016-but-it-still-looks.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=d5a6c58c-669b-11e7-9f70-0050569d4be0&amp;utm_source=foxbusiness" type="external">soared Opens a New Window.</a> 65%, and Barrick Gold (NYSE: ABX) more than <a href="https://www.fool.com/investing/2017/01/11/barrick-gold-doubled-in-2016-will-it-soar-even-hig.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=d5a6c58c-669b-11e7-9f70-0050569d4be0&amp;utm_source=foxbusiness" type="external">doubled. Opens a New Window.</a>&#160;But the superior past performance of Newmont's stock doesn't guarantee a similar future. Rather, it is based on other signs that one can predict this company can withstand the potential turbulence ahead.</p>
<p>One reason why Newmont's prospects appear more promising than those of its peers is its strong balance sheet. To sustain mining operations and pursue development of new projects, miners must continually reinvest significant capital in their businesses. Consequently, many find themselves in precarious positions, with balance sheets weighed down heavily by debt. But not Newmont.</p>
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<p>Due, in part, to its 60% reduction in net debt from fiscal 2013 through fiscal 2016, Newmont is less reliant on leverage; its net-debt-to-adjusted-EBITDA ratio is well below those of its peers. According to management, the company's balance sheet will continue to improve. During the company's first-quarter conference call,&#160;CFO Nancy Buese said, "We anticipate further reducing our debt when our $575 million convertible notes come due in July of this year." And with only $626 million in debt due from 2018 to 2021, the company may strengthen its balance sheet even more.</p>
<p>Another quality which positions the company to continue its success is its ability to grow its operating cash flow.</p>
<p>Besides Goldcorp (NYSE: GG) which has seen its operational cash flow decline, most of Newmont's peers have succeeded in increasing their cash from operations overall in recent years; however, Newmont has reported significantly more growth. And the growth has continued into 2017. On the same conference call, management recognized that in Q1, cash from continuing operations more than doubled year over year due to strong production at&#160;Merian, Cripple Creek &amp; Victor, and Long Canyon.</p>
<p>The company's strong cash flow enables it to reinvest in its business without burdening its balance sheet with more debt. This will serve the company well as it pursues the development of new projects -- an arena in which it has plenty of opportunities.</p>
<p>Management, moreover, is confident that the company will be able to increase its reserves even more without having to resort to acquisitions. For one, it believes that there's plenty of potential left at Merian and Long Canyon, estimating a potential conversion of 75% of the inventory at both sites to reserves and resources; in addition, at the Australian mine, Tanami, management estimates converting 70% of the inventory to reserves and resources. The company also recognizes potential reserves and resources additions at the Northwest Exodus and Twin Creeks projects at the Carlin mine.</p>
<p>Developing new projects is important for miners, but it's critical that they are able to maintain gold production while keeping expenses down. According to management, this an area in which its performance will improve in the coming years. Whereas it estimates all-in sustaining costs (AISC) per gold ounce between $940 and $1,000 in fiscal 2017, it foresees AISC per gold ounce falling to between $870 to $970 for fiscal 2019 to 2021.</p>
<p>There's no telling what lies ahead for the market. Some investors foresee volatility, while others peer into their crystal balls and see the promise of a bull market. Prognostication aside, Newmont seems well positioned to endure whatever the future holds. Thanks to its strong balance sheet, solid cash flow, and numerous organic growth opportunities, the company is in a much better position than many of its peers, suggesting the company has a golden future before it.</p>
<p>10 stocks we like better than Newmont MiningWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*</p>
<p>David and Tom just revealed what they believe are the <a href="http://infotron.fool.com/infotrack/click?url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-static%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=5603d5de-d9fc-4085-9e52-75d85d9380fa&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=d5a6c58c-669b-11e7-9f70-0050569d4be0&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now... and Newmont Mining wasn't one of them! That's right -- they think these 10 stocks are even better buys.</p>
<p><a href="http://infotron.fool.com/infotrack/click?url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-foolcom-sa-bbn-static%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=5603d5de-d9fc-4085-9e52-75d85d9380fa&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=d5a6c58c-669b-11e7-9f70-0050569d4be0&amp;utm_source=foxbusiness" type="external">Click here Opens a New Window.</a> to learn about these picks!</p>
<p>*Stock Advisor returns as of July 6, 2017</p>
<p><a href="http://my.fool.com/profile/scott81236/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=d5a6c58c-669b-11e7-9f70-0050569d4be0&amp;utm_source=foxbusiness" type="external">Scott Levine Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=d5a6c58c-669b-11e7-9f70-0050569d4be0&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | despite falling steadily since june price gold still 7 year date upward movement may well continue fear volatility creep market reaction various controversies unfolding outside wall stree bodes well gold miners whose stocks usually climb rising gold prices course doesnt mean gold miners would make wise investments view investors would benefit going industry leader gold company sampp 500 newmont mining corp nyse nem continue reading since 2015 newmonts management proven shareholders company right track even price gold falling past three years newmonts stock risen 27 fact company among peers show net rise stock price period skeptics may contend newmont largely attribute climb past three years 84160 jump opens new window160in 2016 year investors reacted favorably several developments miner example commenced gold production two locations merian long canyon also divestment indonesian copper gold mine batu hijau total consideration 13 billion pleased shareholders discount newmonts rise stretching back 2014 successes 2016 illogical stocks newmonts peers also gains 2016 example160yamana gold nyse auy rose opens new window 46 while160kinross gold nyse kgc soared opens new window 65 barrick gold nyse abx doubled opens new window160but superior past performance newmonts stock doesnt guarantee similar future rather based signs one predict company withstand potential turbulence ahead one reason newmonts prospects appear promising peers strong balance sheet sustain mining operations pursue development new projects miners must continually reinvest significant capital businesses consequently many find precarious positions balance sheets weighed heavily debt newmont advertisement due part 60 reduction net debt fiscal 2013 fiscal 2016 newmont less reliant leverage netdebttoadjustedebitda ratio well peers according management companys balance sheet continue improve companys firstquarter conference call160cfo nancy buese said anticipate reducing debt 575 million convertible notes come due july year 626 million debt due 2018 2021 company may strengthen balance sheet even another quality positions company continue success ability grow operating cash flow besides goldcorp nyse gg seen operational cash flow decline newmonts peers succeeded increasing cash operations overall recent years however newmont reported significantly growth growth continued 2017 conference call management recognized q1 cash continuing operations doubled year year due strong production at160merian cripple creek amp victor long canyon companys strong cash flow enables reinvest business without burdening balance sheet debt serve company well pursues development new projects arena plenty opportunities management moreover confident company able increase reserves even without resort acquisitions one believes theres plenty potential left merian long canyon estimating potential conversion 75 inventory sites reserves resources addition australian mine tanami management estimates converting 70 inventory reserves resources company also recognizes potential reserves resources additions northwest exodus twin creeks projects carlin mine developing new projects important miners critical able maintain gold production keeping expenses according management area performance improve coming years whereas estimates allin sustaining costs aisc per gold ounce 940 1000 fiscal 2017 foresees aisc per gold ounce falling 870 970 fiscal 2019 2021 theres telling lies ahead market investors foresee volatility others peer crystal balls see promise bull market prognostication aside newmont seems well positioned endure whatever future holds thanks strong balance sheet solid cash flow numerous organic growth opportunities company much better position many peers suggesting company golden future 10 stocks like better newmont miningwhen investing geniuses david tom gardner stock tip pay listen newsletter run decade motley fool stock advisor tripled market david tom revealed believe 10 best stocks opens new window investors buy right newmont mining wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns july 6 2017 scott levine opens new window position stocks mentioned motley fool position stocks mentioned motley fool disclosure policy opens new window | 596 |
<p><a href="http://www.thedailysheeple.com/when-the-cdc-tells-us-to-prepare-for-the-ebola-pandemic-things-are-about-to-get-real_092014/cdc-issues-a-checklist-for-ebola-preparedness" type="external" /></p>
<p>Are you ready for the possibility of an <a href="" type="internal">Ebola pandemic</a> that will interrupt the day-to-day life of most Americans?</p>
<p>Because now, the CDC has issued a checklist and said that&#160;“Now is the time to prepare.”</p>
<p>You can read the entire document <a href="http://www.cdc.gov/vhf/ebola/pdf/hospital-checklisk-ebola-preparedness.pdf" type="external">HERE</a>. As well, the <a href="" type="internal">state department has purchased 160,000 Ebola Hazmat suits</a>.</p>
<p>The checklist is a directory for hospitals and medical personnel.</p>
<p>“Every hospital should ensure that it can detect a patient with Ebola, protect healthcare workers so they can safely care for the patient, and respond in a coordinated fashion…</p>
<p>While we are not aware of any domestic Ebola Virus Disease cases (other than two American citizens who were medically evacuated to the United States), now is the time to prepare, as it is possible that individuals with EVD in West Africa may travel to the United States, exhibit signs and symptoms of EVD, and present to facilities.”</p>
<p>The CDC’s Ebola virus page is <a href="http://www.cdc.gov/vhf/ebola/index.html" type="external">HERE</a>.</p>
<p>The <a href="" type="internal">World Health Organization</a> and other agencies have gone to great lengths to avoid releasing information that might cause a <a href="" type="internal">panic</a>. You can bet that if they’ve gone so far as to issue this warning, things are about to get real.</p>
<p>The&#160; <a href="http://www.shtfplan.com/headline-news/just-in-case-state-department-orders-160000-ebola-hazmat-suits_09152014" type="external">state department has purchased 160,000 Ebola Hazmat suits</a>. If the government is getting ready for an outbreak, shouldn’t you get ready too?</p>
<p>Last month, I wrote an article expressing my concern that the virus was going to rampage across the country. In it, I suggested that the best way to survive unscathed was to <a href="" type="internal">go into lockdown with your family</a>:</p>
<p>This Ebola thing could go bad in a hurry. And by bad I mean that it has killed well over half of the people who’ve contracted it in West Africa. Not only do we have the possibility of Ebola to contend with, but several varieties of plague are also on the uptick over the past couple of months, something that has been put on the back burner due to the fear of Ebola. A&#160; <a href="http://mashable.com/2014/07/22/chinese-town-on-lock-down-after-bubonic-plague-death/" type="external">city in China was locked down last week due to the Bubonic Plague</a>&#160;and&#160; <a href="http://www.bloomberg.com/news/2014-07-18/four-cases-of-life-threatening-plague-found-in-colorado.html" type="external">the Black Plague caused one man to die and 3 more people to become ill in Colorado&#160;</a>last month.</p>
<p>If the situation hits close enough to home that you decide to go it’s time to isolate yourselves, the rules to this are intractable.</p>
<p>I know this sounds harsh, but there are to be no exceptions. If you make exceptions, you might as well go wrestle with runny-nosed strangers at the local Wal-Mart and then come home and hug your children, because it’s the same thing.</p>
<p>Once you have gone into lockdown mode, that means that the supplies you have on hand are the supplies you have to see you through. &#160;You can’t run out to the store and get something you’ve forgotten.</p>
<p>That means if a family member shows up, they have to go into quarantine for at least 4 weeks, during which time they are not allowed access to the home or family, nor are they allowed to go out in public. &#160;Set up an area on your property that is far from your home for them to hang out for their month of quarantine. If at the end of the month they are presenting no symptoms, then they can come in.</p>
<p>It sadly means that you may be forced to turn someone away if they are ill, because to help them means to risk your family.</p>
<p>Now is the time to plan with your preparedness group how you intend to handle the situation. Will you shelter together, in the same location, and reserve a secondary location to retreat to if the situation worsens further or if someone becomes ill? Will you shelter separately because of the nature of the emergency? &#160;Decide together on what event and proximity will trigger you to go into lockdown mode. Make your plan and stick to it, regardless of pressure from those who think you are over-reacting, the school that your children have stopped attending, and any other external influences. If you’ve decided that there is a great enough risk that you need to go into lockdown, you must adhere to your plan. ( <a href="http://www.theorganicprepper.ca/prepping-for-an-ebola-lockdown-no-one-goes-out-no-one-comes-in-08052014" type="external">source</a>)</p>
<p>At about the same time, <a href="" type="internal">Mac Slavo of SHTFplan</a> sounded the warning as well. He wrote:</p>
<p>What’s most bizarre and frustrating about all of this is that neither the U.S. government or the Centers for Disease Control have provided any actionable information or advice to the American public. They maintain that they have the facilities to stop any such outbreak and continue to tout the narrative that there is nothing to fear, because they have it all under control.</p>
<p>Should even one single case pop up in a random U.S. city, that narrative will fall apart instantly. If someone in Georgia, Ohio, New York or any other state checked themselves into a hospital and are found to be infected with Ebola it will prove without a shadow of a doubt that all CDC containment efforts have failed.</p>
<p>In such an instance where Ebola is found to be in the “wild” anywhere in the continental United States you can be certain that panic will follow.</p>
<p>Take a look at the following photo.&#160;It was <a href="http://www.breakingnews.com/topic/water-toxin-warning-in-toledo-ohio-august-2-2014/" type="external">&#160;taken last week</a>&#160;in Toledo about an hour after the city announced that their water supply had been contaminated with toxins:</p>
<p />
<p>Notice how every drop of pure H2O has been removed from the shelves.</p>
<p>Imagine for a moment what grocery store shelves, pharmacies and hardware supply stores are going to look like within 12 hours of an Ebola infection or outbreak being announced on U.S. soil.</p>
<p>Things will happen fast.</p>
<p>Now, for all we know the CDC’s containment efforts are successful, and perhaps Ebola will be stopped in its tracks. But being naturally skeptical of our government’s abilities to mitigate such a virus, especially given the lack of any actual information from the CDC or government, we must assume that Ebola will eventually start popping up in the United States.</p>
<p>When it does, the CDC and Homeland Security will likely announce a number of precautions that we need to take. Those precautions are going to include supply lists and strategies. ( <a href="http://www.shtfplan.com/headline-news/what-you-need-to-do-to-survive-ebola-before-the-panic-starts_08062014" type="external">source</a>)</p>
<p>Today, Slavo’s prediction came true with the release from the CDC.</p>
<p>Right now, <a href="" type="internal">before panic ensues</a>, you need to ensure that you have everything you need to survive as though the world we know has ended. You need to be prepared to stay in your home for weeks, if not months. You need to be ready for a potential disruption of services.</p>
<p>Best case scenario: You get these supplies,&#160;&#160;the outbreak never occurs, and you can dole them out into your regular usage or stash them with your prepper stockpile while snickering at the crazy preppers.</p>
<p>Worst case scenario: You read this warning, you do nothing, and then the outbreak occurs. You realize that the prepper folks aren’t so crazy after all. But by then, it will be too late to stock up.</p>
<p>Following is a list of supplies that you may soon need:</p>
<p>In the event you have no choice but to leave your home, Mac Slavo recommends the following:</p>
<p>If you’re forced to exit your home, you’re going to want to be fully protected, and that includes covering your hands, eyes, nose, and mouth.</p>
<p>In addition to the N-95 respirator masks mentioned above, you may also consider upgrading to the more expensive&#160; <a href="http://amzn.to/1AVYrpl" type="external">N-100 respirators</a>&#160;recommended by the World Health Organization.</p>
<p>Or, go with a full facemask.&#160;Insofar as your preparedness efforts are concerned, you may also be able to kill two birds with one stone here and go with a full face mask that includes NBC (Nuclear, Biological, Chemical) protection like the US-made <a href="http://amzn.to/1sxNRzS" type="external">&#160;NATO SGE 400/3 Military Gas Mask</a>. &#160;If going with such a mask, be sure to include&#160; <a href="http://amzn.to/X2SAiA" type="external">some NBC filters</a>.</p>
<p>If a family member becomes ill, Tess Pennington of&#160;&#160; <a href="http://readynutrition.com/resources/the-well-stocked-sick-room_08122011/" type="external">Ready Nutrition</a>&#160;recommends&#160; <a href="http://readynutrition.com/resources/the-well-stocked-sick-room_08122011/" type="external">building a sick room</a>&#160;that can be used to isolate suspected infections or even to be used as a quarantine/observation area for friends and family who may be coming to your home as part of your group lockdown plan.</p>
<p>Building a sick room may include supplies like:</p>
<p><a href="http://www.theorganicprepper.ca/when-the-cdc-tells-us-to-prepare-for-the-ebola-pandemic-things-are-about-to-get-real-09152014" type="external">Don’t wait until it’s too late.</a> By the time the CDC gets around to offering checklists to the rest of us, items like these will be in short supply. If you are unprepared, you’ll be at the mercy of organizations like FEMA, who will be doling out water bottles and MREs to those who are likewise hungry and thirsty.</p>
<p>To learn more about preparing for a real SHTF scenario like an Ebola pandemic, look to the following for &#160;in-depth, practical advice:</p>
<p><a href="http://www.biodefense.com/Pandemic-Preparedness-Episode-01.html" type="external">Bio Defense How To Course</a></p>
<p><a href="http://www.amazon.com/gp/product/1496092589/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=1496092589&amp;linkCode=as2&amp;tag=resource-list-20&amp;linkId=HVXLRBXZGQSW2XSK" type="external">The Prepper’s Blueprint: The Step-By-Step Guide To Help You Through Any Disaster</a></p>
<p><a href="http://www.amazon.com/gp/product/1495933415/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=1495933415&amp;linkCode=as2&amp;tag=prepping0a-20&amp;linkId=ZPXLB4B7X6OPBXL7" type="external">The Pantry Primer: How to Build a One Year Food Supply in Three Months</a></p>
<p><a href="http://www.amazon.com/gp/product/B00A41F02I/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=B00A41F02I&amp;linkCode=as2&amp;tag=resource-list-20&amp;linkId=W23TM3DOMAON7XVO" type="external">Sealing Yourself In: Prepping for Bioterrorism, Chemical Disasters, and Pandemics (The NEW Survival Prepper Guides Book 3)</a></p>
<p><a href="http://www.amazon.com/gp/product/0988872536/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=0988872536&amp;linkCode=as2&amp;tag=resource-list-20&amp;linkId=VCELUKJGD3M3OBOR" type="external">The Survival Medicine Handbook: A Guide for When Help is Not on the Way</a></p>
<p><a href="http://www.amazon.com/gp/product/1569759294/ref=as_li_tl?ie=UTF8&amp;camp=1789&amp;creative=390957&amp;creativeASIN=1569759294&amp;linkCode=as2&amp;tag=resource-list-20&amp;linkId=Z2IXRBBF2OZ2HJRD" type="external">The Prepper’s Pocket Guide: 101 Easy Things You Can Do to Ready Your Home for a Disaster</a></p>
<p>Daisy Luther is a freelance writer and editor who lives in a small village in the Pacific Northwestern area of the United States. &#160;She is the author of&#160; <a href="http://www.amazon.com/The-Pantry-Primer-Supply-Months/dp/1495933415/ref=sr_1_1?ie=UTF8&amp;qid=1392510568&amp;sr=8-1&amp;keywords=the+pantry+primer" type="external">The Pantry Primer: How to Build a One Year Food Supply in Three Months</a>.&#160;On her website, <a href="http://www.theorganicprepper.ca/" type="external">The Organic Prepper</a>, Daisy writes about healthy prepping, homesteading adventures, and the pursuit of liberty and food freedom. &#160;Daisy is a co-founder of the website <a href="http://www.nutritionalanarchy.com/" type="external">Nutritional Anarchy</a>, which focuses on resistance through food self-sufficiency. Daisy’s articles are widely republished throughout alternative media.&#160;You can follow her on <a href="http://www.facebook.com/TheOrganicPrepper?ref=hl" type="external">Facebook</a>, <a href="http://pinterest.com/daisyluther/boards/" type="external">Pinterest</a>,&#160; and <a href="https://twitter.com/DaisyLuther" type="external">Twitter</a>, and you can email her at [email protected]</p>
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<p /> | true | 0 | ready possibility ebola pandemic interrupt daytoday life americans cdc issued checklist said that160now time prepare read entire document well state department purchased 160000 ebola hazmat suits checklist directory hospitals medical personnel every hospital ensure detect patient ebola protect healthcare workers safely care patient respond coordinated fashion aware domestic ebola virus disease cases two american citizens medically evacuated united states time prepare possible individuals evd west africa may travel united states exhibit signs symptoms evd present facilities cdcs ebola virus page world health organization agencies gone great lengths avoid releasing information might cause panic bet theyve gone far issue warning things get real the160 state department purchased 160000 ebola hazmat suits government getting ready outbreak shouldnt get ready last month wrote article expressing concern virus going rampage across country suggested best way survive unscathed go lockdown family ebola thing could go bad hurry bad mean killed well half people whove contracted west africa possibility ebola contend several varieties plague also uptick past couple months something put back burner due fear ebola a160 city china locked last week due bubonic plague160and160 black plague caused one man die 3 people become ill colorado160last month situation hits close enough home decide go time isolate rules intractable know sounds harsh exceptions make exceptions might well go wrestle runnynosed strangers local walmart come home hug children thing gone lockdown mode means supplies hand supplies see 160you cant run store get something youve forgotten means family member shows go quarantine least 4 weeks time allowed access home family allowed go public 160set area property far home hang month quarantine end month presenting symptoms come sadly means may forced turn someone away ill help means risk family time plan preparedness group intend handle situation shelter together location reserve secondary location retreat situation worsens someone becomes ill shelter separately nature emergency 160decide together event proximity trigger go lockdown mode make plan stick regardless pressure think overreacting school children stopped attending external influences youve decided great enough risk need go lockdown must adhere plan source time mac slavo shtfplan sounded warning well wrote whats bizarre frustrating neither us government centers disease control provided actionable information advice american public maintain facilities stop outbreak continue tout narrative nothing fear control even one single case pop random us city narrative fall apart instantly someone georgia ohio new york state checked hospital found infected ebola prove without shadow doubt cdc containment efforts failed instance ebola found wild anywhere continental united states certain panic follow take look following photo160it 160taken last week160in toledo hour city announced water supply contaminated toxins notice every drop pure h2o removed shelves imagine moment grocery store shelves pharmacies hardware supply stores going look like within 12 hours ebola infection outbreak announced us soil things happen fast know cdcs containment efforts successful perhaps ebola stopped tracks naturally skeptical governments abilities mitigate virus especially given lack actual information cdc government must assume ebola eventually start popping united states cdc homeland security likely announce number precautions need take precautions going include supply lists strategies source today slavos prediction came true release cdc right panic ensues need ensure everything need survive though world know ended need prepared stay home weeks months need ready potential disruption services best case scenario get supplies160160the outbreak never occurs dole regular usage stash prepper stockpile snickering crazy preppers worst case scenario read warning nothing outbreak occurs realize prepper folks arent crazy late stock following list supplies may soon need event choice leave home mac slavo recommends following youre forced exit home youre going want fully protected includes covering hands eyes nose mouth addition n95 respirator masks mentioned may also consider upgrading expensive160 n100 respirators160recommended world health organization go full facemask160insofar preparedness efforts concerned may also able kill two birds one stone go full face mask includes nbc nuclear biological chemical protection like usmade 160nato sge 4003 military gas mask 160if going mask sure include160 nbc filters family member becomes ill tess pennington of160160 ready nutrition160recommends160 building sick room160that used isolate suspected infections even used quarantineobservation area friends family may coming home part group lockdown plan building sick room may include supplies like dont wait late time cdc gets around offering checklists rest us items like short supply unprepared youll mercy organizations like fema doling water bottles mres likewise hungry thirsty learn preparing real shtf scenario like ebola pandemic look following 160indepth practical advice bio defense course preppers blueprint stepbystep guide help disaster pantry primer build one year food supply three months sealing prepping bioterrorism chemical disasters pandemics new survival prepper guides book 3 survival medicine handbook guide help way preppers pocket guide 101 easy things ready home disaster daisy luther freelance writer editor lives small village pacific northwestern area united states 160she author of160 pantry primer build one year food supply three months160on website organic prepper daisy writes healthy prepping homesteading adventures pursuit liberty food freedom 160daisy cofounder website nutritional anarchy focuses resistance food selfsufficiency daisys articles widely republished throughout alternative media160you follow facebook pinterest160 twitter email daisytheorganicprepperca | 829 |
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<p>U.S. equity markets saw their biggest selloff since June 24 on Friday after comments from a voting member of the Federal Reserve’s policy-setting committee suggested a September rate hike was still a possibility.</p>
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<p>The Dow Jones Industrial Average dropped 394 points, or 2.13% to 18085. The S&amp;P 500 shed 53 points, or 2.45% to 2127, while the Nasdaq Composite erased 133 points, or 2.54% to 5125.</p>
<p>All 10 S&amp;P 500 sectors were washed in red Friday as utilities, telecom, and materials saw the biggest declines.</p>
<p>After the European Central Bank on Thursday opted to keep rates on hold and signaled it would not extend is bond-buying program past March 2017, a speech from Boston Federal Reserve President Eric Rosengren sparked renewed rate-hike concerns on Wall Street. Rosengren said there’s a “reasonable case” for raising rates later this month at the FOMC’s September 20, 21 meeting. &#160;Despite headwinds from overseas, he cited a growing risk of both the U.S. economy and financial markets overheating should rates remain near historic lows.</p>
<p>Rosengren’s comments come after those of other Fed officials this month. Earlier this week on Wednesday, Richmond Fed President Jeffrey Lacker said the case for a rate hike is “strong” heading into the September meeting and that he doesn’t “see what will hold us back.” &#160;Last month, New York Fed President William Dudley told FOX Business Network’s Peter Barnes the central bank is “edging closer to the point in time when it will be appropriate to raise rates further.”</p>
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<p>Wall Street’s sharp move lower was in stark contrast to recent market action. As of Thursday, the S&amp;P had gone 43 days without a 1% move in either direction, marking the longest streak of sub 10% moves in more than two years. Further, the CBOE’s VIX index, a closely-watched gauge of investor anxiety, jumped more than 34%, the biggest spike since the June 24, the day after Britain’s Brexit referendum.</p>
<p>While the market’s interest in Rosengren’s comments is certainly one of the driving forces behind the wave of negative sentiment, Russell Investments’ multi-asset investment strategist Paul Eitelman said his comments are still in contrast to Fed Chief Janet Yellen’s views, and contends recent data including a weaker-than-expected August non-farm payrolls report and ISM services and manufacturing figures don’t support a case the economy is growing at a robust pace.</p>
<p>“[Rosengren is] worried about asset bubbles, Yellen is much more worried about global risks and she’s taken cautious risks. Rosengren could be trying to convince Yellen to raise rates, it’s unclear how convincing he was today…we think the Fed will wait until December [to hike rates],” he said.</p>
<p>Indeed, odds of a September rate hike remain low on Wall Street. Fed funds futures, a measure of market expectations for changes in monetary policy, showed a 24% chance of a rate rise this month, with odds at 58.4% by the end of the year.</p>
<p>Economists at UBS explained that while recent remarks from Fed officials may signal a shift in thinking at the central bank, December is still its base case for the timing of the next rate hike.</p>
<p>“We have been down this path of setting the stage for a hike only to see a late shift in response to tepid data. Given the relative weakness in the ISM data and some slowing in bank lending, it would seem unlikely the Fed would feel that they could move forward into weakness,” the UBS Americas economics team wrote in a research note.</p>
<p>Adding to the market’s unease Friday was the announcement Fed Governor Lael Brainard, who traditiaonlly leans more dovish, will deliver a speech Monday at the Chicago Council on Global Affairs. It’s the last scheduled speech by a central bank member before the quiet period ahead of the FOMC meeting later this month. Eitelman said if Brainard’s remarks are similar in nature to Rosengren's, Wall Street could be in for another bloodbath session on Monday.</p>
<p>“If [the Fed] wants to move, I would expect her to sound more hawkish…it’s unlikely she’ll do that, but that’s the form they’d have to step. If she’s hawkish Monday that sends a pretty strong cue the Fed is seriously considering a September rate hike,” he said.</p>
<p>As stocks dropped, investors also dumped safe-haven government debt. The yield on the benchmark 10-year U.S. Treasury bond rose 0.062 percentage point to 1.675 – the highest since just before the U.K. voted to exit the European Union earlier this summer. &#160;Yields move in the opposite direction of prices.</p>
<p>Other assets also experienced sharp declines Friday. &#160;Global oil prices, after rallying Thursday, dropped more than 3% Friday to trade just above $45 a barrel. Gold prices also traded lower, shedding more than 0.6% to trade around $1,332.</p> | true | 0 | us equity markets saw biggest selloff since june 24 friday comments voting member federal reserves policysetting committee suggested september rate hike still possibility continue reading dow jones industrial average dropped 394 points 213 18085 sampp 500 shed 53 points 245 2127 nasdaq composite erased 133 points 254 5125 10 sampp 500 sectors washed red friday utilities telecom materials saw biggest declines european central bank thursday opted keep rates hold signaled would extend bondbuying program past march 2017 speech boston federal reserve president eric rosengren sparked renewed ratehike concerns wall street rosengren said theres reasonable case raising rates later month fomcs september 20 21 meeting 160despite headwinds overseas cited growing risk us economy financial markets overheating rates remain near historic lows rosengrens comments come fed officials month earlier week wednesday richmond fed president jeffrey lacker said case rate hike strong heading september meeting doesnt see hold us back 160last month new york fed president william dudley told fox business networks peter barnes central bank edging closer point time appropriate raise rates advertisement wall streets sharp move lower stark contrast recent market action thursday sampp gone 43 days without 1 move either direction marking longest streak sub 10 moves two years cboes vix index closelywatched gauge investor anxiety jumped 34 biggest spike since june 24 day britains brexit referendum markets interest rosengrens comments certainly one driving forces behind wave negative sentiment russell investments multiasset investment strategist paul eitelman said comments still contrast fed chief janet yellens views contends recent data including weakerthanexpected august nonfarm payrolls report ism services manufacturing figures dont support case economy growing robust pace rosengren worried asset bubbles yellen much worried global risks shes taken cautious risks rosengren could trying convince yellen raise rates unclear convincing todaywe think fed wait december hike rates said indeed odds september rate hike remain low wall street fed funds futures measure market expectations changes monetary policy showed 24 chance rate rise month odds 584 end year economists ubs explained recent remarks fed officials may signal shift thinking central bank december still base case timing next rate hike path setting stage hike see late shift response tepid data given relative weakness ism data slowing bank lending would seem unlikely fed would feel could move forward weakness ubs americas economics team wrote research note adding markets unease friday announcement fed governor lael brainard traditiaonlly leans dovish deliver speech monday chicago council global affairs last scheduled speech central bank member quiet period ahead fomc meeting later month eitelman said brainards remarks similar nature rosengrens wall street could another bloodbath session monday fed wants move would expect sound hawkishits unlikely shell thats form theyd step shes hawkish monday sends pretty strong cue fed seriously considering september rate hike said stocks dropped investors also dumped safehaven government debt yield benchmark 10year us treasury bond rose 0062 percentage point 1675 highest since uk voted exit european union earlier summer 160yields move opposite direction prices assets also experienced sharp declines friday 160global oil prices rallying thursday dropped 3 friday trade 45 barrel gold prices also traded lower shedding 06 trade around 1332 | 512 |
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<p>Image Source: Getty Images</p>
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<p>In case you hadn't noticed, streaming is the future of music.</p>
<p>However, for services like Spotify, Pandora (NYSE: P) and (to a lesser extent) Apple (NASDAQ: AAPL) Music, the billion-dollar question remains whether streaming music services can ever produce meaningful profits.</p>
<p>Thankfully, streaming music bulls recently placed another feather in their caps, thanks to a somewhat unexpected source.</p>
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<p>According to reporting from Mashable, the general manager of Tencent's (NASDAQOTH: TCEHY) (NASDAQOTH: TCTZF) QQ Music service recently revealed the Chinese streaming service is indeed profitable.</p>
<p>Tech investors are likely more familiar with Tencent for its incredibly popular WeChat messaging platform. However, it also owns the QQ brand, which consists of instant messaging, gaming services, shopping, microblogging, and of course, the aforementioned streaming music service. Regardless of whether you've heard of it, QQ Music's purported ability to turn a profit in streaming music makes it something of a rare bird in a world where Spotify, Pandora, and Apple Music are all likely continue to hemorrhage money for some time. So how is QQ Music doing it?</p>
<p>Image Source: Spotify</p>
<p>As it turns out, Tencent's QQ Music drives its profits through a unique mix of size and scrappiness. For starters, QQ Music serves significantly more users than Spotify, Pandora, and Apple Music combined -- over 400 million monthly active users (MAUs) and 100 million daily active users (DAUs), according to TenCent. For context, Spotify stands as the largest Western streaming platform, and it only counts 100 million total users.</p>
<p>This size advantage gives Tencent's music service tremendous leverage in negotiating with record labels, which it appears the company has done with a deft touch. QQ Music has reportedly secured exclusive Chinese streaming distribution rights with some major music labels. What's more, its massive scale has led to some speculation that the service also negotiated lower royalty rates -- payments that consume the bulk of Western services' revenues -- though that theory has yet to be independently verified.</p>
<p>Tencent's QQ Music also monetizes its users by allowing them to conduct additional transactions through the service, such as booking concert tickets, hailing taxis, and paying nominal fees to access exclusive content ahead of its platformwide release. To be sure, Spotify and Pandora have waded into selling concert tickets and the like, but not, it appears, to the extent that QQ Music has. Together, these moves offer a fairly clear map toward eventual profitability for Spotify, Pandora, and Apple Music, though actually following in QQ's footsteps and achieving it may be difficult.</p>
<p>The upside to QQ Music's example is that it apparently proves music streaming services can turn a profit. The downside is that its rubric for achieving this impressive feat may prove difficult for Apple, Spotify, and Pandora to replicate.</p>
<p>Image Source: Spotify</p>
<p>The main constraint is likely size, especially for Spotify and Pandora. Pandora adheres to a royalty rate structure like that of an AM/FM radio station, which makes widespread international expansion <a href="http://www.fool.com/investing/2016/06/28/why-is-spotify-more-valuable-than-pandora.aspx?source=iaasitlnk0000003&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">effectively impossible Opens a New Window.</a> for now, though the launch of its widely acknowledged on-demand product could change this. However, for all intents and purposes, Pandora's chances of acquiring a similar user base to Tencent's QQ Music are a pipe dream today. Spotify's 100 million total users makes it by far the largest streaming service outside of China. However, it too would have to grow by a massive degree to approach QQ Music's 400 million MAU figure, which is unlikely to happen any time soon.</p>
<p>Apple, on the other hand, could conceivably build a subscriber base in the hundreds of millions -- eventually. We know there are more than 800 million iTunes accounts. However, consider that only 15 million users are subscribed to the service after its first 13 months or so of operation, Apple Music growing to a scale similar to QQ Music seems like a distant prospect.</p>
<p>However, each of those services can and should seek new ways to monetize its existing customers. All three have waded into driving these kinds of ancillary revenues, each in its own way. However, given the challenging economics of streaming, and QQ Music's purported profitability, the evidence suggests they could benefit by further pursuing this strategy.</p>
<p>Streaming music has proven to be a far more ticklish space in which to produce profits than many may have expected. However, considering the high level of interest in it from both investors and consumers, its worth hoping that Spotify, Pandora, and Apple Music can eventually find sustainable business models.</p>
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<p><a href="http://my.fool.com/profile/TMFTheDude/info.aspx" type="external">Andrew Tonner Opens a New Window.</a> owns shares of Apple. The Motley Fool owns shares of and recommends Apple and Pandora Media. The Motley Fool has the following options: long January 2018 $90 calls on Apple and short January 2018 $95 calls on Apple. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=isiedilnk018048&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://wiki.fool.com/Motley" type="external">considering a diverse range of insights Opens a New Window.</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | image source getty images continue reading case hadnt noticed streaming future music however services like spotify pandora nyse p lesser extent apple nasdaq aapl music billiondollar question remains whether streaming music services ever produce meaningful profits thankfully streaming music bulls recently placed another feather caps thanks somewhat unexpected source advertisement according reporting mashable general manager tencents nasdaqoth tcehy nasdaqoth tctzf qq music service recently revealed chinese streaming service indeed profitable tech investors likely familiar tencent incredibly popular wechat messaging platform however also owns qq brand consists instant messaging gaming services shopping microblogging course aforementioned streaming music service regardless whether youve heard qq musics purported ability turn profit streaming music makes something rare bird world spotify pandora apple music likely continue hemorrhage money time qq music image source spotify turns tencents qq music drives profits unique mix size scrappiness starters qq music serves significantly users spotify pandora apple music combined 400 million monthly active users maus 100 million daily active users daus according tencent context spotify stands largest western streaming platform counts 100 million total users size advantage gives tencents music service tremendous leverage negotiating record labels appears company done deft touch qq music reportedly secured exclusive chinese streaming distribution rights major music labels whats massive scale led speculation service also negotiated lower royalty rates payments consume bulk western services revenues though theory yet independently verified tencents qq music also monetizes users allowing conduct additional transactions service booking concert tickets hailing taxis paying nominal fees access exclusive content ahead platformwide release sure spotify pandora waded selling concert tickets like appears extent qq music together moves offer fairly clear map toward eventual profitability spotify pandora apple music though actually following qqs footsteps achieving may difficult upside qq musics example apparently proves music streaming services turn profit downside rubric achieving impressive feat may prove difficult apple spotify pandora replicate image source spotify main constraint likely size especially spotify pandora pandora adheres royalty rate structure like amfm radio station makes widespread international expansion effectively impossible opens new window though launch widely acknowledged ondemand product could change however intents purposes pandoras chances acquiring similar user base tencents qq music pipe dream today spotifys 100 million total users makes far largest streaming service outside china however would grow massive degree approach qq musics 400 million mau figure unlikely happen time soon apple hand could conceivably build subscriber base hundreds millions eventually know 800 million itunes accounts however consider 15 million users subscribed service first 13 months operation apple music growing scale similar qq music seems like distant prospect however services seek new ways monetize existing customers three waded driving kinds ancillary revenues way however given challenging economics streaming qq musics purported profitability evidence suggests could benefit pursuing strategy streaming music proven far ticklish space produce profits many may expected however considering high level interest investors consumers worth hoping spotify pandora apple music eventually find sustainable business models secret billiondollar stock opportunity worlds biggest tech company forgot show something wall street analysts fool didnt miss beat theres small company thats powering brandnew gadgets coming revolution technology think stock price nearly unlimited room run early intheknow investors one click opens new window andrew tonner opens new window owns shares apple motley fool owns shares recommends apple pandora media motley fool following options long january 2018 90 calls apple short january 2018 95 calls apple try foolish newsletter services free 30 days opens new window fools may hold opinions believe considering diverse range insights opens new window makes us better investors motley fool disclosure policy opens new window | 589 |
<p>This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (November 4, 2017).</p>
<p>Long lines outside of Apple Inc. stores around the world showed strong initial demand for the new iPhone X, but analysts said the real test would be the company's ability to sustain that level of interest over the coming months as it works through supply bottlenecks.</p>
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<p>Sales of the iPhone X began Friday, and customers lined up to be among the first to get their hands on the most expensive iPhone ever, with a starting price of $999 and features including an edge-to-edge display and a facial-recognition system. It wasn't clear how many units Apple would have available for first-day sales.</p>
<p>At San Francisco's flagship Apple store, the line of early buyers reached about 500 by 7:30 a.m. PT Friday, a half-hour before the doors opened. Sabino Rodriguez said he joined the line midday Thursday, when it was about 25 people deep.</p>
<p>The phone-repair technician had considered buying a Samsung Galaxy Note 8 but said he was won over by the new iPhone's display and cameras. Mr. Rodriguez said he skipped last year's iPhone 7 because he "didn't feel it was a big upgrade."</p>
<p>The line snaked around the block and up the next, ending just past the Kimpton Sir Francis Drake Hotel. The doorman, LaBan Wade, said the line hadn't made it to his doorstep since the iPhone 6 launch in 2014. "I guess 10 is the big number," he said.</p>
<p>Apple began offering advance orders online on Oct. 27, and shipment delays quickly grew to five to six weeks. Apple Chief Executive Tim Cook said Thursday that production of the phone is "going well" but declined to say when supplies would catch up with demand. The company projected record revenue for the current quarter, which Mr. Cook attributed partly to the iPhone X.</p>
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<p>The iPhone X is the last in a trio of new phones this year. In September, Apple released the iPhone 8 and 8 Plus with wireless charging and a traditional home button. Mr. Cook said Thursday that forecasting demand for the devices has been challenging but noted that the two iPhone 8s have outsold other models since their release. He said he expects sales to pick up after customers have had a chance to review all three products.</p>
<p>"If we would have shipped all at once, that would have been our preferred scenario, obviously, but we didn't have that choice," Mr. Cook said in an interview. "What we wanted to do was communicate to customers everything at once so they could make their decision to buy now, wait and buy the X, or wait until they can go in and play with all three to decide."</p>
<p>Past iPhone models featuring new designs, such as the iPhone 6, benefited from what Strategy Analytics analyst Neil Mawston call the "halo effect," where tech-savvy customers buy it immediately and tout it to friends and family, triggering a second wave of purchases. But Mr. Mawston said consumers now suffer from "flagship fatigue" because most smartphones generally "look like a square rectangle these days."</p>
<p>The iPhone X also must overcome supply constraints that follow a series of production challenges, including an imbalance in key components. Strategy Analytics estimated iPhone X sales for the December quarter at less than 30 million units.</p>
<p>"The holiday season is the biggest portion of sales for Apple and the industry, and if you miss that it can be a painful miss sometimes," Mr. Mawston said. "The iPhone 8, in revenue and profit, can't make up for the iPhone X slippage."</p>
<p>In addition to supply constraints, investors and analysts have been eager to see how customers react to the device's $999 starting price. It is the highest-priced major smartphone on the market and costs so much that it is expected to cut into holiday sales of other products at traditional retailers, according to Morgan Stanley.</p>
<p>In China, Apple didn't offer walk-in sales of the iPhones but sold the device to customers with reservations as it has since 2013. About 80 customers lined up outside the Beijing Apple store on Friday morning to pick up their devices, including Tao Ran, a 37-year-old English teacher, who said the pricier device was "still affordable."</p>
<p>"In China, there is a tendency for people to attach attributes to this phone. It's a symbol of wealth, a symbol of high-level living standard," said Mr. Tao, who paid around 20,000 yuan (about $3,000) for two 256-gigabyte iPhone Xs.</p>
<p>Creative Strategies analyst Carolina Milanesi said price likely won't deter most customers, noting that about 45% of average U.S. iPhone owners now pay for their devices with monthly installment plans. For them, the iPhone X would cost $49.91 a month through Apple, about $16 more than an iPhone 8 per month and $27 more than an iPhone 7. In markets like Italy, where people tend to buy phones outright, she expects sales to be softer.</p>
<p>At an Apple store in central Sydney, lines snaked around the corner midmorning local time, despite the store opening at 8 a.m., an hour earlier than usual, to cope with expected demand. Gav Hannelly, 25 years old, waited for an hour for a space-gray, 256-gigabyte iPhone X. Mr. Hannelly, an IT worker who says he bought almost every new iPhone as soon as it hit the shelves, said this year's model was particularly exciting.</p>
<p>"The screen has a totally different feel to it and also the face unlocks, I'm really keen to try that as well," Mr. Hannelly said.</p>
<p>Lines at the Apple Store in Palo Alto, Calif., began forming Tuesday night when David Casarez, a 25-year-old entrepreneur, placed the first chair outside the store. By 6:30 p.m. Thursday, about 60 people had joined him.</p>
<p>The second person in line -- David Eaton, a 58-year-old software product manager -- said about 400 people lined up for the release of the iPhone 7 and 7 Plus a year ago, but he expected lines to be shorter this year because the phone is so expensive.</p>
<p>"People have been coming by and saying, 'Do you know you can order it online?'" Mr. Eaton said. "I say, 'Have you ever met people online?' It's about the experience."</p>
<p>--Robert McMillan, Rachel Pannett and Yoko Kubota contributed to this article.</p>
<p>Write to Tripp Mickle at [email protected]</p>
<p>(END) Dow Jones Newswires</p>
<p>November 04, 2017 02:47 ET (06:47 GMT)</p> | true | 0 | article republished part daily reproduction wsjcom articles also appeared us print edition wall street journal november 4 2017 long lines outside apple inc stores around world showed strong initial demand new iphone x analysts said real test would companys ability sustain level interest coming months works supply bottlenecks continue reading sales iphone x began friday customers lined among first get hands expensive iphone ever starting price 999 features including edgetoedge display facialrecognition system wasnt clear many units apple would available firstday sales san franciscos flagship apple store line early buyers reached 500 730 pt friday halfhour doors opened sabino rodriguez said joined line midday thursday 25 people deep phonerepair technician considered buying samsung galaxy note 8 said new iphones display cameras mr rodriguez said skipped last years iphone 7 didnt feel big upgrade line snaked around block next ending past kimpton sir francis drake hotel doorman laban wade said line hadnt made doorstep since iphone 6 launch 2014 guess 10 big number said apple began offering advance orders online oct 27 shipment delays quickly grew five six weeks apple chief executive tim cook said thursday production phone going well declined say supplies would catch demand company projected record revenue current quarter mr cook attributed partly iphone x advertisement iphone x last trio new phones year september apple released iphone 8 8 plus wireless charging traditional home button mr cook said thursday forecasting demand devices challenging noted two iphone 8s outsold models since release said expects sales pick customers chance review three products would shipped would preferred scenario obviously didnt choice mr cook said interview wanted communicate customers everything could make decision buy wait buy x wait go play three decide past iphone models featuring new designs iphone 6 benefited strategy analytics analyst neil mawston call halo effect techsavvy customers buy immediately tout friends family triggering second wave purchases mr mawston said consumers suffer flagship fatigue smartphones generally look like square rectangle days iphone x also must overcome supply constraints follow series production challenges including imbalance key components strategy analytics estimated iphone x sales december quarter less 30 million units holiday season biggest portion sales apple industry miss painful miss sometimes mr mawston said iphone 8 revenue profit cant make iphone x slippage addition supply constraints investors analysts eager see customers react devices 999 starting price highestpriced major smartphone market costs much expected cut holiday sales products traditional retailers according morgan stanley china apple didnt offer walkin sales iphones sold device customers reservations since 2013 80 customers lined outside beijing apple store friday morning pick devices including tao ran 37yearold english teacher said pricier device still affordable china tendency people attach attributes phone symbol wealth symbol highlevel living standard said mr tao paid around 20000 yuan 3000 two 256gigabyte iphone xs creative strategies analyst carolina milanesi said price likely wont deter customers noting 45 average us iphone owners pay devices monthly installment plans iphone x would cost 4991 month apple 16 iphone 8 per month 27 iphone 7 markets like italy people tend buy phones outright expects sales softer apple store central sydney lines snaked around corner midmorning local time despite store opening 8 hour earlier usual cope expected demand gav hannelly 25 years old waited hour spacegray 256gigabyte iphone x mr hannelly worker says bought almost every new iphone soon hit shelves said years model particularly exciting screen totally different feel also face unlocks im really keen try well mr hannelly said lines apple store palo alto calif began forming tuesday night david casarez 25yearold entrepreneur placed first chair outside store 630 pm thursday 60 people joined second person line david eaton 58yearold software product manager said 400 people lined release iphone 7 7 plus year ago expected lines shorter year phone expensive people coming saying know order online mr eaton said say ever met people online experience robert mcmillan rachel pannett yoko kubota contributed article write tripp mickle trippmicklewsjcom end dow jones newswires november 04 2017 0247 et 0647 gmt | 661 |
<p>Buying and holding great stocks is the best way to predictably generate wealth over the long term. But truly life-changing gains are reserved for investors who are willing to own their stocks for years -- or decades, even -- without selling, letting the power of compounding returns do its work.</p>
<p>However, finding stocks worthy of such patience is easier said than done. So to help get you started, we asked three top Motley Fool investors to each pick a stock they'd be comfortable buying and holding for the next 50 years. Read on to see why they chose Corning (NYSE: GLW),&#160;Amazon.com (NASDAQ: AMZN), and BofI Holding (NASDAQ: BOFI).</p>
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<p><a href="http://my.fool.com/profile/TMFSymington/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1cf8ce8c-bdca-11e7-a314-0050569d32b9&amp;utm_source=foxbusiness" type="external">Steve Symington Opens a New Window.</a>&#160;(Corning): Founded in 1851, Corning knows a thing or two about surviving and thriving in our fast-changing world. In large part, Corning has been able to achieve that feat by consistently investing its cash to foster innovation and pursue multiple opportunities for incremental growth. To that end, under a strategic capital allocation framework unveiled in late 2015, Corning is on track to not only invest $10 billion in its business toward capturing those new growth opportunities, but also return at least $12.5 billion to shareholders through dividends and share repurchases by 2019.</p>
<p>Shares of the glass technology specialist are up nearly 30% so far in 2017 alone, most recently driven by the <a href="https://www.fool.com/investing/2017/10/24/corning-shines-again-on-strong-specialty-m.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1cf8ce8c-bdca-11e7-a314-0050569d32b9&amp;utm_source=foxbusiness" type="external">continued outperformance Opens a New Window.</a> of both Corning's optical communications segment and specialty materials. In the former, which earlier this year surpassed its Display Technologies segment (think LCD glass substrates) in terms of revenue, Corning recently reached 1 billion kilometers of optical fiber sold as telecom giants roll out their respective next-gen fiber networks. Meanwhile, strong demand for Corning's latest Gorilla Glass product -- previous versions of which have already been used to protect more than 5 billion mobile devices from over 40 OEMs -- helped drive sales in the latter 26% higher from the same year-ago period.</p>
<p>But Corning has many more irons in the fire. <a href="https://www.fool.com/investing/2017/01/17/corning-wants-to-revolutionize-how-you-drive.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1cf8ce8c-bdca-11e7-a314-0050569d32b9&amp;utm_source=foxbusiness" type="external">Automotive variants of Gorilla Glass Opens a New Window.</a> are gaining traction, for example, winning adoption on over 25 auto platforms so far. And thanks to collaborations with Merck and Pfizer, Corning is in the early stages of modernizing the pharmaceutical glass packaging industry following its introduction of Corning Valor Glass this past July.</p>
<p>All told, I see no reason Corning won't still be harnessing its innovative spirit to drive market-beating gains for investors 50 years from now.</p>
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<p><a href="http://my.fool.com/profile/TMFSunLion/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1cf8ce8c-bdca-11e7-a314-0050569d32b9&amp;utm_source=foxbusiness" type="external">Leo Sun Opens a New Window.</a> (Amazon): Amazon's stock rallied nearly 1,000% over the past decade, but that run won't end anytime soon. Its high-margin cloud platform business, Amazon Web Services (AWS), supports the expansion of its lower-margin marketplace businesses, and that virtuous cycle is blowing competitors in both markets <a href="https://www.fool.com/investing/2017/06/02/how-amazoncom-is-stacking-the-deck-against-the-com.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1cf8ce8c-bdca-11e7-a314-0050569d32b9&amp;utm_source=foxbusiness" type="external">out of the water</a>.</p>
<p>Amazon adds hundreds of new features to AWS every quarter to lock in its customers. That's how the business hit an annual run rate of $16 billion last quarter -- and its revenue is still growing more than 40% year over year.</p>
<p>On the e-commerce front, Amazon's prisoner-taking Prime ecosystem ensures customer loyalty with an ever-growing list of perks -- including discounts, free shipping options, streaming video and music, and an e-books lending library. It ties all that together with hardware devices like the Echo, which remove "friction" from the overall shopping experience.</p>
<p>Research firm CIRP recently reported that Amazon now has 90 million Prime members in the U.S. -- a 38% jump from the previous year. The average Prime member also spends $1,300 annually on Amazon compared to $700 for non-members.</p>
<p>Amazon's recent purchase of Whole Foods Market also adds groceries to that ecosystem. It could also further expand into the drugstore and apparel markets, which would hurt even more brick-and-mortar retailers. With each new piece added to the ecosystem, its wall becomes tougher to crack. Therefore, Amazon might not look cheap at 86 times next year's earnings, but it's one stock I'd be <a href="https://www.fool.com/investing/2017/07/26/can-amazoncom-weather-a-market-downturn.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1cf8ce8c-bdca-11e7-a314-0050569d32b9&amp;utm_source=foxbusiness" type="external">comfortable owning Opens a New Window.</a> for the next 50 years.</p>
<p><a href="http://my.fool.com/profile/TMFVelvetHammer/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1cf8ce8c-bdca-11e7-a314-0050569d32b9&amp;utm_source=foxbusiness" type="external">Jason Opens a New Window.</a> <a href="http://my.fool.com/profile/TMFVelvetHammer/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1cf8ce8c-bdca-11e7-a314-0050569d32b9&amp;utm_source=foxbusiness" type="external">Hall Opens a New Window.</a>&#160;(BofI Holding, Inc.): In 50 years, a lot of things about modern life could be very different. Amazon -- as Leo describes in this article -- is a perfect example of how the internet is changing how we buy things, find information, and consume entertainment media.</p>
<p>It's also shaking up banking. People simply don't need to go inside a bank very often anymore, if ever. This is putting commercial banks with brick-and-mortar retail operations at a big disadvantage to online-only competitors like Bank of Internet. BofI is America's oldest online-only bank, but is also one of the best, having <a href="http://time.com/money/collection-post/4529940/best-online-bank/" type="external">just been named Opens a New Window.</a> "best online bank" by Money&#160;magazine.</p>
<p>Eventually, traditional banks will close branches and catch up to the future of banking, but today, BofI's model gives it a big advantage, making it far more profitable since its expenses are far lower. The bank's management is using those profits to invest in new technology, expand into new lines of lending, and further position itself <a href="https://www.fool.com/investing/2017/09/20/heres-why-the-best-is-yet-to-come-for-bofi-holding.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1cf8ce8c-bdca-11e7-a314-0050569d32b9&amp;utm_source=foxbusiness" type="external">for many more years of growth Opens a New Window.</a>.</p>
<p>While a lot about banking will change over the next 50 years, one thing that won't is the fact that people will need access to money, and banks will almost certainly be a key part of how commerce and the economy work. Since BofI is already far closer to being the future of banking today, it's definitely a stock I intend to hold for decades to come.</p>
<p>Find out why Walt Disney is one of the 10 best stocks to buy now</p>
<p>Motley Fool co-founders Tom and David Gardner have spent more than a decade beating the market. (In fact, the newsletter they run, Motley Fool Stock Advisor, has tripled the market!*)</p>
<p>Tom and David just revealed their ten top stock picks for investors to buy right now. Walt Disney <a href="http://infotron.fool.com/infotrack/click?url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-eg%3Faid%3D8867%26source%3Disaeditxt0000450%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6313%26ftm_veh%3Darticle_pitch&amp;impression=aee6af81-12ad-4021-9a90-3412ab6ba507&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1cf8ce8c-bdca-11e7-a314-0050569d32b9&amp;utm_source=foxbusiness" type="external">is on the list Opens a New Window.</a> -- but there are nine others you may be overlooking.</p>
<p><a href="http://infotron.fool.com/infotrack/click?url=https%3A%2F%2Fwww.fool.com%2Fmms%2Fmark%2Fe-sa-bbn-eg%3Faid%3D8867%26source%3Disaeditxt0000450%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6313%26ftm_veh%3Darticle_pitch&amp;impression=aee6af81-12ad-4021-9a90-3412ab6ba507&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1cf8ce8c-bdca-11e7-a314-0050569d32b9&amp;utm_source=foxbusiness" type="external">Click here to get access to the full list! Opens a New Window.</a></p>
<p>*Stock Advisor returns as of October 9, 2017</p>
<p>John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. <a href="http://my.fool.com/profile/TMFVelvetHammer/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1cf8ce8c-bdca-11e7-a314-0050569d32b9&amp;utm_source=foxbusiness" type="external">Jason Hall Opens a New Window.</a> owns shares of Amazon, BofI Holding, and Corning and has the following options: long January 2018 $30 calls on BofI Holding. <a href="http://my.fool.com/profile/TMFSunLion/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1cf8ce8c-bdca-11e7-a314-0050569d32b9&amp;utm_source=foxbusiness" type="external">Leo Sun Opens a New Window.</a> owns shares of Amazon. <a href="http://my.fool.com/profile/TMFSymington/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1cf8ce8c-bdca-11e7-a314-0050569d32b9&amp;utm_source=foxbusiness" type="external">Steve Symington Opens a New Window.</a> has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon and BofI Holding. The Motley Fool recommends Corning. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1cf8ce8c-bdca-11e7-a314-0050569d32b9&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | buying holding great stocks best way predictably generate wealth long term truly lifechanging gains reserved investors willing stocks years decades even without selling letting power compounding returns work however finding stocks worthy patience easier said done help get started asked three top motley fool investors pick stock theyd comfortable buying holding next 50 years read see chose corning nyse glw160amazoncom nasdaq amzn bofi holding nasdaq bofi continue reading steve symington opens new window160corning founded 1851 corning knows thing two surviving thriving fastchanging world large part corning able achieve feat consistently investing cash foster innovation pursue multiple opportunities incremental growth end strategic capital allocation framework unveiled late 2015 corning track invest 10 billion business toward capturing new growth opportunities also return least 125 billion shareholders dividends share repurchases 2019 shares glass technology specialist nearly 30 far 2017 alone recently driven continued outperformance opens new window cornings optical communications segment specialty materials former earlier year surpassed display technologies segment think lcd glass substrates terms revenue corning recently reached 1 billion kilometers optical fiber sold telecom giants roll respective nextgen fiber networks meanwhile strong demand cornings latest gorilla glass product previous versions already used protect 5 billion mobile devices 40 oems helped drive sales latter 26 higher yearago period corning many irons fire automotive variants gorilla glass opens new window gaining traction example winning adoption 25 auto platforms far thanks collaborations merck pfizer corning early stages modernizing pharmaceutical glass packaging industry following introduction corning valor glass past july told see reason corning wont still harnessing innovative spirit drive marketbeating gains investors 50 years advertisement leo sun opens new window amazon amazons stock rallied nearly 1000 past decade run wont end anytime soon highmargin cloud platform business amazon web services aws supports expansion lowermargin marketplace businesses virtuous cycle blowing competitors markets water amazon adds hundreds new features aws every quarter lock customers thats business hit annual run rate 16 billion last quarter revenue still growing 40 year year ecommerce front amazons prisonertaking prime ecosystem ensures customer loyalty evergrowing list perks including discounts free shipping options streaming video music ebooks lending library ties together hardware devices like echo remove friction overall shopping experience research firm cirp recently reported amazon 90 million prime members us 38 jump previous year average prime member also spends 1300 annually amazon compared 700 nonmembers amazons recent purchase whole foods market also adds groceries ecosystem could also expand drugstore apparel markets would hurt even brickandmortar retailers new piece added ecosystem wall becomes tougher crack therefore amazon might look cheap 86 times next years earnings one stock id comfortable owning opens new window next 50 years jason opens new window hall opens new window160bofi holding inc 50 years lot things modern life could different amazon leo describes article perfect example internet changing buy things find information consume entertainment media also shaking banking people simply dont need go inside bank often anymore ever putting commercial banks brickandmortar retail operations big disadvantage onlineonly competitors like bank internet bofi americas oldest onlineonly bank also one best named opens new window best online bank money160magazine eventually traditional banks close branches catch future banking today bofis model gives big advantage making far profitable since expenses far lower banks management using profits invest new technology expand new lines lending position many years growth opens new window lot banking change next 50 years one thing wont fact people need access money banks almost certainly key part commerce economy work since bofi already far closer future banking today definitely stock intend hold decades come find walt disney one 10 best stocks buy motley fool cofounders tom david gardner spent decade beating market fact newsletter run motley fool stock advisor tripled market tom david revealed ten top stock picks investors buy right walt disney list opens new window nine others may overlooking click get access full list opens new window stock advisor returns october 9 2017 john mackey ceo whole foods market amazon subsidiary member motley fools board directors jason hall opens new window owns shares amazon bofi holding corning following options long january 2018 30 calls bofi holding leo sun opens new window owns shares amazon steve symington opens new window position stocks mentioned motley fool owns shares recommends amazon bofi holding motley fool recommends corning motley fool disclosure policy opens new window | 713 |
<p>Danish drug giant Novo Nordisk AS is living through a corporate nightmare that any CEO might recognize from business school.</p>
<p>After the company concentrated on making essentially one product better and better -- and charging more and more -- customers have suddenly stopped paying for all that improvement. The established versions are, well, good enough.</p>
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<p>In Novo Nordisk's case, that product is insulin, a hormone that is deficient in people with diabetes. Since its founding in 1923, the company has made successive waves of better insulin. It is the world's biggest producer of the stuff, and insulin brings in more than half of the company's revenue.</p>
<p>Over the years, that innovation has translated into an ability to charge more and more for the latest version, boosting profit margins and swelling the company's stock price. As diabetes -- an incurable disease -- morphed into a global epidemic in recent years, Novo Nordisk's tight focus on insulin provided reliable and growing profits.</p>
<p>Lately, that flow ended. Doctors, health-plan managers and insurers all have balked at paying for Novo Nordisk's newest version of its insulin. Clinical trials show it works as promised in controlling diabetes and delivers significant side benefits compared with its predecessors. But for many customers, all that isn't enough to warrant paying more -- because the older drugs on the market already work pretty well, too. In Europe, the company had hoped to price Tresiba at 60%-70% higher than its previous product.</p>
<p>"The incremental improvements don't seem to justify the premium prices," said Steve Miller, chief medical officer of Express Scripts Holding Co., one of America's biggest pharmacy-benefit managers, a key middleman that buys drugs in bulk on behalf of insurers.</p>
<p>Novo Nordisk's hopes for the new drug -- which it once expected to generate blockbuster profits -- have dimmed. The company has warned repeatedly it won't meet its long-term growth targets, and its stock price has shrunk by more than a quarter since the beginning of last year. Executives are scrambling to diversify -- pouring money into research outside its core insulin-focused science. The company announced 1,000 job cuts last fall.</p>
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<p>"A lot of staff -- anyone who joined within the last 18 years -- had not seen anything but success and constant growth," said Chief Executive Lars Fruergaard Jørgensen in an interview.</p>
<p>As the turmoil at Novo Nordisk shows, there are commercial limits to innovation. Nokia Corp. and BlackBerry Ltd. both lost their market dominance in smartphones because competitors beat them with major technological advances. Both firms are in the process of reinventing themselves.</p>
<p>In other cases, though, innovation has hit a wall. That is especially the case in some pockets of the pharmaceuticals business, where the scope for big improvements is narrowing.</p>
<p>Common, deadly ailments, such as asthma, high cholesterol and heart disease, were the focus of the pharmaceutical industry during a golden age of drug launches in the 1990s. Now, building on those advances has proven costlier and more complex, and usually results in smaller gains. Incrementally improved medicines are harder to sell at the prices needed to cover their development costs.</p>
<p>Sanofi SA and Amgen Inc. are struggling to make headway with their new cholesterol-lowering drugs. These medicines, known as PCSK9 inhibitors, bring about a greater reduction in cholesterol levels than older statins alone for certain people. But the companies have yet to convince insurers that it is worth putting these patients on them: Both cost more than $14,000 a year before rebates and discounts. Older statins are available for just pennies a day.</p>
<p>Novartis AG hoped its new heart-failure medicine Entresto's proven superiority to older, so-called ACE-inhibitors would guarantee rapid uptake among cardiologists. But insurers initially incentivized doctors to prescribe older, cheaper drugs, leading to a much slower launch. That is changing as insurers gradually adopt more permissive policies toward Entresto.</p>
<p>People with diabetes don't make enough insulin, a hormone needed to convert sugar into storable energy. In Type 1 diabetes, the body doesn't make insulin at all. In Type 2, the far-more-common form linked to obesity, the body develops resistance to insulin, and the pancreas cannot produce enough for the proper effect.</p>
<p>Around 12% of American adults have diabetes, according to an estimate published this year by the Centers for Disease Control and Prevention, though around a quarter of those aren't aware they have the disease. That figure could rise to as many as one in three American adults by 2050, according to a 2010 report by the CDC.</p>
<p>Of those diagnosed with diabetes, about a third depend on insulin injections, the CDC said. That was about six million people in 2011.</p>
<p>Novo Nordisk has been making insulin since the hormone was discovered in the early 20th century. That breakthrough, by two Canadian scientists, led to the first effective treatment for diabetes.</p>
<p>August Krogh, a Danish medical professor and Nobel laureate, heard about the discovery in 1922 while lecturing in the U.S. with his wife, Marie, a doctor who suffered from Type 2 diabetes. After a stopover in Toronto, the couple returned to Denmark with permission to manufacture the lifesaving treatment in Scandinavia.</p>
<p>Nordisk Insulinlaboratorium was founded the next year. Denmark, home to one of Europe's biggest pork industries, made sense for a business based, in its early days, on harvesting the hormone from the pancreases of pigs and cows.</p>
<p>In 1924, two brothers left Nordisk to set up their own firm, Novo. The rival companies competed fiercely, one-upping each other with insulin innovations, such as injections with longer effects.</p>
<p>Novo adopted new genetic engineering technology in the 1980s. The technology ushered in synthetic human insulin and ended the dependence on animals. The two companies joined forces in 1989, leapfrogging America's Eli Lilly &amp; Co. as the world's biggest insulin producer.</p>
<p>Over its history, the company's narrow focus was a strength: Its deep expertise boosted its ability to produce ever-better products.</p>
<p>Through the 1990s, the company tweaked the basic insulin molecule to fine-tune its performance. It developed a fast-acting insulin, called Novolog, that enters the blood quickly, providing a ready boost at mealtimes. It also rolled out a long-acting version called Levemir that releases a steady stream of insulin into the blood throughout the day.</p>
<p>In the mid-2000s, Novo Nordisk launched a handful of these so-called analog insulins, as patients clamored for more convenient forms. Doctors, patients and health-care managers in the U.S. and Europe were appreciative, willing to pay more for the new benefits.</p>
<p>Novo Nordisk's stock surged. By 2013, Copenhagen's tiny stock exchange was forced to change its blue-chip benchmark index to keep it from being overwhelmed by the company's swelling market value.</p>
<p>After the success of Levemir, Novo Nordisk aimed higher. It developed Tresiba, even more convenient: The drug can be taken at any time of day, whereas Levemir and Sanofi's equivalent, Lantus, require a regular dosing schedule. In addition, Tresiba is associated with fewer episodes of dangerously low blood sugar, or hypoglycemia.</p>
<p>An early set of results for Tresiba impressed executives, Novo Nordisk's research chief, Mads Thomsen, recalled. "We just sat there and said, 'Wow,' " he said. "We had kind of realized we were very close to perfection."</p>
<p>As it awaited final blessing from the U.S. Federal Drug Administration, the company rolled the drug out across Europe, starting in 2013. It hit the market with a thud.</p>
<p>Drug pricing in Europe is very different from the U.S. The biggest buyers aren't insurance companies and health-plan managers, but government-controlled entities or their middlemen. They typically negotiate hard with companies for supplies for an entire country. The system keeps prices lower than in the more-fragmented U.S. system.</p>
<p>Once a price is set by one of these bodies, it is very difficult to raise. So, drug companies typically launch a new drug at the highest price they think they can get, knowing they won't likely be able to increase it.</p>
<p>Novo Nordisk, however, struggled from the start to convince European buyers that Tresiba was different enough from Levemir to command a big premium.</p>
<p>In Germany, for example, a pricing board set the price for Tresiba at the same level as the basic synthetic human insulin that had been available since the 1980s, which has none of the long-acting or other special benefits of newer forms. An agency that assesses the cost-benefit of new medicines concluded Tresiba had no real advantage in terms of controlling the disease itself. Novo Nordisk withdrew Tresiba from Germany, Europe's largest drug market.</p>
<p>Other countries, like the Netherlands, Denmark and Spain, allowed Novo Nordisk to launch Tresiba at around its desired price of 60%-70% higher than Levemir and Sanofi's Lantus.</p>
<p>But to minimize the impact on their budgets, the health systems wouldn't reimburse patients for Tresiba, and the new insulin gained very little market share. Last year, Novo Nordisk lowered its price to a level that the health systems would reimburse, and use of Tresiba has picked up.</p>
<p>"In Europe, we launched with a very high premium," said Mr. Jørgensen, the CEO. "That turned out to be too high." He said Tresiba's premium over Levemir and Lantus is now around 20% in most European markets.</p>
<p>Still, executives were sanguine. Prices in Europe were now locked in at much lower rates than they had expected. But they thought they could rely on the U.S. market to more than make up. In the U.S., drugmakers usually introduce new products at a modest premium over previous versions, with the assumption they will be able to raise prices for years to come.</p>
<p>Novo Nordisk launched Tresiba in the U.S. in early 2016, ahead of the presidential election. Politicians on both sides were slamming drug companies for raising prices. Beyond the campaign rhetoric, insurers and health-plan managers were targeting diabetes medicine, in particular, for cost-cutting scrutiny. The medicines are their second-largest drug outlay, after cancer medicines, according to analyst Ronny Gal of investment research firm Bernstein.</p>
<p>Payers were girding for expected cost increases related to a raft of new cancer-fighting drugs, many of which promised big gains for patients. In the diabetes field, a string of new, pricey drugs designed to control blood sugar levels in early-stage Type 2 patients were also stretching budgets. These pressures made insulin, where the older products worked pretty well, an obvious target for cost savings.</p>
<p>Diabetes "is on payers' radar with big, red, flashing lights," said Barry Farrimond, a European drug-pricing analyst at ZS Associates, a management consultancy.</p>
<p>Amid that environment, Novo Nordisk couldn't convince executives at pharmacy-benefit managers such as Express Scripts that Tresiba was enough of a game-changer to warrant a significantly higher price.</p>
<p>For that, large clinical groups like the American Diabetes Association "have to tell us that this medication is clearly superior and as a result everybody who has diabetes should have access to it," said Troyen Brennan, chief medical officer of CVS Health Corp., another large pharmacy-benefit manager.</p>
<p>Doctors and the ADA view Tresiba as "not much different," he said. This year's ADA guidelines group Tresiba alongside other long-acting insulins and note that patients with well-managed, Type 2 diabetes can use basic synthetic human insulin "safely and at much lower cost."</p>
<p>Novo Nordisk accepted a list price for Tresiba only around 10% higher than Levemir. The list price doesn't take into account rebates and other concessions, and some pharmacy-benefit managers are charging a higher copay for Tresiba to steer patients to cheaper drugs.</p>
<p>At the same time, Novo Nordisk was being hit by another new threat: competition. Eli Lilly, which for years had mostly played in the short-acting insulin market, launched a low-cost, longer-acting one, pressuring prices even more.</p>
<p>"We knew the dynamics were going to change, but it ended up being more dramatic than we anticipated," CEO Mr. Jørgensen said in the interview.</p>
<p>This month, he told reporters the price for Tresiba would take another hit in 2018, having already fallen in 2017. "The competitive environment we are in is now a permanent situation," he said.</p>
<p>Tresiba is gradually gaining traction. As of June, it had grabbed a 6.2% share of the U.S. long-acting insulin market, according to health data provider Quintiles IMS. That momentum helped Novo Nordisk post better-than-expected earnings in the second quarter this year, leading the company to brighten its full-year outlook.</p>
<p>But the tougher U.S. pricing environment took executives by surprise. Last year, the company slashed its long-term profit-growth forecasts twice: in February, to 10% from 15%, and in October, to 5%.</p>
<p>The company's breakneck growth of the past two decades is "an era that's over for now," said Claus Johansen, senior portfolio manager at Danske capital, a top-15 investor in the company.</p>
<p>The company is protected from some market forces. In a quirk of its Danish ownership structure, a foundation owns the majority of the company, shielding it from an opportunistic takeover.</p>
<p>The Tresiba experience has prompted a strategic overhaul. Mr. Jørgensen, who had been chief executive-designate since September 2016 and formally took up the role in January, has pivoted the company away from making incremental improvements to insulin.</p>
<p>"The market will probably not be screaming to get a slightly better Tresiba," he said in a February investor call.</p>
<p>It is widening its research to diseases that the company considers "adjacent" to diabetes. Novo Nordisk has long had a sideline in hemophilia treatments but has generally refrained from dabbling in other diseases. Now, it will start investigating drugs for conditions like NASH, a disease in which fatty deposits build up in the liver; diabetic kidney disease; and cardiovascular disease.</p>
<p>Within the diabetes field, the company still makes and sells the popular, less-expensive insulins. A Novo Nordisk drug called Victoza is part of a new class of treatments that boost insulin production in Type 2 diabetes patients. And it hasn't given up on insulin research altogether. In October, it scrapped a project working on a tablet version of the medicine. Instead, it is now focusing on more meaningful improvements, such as "smart insulin" that acts only in the presence of high blood sugar.</p>
<p>"I still believe we will bring new insulin to the market," said Mr. Jørgensen. "But the innovative height has to be better than what we have today."</p>
<p>Write to Denise Roland at [email protected]</p>
<p>(END) Dow Jones Newswires</p>
<p>August 15, 2017 11:12 ET (15:12 GMT)</p> | true | 0 | danish drug giant novo nordisk living corporate nightmare ceo might recognize business school company concentrated making essentially one product better better charging customers suddenly stopped paying improvement established versions well good enough continue reading novo nordisks case product insulin hormone deficient people diabetes since founding 1923 company made successive waves better insulin worlds biggest producer stuff insulin brings half companys revenue years innovation translated ability charge latest version boosting profit margins swelling companys stock price diabetes incurable disease morphed global epidemic recent years novo nordisks tight focus insulin provided reliable growing profits lately flow ended doctors healthplan managers insurers balked paying novo nordisks newest version insulin clinical trials show works promised controlling diabetes delivers significant side benefits compared predecessors many customers isnt enough warrant paying older drugs market already work pretty well europe company hoped price tresiba 6070 higher previous product incremental improvements dont seem justify premium prices said steve miller chief medical officer express scripts holding co one americas biggest pharmacybenefit managers key middleman buys drugs bulk behalf insurers novo nordisks hopes new drug expected generate blockbuster profits dimmed company warned repeatedly wont meet longterm growth targets stock price shrunk quarter since beginning last year executives scrambling diversify pouring money research outside core insulinfocused science company announced 1000 job cuts last fall advertisement lot staff anyone joined within last 18 years seen anything success constant growth said chief executive lars fruergaard jørgensen interview turmoil novo nordisk shows commercial limits innovation nokia corp blackberry ltd lost market dominance smartphones competitors beat major technological advances firms process reinventing cases though innovation hit wall especially case pockets pharmaceuticals business scope big improvements narrowing common deadly ailments asthma high cholesterol heart disease focus pharmaceutical industry golden age drug launches 1990s building advances proven costlier complex usually results smaller gains incrementally improved medicines harder sell prices needed cover development costs sanofi sa amgen inc struggling make headway new cholesterollowering drugs medicines known pcsk9 inhibitors bring greater reduction cholesterol levels older statins alone certain people companies yet convince insurers worth putting patients cost 14000 year rebates discounts older statins available pennies day novartis ag hoped new heartfailure medicine entrestos proven superiority older socalled aceinhibitors would guarantee rapid uptake among cardiologists insurers initially incentivized doctors prescribe older cheaper drugs leading much slower launch changing insurers gradually adopt permissive policies toward entresto people diabetes dont make enough insulin hormone needed convert sugar storable energy type 1 diabetes body doesnt make insulin type 2 farmorecommon form linked obesity body develops resistance insulin pancreas produce enough proper effect around 12 american adults diabetes according estimate published year centers disease control prevention though around quarter arent aware disease figure could rise many one three american adults 2050 according 2010 report cdc diagnosed diabetes third depend insulin injections cdc said six million people 2011 novo nordisk making insulin since hormone discovered early 20th century breakthrough two canadian scientists led first effective treatment diabetes august krogh danish medical professor nobel laureate heard discovery 1922 lecturing us wife marie doctor suffered type 2 diabetes stopover toronto couple returned denmark permission manufacture lifesaving treatment scandinavia nordisk insulinlaboratorium founded next year denmark home one europes biggest pork industries made sense business based early days harvesting hormone pancreases pigs cows 1924 two brothers left nordisk set firm novo rival companies competed fiercely oneupping insulin innovations injections longer effects novo adopted new genetic engineering technology 1980s technology ushered synthetic human insulin ended dependence animals two companies joined forces 1989 leapfrogging americas eli lilly amp co worlds biggest insulin producer history companys narrow focus strength deep expertise boosted ability produce everbetter products 1990s company tweaked basic insulin molecule finetune performance developed fastacting insulin called novolog enters blood quickly providing ready boost mealtimes also rolled longacting version called levemir releases steady stream insulin blood throughout day mid2000s novo nordisk launched handful socalled analog insulins patients clamored convenient forms doctors patients healthcare managers us europe appreciative willing pay new benefits novo nordisks stock surged 2013 copenhagens tiny stock exchange forced change bluechip benchmark index keep overwhelmed companys swelling market value success levemir novo nordisk aimed higher developed tresiba even convenient drug taken time day whereas levemir sanofis equivalent lantus require regular dosing schedule addition tresiba associated fewer episodes dangerously low blood sugar hypoglycemia early set results tresiba impressed executives novo nordisks research chief mads thomsen recalled sat said wow said kind realized close perfection awaited final blessing us federal drug administration company rolled drug across europe starting 2013 hit market thud drug pricing europe different us biggest buyers arent insurance companies healthplan managers governmentcontrolled entities middlemen typically negotiate hard companies supplies entire country system keeps prices lower morefragmented us system price set one bodies difficult raise drug companies typically launch new drug highest price think get knowing wont likely able increase novo nordisk however struggled start convince european buyers tresiba different enough levemir command big premium germany example pricing board set price tresiba level basic synthetic human insulin available since 1980s none longacting special benefits newer forms agency assesses costbenefit new medicines concluded tresiba real advantage terms controlling disease novo nordisk withdrew tresiba germany europes largest drug market countries like netherlands denmark spain allowed novo nordisk launch tresiba around desired price 6070 higher levemir sanofis lantus minimize impact budgets health systems wouldnt reimburse patients tresiba new insulin gained little market share last year novo nordisk lowered price level health systems would reimburse use tresiba picked europe launched high premium said mr jørgensen ceo turned high said tresibas premium levemir lantus around 20 european markets still executives sanguine prices europe locked much lower rates expected thought could rely us market make us drugmakers usually introduce new products modest premium previous versions assumption able raise prices years come novo nordisk launched tresiba us early 2016 ahead presidential election politicians sides slamming drug companies raising prices beyond campaign rhetoric insurers healthplan managers targeting diabetes medicine particular costcutting scrutiny medicines secondlargest drug outlay cancer medicines according analyst ronny gal investment research firm bernstein payers girding expected cost increases related raft new cancerfighting drugs many promised big gains patients diabetes field string new pricey drugs designed control blood sugar levels earlystage type 2 patients also stretching budgets pressures made insulin older products worked pretty well obvious target cost savings diabetes payers radar big red flashing lights said barry farrimond european drugpricing analyst zs associates management consultancy amid environment novo nordisk couldnt convince executives pharmacybenefit managers express scripts tresiba enough gamechanger warrant significantly higher price large clinical groups like american diabetes association tell us medication clearly superior result everybody diabetes access said troyen brennan chief medical officer cvs health corp another large pharmacybenefit manager doctors ada view tresiba much different said years ada guidelines group tresiba alongside longacting insulins note patients wellmanaged type 2 diabetes use basic synthetic human insulin safely much lower cost novo nordisk accepted list price tresiba around 10 higher levemir list price doesnt take account rebates concessions pharmacybenefit managers charging higher copay tresiba steer patients cheaper drugs time novo nordisk hit another new threat competition eli lilly years mostly played shortacting insulin market launched lowcost longeracting one pressuring prices even knew dynamics going change ended dramatic anticipated ceo mr jørgensen said interview month told reporters price tresiba would take another hit 2018 already fallen 2017 competitive environment permanent situation said tresiba gradually gaining traction june grabbed 62 share us longacting insulin market according health data provider quintiles ims momentum helped novo nordisk post betterthanexpected earnings second quarter year leading company brighten fullyear outlook tougher us pricing environment took executives surprise last year company slashed longterm profitgrowth forecasts twice february 10 15 october 5 companys breakneck growth past two decades era thats said claus johansen senior portfolio manager danske capital top15 investor company company protected market forces quirk danish ownership structure foundation owns majority company shielding opportunistic takeover tresiba experience prompted strategic overhaul mr jørgensen chief executivedesignate since september 2016 formally took role january pivoted company away making incremental improvements insulin market probably screaming get slightly better tresiba said february investor call widening research diseases company considers adjacent diabetes novo nordisk long sideline hemophilia treatments generally refrained dabbling diseases start investigating drugs conditions like nash disease fatty deposits build liver diabetic kidney disease cardiovascular disease within diabetes field company still makes sells popular lessexpensive insulins novo nordisk drug called victoza part new class treatments boost insulin production type 2 diabetes patients hasnt given insulin research altogether october scrapped project working tablet version medicine instead focusing meaningful improvements smart insulin acts presence high blood sugar still believe bring new insulin market said mr jørgensen innovative height better today write denise roland deniserolandwsjcom end dow jones newswires august 15 2017 1112 et 1512 gmt | 1,439 |
<p>Finding dividend stocks that will last for the long term can be difficult in a market where companies are in and out of favor at the drop of a hat. But some companies have built businesses that are not only made to last but have the cash flow to hand out reliable dividends for years to come.</p>
<p>We put together our top stocks that are dependable enough to pay a dividend well into the future. At the top of the list are&#160;Starbucks&#160;Corporation&#160;(NASDAQ: SBUX),&#160;Sherwin-Williams&#160;(NYSE: SHW), and&#160;Apple (NASDAQ: AAPL).</p>
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<p><a href="http://www.fool.com/author/1957/index.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=bdf2b094-65cf-11e7-a472-0050569d4be0&amp;utm_source=foxbusiness" type="external">Jeremy Bowman Opens a New Window.</a>&#160;(Starbucks):&#160;If you're looking for a combination of growth and dividends, it's hard to beat&#160;Starbucks&#160;Corporation. The coffee king started paying dividends in 2010, and has given investors a robust increase each year since, lifting the payout by more than 20% per year. That means it now pays investors five times more in dividends than it did just seven years ago.</p>
<p>Starbucks' dividend yield of 1.7% may not turn any heads today, but the company is primed to be a top dividend stock in the years ahead. Not only has it shown a commitment to steady dividend raises, but it also has a promising growth path ahead of it with <a href="https://www.fool.com/investing/2017/05/26/3-biggest-opportunities-for-starbucks-corporation.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=bdf2b094-65cf-11e7-a472-0050569d4be0&amp;utm_source=foxbusiness" type="external">key opportunities Opens a New Window.</a> in China, digital initiatives like mobile ordering and rewards, and through the new Reserve Roasteries and cafes. The company expects to open more than 2,000 stores a year for the next five years, and looks primed to eventually become the biggest restaurant chain in the world by location count. It projects earnings-per-share growth of 15%-20% over the next five years as well.</p>
<p>Not only that but its dividend payout ratio is still less than 50%, meaning it can afford to keep raising its dividend by 20% or so, even if earnings do not grow as fast.</p>
<p>Long-term investors know that dividend growth matters more than the current dividend yield. Starbucks has the track record and growth opportunities to deliver for dividend investors over the next 10 years.</p>
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<p><a href="http://my.fool.com/profile/TMFSigma/activity.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=bdf2b094-65cf-11e7-a472-0050569d4be0&amp;utm_source=foxbusiness" type="external">Demitri Kalogeropoulos Opens a New Window.</a> (Sherwin-Williams): Sherwin-Williams shareholders received a weak dividend boost this year when the paint specialist raised its payout by just 1% to $0.85 per share. That was a big departure from the 20% (or higher) increases that investors received in each of the prior two fiscal years.</p>
<p>Sherwin-Williams has good reasons to be conservative right now, as it is concluding its $11 billion purchase of Valspar. This acquisition has been in the works for over a year and promises to double the company's sales footprint while pushing profit margins further into record territory.</p>
<p>It's not as if Sherwin-Williams' core business needs much help, though. In fact, sales jumped 7.5% last quarter thanks to a 12% spike in the paint store segment. At the same time, higher prices supercharged earnings growth and lifted segment margins to 16.8% of sales from 15.7% a year ago.</p>
<p>The Valspar acquisition should reduce earnings by about $0.40 per share this year following an $0.86-per-share hit to 2016's results. The merger is also adding a hefty chunk of debt to Sherwin-Williams' books.</p>
<p>Yet management aims to use its significant earnings and free cash flow generation to pay that leverage down while maintaining its dividend growth streak. The company has, after all, raised its payout for 38 consecutive years. Considering its improving operating trends and strong track record at integrating acquired businesses, I'm expecting this Dividend Aristocrat to quickly return to a pace of robust dividend gains following 2017's near-pause in income growth.</p>
<p><a href="http://my.fool.com/profile/TMFFlushDraw/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=bdf2b094-65cf-11e7-a472-0050569d4be0&amp;utm_source=foxbusiness" type="external">Travis Hoium Opens a New Window.</a> (Apple): Every dividend needs to have a company that generates consistent cash flow behind it. And no company generates cash like Apple.</p>
<p>Over the last five-and-a-half years, Apple has returned $211.2 billion to shareholders through dividends and share buybacks, and it has nearly $90 billion left in the program. On top of what's being returned to shareholders, it had $257 billion in cash on the balance sheet at the end of the fiscal second quarter and is generating over $50 billion in free cash flow each year.</p>
<p>You can see that Apple's cash generation has trended higher, spiking with the release of the iPhone 6. The power of its business model is that customers get locked into the ecosystem once they start purchasing apps and media content, making switching costs high when it's time to upgrade their phone or computer. And it's using that position to expand into adjacent markets with the HomePod, AirPods, and the Apple Watch.</p>
<p>Apple is a solid dividend today but with just a 1.75% dividend yield, there's plenty of room for the dividend to move higher. That's why this is a stock that I think is great to own for tomorrow.</p>
<p>10 stocks we like better than&#160;Wal-MartWhen investing geniuses David and Tom&#160;Gardner have a stock tip, it can pay to listen. After all, the newsletter they&#160;have run for over a decade, the Motley Fool Stock Advisor, has tripled the market.*</p>
<p>David and Tom&#160;just revealed what they believe are the&#160; <a href="https://www.fool.com/mms/mark/e-sa-bbn-eg?aid=8867&amp;source=isaeditxt0000476&amp;ftm_cam=sa-bbn-evergreen&amp;ftm_pit=6627&amp;ftm_veh=article_pitch&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=bdf2b094-65cf-11e7-a472-0050569d4be0&amp;utm_source=foxbusiness" type="external">ten best stocks Opens a New Window.</a>&#160;for investors to buy right now... and Wal-Mart wasn't one of them! That's right -- they&#160;think these 10 stocks are even better buys.</p>
<p><a href="https://www.fool.com/mms/mark/e-sa-bbn-eg?aid=8867&amp;source=isaeditxt0000476&amp;ftm_cam=sa-bbn-evergreen&amp;ftm_pit=6627&amp;ftm_veh=article_pitch&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=bdf2b094-65cf-11e7-a472-0050569d4be0&amp;utm_source=foxbusiness" type="external">Click here Opens a New Window.</a>&#160;to learn about these picks!</p>
<p>*Stock&#160;Advisor returns as of July 6, 2017The author(s) may have a position in any stocks mentioned.</p>
<p><a href="http://my.fool.com/profile/TMFSigma/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=bdf2b094-65cf-11e7-a472-0050569d4be0&amp;utm_source=foxbusiness" type="external">Demitrios Kalogeropoulos Opens a New Window.</a> owns shares of Apple, Sherwin-Williams, and Starbucks. <a href="http://my.fool.com/profile/TMFHobo/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=bdf2b094-65cf-11e7-a472-0050569d4be0&amp;utm_source=foxbusiness" type="external">Jeremy Bowman Opens a New Window.</a> owns shares of Apple and Starbucks. <a href="http://my.fool.com/profile/TMFFlushDraw/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=bdf2b094-65cf-11e7-a472-0050569d4be0&amp;utm_source=foxbusiness" type="external">Travis Hoium Opens a New Window.</a> owns shares of Apple. The Motley Fool owns shares of and recommends Apple and Starbucks. The Motley Fool recommends Sherwin-Williams. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=bdf2b094-65cf-11e7-a472-0050569d4be0&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | finding dividend stocks last long term difficult market companies favor drop hat companies built businesses made last cash flow hand reliable dividends years come put together top stocks dependable enough pay dividend well future top list are160starbucks160corporation160nasdaq sbux160sherwinwilliams160nyse shw and160apple nasdaq aapl continue reading jeremy bowman opens new window160starbucks160if youre looking combination growth dividends hard beat160starbucks160corporation coffee king started paying dividends 2010 given investors robust increase year since lifting payout 20 per year means pays investors five times dividends seven years ago starbucks dividend yield 17 may turn heads today company primed top dividend stock years ahead shown commitment steady dividend raises also promising growth path ahead key opportunities opens new window china digital initiatives like mobile ordering rewards new reserve roasteries cafes company expects open 2000 stores year next five years looks primed eventually become biggest restaurant chain world location count projects earningspershare growth 1520 next five years well dividend payout ratio still less 50 meaning afford keep raising dividend 20 even earnings grow fast longterm investors know dividend growth matters current dividend yield starbucks track record growth opportunities deliver dividend investors next 10 years advertisement demitri kalogeropoulos opens new window sherwinwilliams sherwinwilliams shareholders received weak dividend boost year paint specialist raised payout 1 085 per share big departure 20 higher increases investors received prior two fiscal years sherwinwilliams good reasons conservative right concluding 11 billion purchase valspar acquisition works year promises double companys sales footprint pushing profit margins record territory sherwinwilliams core business needs much help though fact sales jumped 75 last quarter thanks 12 spike paint store segment time higher prices supercharged earnings growth lifted segment margins 168 sales 157 year ago valspar acquisition reduce earnings 040 per share year following 086pershare hit 2016s results merger also adding hefty chunk debt sherwinwilliams books yet management aims use significant earnings free cash flow generation pay leverage maintaining dividend growth streak company raised payout 38 consecutive years considering improving operating trends strong track record integrating acquired businesses im expecting dividend aristocrat quickly return pace robust dividend gains following 2017s nearpause income growth travis hoium opens new window apple every dividend needs company generates consistent cash flow behind company generates cash like apple last fiveandahalf years apple returned 2112 billion shareholders dividends share buybacks nearly 90 billion left program top whats returned shareholders 257 billion cash balance sheet end fiscal second quarter generating 50 billion free cash flow year see apples cash generation trended higher spiking release iphone 6 power business model customers get locked ecosystem start purchasing apps media content making switching costs high time upgrade phone computer using position expand adjacent markets homepod airpods apple watch apple solid dividend today 175 dividend yield theres plenty room dividend move higher thats stock think great tomorrow 10 stocks like better than160walmartwhen investing geniuses david tom160gardner stock tip pay listen newsletter they160have run decade motley fool stock advisor tripled market david tom160just revealed believe the160 ten best stocks opens new window160for investors buy right walmart wasnt one thats right they160think 10 stocks even better buys click opens new window160to learn picks stock160advisor returns july 6 2017the authors may position stocks mentioned demitrios kalogeropoulos opens new window owns shares apple sherwinwilliams starbucks jeremy bowman opens new window owns shares apple starbucks travis hoium opens new window owns shares apple motley fool owns shares recommends apple starbucks motley fool recommends sherwinwilliams motley fool disclosure policy opens new window | 565 |
<p>A123 Systems , the lithium-ion battery maker backed by a $249 million U.S. government grant, filed for bankruptcy on Tuesday, prompting Republican Mitt Romney's presidential campaign to accuse the Obama administration of "gambling away billions of taxpayer dollars."</p>
<p>The Chapter 11 bankruptcy filing came after a $465 million rescue deal with Chinese auto parts supplier Wanxiang Group unraveled.</p>
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<p>A123, which has tapped half of its government grant, agreed to sell its automotive operations, including two factories in Michigan, for $125 million to Milwaukee-based Johnson Controls Inc, a leading battery supplier and another recipient of federal green subsidies.</p>
<p>The bankruptcy illustrates the sharp reversal of A123's fortunes since 2009, when its stock rose 50 percent on the first day of trading on the Nasdaq. But weaker-than-expected demand for hybrids and missteps, including a costly battery recall, hit A123's bottom line and left the start-up with excess capacity.</p>
<p>The bankruptcy filing, on the day of the second of three debates between President Barack Obama and Romney, gave Republicans fresh ammunition ahead of the Nov. 6 election to attack Obama's subsidies for green energy.</p>
<p>The U.S. Department of Energy allotted about $90 billion for various clean-energy programs through the administration's stimulus package. Of that, at least $813 million went to energy companies that eventually filed for bankruptcy, including the grant to A123 and a loan to solar panel maker Solyndra.</p>
<p>Romney campaign spokeswoman Andrea Saul cited the A123 bankruptcy as proof of Obama "gambling away billions of taxpayer dollars on a strategy of government-led growth that simply does not work."</p>
<p>Obama campaign spokesman Adam Fletcher countered that the investments helped to more than double renewable energy production from wind and solar, "creating good-paying jobs and bringing manufacturing back to our shores."</p>
<p>Romney argues that the government should not pick corporate winners and losers, while Obama has countered that such investments are needed to bolster the U.S. position in advanced batteries and other cutting-edge green technology.</p>
<p>"The riskiest strategy of all is not competing aggressively for the technologies of tomorrow and the jobs that come," Dan Leistikow, DOE director of public affairs, said in a blog post. "In an emerging industry, it's very common to see some firms consolidate with others as the industry grows and matures."</p>
<p>FILING COMES AFTER 8-MONTH SEARCH</p>
<p>A123 has come under pressure over the last year after Fisker Automotive cut battery orders for its Karma plug-in hybrid in October 2011. This year, A123 had to recall battery packs made for Fisker, which made up 26 percent of A123's revenue in 2011.</p>
<p>The bankruptcy filing comes after roughly eight months of attempts by A123 to find a buyer or strategic investor, Chief Financial Officer David Brystash said in a court filing. In March, A123 hired Lazard Freres &amp; Co, which contacted 74 potential partners and investors.</p>
<p>Twenty-four discussed the process with Lazard, but only Wanxiang offered to invest in A123 as a going concern. In August, A123 announced the $465 million rescue deal with Wanxiang, which immediately gave A123 a $22.5 million loan, including a cash advance of $12.5 million.</p>
<p>Future cash infusions from Wanxiang were contingent on A123 meeting certain requirements, included getting approval from the Committee of Foreign Investment and the Chinese government as well as the absence of any default. Shortly before filing for bankruptcy, it became apparent that A123 would fall short of some of those conditions, according to court documents.</p>
<p>Johnson Controls has provided $72.5 million in debtor-in-possession financing to A123. Johnson Controls said its interest "is consistent with (Johnson Controls') long-term commitment to being a market leader in the advanced battery industry."</p>
<p>Fisker said it welcomed A123's deal with Johnson Controls, adding that the automaker had enough batteries for Karma through the first quarter of 2013. A123 also supplies batteries for the Chevrolet Spark EV that will be introduced next year by General Motors Co. GM said it expects no delays in the program.</p>
<p>In a research note, Morgan Stanley analyst Ravi Shanker said Johnson Controls would be able to wring out costs in A123 and possibly bring the company to break-even quickly.</p>
<p>Johnson Controls supplies batteries to Ford Motor Co, BMW and Daimler, among others.</p>
<p>A123 expects to sell its non-automotive operations and has identified certain bidders, according to the filing. A123 listed total assets of $459.8 million and liabilities of $376 million in its Chapter 11 petition.</p>
<p>WINNERS AND LOSERS</p>
<p>A123 had promised to create 38,000 U.S. jobs, including 5,900 at its own plants, in return for the government funding under the 2009 American Recovery and Reinvestment Act's Electric Drive Vehicle Battery and Component Manufacturing Initiative.</p>
<p>Johnson Controls, which supplies lithium-ion batteries to a number of vehicle manufacturers, also received a $299 million grant under the same program. A123 has tapped $132 million, or about half, of its U.S. grant, the DOE said.</p>
<p>"The disposition of the remaining grant funds will be decided later as we continue to work with the new owners as they determine their plans for the future," DOE spokewoman Jen Stutsman said in an email to Reuters.</p>
<p>The highest-profile recipient of federal funds, Solyndra, will square off in court Wednesday against the Internal Revenue Service and the DOE as it argues for its bankruptcy plan.</p>
<p>That plan provides $300 million-plus in tax breaks for Solyndra's venture capital backers while potentially leaving the government with zero return on its investment. Every class of creditor has approved the deal except the government.</p>
<p>The case is In re:A123 Systems Inc, U.S. Bankruptcy Court, District of Delaware, No:12-12859.</p>
<p>Advertisement</p> | true | 0 | a123 systems lithiumion battery maker backed 249 million us government grant filed bankruptcy tuesday prompting republican mitt romneys presidential campaign accuse obama administration gambling away billions taxpayer dollars chapter 11 bankruptcy filing came 465 million rescue deal chinese auto parts supplier wanxiang group unraveled continue reading a123 tapped half government grant agreed sell automotive operations including two factories michigan 125 million milwaukeebased johnson controls inc leading battery supplier another recipient federal green subsidies bankruptcy illustrates sharp reversal a123s fortunes since 2009 stock rose 50 percent first day trading nasdaq weakerthanexpected demand hybrids missteps including costly battery recall hit a123s bottom line left startup excess capacity bankruptcy filing day second three debates president barack obama romney gave republicans fresh ammunition ahead nov 6 election attack obamas subsidies green energy us department energy allotted 90 billion various cleanenergy programs administrations stimulus package least 813 million went energy companies eventually filed bankruptcy including grant a123 loan solar panel maker solyndra romney campaign spokeswoman andrea saul cited a123 bankruptcy proof obama gambling away billions taxpayer dollars strategy governmentled growth simply work obama campaign spokesman adam fletcher countered investments helped double renewable energy production wind solar creating goodpaying jobs bringing manufacturing back shores romney argues government pick corporate winners losers obama countered investments needed bolster us position advanced batteries cuttingedge green technology riskiest strategy competing aggressively technologies tomorrow jobs come dan leistikow doe director public affairs said blog post emerging industry common see firms consolidate others industry grows matures filing comes 8month search a123 come pressure last year fisker automotive cut battery orders karma plugin hybrid october 2011 year a123 recall battery packs made fisker made 26 percent a123s revenue 2011 bankruptcy filing comes roughly eight months attempts a123 find buyer strategic investor chief financial officer david brystash said court filing march a123 hired lazard freres amp co contacted 74 potential partners investors twentyfour discussed process lazard wanxiang offered invest a123 going concern august a123 announced 465 million rescue deal wanxiang immediately gave a123 225 million loan including cash advance 125 million future cash infusions wanxiang contingent a123 meeting certain requirements included getting approval committee foreign investment chinese government well absence default shortly filing bankruptcy became apparent a123 would fall short conditions according court documents johnson controls provided 725 million debtorinpossession financing a123 johnson controls said interest consistent johnson controls longterm commitment market leader advanced battery industry fisker said welcomed a123s deal johnson controls adding automaker enough batteries karma first quarter 2013 a123 also supplies batteries chevrolet spark ev introduced next year general motors co gm said expects delays program research note morgan stanley analyst ravi shanker said johnson controls would able wring costs a123 possibly bring company breakeven quickly johnson controls supplies batteries ford motor co bmw daimler among others a123 expects sell nonautomotive operations identified certain bidders according filing a123 listed total assets 4598 million liabilities 376 million chapter 11 petition winners losers a123 promised create 38000 us jobs including 5900 plants return government funding 2009 american recovery reinvestment acts electric drive vehicle battery component manufacturing initiative johnson controls supplies lithiumion batteries number vehicle manufacturers also received 299 million grant program a123 tapped 132 million half us grant doe said disposition remaining grant funds decided later continue work new owners determine plans future doe spokewoman jen stutsman said email reuters highestprofile recipient federal funds solyndra square court wednesday internal revenue service doe argues bankruptcy plan plan provides 300 millionplus tax breaks solyndras venture capital backers potentially leaving government zero return investment every class creditor approved deal except government case rea123 systems inc us bankruptcy court district delaware no1212859 advertisement | 596 |
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<p>Image source: Getty Images.</p>
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<p>Buying airline stocks can be one of the more vexing exercises a stock investor undertakes. Commercial aviation is a complicated industry that rewards investors who use a structured plan when researching portfolio candidates. In this two-part series, we break down a checklist that covers a number of key areas to consider before clicking "buy" on a carrier's symbol in your brokerage account. The full checklist follows; let's begin by diving into the first five areas.</p>
<p>Image source: author.</p>
<p>This may come as a surprise, but despite drastically different economic models and operating characteristics between low-cost carriers (LCCs), ultra-low-cost carriers (ULCCs), and network carriers, most airlines tend to have very similar profit profiles.</p>
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<p>Why would this be the case? It's simple: The basic economics of running an airline haven't changed in years. For most airlines you'll analyze, labor expense and fuel expense together will equal between 45% and 55% of a carrier's total operating cost.</p>
<p>During periods of higher fuel prices and wage inflation, these combined costs can take up an even bigger slice of the total expense pie. Because of these two outsize line items, and because the amount airlines can charge for each seat is governed by competition, there's not a huge amount of operating leverage available to any given airline to improve profitability very much beyond its peers.</p>
<p>I've collected recent trailing-12-month operating margins for a wide variety of carriers. When we remove two outliers, Allegiant Travel andUnited Continental Holdings, we can see that operating income falls in a pretty tight range, from 15% to just over 24%.</p>
<p>Data source: <a href="http://ycharts.com" type="external">YCharts.</a></p>
<p>If you buy into an airline with operating income much below the 10-percentage-point spread in which most airline profits tend to cluster, be sure to understand why the margin is depressed, and ascertain if a plan exists to bring the airline closer to benchmark level. And if you acquire stock in an airline which exceeds the top of the operating margin band above, check on its valuation relative to peers, to make sure you're not paying too dearly for the profit. We'll return to valuation in Part 2.</p>
<p>The extent to which an airline is a capital-intensive business is hard to appreciate, unless perhaps you run a rail company. Ample debt is the norm in this industry. In periods of high inflation and low economic growth, many airlines have historically been caught in a cycle of declining passenger miles sold alongside higher financing costs, leading to the serial bankruptcies for which the industry is famous.</p>
<p>The past few years of economic recovery and sustained low interest rates have provided airlines with opportunities to clean up their balance sheets. Three U.S. carriers -- Southwest Airlines (NYSE: LUV),Alaska Airlines, and Delta Airlines (NYSE: DAL) -- have even reduced debt enough over the past few years to enjoy "investment grade" status, the highest debt rating granted by major credit rating agencies.</p>
<p>Still, seeing substantial borrowings on an airline's balance sheet isn't necessarily bad. Airlines need efficient fleets to serve capacity. But how much is too much debt? Running a standard debt-to-equity ratio might not be very helpful in answering this question.</p>
<p>Rather, compare net property and equipment (i.e., a carrier's planes and other fixed assets) to long-term debt. In most cases, net property and equipment should exceed long-term borrowings. If you're looking at a network (also loosely referred to as "legacy") carrier such as American Airlines, I'd also recommend adding pension liabilities to long-term debt in this comparison.</p>
<p>Couple this with a ratio such as "times interest earned" to get a sense of how current cash flow covers debt obligations. This may seem like a lot of work, but it's your best way to protect your investment dollars in an industry that tends to move in boom and bust cycles.</p>
<p>Aviation is a statistics-driven industry. You should be familiar with the major statistics airlines use to describe their operations, but beware -- it's easy to get into the weeds and focus too heavily on these. Keep them in context of your existing knowledge of a carrier. Nearly every airline publishes its major statistics, which you can find in quarterly and annual reports, as well as news articles that cover airline earnings.</p>
<p>Two important metrics that serve as excellent signposts to a carrier's recent health are PRASM, or passenger revenue per available seat mile, and CASM, or operating cost per available seat mile. Both of these figures are expressed in cents. Most airlines also provide a CASM "ex-fuel" statistic, which shows operating costs without the effect of fuel pricing.</p>
<p>Checking in on major statistics allows you to see an airline's performance expressed in all-important parameters like passengers and miles. Once you get comfortable reviewing these numbers, it's helpful to compare the stats of your investment with similarly configured airlines.</p>
<p>Understanding fleet age and fleet plans is crucial to grasping a carrier's long-term business strategy. You can quickly find fleet age on sites such as <a href="https://www.planespotters.net/" type="external">planespotters.net Opens a New Window.</a>, along with detailed descriptions of the types of planes that make up an airline's fleet. Delta's average fleet age, for example, is one of the oldest among both network carriers and LCC/ULCC airlines, at nearly 17 years. Compare this with Southwest Airlines, which has a calculated fleet age of roughly 12 years.</p>
<p>Delta's time-honored strategy has been to focus on repair and maintenance over buying new planes, thus pushing up long-term debt. Recently, however, the airline has turned its attention to fleet modernization.Committed Delta investors should check fleet age every few quarters, looking for an aggregate reduction in line with management's current plans.</p>
<p>You can see that the general idea is pretty simple: Find the fleet age and grasp what it tells you about a particular carrier's asset strategy, and then monitor changes on a regular basis.</p>
<p>Like fleet age, an airline's changing routes point to its larger ambitions. While network carriers' routes cover the globe and take time for the average investor to absorb, it can be relatively easy to understand how route additions and deletions affect regional airlines and LCCs.</p>
<p>For example, Hawaiian Holdings (NASDAQ: HA) subsidiary Hawaiian Airlines is currently waiting for fulfillment on an order for six Boeing A320 neo units, which will allow it future route expansion opportunities. Mark Dunkerley, the airline's CEO, recently acknowledged that routes to Europe, and specifically London, are a possibility in the near future. To the investor who pays attention, this type of route enhancement signals revenue opportunity ahead.</p>
<p>Are the skies looking friendlier yet? In the second part of this series, we touch on some crucial topics, including fuel costs, competition, and valuation. To understand the investment strategy underlying these areas, <a href="http://www.fool.com/investing/2016/10/19/a-10-point-checklist-for-investing-in-airlines-par.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">click here Opens a New Window.</a> to read on.</p>
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<p><a href="http://my.fool.com/profile/TMFfinosus/info.aspx" type="external">Asit Sharma Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool recommends Spirit Airlines. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=isiedilnk018048&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">free for 30 days Opens a New Window.</a>. We Fools may not all hold the same opinions, but we all believe that <a href="http://www.fool.com/knowledge-center/motley.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">considering a diverse range of insights Opens a New Window.</a> makes us better investors. The Motley Fool has a <a href="http://www.fool.com/Legal/fool-disclosure-policy.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | image source getty images continue reading buying airline stocks one vexing exercises stock investor undertakes commercial aviation complicated industry rewards investors use structured plan researching portfolio candidates twopart series break checklist covers number key areas consider clicking buy carriers symbol brokerage account full checklist follows lets begin diving first five areas image source author may come surprise despite drastically different economic models operating characteristics lowcost carriers lccs ultralowcost carriers ulccs network carriers airlines tend similar profit profiles advertisement would case simple basic economics running airline havent changed years airlines youll analyze labor expense fuel expense together equal 45 55 carriers total operating cost periods higher fuel prices wage inflation combined costs take even bigger slice total expense pie two outsize line items amount airlines charge seat governed competition theres huge amount operating leverage available given airline improve profitability much beyond peers ive collected recent trailing12month operating margins wide variety carriers remove two outliers allegiant travel andunited continental holdings see operating income falls pretty tight range 15 24 data source ycharts buy airline operating income much 10percentagepoint spread airline profits tend cluster sure understand margin depressed ascertain plan exists bring airline closer benchmark level acquire stock airline exceeds top operating margin band check valuation relative peers make sure youre paying dearly profit well return valuation part 2 extent airline capitalintensive business hard appreciate unless perhaps run rail company ample debt norm industry periods high inflation low economic growth many airlines historically caught cycle declining passenger miles sold alongside higher financing costs leading serial bankruptcies industry famous past years economic recovery sustained low interest rates provided airlines opportunities clean balance sheets three us carriers southwest airlines nyse luvalaska airlines delta airlines nyse dal even reduced debt enough past years enjoy investment grade status highest debt rating granted major credit rating agencies still seeing substantial borrowings airlines balance sheet isnt necessarily bad airlines need efficient fleets serve capacity much much debt running standard debttoequity ratio might helpful answering question rather compare net property equipment ie carriers planes fixed assets longterm debt cases net property equipment exceed longterm borrowings youre looking network also loosely referred legacy carrier american airlines id also recommend adding pension liabilities longterm debt comparison couple ratio times interest earned get sense current cash flow covers debt obligations may seem like lot work best way protect investment dollars industry tends move boom bust cycles aviation statisticsdriven industry familiar major statistics airlines use describe operations beware easy get weeds focus heavily keep context existing knowledge carrier nearly every airline publishes major statistics find quarterly annual reports well news articles cover airline earnings two important metrics serve excellent signposts carriers recent health prasm passenger revenue per available seat mile casm operating cost per available seat mile figures expressed cents airlines also provide casm exfuel statistic shows operating costs without effect fuel pricing checking major statistics allows see airlines performance expressed allimportant parameters like passengers miles get comfortable reviewing numbers helpful compare stats investment similarly configured airlines understanding fleet age fleet plans crucial grasping carriers longterm business strategy quickly find fleet age sites planespottersnet opens new window along detailed descriptions types planes make airlines fleet deltas average fleet age example one oldest among network carriers lcculcc airlines nearly 17 years compare southwest airlines calculated fleet age roughly 12 years deltas timehonored strategy focus repair maintenance buying new planes thus pushing longterm debt recently however airline turned attention fleet modernizationcommitted delta investors check fleet age every quarters looking aggregate reduction line managements current plans see general idea pretty simple find fleet age grasp tells particular carriers asset strategy monitor changes regular basis like fleet age airlines changing routes point larger ambitions network carriers routes cover globe take time average investor absorb relatively easy understand route additions deletions affect regional airlines lccs example hawaiian holdings nasdaq ha subsidiary hawaiian airlines currently waiting fulfillment order six boeing a320 neo units allow future route expansion opportunities mark dunkerley airlines ceo recently acknowledged routes europe specifically london possibility near future investor pays attention type route enhancement signals revenue opportunity ahead skies looking friendlier yet second part series touch crucial topics including fuel costs competition valuation understand investment strategy underlying areas click opens new window read secret billiondollar stock opportunity worlds biggest tech company forgot show something wall street analysts fool didnt miss beat theres small company thats powering brandnew gadgets coming revolution technology think stock price nearly unlimited room run early intheknow investors one click opens new window asit sharma opens new window position stocks mentioned motley fool recommends spirit airlines try foolish newsletter services free 30 days opens new window fools may hold opinions believe considering 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<p>I am a big proponent of supporting immigrant-founded and immigrant-owned businesses. This week, Irish Americans across the country will celebrate St. Patrick's Day.&#160;They are known for celebrating their songs and impact on American culture, but they also deserve acclaim for their success in business.</p>
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<p>Immigration from Ireland to these shores pre-dates the American Revolution. In fact, New York City's first&#160;St. Patrick's Day Parade was held on March 17, 1762, fourteen years before the Declaration of Independence.&#160;It began, ironically, with homesick Irish who served with the British Army and were stationed in the American colonies. At the time, such a celebration would have been banned in their native country.&#160; The parade marchers reveled in the freedom to wear green, sing Irish songs and play their instruments.</p>
<p>In the late 1840s, a massive wave of immigration from Ireland came to America's shores as the Irish sought to escape the great Famine.&#160;Like other immigrant groups who would follow them, the Irish were not welcomed with open arms.&#160;Their religion was mistrusted, and they met open disdain. Many times they were excluded from economic opportunities and encountered signs that said, "No Irish need apply."</p>
<p>Unwelcome in many industries, the Irish made their mark in politics and civil service.&#160;They rose through the ranks in government and in the military,&#160;as well as the police and fire departments in cities across America. Later, music and film stars, such as Bing Crosby and Walt Disney, became enormously successful.</p>
<p>Subsequent generations achieved prosperity through entrepreneurship, including bar and restaurant owners, attorneys, travel agents, to name a few.&#160; Barry O'Donovan, owner of <a href="http://www.thekilkennyhouse.com/" type="external">Kilkenny House Opens a New Window.</a>&#160;restaurant and pub in Cranford, NJ, was given the SBA's "Phoenix Award" in 2012 for overcoming adversity and re-building his business after Hurricane Irene.</p>
<p>A great number of entrepreneurs of Irish descent founded some of America's top companies, including Motorola co-founder Paul Galvin and Henry Ford, who revolutionized the auto industry.&#160;Groups, such as the <a href="http://www.ibo-ny.com" type="external">Irish Business Organization of New York Opens a New Window.</a> have been established in the past few decades to help entrepreneurial and highly educated immigrants, who have launched businesses in technology, finance, and other industries.</p>
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<p>According to the Census Bureau's 2011 American Community Survey, there are roughly 35 million U.S. residents who claimed Irish ancestry.&#160;About 33.3% of Irish Americans ages 25+ hold a bachelor's degree or higher and 41% of Irish-Americans work in management or professional occupations.&#160; They are quite a success story in this country.</p>
<p>Ethnicities that followed the Irish through Ellis Island -- the Italians, Jews, and emigrants from Southern and Eastern Europe -- also pursued and achieved the American Dream.&#160;In the last half-century, however, the demographics of immigration have changed dramatically.&#160;The exodus from European countries has stemmed, while natives of Mexico, the Caribbean, South Asia and the Far East come to America in record numbers.&#160; Immigrants from these countries are starting businesses at a high rate.</p>
<p>The Fiscal Policy Institute analyzed data from U.S. Census’ American Community Survey and found that 18% of small businesses in the U.S. are owned by immigrants, up from 12% in 1990.&#160; The latest census figures available show that immigrants comprise 13% of the U.S. population and that the majority of these small business owners do not have college degrees.&#160; In New York, 36% of small businesses are owned by immigrants, including myself.&#160;&#160;Miami and Los Angeles have the highest share of immigrant-owned businesses.</p>
<p>Today, funding options for aspiring small business owners are available that simply did not exist for immigrant groups that came to America in the 19th and early 20th centuries.&#160; In recent decades, there have been a number of special programs established to help immigrant-owned businesses, which are often located in urban enterprise zones.&#160; Organizations, such as ACCION East and Online, are much more willing to provide capital to immigrants than many banks are.&#160; The <a href="http://www.sba.gov" type="external">SBA Opens a New Window.</a>, which plays a vital role in American small business development, has long supported small business growth by entrepreneurs whether or not the U.S. is their country of origin.</p>
<p>"The collapse of the Celtic Tiger certainly caused many to pause, but the Irish today have an air of confidence and enterprise about themselves," says Ray O'Hanlon, editor of the <a href="http://irishecho.com" type="external">Opens a New Window.</a> <a href="http://irishecho.com" type="external">Irish Echo Opens a New Window.</a> newspaper, which annually recognizes its "Top 40 Under 40" business leaders of Irish American descent who work in a variety of fields.&#160; "The Irish are, by necessity, exercising these traits globally as a result of the tough economic climate in Ireland itself."</p>
<p>Immigrants such as the Irish, who have flocked to America's shores for economic opportunity for generations, bring with them a strong desire to succeed and attain a better life.&#160; As the descendants of immigrants from Ireland celebrate their achievements this week, all ethnic groups can tip our hats or raise a toast to them for proving that America is indeed a land of opportunity.</p>
<p>Rohit Arora is co-founder and CEO of <a href="http://www.biz2credit.com" type="external">Biz2Credit Opens a New Window.</a>, an online resource that connects 1.6 million small business owners with 1,100+ lenders, credit rating agencies and service providers such as CPAs and attorneys via its Internet platform.&#160; Since 2007, Biz2Credit has secured $800 million in startup funding, small business loans and business lines of credit for entrepreneurs across the U.S.</p> | true | 0 | big proponent supporting immigrantfounded immigrantowned businesses week irish americans across country celebrate st patricks day160they known celebrating songs impact american culture also deserve acclaim success business continue reading immigration ireland shores predates american revolution fact new york citys first160st patricks day parade held march 17 1762 fourteen years declaration independence160it began ironically homesick irish served british army stationed american colonies time celebration would banned native country160 parade marchers reveled freedom wear green sing irish songs play instruments late 1840s massive wave immigration ireland came americas shores irish sought escape great famine160like immigrant groups would follow irish welcomed open arms160their religion mistrusted met open disdain many times excluded economic opportunities encountered signs said irish need apply unwelcome many industries irish made mark politics civil service160they rose ranks government military160as well police fire departments cities across america later music film stars bing crosby walt disney became enormously successful subsequent generations achieved prosperity entrepreneurship including bar restaurant owners attorneys travel agents name few160 barry odonovan owner kilkenny house opens new window160restaurant pub cranford nj given sbas phoenix award 2012 overcoming adversity rebuilding business hurricane irene great number entrepreneurs irish descent founded americas top companies including motorola cofounder paul galvin henry ford revolutionized auto industry160groups irish business organization new york opens new window established past decades help entrepreneurial highly educated immigrants launched businesses technology finance industries advertisement according census bureaus 2011 american community survey roughly 35 million us residents claimed irish ancestry160about 333 irish americans ages 25 hold bachelors degree higher 41 irishamericans work management professional occupations160 quite success story country ethnicities followed irish ellis island italians jews emigrants southern eastern europe also pursued achieved american dream160in last halfcentury however demographics immigration changed dramatically160the exodus european countries stemmed natives mexico caribbean south asia far east come america record numbers160 immigrants countries starting businesses high rate fiscal policy institute analyzed data us census american community survey found 18 small businesses us owned immigrants 12 1990160 latest census figures available show immigrants comprise 13 us population majority small business owners college degrees160 new york 36 small businesses owned immigrants including myself160160miami los angeles highest share immigrantowned businesses today funding options aspiring small business owners available simply exist immigrant groups came america 19th early 20th centuries160 recent decades number special programs established help immigrantowned businesses often located urban enterprise zones160 organizations accion east online much willing provide capital immigrants many banks are160 sba opens new window plays vital role american small business development long supported small business growth entrepreneurs whether us country origin collapse celtic tiger certainly caused many pause irish today air confidence enterprise says ray ohanlon editor opens new window irish echo opens new window newspaper annually recognizes top 40 40 business leaders irish american descent work variety fields160 irish necessity exercising traits globally result tough economic climate ireland immigrants irish flocked americas shores economic opportunity generations bring strong desire succeed attain better life160 descendants immigrants ireland celebrate achievements week ethnic groups tip hats raise toast proving america indeed land opportunity rohit arora cofounder ceo biz2credit opens new window online resource connects 16 million small business owners 1100 lenders credit rating agencies service providers cpas attorneys via internet platform160 since 2007 biz2credit secured 800 million startup funding small business loans business lines credit entrepreneurs across us | 541 |
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<p>FOX Business: The Power to Prosper.DJIA-DI,USD,NORM</p>
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<p>Wall Street celebrated Columbus Day with a 330-point buying binge on the Dow as traders around the world breathed a sigh of relief that European leaders pledged to bolster their banks and the markets look ahead to the start of earnings season.</p>
<p>Today's Markets</p>
<p>The Dow Jones Industrial Average soared 330.06 points, or 2.97%, to 11433.18, the Standard &amp; Poor's 500 jumped 39.43 points, or 3.41%, to 1194.89 and the Nasdaq Composite leaped 86.70 points, or 3.50%, to 2566.05. The FOX 50 gained 28.49 points, or 3.38%, to 872.36.</p>
<p>While bond markets in the U.S. were closed for the holiday, the bulls on Wall Street did anything but stay home, sending the blue chips to their biggest one-day point gain since August 11. Rallying for the fourth time in five sessions, the benchmark index has surged about 775 points over the past week amid signs Europe is finally racing to get its debt debacle under control before it sends the U.S. to a double-dip recession.</p>
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<p>“I think market sentiment has shifted to a modestly positive tone. Current pricing is, frankly, relatively cheap relative to what earnings should be,” said Peter Kenny, managing director at Knight Capital. Kenny also said, “The tone out of Europe has become a lot more constructive over the last week or so” thanks to “pretty aggressive, very proactive policy initiatives spearheaded by both France and Germany.”</p>
<p>Over the weekend German Chancellor Angela Merkel and French President Nicolas Sarkozy promised to take action before the end of October to fix the continent's debt mess and shore up their banks. The leaders of the two largest euro-zone countries said they are close to a deal to recapitalize embattled European lenders. However, Merkel and Sarkozy stopped short of laying out specifics of a plan.</p>
<p>Because of Europe's ties to the global financial and economic systems, the deepening sovereign debt crisis has hurt stocks and growth around the world in recent months.</p>
<p>In another sign Europe is attempting to get the crisis under control, France and Belgium quickly teamed up to nationalize and break up municipal lender Dexia, which had been teetering on the verge of collapse due to its enormous exposure to Greek bonds. Dexia, which appears to be the first banking victim of the current crisis, quickly reached a deal to receive $121 billion in state guarantees and sell its Belgium unit to the government for $5.4 billion.</p>
<p>“They weren’t playing games with that. It wasn’t dragged on, for a change,” said Kenny.</p>
<p>Earnings Season Looms</p>
<p>Tech stocks also rallied in the U.S. as Apple (NASDAQ:AAPL) said it sold a record 1 million iPhone 4S devices in a single day and IBM (NYSE:IBM) hit a new record high.</p>
<p>All 30 blue-chip stocks landed in the green, led by banking giants Bank of America (NYSE:BAC) and JPMorgan Chase (NYSE:JPM). Economically-sensitive stocks like Caterpillar (NYSE:CAT) and General Electric (NYSE:GE) also rallied, while safer plays such as McDonald’s (NYSE:MCD) and Procter &amp; Gamble (NYSE:PG) saw smaller percentage gains.</p>
<p>Commodities weren't left out of the Columbus Day rally as crude oil soared $2.43, or 2.93%, to $85.41 and gold gained $35.00 a troy ounce, or 2.14%, to $1,674.40.</p>
<p>Meanwhile, Wall Street is gearing up for the start of another earnings season, which is set to kick off after Tuesday's closing bell when aluminum maker Alcoa (NYSE:AA) releases its quarterly results. Whether or not companies are able to meet and even exceed expectations for earnings is likely to be a key driver for stocks for the next several weeks. Financial stocks are expected to disclose steep declines in quarterly profits.</p>
<p>It’s worth noting Monday’s big rally was backed up with little volume due to the holiday. Typically investors would like to see more conviction behind big moves. There was remarkably little volatility during most of the session as the Dow moved in a tight trading range of less than 50 points until the final burst of buying.</p>
<p>Last week U.S. stocks stopped their slump, with the Dow rallying 1.7% and the Nasdaq Composite leaping almost 3% amid hopes policymakers in Europe are finally taking the crisis seriously. However, stocks closed in the red on Friday as enthusiasm for a better-than-expected jobs report was drowned out by a credit ratings downgrade for both Spain and Italy.</p>
<p>“If the European debt crisis were to suddenly disappear, stocks would appear very cheap (some would say dirt cheap), but of course the uncertainty over the debt crisis remains the critical wildcard,” Bob Doll, chief equity strategist at BlackRock, wrote in a note.</p>
<p>Corporate Movers</p>
<p>Netflix (NASDAQ:NFLX) abandoned its unpopular plan to separate its DVD-by-mail service and rename it Qwikster, caving to customer dissatisfaction. The company's stock initially leaped on the announcement, but then retreated on a downgrade to "neutral" from "outperform" by Wedbush.</p>
<p>Sprint Nextel’s (NYSE:S) stock plunged another 8% to 2009 levels after a slew of analysts downgraded the No. 3 wireless company. Sprint’s stock has been in free fall on concerns about the need to raise more cash due to costly plans to roll out its own 4G network and sell the iPhone.</p>
<p>Yahoo! (NASDAQ:YHOO) jumped 2% as Reuters reported co-founder Jerry Yang is interested in teaming up with private-equity firms to take the struggling Internet giant private. Meanwhile, Bain Capital has emerged as another potential suitor for Yahoo! and Chinese Internet company Alibaba has reportedly held talks with Singapore’s Temasek about providing financing to buy the 40% investment Yahoo! holds in itself.</p>
<p>Superior Energy (NYSE:SPN) agreed to be acquire energy services company Complete Production Services (NYSE:CPX) for $6.2 billion. The $32.90-a-share deal represented a 62% premium on Complete’s close on Friday.</p>
<p>Global Markets</p>
<p>London's FTSE 100 rose 1.80% to 5399.00, Germany's DAX surged 3.02% to 5847.29 and France's CAC 40 rallied 2.13% to 3161.47.</p>
<p>In Asia, the Japanese Nikkei 225 was closed for a holiday, but Hong Kong's Hang Seng&#160;inched up 0.02% to 17711.10.</p> | true | 0 | fox business power prosperdjiadiusdnorm continue reading wall street celebrated columbus day 330point buying binge dow traders around world breathed sigh relief european leaders pledged bolster banks markets look ahead start earnings season todays markets dow jones industrial average soared 33006 points 297 1143318 standard amp poors 500 jumped 3943 points 341 119489 nasdaq composite leaped 8670 points 350 256605 fox 50 gained 2849 points 338 87236 bond markets us closed holiday bulls wall street anything stay home sending blue chips biggest oneday point gain since august 11 rallying fourth time five sessions benchmark index surged 775 points past week amid signs europe finally racing get debt debacle control sends us doubledip recession advertisement think market sentiment shifted modestly positive tone current pricing frankly relatively cheap relative earnings said peter kenny managing director knight capital kenny also said tone europe become lot constructive last week thanks pretty aggressive proactive policy initiatives spearheaded france germany weekend german chancellor angela merkel french president nicolas sarkozy promised take action end october fix continents debt mess shore banks leaders two largest eurozone countries said close deal recapitalize embattled european lenders however merkel sarkozy stopped short laying specifics plan europes ties global financial economic systems deepening sovereign debt crisis hurt stocks growth around world recent months another sign europe attempting get crisis control france belgium quickly teamed nationalize break municipal lender dexia teetering verge collapse due enormous exposure greek bonds dexia appears first banking victim current crisis quickly reached deal receive 121 billion state guarantees sell belgium unit government 54 billion werent playing games wasnt dragged change said kenny earnings season looms tech stocks also rallied us apple nasdaqaapl said sold record 1 million iphone 4s devices single day ibm nyseibm hit new record high 30 bluechip stocks landed green led banking giants bank america nysebac jpmorgan chase nysejpm economicallysensitive stocks like caterpillar nysecat general electric nysege also rallied safer plays mcdonalds nysemcd procter amp gamble nysepg saw smaller percentage gains commodities werent left columbus day rally crude oil soared 243 293 8541 gold gained 3500 troy ounce 214 167440 meanwhile wall street gearing start another earnings season set kick tuesdays closing bell aluminum maker alcoa nyseaa releases quarterly results whether companies able meet even exceed expectations earnings likely key driver stocks next several weeks financial stocks expected disclose steep declines quarterly profits worth noting mondays big rally backed little volume due holiday typically investors would like see conviction behind big moves remarkably little volatility session dow moved tight trading range less 50 points final burst buying last week us stocks stopped slump dow rallying 17 nasdaq composite leaping almost 3 amid hopes policymakers europe finally taking crisis seriously however stocks closed red friday enthusiasm betterthanexpected jobs report drowned credit ratings downgrade spain italy european debt crisis suddenly disappear stocks would appear cheap would say dirt cheap course uncertainty debt crisis remains critical wildcard bob doll chief equity strategist blackrock wrote note corporate movers netflix nasdaqnflx abandoned unpopular plan separate dvdbymail service rename qwikster caving customer dissatisfaction companys stock initially leaped announcement retreated downgrade neutral outperform wedbush sprint nextels nyses stock plunged another 8 2009 levels slew analysts downgraded 3 wireless company sprints stock free fall concerns need raise cash due costly plans roll 4g network sell iphone yahoo nasdaqyhoo jumped 2 reuters reported cofounder jerry yang interested teaming privateequity firms take struggling internet giant private meanwhile bain capital emerged another potential suitor yahoo chinese internet company alibaba reportedly held talks singapores temasek providing financing buy 40 investment yahoo holds superior energy nysespn agreed acquire energy services company complete production services nysecpx 62 billion 3290ashare deal represented 62 premium completes close friday global markets londons ftse 100 rose 180 539900 germanys dax surged 302 584729 frances cac 40 rallied 213 316147 asia japanese nikkei 225 closed holiday hong kongs hang seng160inched 002 1771110 | 637 |
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<p>College seniors are gearing up to leave their college life behind and enter the real world, but experts say they still have a lot to learn when it comes to managing their finances.</p>
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<p>“The kids graduating from the top 10 schools at the top 10% of their class aren’t going to have much problem,” says Scott Hanson senior partner of the Hanson McClain Group. “But for the rest of the masses, maintaining their finances is going to be a real challenge. They need to take responsibility since their actions after graduation can impact the rest of their financial lives.”</p>
<p>College graduates are entering the working world at fluid time. Recent polls show graduates are more optimistic about their hiring prospects as more employers look to add them to their payroll, but the unemployment rate for graduates in 2013 (those ages 20 to 29) was 10.9%. On top of that, the average student loan debt&#160;tops $26,000&#160;per student, according to the College Board's latest figures for 2012, making financial security hard to achieve.</p>
<p>“Grads need to learn the discipline of setting aside money and living below their means from the start. People who are financially secure did this. Most of the time people are in financial problems of their own creation,” says Hanson.</p>
<p>For college graduates gearing up to enter the real world, experts offer the following tips on getting started on the right financial footing:</p>
<p>Find a Financial Mentor. Paul Saganey, certified financial planner and president of Integrated Financial Partners, encourages graduates to identify someone they regard as financially successful and ask them to be a mentor to help make financial decisions, whether it’s how much they should spend on rent or how to ask for a higher starting salary.</p>
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<p>“Ask them about the financial moves they made in their 20s that paid off and what they would do differently if they could go back and do it all over again,” he advises.</p>
<p>Plan to Live Off 70% of Your Income. Lance Roberts, chief strategist at STA Wealth Management, recommends fresh graduates plan to save 30% of everything they make.</p>
<p>“Make sure you pay yourself first, take 30% of you salary and put it in a 401(k) or IRA plan and then live off the rest. If you do this and you can invest it logically and grow wealth slowly, you will be in a good position to become wealthy and be able to retire.”</p>
<p>Experts also recommend young adults spend no more than 25-35% of their income on lodging.</p>
<p>Learn the Difference Between Want vs. Need. Overspending as a young adult can carry over far into adulthood, warns Dave Richmond, president of financial-planning firm Richmond Brothers.</p>
<p>“The decisions you make now on spending will take years to fix. If you are just starting out and don’t have a lot of money, act like it. It’s OK.”</p>
<p>Terry Siman, managing director at United Capital, recommends setting up a budget that shows incoming revenue, debt obligations, savings requirements and monthly expenses to provide a snapshot of how much is left over for discretionary spending.</p>
<p>“You need to know what you take home, after taxes, after savings, after health insurance costs. That can sometimes leave new graduates with half their salary to work with, so they are going to have to be &#160;disciplined with their spending.”</p>
<p>Stay Up-to-Date on Current Events. Knowing how to best manage a budget and finances means staying up-to-date on current events and knowledgeable about the investing world. “So many college graduates leave school not knowing the difference between a stock and bond, or how to properly manage their finances,” says Saganey. “Yet, we expect them to be able to start investing for retirement, finance a mortgage or apartment and tackle any existing debt with such little tools.”</p>
<p>He recommends young adults use financial websites to learn about different investment options and savings tools and to monitor the news to track any trends and events.</p>
<p>Make a Student Loan Repayment Plan. Many federal loans have six-month grace periods to help borrowers get their financial stability before payments come due, but experts urge students create a repayment plan right away.</p>
<p>Roberts says one of the first questions he asks young potential hires is if they have student loans and if they have a repayment plan. “We don’t want them to be incentivized with this big burden…we work in the financial industry, we don’t want people who potentially have an incentive to cut corners or create additional revenues to handle their debt issues.”</p>
<p>Establish Your Own Banking Footprint. College students are often tied to their parents' bank accounts or credit cards, but Hanson says it’s time for them to part ways after graduation.</p>
<p>“You need to have a credit card and bank account in your own name to help establish credit history so you can increase your purchasing power later in life.”</p>
<p>When evaluating different banks and their offers, Richmond recommends looking for accounts with little to no fees, and flexibility. &#160;“You need to understand the rules of the accounts, what fees you will be hit with and what will and won’t be protected and what you will be liable for if anything goes wrong.”</p>
<p>Know What Your Employer is Offering. There’s more to a job offer than the salary, but few young professionals know what’s on the table. Saganey says new hires should not be afraid to ask someone from human resources to walk them through their benefits until they thoroughly understand what’s being offered and take advantage the perks—especially retirement savings tools.</p>
<p>“Often times, young kids when they get hired into companies feel they aren’t worthy enough to ask questions, but it’s important that they know, and take advantage of their employer’s benefits. For instance, many companies match 100% of an employee’s 401(k) contributions up to a point. That’s like a 100% return, no one should walk away from that.”</p>
<p>Assess Your Insurance Needs. “Anything that can bankrupt you should be covered by insurance,” says Richmond.</p>
<p>The Affordable Care Act mandates every person in the country have health insurance, and recent grads without employer-sponsored coverage should check to see if they are eligible for subsidies to help them afford a plan on the federal or state exchanges.</p>
<p>However, Hanson says some insurance plans aren't worth the price tag when students are just starting out and don’t have much in terms of valuables. “When you have nothing, renter’s insurance might not make sense. It’s not worth paying the premiums when you are young and you don’t have significant assets.”</p> | true | 0 | college seniors gearing leave college life behind enter real world experts say still lot learn comes managing finances continue reading kids graduating top 10 schools top 10 class arent going much problem says scott hanson senior partner hanson mcclain group rest masses maintaining finances going real challenge need take responsibility since actions graduation impact rest financial lives college graduates entering working world fluid time recent polls show graduates optimistic hiring prospects employers look add payroll unemployment rate graduates 2013 ages 20 29 109 top average student loan debt160tops 26000160per student according college boards latest figures 2012 making financial security hard achieve grads need learn discipline setting aside money living means start people financially secure time people financial problems creation says hanson college graduates gearing enter real world experts offer following tips getting started right financial footing find financial mentor paul saganey certified financial planner president integrated financial partners encourages graduates identify someone regard financially successful ask mentor help make financial decisions whether much spend rent ask higher starting salary advertisement ask financial moves made 20s paid would differently could go back advises plan live 70 income lance roberts chief strategist sta wealth management recommends fresh graduates plan save 30 everything make make sure pay first take 30 salary put 401k ira plan live rest invest logically grow wealth slowly good position become wealthy able retire experts also recommend young adults spend 2535 income lodging learn difference want vs need overspending young adult carry far adulthood warns dave richmond president financialplanning firm richmond brothers decisions make spending take years fix starting dont lot money act like ok terry siman managing director united capital recommends setting budget shows incoming revenue debt obligations savings requirements monthly expenses provide snapshot much left discretionary spending need know take home taxes savings health insurance costs sometimes leave new graduates half salary work going 160disciplined spending stay uptodate current events knowing best manage budget finances means staying uptodate current events knowledgeable investing world many college graduates leave school knowing difference stock bond properly manage finances says saganey yet expect able start investing retirement finance mortgage apartment tackle existing debt little tools recommends young adults use financial websites learn different investment options savings tools monitor news track trends events make student loan repayment plan many federal loans sixmonth grace periods help borrowers get financial stability payments come due experts urge students create repayment plan right away roberts says one first questions asks young potential hires student loans repayment plan dont want incentivized big burdenwe work financial industry dont want people potentially incentive cut corners create additional revenues handle debt issues establish banking footprint college students often tied parents bank accounts credit cards hanson says time part ways graduation need credit card bank account name help establish credit history increase purchasing power later life evaluating different banks offers richmond recommends looking accounts little fees flexibility 160you need understand rules accounts fees hit wont protected liable anything goes wrong know employer offering theres job offer salary young professionals know whats table saganey says new hires afraid ask someone human resources walk benefits thoroughly understand whats offered take advantage perksespecially retirement savings tools often times young kids get hired companies feel arent worthy enough ask questions important know take advantage employers benefits instance many companies match 100 employees 401k contributions point thats like 100 return one walk away assess insurance needs anything bankrupt covered insurance says richmond affordable care act mandates every person country health insurance recent grads without employersponsored coverage check see eligible subsidies help afford plan federal state exchanges however hanson says insurance plans arent worth price tag students starting dont much terms valuables nothing renters insurance might make sense worth paying premiums young dont significant assets | 618 |
<p />
<p>We've written a lot about the convergence of <a href="http://www.pcmag.com/article2/0,2817,2496292,00.asp" type="external">cloud infrastructure Opens a New Window.</a>, Big Data, and artificial intelligence (AI) this year. Throughout the Software-as-a-Service (SaaS) space, we've seen an inextricable link between these three factors in <a href="http://www.pcmag.com/article2/0,2817,2491954,00.asp" type="external">business intelligence Opens a New Window.</a> (BI) tools, <a href="http://www.pcmag.com/roundup/342728/the-best-social-listening-and-influencer-identification-tool" type="external">social listening Opens a New Window.</a> platforms, <a href="http://www.pcmag.com/article2/0,2817,2367263,00.asp" type="external">customer relationship management Opens a New Window.</a> (CRM) solutions, or really any industry that's leveraging cloud-based data ingestion and analysis—which is pretty much all of them.</p>
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<p>Across use cases, we've observed a four-step process. Enterprise businesses gather massive amounts of data by using a portfolio of SaaS apps. They then store that data in the cloud by using a data warehouse or data lake, using data governance to keep data compliant and secure. Step three is data science experimentation: throwing everything at the data, from <a href="http://www.pcmag.com/article/346018/your-new-cso-might-be-a-learning-computer-that-loves-cats" type="external">machine learning Opens a New Window.</a> (ML) algorithms and natural language processing (NLP) to <a href="http://www.pcmag.com/article/345858/predictive-analytics-big-data-and-how-to-make-them-work-fo" type="external">predictive analytics Opens a New Window.</a>. Step four, ideally, is where that data science yields deeper, data-driven business insights from which your organization can take action and gain an edge.</p>
<p>The execution differs but the idea is the same. <a href="http://www.pcmag.com/article2/0,2817,2364726,00.asp" type="external">Salesforce Opens a New Window.</a> <a type="external" href="" /> are combining <a href="http://www.pcmag.com/news/350333/salesforce-bolsters-einstein-ai-with-heavy-duty-data-managem" type="external">AI and data management Opens a New Window.</a> with its Einstein platform. The cloud players themselves, such as <a href="http://www.pcmag.com/article2/0,2817,2496296,00.asp" type="external">Google Cloud Platform Opens a New Window.</a> <a type="external" href="" /> and <a href="http://www.pcmag.com/article2/0,2817,2496295,00.asp" type="external">Microsoft Azure Opens a New Window.</a> <a type="external" href="" />, are employing an arsenal of cognitive computing tools and ML algorithms to <a href="http://www.pcmag.com/news/345354/google-public-clouds-are-the-future-of-business" type="external">redefine business clouds Opens a New Window.</a>. Others still are inching closer and closer—through the combined power of AI, cloud, and Big Data—to truly <a href="http://www.pcmag.com/news/345049/ai-brain-mapping-closer-to-reality-than-youd-think" type="external">map an AI brain Opens a New Window.</a>.</p>
<p>As we head into 2017, these three factors are only growing more intertwined. We spoke to companies and experts from all over the industry about how the convergence will continue to play out, and how AI, cloud, and data technology will also continue to evolve and morph on their own.</p>
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<p>1. AI EverywhereDr. Michael Bjorn, Head of ConsumerLab Research at business-to-business (B2B) communications and networking giant Ericsson, talked about AI as a given in all new technology vectors. Ericsson's <a href="https://www.ericsson.com/networked-society/consumerlab/consumer-insights/reports/10-hot-consumer-trends-2017" type="external">Top 10 Trends for 2017 Opens a New Window.</a> research starts off with "AI Everywhere" atop the list. Dr. Bjorn explained the lab's thinking behind the prediction.</p>
<p>"With every new topic, there is an AI dimension," said Dr. Bjorn. "AI everywhere is the angle that informs every other trend on our list. It plays into AR, VR, and merged reality, autonomous cars, the Internet of Things…look at an IoT application like Amazon's machine learning experimental store with <a href="http://www.pcmag.com/news/350077/never-wait-in-line-again-with-amazon-go" type="external">Amazon Go Opens a New Window.</a>.</p>
<p>"We're starting to see people getting used to AI as an assistant, but now we're moving toward AI as more of a manager, proactively helping with tasks. This can also be scary because of the notion of AI and robots taking jobs but much of that is perception. Technology creates jobs. If you go way back to the industrial revolution, we automated the easiest jobs and new jobs were created as a result. What we're seeing with AI is that jobs will change across the whole scale, because going from AI assistants to AI managers is more complex."</p>
<p>2. AI Investment Will TripleResearch firm Forrester <a href="https://go.forrester.com/wp-content/uploads/Forrester-2017-Predictions.pdf%20" type="external">predicts Opens a New Window.</a> that investment in AI technology will triple in 2017, projecting an increase of more than 300 percent in cognitive computing investment as compared to 2016. Consequently, Forrester also predicts that 2017 will kick off an "insights revolution" in which businesses will prioritize customer data insights as a key differentiator going forward, with Big Data integrations and data management projects set to increase by 75 percent as a result.</p>
<p>3. Cloud ComfortCloud-based business platforms are proliferating across every vertical, including <a href="http://www.pcmag.com/article2/0,2817,2458748,00.asp" type="external">small business accounting Opens a New Window.</a>. At the recent <a href="http://saasnorth.com/" type="external">SaaS North Opens a New Window.</a> conference, <a href="http://www.pcmag.com/article2/0,2817,2254091,00.asp" type="external">FreshBooks Opens a New Window.</a> <a type="external" href="" /> CEO Mike McDerment talked about a growing level of comfort with SaaS experiences, even in a traditional industry such as accounting and finance.</p>
<p>"People are getting more and more comfortable with the cloud. It's past the earliest of days, which to me is exciting," said McDerment. "We enabled our customers to file an expense or create an invoice with the five minutes they have when their kid goes to brush their teeth. Entrepreneurs try to get things done in these little pockets of time, so having your business with you on your phone and in the cloud gives you this convenience, contributing to the massively growing number of people choosing to run their businesses with cloud-based technologies."</p>
<p>4. Pure Cloud Becomes the NormCloud disruption affects all industries with legacy technology and the <a href="http://www.pcmag.com/article2/0,2817,2496994,00.asp" type="external">business Voice-over-IP</a> (VoIP) space is no exception. Craig Walker, CEO of business VoIP provider <a href="http://www.pcmag.com/review/349892/dialpad" type="external">Dialpad Opens a New Window.</a> <a type="external" href="" />, said digital disruption will spur enterprise leaders to adopt cloud-based solutions while legacy players consolidate or acquire next-generation providers.</p>
<p>"As every business eyes its own digital transformation, 2017 will be the year that modern, relevant businesses finally kill the the desk phone for good," said Walker. "As enterprises move to the cloud to make their employees more productive from anywhere, cloud-based solutions that enable seamless communication and collaboration across devices and locations are a necessity.</p>
<p>"I expect to see a lot of consolidation ahead for the industry as legacy phone providers fall further and further behind the cloud communications providers who can give higher quality, faster, and easier deployments—from anywhere on any device—at a much lower total cost of ownership. As the nature of work changes, powered by data and driven by speed, businesses will also seek a solution that integrates with their internal data to place knowledge at sales and support teams' fingertips, no matter where they are to gain an edge over the competition."</p>
<p>5. The Cloud Race Will NarrowThe IaaS space has a number of big players but the undisputed market leader is <a href="http://www.pcmag.com/article2/0,2817,2496299,00.asp" type="external">Amazon Web Services Opens a New Window.</a> <a type="external" href="" /> (AWS). According to the latest <a href="https://www.skyhighnetworks.com/cloud-computing-trends-2016" type="external">Cloud Adoption and Risk Report Opens a New Window.</a> from cloud security provider Skyhigh Software, Amazon will maintain its lead while market challengers gain ground in 2017.</p>
<p>"Microsoft will narrow the gap with Amazon for a neck-and-neck race for IaaS dominance," said Rajiv Gupta, CEO of Skyhigh Neworks. "AWS had the fastest breakout of the gate in the IaaS market but Azure is closing in: 35.8 percent of new cloud apps in Q4 were deployed in AWS followed by 29.5 percent in Azure. Niche providers have carved out 14 percent of the market independent of brand names like Google, <a href="http://www.pcmag.com/article2/0,2817,2496294,00.asp" type="external">Rackspace Opens a New Window.</a> <a type="external" href="" />, and <a href="http://www.pcmag.com/article2/0,2817,2496298,00.asp" type="external">IBM/SoftLayer Opens a New Window.</a> <a type="external" href="" />."</p>
<p>6. Big Data Becomes Fast and ApproachableDiving deeper into the data weeds, BI provider <a href="http://www.pcmag.com/article2/0,2817,2491943,00.asp" type="external">Tableau Opens a New Window.</a> <a type="external" href="" /> predicts that the barrier to leveraging Big Data will lower even further. Dan Kogan, Director of Product Marketing at Tableau, said advancements in interactive <a href="http://www.pcmag.com/encyclopedia/term/51902/sql" type="external">SQL Opens a New Window.</a> will make for faster <a href="http://www.pcmag.com/encyclopedia/term/58927/hadoop" type="external">Hadoop Opens a New Window.</a> querying.</p>
<p>"Sure, you can perform machine learning and conduct sentiment analysis on Hadoop, but the first question people often ask is: How fast is the interactive SQL? SQL, after all, is the conduit to business users who want to use Hadoop data for faster, more repeatable [key performance indicator] KPI dashboards as well as exploratory analysis," said Kogan. "In 2017, options will expand to speed up Hadoop. This shift has already started, as evidenced by the adoption of faster databases like Exasol and <a href="http://blog.memsql.com/tableau-10-includes-even-more-data-source-options/" type="external">MemSQL Opens a New Window.</a>, Hadoop-based stores like <a href="http://kudu.apache.org/" type="external">Kudu Opens a New Window.</a>, and technologies that enable faster queries."</p>
<p>7. Self-Service Extends to Data PrepTableau also foresees the capabilities of self-service analysis and <a href="http://www.pcmag.com/roundup/346417/the-best-data-visualization-tools" type="external">data visualization</a> tools extending to even more aspects of the data management pipeline. Francois Ajenstat, Chief Product Officer at Tableau, said business users will gain greater access beyond simple data discovery to deeper data prep and analysis.</p>
<p>"While self-service data discovery has become the standard, data prep has remained in the realm of IT and data experts. This will change in 2017," said Ajenstat. "Common data-prep tasks like data parsing, <a href="http://www.pcmag.com/encyclopedia/term/56790/json" type="external">JSON Opens a New Window.</a>, HTML imports, and data wrangling will no longer be delegated to specialists. With new innovations in this transforming space, everyone will be able to tackle these tasks as part of their analytics flow."</p>
<p>8. Big Data for Governance or Competitive AdvantageIn 2017, the <a href="http://www.pcmag.com/article/347785/big-data-basics-how-to-build-a-data-governance-plan" type="external">data governance Opens a New Window.</a> versus data value tug of war will be front and center. John Schroeder, Executive Chairman and founder of enterprise Hadoop company <a href="https://www.mapr.com/" type="external">MapR Opens a New Window.</a>, said businesses will have a wealth of information about their customers and partners feeding into new data-driven strategies, particularly when it comes to <a href="http://www.pcmag.com/article/346229/how-businesses-can-stay-on-top-of-changing-compliance-regula" type="external">compliance Opens a New Window.</a>.</p>
<p>"Organizations are now facing an escalating tug of war between governance required for compliance and the use of data to provide business value and implement security to avoid damaging data leaks and breaches," said Schroeder. "Financial services and healthcare are the most obvious industries, with customers counting in the millions with heavy governance requirements. Leading organizations will manage their data between regulated and non-regulated use cases."</p>
<p>9. Data Lakes Overtake Data SwampsMapR's Schroeder also predicts that, in 2017, organizations will shift from a "build it and they will come" data lake approach to a business-driven data approach that will combine analytics and operations. Consequently, he said that "data agility" between back-office analytics and front-office operations will separate the winning and losing organziations when it comes to seeing <a href="http://www.pcmag.com/encyclopedia/term/50600/roi" type="external">return-on-investment</a> (ROI) on that data.</p>
<p>"In 2017, organizations will push aggressively beyond an 'asking questions' approach and architect to drive initial and long-term business value," said Schroeder. "Approaching a <a href="http://www.pcmag.com/article/347020/data-lakes-explained" type="external">data lake Opens a New Window.</a> as 'Imagine what your business could do if all your data were collected in one centralized, secure, fully-governed place that any department can access anytime, anywhere' could sound attractive at a high level. But too frequently [this] results in a data swamp that looks like a <a href="http://www.pcmag.com/encyclopedia/term/40866/data-warehouse" type="external">data warehouse Opens a New Window.</a> rebuild and can't address real-time and operational use case requirements. Once in place, the concept is to 'ask questions.' In reality, the world moves faster today.</p>
<p>"Today's world requires analytics and operational capabilities to address customers, process claims, and interface to devices in real time at an individual level," added Schroeder. "For example, any <a href="http://www.pcmag.com/article2/0,2817,2484670,00.asp" type="external">e-commerce Opens a New Window.</a> site must provide individualized recommendations and price checks in real time. Healthcare organizations must process valid claims and block fraudulent claims by combining analytics with operational systems. Media companies are now personalizing content served though set top boxes. Auto manufacturers and ride sharing companies are interoperating at scale with cars and the drivers."</p>
<p>10. Mainstream AI Is Here to StayAI has gone in and out of vogue over the past half-century but the concept of machine and <a href="http://www.pcmag.com/encyclopedia/term/68772/deep-learning" type="external">deep learning Opens a New Window.</a> algorithms applying to Big Data is here to stay. MapR's Schroeder said we'll see rapid adoption in 2017 in the form of relatively straightforward algorithms deployed on large data sets to address repetitive automated tasks.</p>
<p>"AI is now back in mainstream discussions and [is] the umbrella buzzword for machine intelligence, machine learning, <a href="http://www.pcmag.com/encyclopedia/term/47932/neural-network" type="external">neural networks Opens a New Window.</a>, and <a href="http://www.pcmag.com/encyclopedia/term/69180/cognitive-computing" type="external">cognitive computing Opens a New Window.</a>," said Schroeder. "Why is AI a rejuvenated trend? The three Vs come to mind: velocity, variety, and volume. Platforms that can process the three Vs with modern and traditional processing models that scale horizontally provide 10-20x cost efficiency over traditional platforms. We'll see the highest value from applying AI to high-volume repetitive tasks where consistency is more effective than gaining human intuitive oversight at the expense of human error and cost."</p>
<p>This article <a href="http://www.pcmag.com/article/350087/business-tech-predictions-10-ways-ai-big-data-and-cloud-w" type="external">originally appeared Opens a New Window.</a> on <a href="http://www.pcmag.com" type="external">PCMag.com Opens a New Window.</a>.</p> | true | 0 | weve written lot convergence cloud infrastructure opens new window big data artificial intelligence ai year throughout softwareasaservice saas space weve seen inextricable link three factors business intelligence opens new window bi tools social listening opens new window platforms customer relationship management opens new window crm solutions really industry thats leveraging cloudbased data ingestion analysiswhich pretty much continue reading across use cases weve observed fourstep process enterprise businesses gather massive amounts data using portfolio saas apps store data cloud using data warehouse data lake using data governance keep data compliant secure step three data science experimentation throwing everything data machine learning opens new window ml algorithms natural language processing nlp predictive analytics opens new window step four ideally data science yields deeper datadriven business insights organization take action gain edge execution differs idea salesforce opens new window combining ai data management opens new window einstein platform cloud players google cloud platform opens new window microsoft azure opens new window employing arsenal cognitive computing tools ml algorithms redefine business clouds opens new window others still inching closer closerthrough combined power ai cloud big datato truly map ai brain opens new window head 2017 three factors growing intertwined spoke companies experts industry convergence continue play ai cloud data technology also continue evolve morph advertisement 1 ai everywheredr michael bjorn head consumerlab research businesstobusiness b2b communications networking giant ericsson talked ai given new technology vectors ericssons top 10 trends 2017 opens new window research starts ai everywhere atop list dr bjorn explained labs thinking behind prediction every new topic ai dimension said dr bjorn ai everywhere angle informs every trend list plays ar vr merged reality autonomous cars internet thingslook iot application like amazons machine learning experimental store amazon go opens new window starting see people getting used ai assistant moving toward ai manager proactively helping tasks also scary notion ai robots taking jobs much perception technology creates jobs go way back industrial revolution automated easiest jobs new jobs created result seeing ai jobs change across whole scale going ai assistants ai managers complex 2 ai investment tripleresearch firm forrester predicts opens new window investment ai technology triple 2017 projecting increase 300 percent cognitive computing investment compared 2016 consequently forrester also predicts 2017 kick insights revolution businesses prioritize customer data insights key differentiator going forward big data integrations data management projects set increase 75 percent result 3 cloud comfortcloudbased business platforms proliferating across every vertical including small business accounting opens new window recent saas north opens new window conference freshbooks opens new window ceo mike mcderment talked growing level comfort saas experiences even traditional industry accounting finance people getting comfortable cloud past earliest days exciting said mcderment enabled customers file expense create invoice five minutes kid goes brush teeth entrepreneurs try get things done little pockets time business phone cloud gives convenience contributing massively growing number people choosing run businesses cloudbased technologies 4 pure cloud becomes normcloud disruption affects industries legacy technology business voiceoverip voip space exception craig walker ceo business voip provider dialpad opens new window said digital disruption spur enterprise leaders adopt cloudbased solutions legacy players consolidate acquire nextgeneration providers every business eyes digital transformation 2017 year modern relevant businesses finally kill desk phone good said walker enterprises move cloud make employees productive anywhere cloudbased solutions enable seamless communication collaboration across devices locations necessity expect see lot consolidation ahead industry legacy phone providers fall behind cloud communications providers give higher quality faster easier deploymentsfrom anywhere deviceat much lower total cost ownership nature work changes powered data driven speed businesses also seek solution integrates internal data place knowledge sales support teams fingertips matter gain edge competition 5 cloud race narrowthe iaas space number big players undisputed market leader amazon web services opens new window aws according latest cloud adoption risk report opens new window cloud security provider skyhigh software amazon maintain lead market challengers gain ground 2017 microsoft narrow gap amazon neckandneck race iaas dominance said rajiv gupta ceo skyhigh neworks aws fastest breakout gate iaas market azure closing 358 percent new cloud apps q4 deployed aws followed 295 percent azure niche providers carved 14 percent market independent brand names like google rackspace opens new window ibmsoftlayer opens new window 6 big data becomes fast approachablediving deeper data weeds bi provider tableau opens new window predicts barrier leveraging big data lower even dan kogan director product marketing tableau said advancements interactive sql opens new window make faster hadoop opens new window querying sure perform machine learning conduct sentiment analysis hadoop first question people often ask fast interactive sql sql conduit business users want use hadoop data faster repeatable key performance indicator kpi dashboards well exploratory analysis said kogan 2017 options expand speed hadoop shift already started evidenced adoption faster databases like exasol memsql opens new window hadoopbased stores like kudu opens new window technologies enable faster queries 7 selfservice extends data preptableau also foresees capabilities selfservice analysis data visualization tools extending even aspects data management pipeline francois ajenstat chief product officer tableau said business users gain greater access beyond simple data discovery deeper data prep analysis selfservice data discovery become standard data prep remained realm data experts change 2017 said ajenstat common dataprep tasks like data parsing json opens new window html imports data wrangling longer delegated specialists new innovations transforming space everyone able tackle tasks part analytics flow 8 big data governance competitive advantagein 2017 data governance opens new window versus data value tug war front center john schroeder executive chairman founder enterprise hadoop company mapr opens new window said businesses wealth information customers partners feeding new datadriven strategies particularly comes compliance opens new window organizations facing escalating tug war governance required compliance use data provide business value implement security avoid damaging data leaks breaches said schroeder financial services healthcare obvious industries customers counting millions heavy governance requirements leading organizations manage data regulated nonregulated use cases 9 data lakes overtake data swampsmaprs schroeder also predicts 2017 organizations shift build come data lake approach businessdriven data approach combine analytics operations consequently said data agility backoffice analytics frontoffice operations separate winning losing organziations comes seeing returnoninvestment roi data 2017 organizations push aggressively beyond asking questions approach architect drive initial longterm business value said schroeder approaching data lake opens new window imagine business could data collected one centralized secure fullygoverned place department access anytime anywhere could sound attractive high level frequently results data swamp looks like data warehouse opens new window rebuild cant address realtime operational use case requirements place concept ask questions reality world moves faster today todays world requires analytics operational capabilities address customers process claims interface devices real time individual level added schroeder example ecommerce opens new window site must provide individualized recommendations price checks real time healthcare organizations must process valid claims block fraudulent claims combining analytics operational systems media companies personalizing content served though set top boxes auto manufacturers ride sharing companies interoperating scale cars drivers 10 mainstream ai stayai gone vogue past halfcentury concept machine deep learning opens new window algorithms applying big data stay maprs schroeder said well see rapid adoption 2017 form relatively straightforward algorithms deployed large data sets address repetitive automated tasks ai back mainstream discussions umbrella buzzword machine intelligence machine learning neural networks opens new window cognitive computing opens new window said schroeder ai rejuvenated trend three vs come mind velocity variety volume platforms process three vs modern traditional processing models scale horizontally provide 1020x cost efficiency traditional platforms well see highest value applying ai highvolume repetitive tasks consistency effective gaining human intuitive oversight expense human error cost article originally appeared opens new window pcmagcom opens new window | 1,263 |
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