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<p>Within the context of a post-Super Bowl timeslot, "24: Legacy," a reboot of the classic George W. Bush-era terrorist thriller starring Kiefer Sutherland as Jack Bauer, did not <a href="https://deadline.com/2017/02/24-legacy-ratings-super-bowl-fox-1201903747/" type="external">set the world on ratings-fire</a>. Already, though, the producers are reassuring the left-wing media that they intend to screw the show's right-leaning fans. "I like to say the series begins as if it was written by Trump, but it ends as if it were written by Hillary," one producer helpfully explained. Episode two has already given a shout-out to Black Lives Matter.</p>
<p>According to numerous reviews, Sunday's premiere hour was only a set-up to draw in Trump voters for an eventual sucker-punch.</p>
<p><a href="https://www.nytimes.com/2017/02/06/arts/television/muslim-terrorists-24-trump.html?_r=0" type="external">The New York Times</a>:</p>
<p>Running a week after Donald J. Trump’s stringent immigration restrictions on seven predominantly Muslim countries, it could have been scripted straight from the president’s direst imaginings. It was, intentionally or not, a one-hour Super Bowl ad for Islamophobia.</p>
<p>We open on an American home defiled — family pictures, a Purple Heart, blood spatter on the walls. A jihadist kill team has slipped into the United States, slaughtering men, women and children, looking for a database of sleeper cells waiting to be activated.</p>
<p>The <a href="http://www.hollywoodreporter.com/live-feed/24-legacy-muslim-kills-white-family-post-super-bowl-episode-972175" type="external">Hollywood Reporter</a>:</p>
<p>[T]he series begins with [Osama bin Laden] loyalists violently torturing and killing an American soldier and his family.</p>
<p>Within seconds of the premiere, though, the show's creators were <a href="http://www.hollywoodreporter.com/live-feed/24-legacy-muslim-kills-white-family-post-super-bowl-episode-972175" type="external">running to the media</a> to comfort everyone -- well, everyone except "24" fans -- that they intend to quickly steer the series into a hard-left turn: [emphasis added]</p>
<p>"It didn't concern us, because we know where the show ends up," [executive producer] Coto continues, referring again to the premiere's first scene. "I like to say the series begins as if it was written by Trump, but it ends as if it were written by Hillary. It's not going where you think it's going." …</p>
<p>"If we didn't know the way the entire season went and how it came out the other side, we might be concerned," Coto tells The Hollywood Reporter. "But here's the thing: the story of this season deliberately starts on an image that you might call jingoistic, expected and possibly inflammatory."</p>
<p>"The show does not come out on the same end it went in. We overturn deeper truths. There are things going on that we don't understand at first. What at first seems like a kind of straightforward jingoistic event unfolds like an onion into something much different and surprising and kind of sweeps aside the initial impressions that the season begins with."</p>
<p>Indeed, there's an established history with the 24 seasons that begin with a focus on Islamic terrorists, eventually shifting to reveal American manipulators pulling the strings from behind the scenes. Coto and Katz insist that 24: Legacy will play out in similar fashion. What's more, they believe the show has a way of naturally unfolding within the modern moment.</p>
<p>The problem with the reboot-creators justifying their partisanship through comparisons to the original, is that by the time the original "24" seasons aired where the curtain was pulled to reveal American manipulators as the arch-villains, the show had earned our goodwill. We trusted the series because it had already proven it was on our side. Moreover, conservatives are not like leftists. We don't demand 100% obedience to our worldview.</p>
<p>But first impressions do matter to us, and already in the second episode of "24: Legacy," which aired last night, its black hero, Eric Carter (Corey Hawkins), is used to kiss the ring of a real-life domestic terrorist group, <a href="http://www.hollywoodreporter.com/live-feed/24-legacy-tackles-black-lives-matter-972463" type="external">Black Lives Matter:</a></p>
<p>'24: Legacy' Team Talks Tackling Black Lives Matter: "This Is a Reality"</p>
<p>"[Eric Carter is] a young African-American male running on the street with a weapon and bruises on his face. We deal with that a lot," Hawkins tells The Hollywood Reporter about the scene in which Carter is arrested. "And we took it on face-forward. This is a reality. It's something that he's going to have to deal with, without taking away from his mission, without taking away from what he has to do. He is black. You don't have to 'make it about race,' because he is who he is. It's interesting how we deal with that."</p>
<p>In creating the scene, showrunners Manny Coto and Evan Katz wanted to portray aspects of Carter's experience that were never in play for Bauer: "There's the reality of the stop-and-frisk, and we thought it would be interesting if our hero could use it to his advantage. It's definitely a theme that runs through episode two and we touch on it later on, but we don't want to give away any plot points.</p>
<p>Sorry, but legitimizing a group that openly encourages and champions cop killers, is not Jack Bauer's "legacy."</p>
<p>You know, it has been more than 20 years since I've watched broadcast television. After they ruined the original "Law &amp; Order" with a left turn, I had enough of TV's sucker punches.</p>
<p>These days, when it comes to watching television, what I do now is what I think many of us do -- wait, keep my ear to the ground until I know what I'm in for. I may have been a few seasons behind in catching up to rest of the world on "Mad Men," "Lost," "Breaking Bad," and a host of others, but the left-wing propaganda I've dodged in the meantime makes it all worthwhile.</p>
<p>The beauty of technology is that the audience is no longer captured. Through the wonders of home video and streaming, we can all program our own lives. I own all nine seasons of the REAL Jack Bauer on DVD. Anytime I need a "24" fix, it is right there at my fingertips.</p>
<p>I don't need this "Legacy" crap.</p>
<p>Follow John Nolte on Twitter <a href="https://twitter.com/NolteNC" type="external">@NolteNC</a>. Follow his Facebook Page <a href="https://www.facebook.com/JohnNolteNC/?skip_nax_wizard=true" type="external">here</a>.</p> | true | 0 | within context postsuper bowl timeslot 24 legacy reboot classic george w bushera terrorist thriller starring kiefer sutherland jack bauer set world ratingsfire already though producers reassuring leftwing media intend screw shows rightleaning fans like say series begins written trump ends written hillary one producer helpfully explained episode two already given shoutout black lives matter according numerous reviews sundays premiere hour setup draw trump voters eventual suckerpunch new york times running week donald j trumps stringent immigration restrictions seven predominantly muslim countries could scripted straight presidents direst imaginings intentionally onehour super bowl ad islamophobia open american home defiled family pictures purple heart blood spatter walls jihadist kill team slipped united states slaughtering men women children looking database sleeper cells waiting activated hollywood reporter series begins osama bin laden loyalists violently torturing killing american soldier family within seconds premiere though shows creators running media comfort everyone well everyone except 24 fans intend quickly steer series hardleft turn emphasis added didnt concern us know show ends executive producer coto continues referring premieres first scene like say series begins written trump ends written hillary going think going didnt know way entire season went came side might concerned coto tells hollywood reporter heres thing story season deliberately starts image might call jingoistic expected possibly inflammatory show come end went overturn deeper truths things going dont understand first first seems like kind straightforward jingoistic event unfolds like onion something much different surprising kind sweeps aside initial impressions season begins indeed theres established history 24 seasons begin focus islamic terrorists eventually shifting reveal american manipulators pulling strings behind scenes coto katz insist 24 legacy play similar fashion whats believe show way naturally unfolding within modern moment problem rebootcreators justifying partisanship comparisons original time original 24 seasons aired curtain pulled reveal american manipulators archvillains show earned goodwill trusted series already proven side moreover conservatives like leftists dont demand 100 obedience worldview first impressions matter us already second episode 24 legacy aired last night black hero eric carter corey hawkins used kiss ring reallife domestic terrorist group black lives matter 24 legacy team talks tackling black lives matter reality eric carter young africanamerican male running street weapon bruises face deal lot hawkins tells hollywood reporter scene carter arrested took faceforward reality something hes going deal without taking away mission without taking away black dont make race interesting deal creating scene showrunners manny coto evan katz wanted portray aspects carters experience never play bauer theres reality stopandfrisk thought would interesting hero could use advantage definitely theme runs episode two touch later dont want give away plot points sorry legitimizing group openly encourages champions cop killers jack bauers legacy know 20 years since ive watched broadcast television ruined original law amp order left turn enough tvs sucker punches days comes watching television think many us wait keep ear ground know im may seasons behind catching rest world mad men lost breaking bad host others leftwing propaganda ive dodged meantime makes worthwhile beauty technology audience longer captured wonders home video streaming program lives nine seasons real jack bauer dvd anytime need 24 fix right fingertips dont need legacy crap follow john nolte twitter noltenc follow facebook page | 525 |
<p>CVS Health (NYSE: CVS) Q3 2017 Earnings Conference CallNov. 6, 2017 8:30 a.m. ET</p>
<p>Continue Reading Below</p>
<p>Operator</p>
<p>Ladies and gentlemen, thank you for standing by. Welcome to CVS Health Third Quarter 2017 Earnings Call. During the presentation, all participants will be in listen-only mode. Afterwards, we'll conduct a question and answer session, at that time if you have a question please press the 1 followed by the 4 on your telephone. If at any time during the conference you need to reach an operator you may press the * followed by the zero. As a reminder, this conference is being recorded today, Monday, November 6, 2017. I would now like to turn the conference over to Mike McGuire, Senior Vice President of Investor Relations. Please go ahead, sir.</p>
<p>Mike McGuire -- Senior Vice President, Investor Relations</p>
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<p>Thank you, Nelson. Good morning, everyone, and thanks for joining us. I'm here this morning with Larry Merlo, President, and CEO and Dave Denton, Executive Vice President, and CFO. Jon Roberts, Chief Operating Officer; and Helena Foulkes, President of CVS Pharmacy, are also with us today and will participate in the question and answer session following our prepared remarks.</p>
<p>During the Q&amp;A, please keep in mind that it is our policy to not comment on rumors or speculations in the marketplace. Also in order to provide more people with the chance to ask their questions, please limit to no more than one question with a quick follow-up. Please note that we have slide presentation on our website that summarizes the information in our prepared remarks as well as some additional facts and figures regarding our operating performance and guidance. Our Form 10Q will be filed this afternoon and that, too, will be available on our website.</p>
<p>I do have one quick reminder. Our annual Analyst Day is scheduled for Tuesday, December 12 in New York City. During that, you'll have the opportunity to hear from several members of our senior management team, who will provide a compressive update of our strategies for drive long-term growth as well as our 2017 guidance. For those unable to attend, the meeting will be webcast.</p>
<p>Again, that's Tuesday, December 12. Additionally, during this presentation, we will make certain forward-looking statements that reflect our current views related to our future financial performance, future events, and industry and market conditions. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from what may be indicated in the forward-looking statements. We strongly encourage you to review the information in the reports we file with the SEC regarding the specific risks and uncertainties.</p>
<p>In particular, those that are described in the Risk Factors section of our most recently filed Annual Report on Form 10-K and the cautionary statement disclosures in our Form 10-Q. You should also review the section entitled forward-looking statements in our earnings press release. During this call, we will use non-GAAP financial measures when talking about our company's performance. In accordance with SEC regulations, you can find the reconciliations of these non-GAAP measures to comparable GAAP measures on the Investor Relations portion of our website.</p>
<p>And as always, today's call is being webcast on our website, and it will be archived there following the call for one year. Now, we'll turn this over to Larry Merlo.</p>
<p>Larry Merlo -- Chief Executive Officer and President</p>
<p>Okay. Thanks, Mike. Good morning, everyone, and thanks for joining us today. Starting with our third-quarter results.</p>
<p>Total company revenues increased 3.5%, at midpoint of our guidance range. We delivered adjusted earnings per share of $1.50 at the high end of our guidance despite the impact from the devastating hurricanes that swept through Texas, Louisiana, Florida and Puerto Rico, and I'll have more on that in just a few minutes. On an adjusted basis, operating profit was down 13.1%, within expectations, reflecting performance in the PBM business that was in line with expectations, along with performance in the Retail/Long-Term Care segment that was below expectations due to the hurricanes. We generated approximately $2.4 billion of free cash during the quarter and $7 billion year-to-date.</p>
<p>Now given our year-to-date performance and our expectations for the remainder of the year, we are narrowing our full-year adjusted EPS guidance range and raising the midpoint. We currently expect to achieve adjusted earnings per share for 2017 of $5.87 to $5.91 reflecting year-over-year growth of 0.5% to 1.25%. And that compares to our previous range of $5.83 to $5.93, and Dave will discuss the details of both our results and guidance in more detail in his remarks. Now before turning to the business update, I want to provide some color on the hurricanes, not only in regard to the financial impact to our business but also in regard to the recovery efforts.</p>
<p>The considerable damage these storms left in their path cannot be understated and our stores and colleagues were not immune to this destruction. In total, about 925 of our stores were closed for some period of time, and today, 11 remain closed, and we estimate that the financial impact is approximately $55 million, which are cost primarily to cover insurance deductibles. Now the vital part of these communities, we played roles both in advance of the storms and afterward to aid recovery efforts. Our proprietary messaging platform enabled rapid and urgent communications to patients who are in the hurricane's path.</p>
<p>And this helped ensure delivery of specialty and other medications for patients in transition between their homes and safe shelter locations. Additionally, more than $10 million in cash, products, and supplies has been raised and donated to support the impacted communities, and we are incredibly grateful to our colleagues who, while dealing with their own personal challenges, made extraordinary efforts in helping and aiding our customers. The rebuilding process for many of these communities will take a long time, and will continue to do our part in providing support. Now turning to the business update, and I'll start with PBM.</p>
<p>As you're all aware, we signed 5-year agreement with Anthem to provide services to support their new PBM, IngenioRx, beginning in January 2020. As part of the agreement, we'll manage certain services for IngenioRx, including claims processing and prescription fulfillment through our mail order and specialty pharmacies. These services will be private labeled to IngenioRx in order to ensure a seamless experience for Anthem members. And through this relationship, Anthem will have the ability to grow their business and enhance their value proposition as we help them improve their financial performance, execute operationally and optimize IngenioRx's control of critical PBM functions.</p>
<p>Additionally, Anthem is very focused on improving patient health outcomes and will be relying on our expertise in patient messaging and engagement at the point-of-sale through our multiple patient touch points to support IngenioRx in this goal. So we're very excited about this new relationship and look forward to starting the implementation into working with Anthem to provide services to help ensure coordinated, holistic care for their members. Combined with our continuing success in winning new business, we believe that this contract is further validation of the important role that CVS Health's integrated and innovative pharmacy care model plays in today's healthcare system. Now as for the 2018 selling season, we've continued to make a good progress.</p>
<p>With another $600 million in new wins, we currently have gross wins of approximately $6 billion, and net new business of $2.3 billion. As I said, last quarter, these new business numbers include the previously announced loss of the FEP specialty contract but do not include any impact from our individual Med D PDP, which I'll touch on shortly. Today, we've completed more than 90% of our client renewals for '18, and that's roughly in line with where we were at this point last year and our retention rate stands at about 97%. Additionally, we recently announced the new 30,000-store performance-based pharmacy network that will be anchored by CVS Pharmacy and Walgreens, along with up to 10,000 community-based independently owned pharmacies.</p>
<p>The network is designed not only to deliver unit cost savings but also to improve clinical outcomes that will help with our overall healthcare costs for clients and their members. This network is an innovative solution that utilizes a value-based management approach in order to achieve improved outcomes through adherence for five high-impact, highly utilized drug classes. It also helps to provide cost savings through formulary compliance. So we're excited to make this available to our clients for implementation beginning in March of next year, and we look forward to improving overall health and wellness while lowering cost for patients and payers.</p>
<p>Turning to our Specialty Business. Revenue growth in the quarter was 10.6%. And the slowdown in revenue growth compared to prior year is being driven by several factors. First, we are seeing lower levels of inflation on specialty drugs consistent with the marketplace; second, we're seeing increase in generic dispensing within specialty, which as you know is a drag on the top line but a benefit the margin; and lastly, the mix of drug within our book is shifting toward lower-priced therapies as well as fewer hep C scripts.</p>
<p>And despite these top-line pressures, overall growth in specialty pharmacy remained strong, and our specialty business continues to expand and gain share. Before turning to retail, let me touch briefly on SilverScript, our Med D PDP. As we reported last quarter, SilverScript qualified in 32 of the 34 regions, which enables us to retain all of the auto-assignees we currently serve, and importantly, receive new auto-assignees in all 32 regions. The 2018 annual enrollment periods currently underway, and for enrollees, we have work to reduce premiums for the majority of SilverScript plans across the country, providing plan beneficiaries continued access to a zero-dollar deductible for drugs an all tiers.</p>
<p>I'm also pleased to note that for the third consecutive years, SilverScript achieved a 4-star performance rating from CMS for 2018, surpassing industry standards and delivering value clinical outcomes and clinical service. And of the Med D lives under Caremark management, 83% achieved a 4 or 5-star ratings, which speaks to the outstanding value we deliver for our health plan clients. Now moving on to third quarter results in the Retail/Long-Term Care segment, total same-store sales decreased 3.2%, slightly better than expectations, with pharmacy same-store sales down 3.4%. Pharmacy sales comps were negatively impacted by approximately 435 basis points due to recent generic introductions.</p>
<p>Same-store prescription volumes increased 0.3% on a 30-day equivalent basis, slightly ahead of expectations and the decisions to restrict CVS Pharmacy from participating in the TRICARE and fully insured prime networks continue to negatively impact pharmacy sales and script comps. The network changes had about a 420 basis point negative impact on volumes, and when adjusting for the network changes, same-store prescription volumes would have been up 4.5% in the quarter, again, on a 30-day equivalent basis. Now as we look to return to healthy growth, we continue to be very focused on partnering with all payers to drive volumes and capture share. And our partnerships with Optum, CIGNA, and Express Scripts have seen some uptake from clients and the pipeline of additional opportunities in the coming years remains promising.</p>
<p>Additionally, CVS Pharmacy will be preferred in several more Med D networks for the 2018 planned year. And these include the SilverScript Choice plan as well as the preferred networks for Aetna/First Health and WellCare, and we believe that being preferred in these networks will help us to further drive prescription volume in the growing Med D market. Now turning to the front store. Comps decreased 2.8%, sequentially in line with Q2 comps after adjusting for the Easter shift.</p>
<p>And has been the case this year, the decline in front store comps reflects a number of factors, including our decision to rationalize our promotional strategies by scaling back on mass promotions and reducing our circular page count. Softer customer traffic was partially offset by the continued increase in the average front door customer basket. Our personalization and promotional strategies have been successfully contributing to growth in front store profitability as has our growth in Store Brands. Our Store Brands represented 23.2% of front-store sales in the quarter, and that's up about 25 basis points from a year ago, and it remains an area of strength and opportunity.</p>
<p>As a result of all of these factors, front store gross margin, once again, improved in the quarter versus last year despite the decline in front store comps. Now before I turn it over to Dave, I would like to say a word about the critical crisis in American healthcare, and that's the alarming and heartbreaking opioid epidemic. As you know, in September, we announced an expansion of our enterprisewide initiatives to fight the epidemic, leveraging the national presence of CVS Pharmacy with the capabilities of CVS Caremark. With this expansion, we are further strengthening our commitment to have providers and patients balance the need for this powerful medication with the risk of abuse and misuse.</p>
<p>Over the past few years, we've been focused on prevention, collection, and partnership. And as a result, we've collected and safely disposed of more than 100 metric tons of unwanted medications. We've also worked with 43 states to expand access without a prescription to the opioid overdose-reversal drug, Naloxone, to help save lives and get people a chance to get the help they need for recovery. And through our pharmacies' Teach Program that connects CVS pharmacists with school in their local communities, we have educated nearly 300,000 students on the dangers of prescription drug abuse.</p>
<p>However, there's more that needs to be done and as a leading provider of pharmacy care, we believe it is time to institute limits on the quantity of opioids dispensed to patients who are receiving an opioid for the first time in the treatment of acute injuries and to ensure that the prescription fits their medical condition. So utilizing our retail pharmacies and our PBM services, we will work with physicians, patients, plan sponsors and other stakeholders to limit the supply of opioids dispensed for certain acute prescriptions to seven days while continuing to ensure patients with critical needs have access to appropriate care. And with that, let me turn it over to Dave for the financial review.</p>
<p>David Denton -- Chief Financial Officer and Executive Vice President</p>
<p>Excluding these non-GAAP items, we remain well on our way to our target of 35% by the end of 2018. During the third quarter, we repurchased approximately five million shares for $400 million. Year-to-date, we repurchased approximately 55 million shares for approximately $4.4 billion, or $78.68 per share. For the full year, our guidance includes the completion of $5 billion of share repurchases, reflecting an increase of approximately 11% versus last year.</p>
<p>So again, between dividends and share repurchases, we've returned nearly $6 billion to our shareholders in the first 9 months of 2017, and we expect to return more than $7 billion for the full year once the repurchases are complete. As Larry mentioned, we have generated nearly $7 billion of free cash in the first 9 months of the year. The strong year-to-date performance is abnormally high due to the buildup of a payable for CMS associated with the current Medicare Part D plan year as well as the timing of receipts. In Q4, we are expecting negative free cash flow for the first time in a long time as we plan to settle the CMS payable associated with the 2016 plan year that was built up last year.</p>
<p>Given this, we are maintaining our prior guidance for the full year and continue to expect to produce free cash up between $6 billion and $6.4 billion in 2017. Now turning to the income statement. We delivered adjusted earnings per share of $1.50 per share at the high end of our guidance range. These results are on a comparable basis and the reconciliation of GAAP to adjusted earnings per share can be found in the press release as well as in the Investor Relations portion of our website.</p>
<p>As Larry noted, the PBM segment delivered profit within our expectations while the Retail/Long-Term Care segment's profit declined more than expected, primarily driven by the effects of the recent hurricanes. Excluding the impact of the hurricanes, Retail/Long-Term Care's profit was within our expectations. Our effective tax rate beat our forecast, allowing us to deliver adjusted earnings per share at the high end of our guidance. GAAP diluted EPS was $1.26 per share, above our expectations, with the negative impact of the hurricanes, offset by the lower-than-expected loss on the settlement of the defined benefit pension plan as well as the better tax rate.</p>
<p>Let me quickly walk down the P&amp;L to provide some additional color. On a consolidated basis, revenues in the third quarter increased 3.5% to $46.2 billion. In the PBM segment, revenues increased 8.1% to $32.9 billion. PBM growth in the quarter was 40 basis points below the low end of guidance range.</p>
<p>This is primarily driven by lower-than-expected volumes. The year-over-year growth was driven largely by increases in the pharmacy network claims, brand inflation, and growth in specialty pharmacy. Partially offsetting this growth was approximate 100 basis point increase in our generic dispensing rate versus the same quarter of LY to 87%. In our Retail/Long-Term Care business, revenues decreased 2.7% in the quarter to $19.6 billion, beating our expectations.</p>
<p>This was driven primarily by stronger-than-expected pharmacy same-store sales and script growth despite the network changes we've been discussing. Retail/Long-Term Care's generic dispensing rate increased approximately 140 basis points to 87.2%. Turning to gross profit. Gross margin, operating expenses, operating profit and the tax rate, the numbers that I'll cite reflect non-GAAP adjustments in both current and prior periods when applicable, which have been reconciled on our website.</p>
<p>Keep in mind that our guidance for the third quarter also reflected these adjustments. This consolidated company gross margin was 15.4% in the quarter, a contraction of approximately 135 basis points compared to Q3 of '16. In addition to each segment's performance, the decline is to due in part to a mixed shift in our business as the lower-margin PBM business continues to grow faster than our Retail/Long-Term Care business. Gross profit dollars decreased 4.9% versus the same quarter of last year, primarily due to the loss of scripts in the Retail/Long-Term Care segment from the network changes we have previously discussed as well as the continued pricing reimbursement pressures across the enterprise.</p>
<p>Within the PBM segment, gross margin declined 90 basis points from Q3 of '16 to 5%. This was primarily driven by the ongoing timing of profits within Medicare Part D operations as members work through their benefits more slowly this year versus last year. This was primarily offset by the improvement in GDR as well as sable purchasing economics. Gross profit dollars were down 8.4%, also primarily due to the shift in the timing of Medicare Part D profits into the fourth quarter.</p>
<p>Gross margin in the Retail/Long-Term Care segment was 29%, down approximately 25 basis points from last year. The decline in gross margin rate was primarily driven by lower reimbursement rates that continue to pressure pharmacy margins. This pressure was partially offset by an increasing generic dispensing rate as well as the increased front store margin that Larry mentioned earlier. Gross profit dollars decreased 3.6% year-over-year, mainly due to the loss of scripts from the network changes as well as the continued reimbursement pressures.</p>
<p>Consolidated operating expenses as a percent of revenues improved approximately 35 basis points to 10% compared to Q3 of '16, primarily driven by expense leverage from the PBM's growth of revenues during the quarter. We saw consolidated operating profit decline, which was consistent with our expectations. Operating margin for the total enterprise declined by 105 basis points in the quarter to 5.4%. Operating margin at PBM declined approximately 70 basis points to 4.1% while operating margin and Retail/Long-Term Care declined by approximately 110 basis points to 8% on an adjusted basis.</p>
<p>For the quarter, operating profit for the PBM was within expectations while operating profit for Retail/LongTerm Care was less than expected. The PBM segment posted an operating profit decline of 7.2%, reflecting the shift in Medicare Part D profits to Q4 of this year compared to '16. If the Medicare PDP business was excluded from all periods, PBM year-over-year growth in Q3 was more in line with the growth that we saw in Q2 as I've mentioned last quarter. And we expect a similar cadence in Q4.</p>
<p>The Retail/Long-Term Care segment posted an operating profit decline of 14.3%, which includes the impact of the recent hurricanes. Excluding the hurricane costs, the operating profit decline for Retail/LongTerm Care would have been within our expectations. Now going below the line of the consolidated income statement, net interest expense in the quarter decreased approximately $8 million from last year to $245 million, due primarily to paying down debt in the fourth quarter of '16 and a lower average interest rate on the debt that remains outstanding. Our effective tax rate in the quarter was 37.9%, which was better than expected.</p>
<p>This was driven in part by the delta between our estimates of the discrete tax benefits we'd see from share-based payment accounting and what we actually experienced during the quarter. As we discussed in prior earnings call, the increased tax rate volatility is caused by changes in both share price and the discretionary actions employees they can exercise vested options. Our weighted average share count was just over 1 billion shares, in line with our expectations. So with that, let me now turn to our 2017 guidance, and I'll start with our revised guidance for this year.</p>
<p>We currently expect to achieve adjusted EPS for 2017 of $5.87 to $5.91, reflecting year-over-year growth of 0.5% to up 1.25%, while narrowing the previous range of $5.83 to $5.93, we've also raised the midpoint by $0.01 per share. This takes into account the third quarter results at the top of expectations despite the impact of the hurricanes as well as favorability in the tax rate for the remainder of this year. GAAP diluted EPS from continuing operations is expected to be in the range of $4.98 to $5.02 and includes the lower than anticipated defined-benefit pension plan settlements. You can find a reconciliation of GAAP to adjusted EPS in our press release and on the Investor Relations portion of our website.</p>
<p>Now with only a few months left in the year, we are updating our revenue and operating profit guidance to better reflect our current expectations. In the PBM segment, we are lowering the top end of the revenue guidance to a range of 8% to 8.5%, reflecting lower drug price inflation and slightly lower claims growth of 1.77 billion to 1.79 billion claims. In the Retail/Long-Term Care segment, we are narrowing and raising guidance for revenues due to higher script volume expectations. We now expect Retail/Long-Term Care revenues to decline 2.25% to 2.75%, total comps to decline 2.75% to 3.25% and script comps of flat to up 0.25%.</p>
<p>These changes result in a narrowing of our consolidated net revenue growth range to 3.25% to 3.75%. Turning to operating profit. We are narrowing the PBM's operating profit guidance range to 6% to 6.5%, to better reflect current volume expectations and changes in the drug mix. We are lowering the Retail/ Long-Term Care operating profit guidance range to down 9.5% to 10.25% to reflect the impact of the hurricanes.</p>
<p>Taking these changes into account, we'd lower the top end of the consolidated operating profit guidance range and now expect operating profit to decrease 5% to 5.75%. This change in operating profit was offset by the improved outlook on the effective tax rate for the full year '17, allowing us to take the midpoint of our adjusted EPS range up by $0.01. Before moving to the fourth quarter guidance, let me quickly remind you of the timing factor affecting Q3/Q4 profit cadence. In '17, we are seeing Medicare Part D members move more slowly through their benefits that we did in 2016.</p>
<p>As I said earlier, this negatively affected Q3 profitability in '17, we expect it to positively affect Q4. So on the fourth quarter, excluding certain non-GAAP items described on our website, we expect adjusted earnings per share to be in the range of $1.88 to $1.92, up 10% to 12.5% from Q4 of '16. GAAP diluted EPS from continuing operations is expected to be in the range of $1.75 per share to $1.79 per share. You can find the details of guidance in the slides that we posted online before this call, but let me take a moment to point out a few items.</p>
<p>For the fourth quarter, we expect enterprise revenues to be up 2.5% to 4.25%, driven primarily by PBM growth. Total same-store sales at retail are expected to be down 1% to 2.75%, and adjusted script comps are expected to increase by 1% to 2%. Additionally, enterprise operating profit is expected to grow by 5.75% to 8%, again, driven primarily by PBM growth and the shift in timing of Medicare Part D profitability. And as Mike said, we'll provide 2018 guidance at our Analyst Day in December.</p>
<p>Our results in the third quarter and our expectations for the remainder of this year are evidence of our ability to execute on the plans that we've provided earlier this year. We are committed to returning to healthy earnings growth and continuing to drive shareholder value. The steps we have taken over the past year position as well for the opportunities that lie ahead in the healthcare marketplace. We continue to work diligently toward the long-term targets that we provided at last year's Analyst Day.</p>
<p>And with that, I will now turn it back over to Larry Merlo.</p>
<p>Larry Merlo -- Chief Executive Officer and President</p>
<p>Okay. Thanks, Dave, and before we move into the Q&amp;A, I do want to spend a few minutes talking about the evolving consumer expectations and what that may mean in being a convenient and affordable pharmacy destination. We have always been focused on making pharmacy and everyday healthcare better for patients. It has been and continues to be, for us, point of differentiation.</p>
<p>At the same time, we know there's more to be done. In terms of convenience, consumers want their medications on their schedules, and we've built a comprehensive network to serve those patients with a combination of 9,700 retail pharmacies in local communities all across the country and sophisticated mail order facilities. All of this powered by more than 30,000 clinical professionals. Our mail order services provide a convenience that meets the needs of certain patients on maintenance medications.</p>
<p>However, some patients prefer to get their medications immediately. And for this group, there's no faster way than by walking into a CVS Pharmacy. Our pharmacists are readily available to provide counseling, answer questions and get a prescription in a patient's hands in 15 minutes. It's also important to remember that 1 in 5 prescriptions have some type of clinical intervention that requires pharmacists' involvement.</p>
<p>And with that in mind, despite the complexity and variation of regulations across all states, we built streamline connections, utilizing both people and technology with insurance companies, PBMs and providers to significantly and safely reduce the amount of time consumers have to wait for these issues to be resolved. But there are also those with an immediate need who are unable to make it to a CVS, either because of time, transportation or mobility issues. And today, we are announcing that starting next year, we will bring the pharmacy to our patients' doorsteps, with nationwide next-day delivery from our stores. And in select metro areas, we will even offer same-day delivery.</p>
<p>Additionally, we're also announcing that will offer free same-day delivery for pharmacy and a curated selection of front store products in Manhattan starting on December 4. And with nearly 70% of the U.S. population living within 3 miles of one of our stores, CVS Pharmacy is the most convenient choice for delivery to your doorstep. We also recognize that medication costs are a concern for all patients.</p>
<p>And it's important to know that more than 50% of the prescriptions we fill in our stores cost patients $4 or less. And 75% of those prescriptions cost patients $10 or less. We use our deep connections with PBMs and insurance providers to help patients maximize their insurance benefit using our clinical expertise to find the lowest-cost, therapeutically equivalent option on their plans. And we are investing in tools to make it easier for patients to navigate the confusing healthcare market and improve the understanding of their benefit designs.</p>
<p>And we apply manufacturer coupons to help further reduce the cost. On average, our patients are realizing $55 in savings on each prescription that is coupon-eligible. In addition, we aggressively source generic alternatives for consumers and use our scale to make care more affordable as we did with Adrenaclick, a lower-cost alternative to EpiPen. We also continue to invest in our digital properties, including our highly rated retail mobile app.</p>
<p>It helps patients manage when and how they want to receive their medications, set reminders and manage medications for their families all in one place. And to-date, the CVS Pharmacy app has been downloaded more than 21 million times. At the same time, we currently have 50 million people enrolled in our text message program, which enables them to easily refill their prescriptions through their mobile devices, and it's as simple as typing yes when prompted. So I think you can see, we have a solid foundation that's been built on compelling scale, unsurpassed reach and extensive pharmacy expertise.</p>
<p>And we have a plan for how to do even more to make pharmacy an everyday healthcare even better. And we look forward to sharing this in more detail with you at our December 12 Analyst Day. So with that, let's go ahead and open it up for your questions.</p>
<p>Operator</p>
<p>Thank you. Ladies and gentlemen if you like to register a question please press the 1 followed by the 4 on your telephone. You'll hear a three tone prompt to acknowledge a request. If your question has been asked by another and you'd like to withdraw your registration, you may press the 1 followed by the 3.</p>
<p>If using a speakerphone, please lift our handset before entering your request. Once again, press the 1 followed by the 4 on your telephone to register a question. Our first question comes from the line of Mohan Naidu with Oppenheimer. Please proceed.</p>
<p>Mohan Naidu -- Oppenheimer -- Analyst</p>
<p>Thanks for taking my question. Larry, can you comment a little bit on what do you think of vertical integration to leverage your physical store location, it can possibly influence the plan design in such a way that you can actually use the stores to deliver more care? Thanks.</p>
<p>Larry Merlo -- Chief Executive Officer and President</p>
<p>Yes, Mohan, we have always been very thoughtful in terms of how we can improve access, OK, and at the same time, ensure that the care that we're providing meets our quality standards. And you put those two together, it results in improving outcomes and lowering cost. And I think we've demonstrated capabilities of doing that, whether it's the rolled it MinuteClinic place or the rolled it home infusion place. And it's something that we continue to evaluate and something that's always on our radar screen for evaluating and deciding what's next.</p>
<p>Mohan Naidu -- Oppenheimer -- Analyst</p>
<p>Just to follow up on that, around the MinuteClinic, do you have an immediate plant to add more services than what you do right now? Thanks.</p>
<p>Larry Merlo -- Chief Executive Officer and President</p>
<p>Yes, Mohan. We have been -- I think you've seen over the last couple of years where we have added services. And we have in partnership with some of the health system affiliations that we have, we have begun to triage patients, where we are actively managing patients who have been diagnosed with some type of chronic care condition in an effort to ensure that they're following the regimens of care, in an effort to keep them healthy.</p>
<p>Mohan Naidu -- Oppenheimer -- Analyst</p>
<p>Thanks, Larry.</p>
<p>Larry Merlo -- Chief Executive Officer and President</p>
<p>Thank you.</p>
<p>Operator</p>
<p>Thank you. Our next question comes from a line of George Hill with RBC. Please proceed.</p>
<p>George Hill -- RBC -- Analyst</p>
<p>Good morning. Thank you, guys, for taking my question. I'm going to follow up on Mohan's question, Larry, a little bit, and there's obviously been a lot of talk about vertical integration. Can you talk about what you've seen in your non-pharmacy businesses as it relates to beneficiaries where you partner with payers? I'm sure you see the information for people who walk into MinuteClinics or who use the home infusion business.</p>
<p>I guess, from plans that you are more tightly aligned with, for systems that you are less tightly aligned with, and I guess, there's a lot of us sitting here and thinking about the vertical integration stories that played out in the market. I guess, can you just walk through how you've seen in between -- different partnerships and different segments in the book of business, how much the beneficiaries storage capability kind of enhances the offering?</p>
<p>Larry Merlo -- Chief Executive Officer and President</p>
<p>Well, George, listen, I'll start, and I'm sure others will jump in. But when you refer to storage, we think about the role that plan design plays, OK? If you look at MinuteClinic as an example, that's an offering that's available to our PBM clients, OK? And there are many examples out there whereas you look at the overall healthcare costs adjusted for age and health status, you see overall healthcare savings anywhere from 8% to 12% lower. And in some respects, it's a simple as some of those, some of the treatment and visits migrating out of the emergency room and into the retail clinics. I think one of the other elements that we focus on is how the site of care becomes a variable, OK, recognizing that there's a cost delta when you look at where that care is being administered.</p>
<p>So if you jump over to infusion, we know that providing that care in the home versus in ambulatory infusion site or perhaps in outpatient segment of the hospital, there is a pretty dramatic cost differential there. And so I think we have been able to demonstrate that our local presence, the fact that, that can lead to direct engagement with customers and patients and as a result, produce better outcomes at a reduced cost.</p>
<p>David Denton -- Chief Financial Officer and Executive Vice President</p>
<p>George, it's Dave. I'll just add to that. If you think about moving members into one of our channels because we touch many elements of healthcare given all the assets that we have, when those members move in our channel, typically, what we have been able to prove quantitatively is we deliver better outcomes in totality to those members. So there's an incentive to do that, number one, just from an outcomes perspective.</p>
<p>And then secondly, it's not always about care delivery in the MinuteClinic, it's really about patient engagement to the degree that we engage with those patients, we can educate them of where is the best site of care or how best can they engage in the healthcare system at the most cost-effective point of entry. I think those 2 components, really, demonstrate our ability to improve outcomes and engage with that member to advance their journey on improving their healthcare.</p>
<p>Jon Roberts -- Chief Operating Officer and Executive Vice President</p>
<p>Hey, George, this is Jon. The only other thing I would say is that we see our clients offering an X or a range of plan designs that allow us to move patients into our channel. So one can simply be access to the patient where we explained to them that they don't need to get to hospital for infusion, but they can actually get it done at home, and so we see a lot of patients not even realizing they can do that, so that becomes an incentive. We see plans creating incentives to move them into one of our channels, which is, Larry talked about that with MinuteClinic and the reduction of copays.</p>
<p>And finally, there's the actual narrowing of the network so we can see for both quorum and some of our other assets.</p>
<p>George Hill -- RBC -- Analyst</p>
<p>That's super helpful. And I guess, from a quick follow-up, Larry or Dave. I guess we're scratching our head a little bit on the macro Rx. If you guys are trying to pick one drive that is attributed to it, is it benefit design, is it copay design, is it payer mix, are you seeing a tick in abandonment? Just intrigue like volumes across the phase continuum would be pretty helpful.</p>
<p>Larry Merlo -- Chief Executive Officer and President</p>
<p>Yes, George, we're not seeing anything that would tell us that patients are not taking their prescriptions as prescribed. And I mean I think if you look in the quarter, we've talked a little bit about the hurricanes, and I think that was tremendously disruptive, OK, because you see boluses of activity leading up. During the peak periods, you see -- you certainly see some unevenness in volume. And I would say that as you look at the say, the scripts, people are getting their flu shots, but we're certainly not seeing any incidence of the cold and flu season at this point in time.</p>
<p>So that may be contributing a little bit to some of what we're seeing currently.</p>
<p>George Hill -- RBC -- Analyst</p>
<p>Appreciate the color, thanks.</p>
<p>Larry Merlo -- Chief Executive Officer and President</p>
<p>Thanks.</p>
<p>Operator</p>
<p>Thank you. Our next question comes from the line of Charles Rhyee with Cowen and Company. Please proceed.</p>
<p>James Auh -- Cowen &amp; Co. -- Analyst</p>
<p>Hi, this is James Auh for Charles, you know it seems our sales this quarter were better than expected despite the hurricane. Can you give some insight into what drove that performance?</p>
<p>David Denton -- Chief Financial Officer and Executive Vice President</p>
<p>Hey, James, this is Dave. I think what we continue to do is I'll say rationalize our promotional spend kind of across the channel. And I think what's important as you look at same-store sales is probably more important to look at the gross profit yield on those. You're seeing our gross profit certainly in the front continue to improve on a sequential basis and a year-over-year basis, and that's really the focus that we have.</p>
<p>I would say, we were slightly better than expected, but I don't think our performance was kind of out of line, any major respects.</p>
<p>James Auh -- Cowen &amp; Co. -- Analyst</p>
<p>Okay, great. And also, it seems like the uptake on the PBM side for Part Ds more in 4Q compared to last year. Could you just explain why the shift in compared to last year?</p>
<p>David Denton -- Chief Financial Officer and Executive Vice President</p>
<p>Yes. So mostly this is driven by the rate of beneficiaries using their Medicare Part D policy. And so they're moving through that benefit this year more slowly than what they move through last year. And as you know, as the insurance company hits certain reinsurers corridors, the insurance company, either earns I'll say higher profits during that period or actually can even be in a loss position during the timing.</p>
<p>Given that cadence of beneficiary utilization, profits this year are being shifted out of Q3 and into Q4. And so we have very good line of sight to that.</p>
<p>Jon Roberts -- Chief Operating Officer and Executive Vice President</p>
<p>And this is Jon. Just to add a couple of more specifics. So additional coverage limits was raised this year by $400 million so that means members got to the donut hole a little slower and then we're seeing less inflation. I think those two factors are exactly what's causing what Dave explained.</p>
<p>James Auh -- Cowen &amp; Co. -- Analyst</p>
<p>Okay, great. Thank you.</p>
<p>Larry Merlo -- Chief Executive Officer and President</p>
<p>Thank you.</p>
<p>Operator</p>
<p>Thank you. Our next question comes from a line of Lisa Gill with JPMorgan please proceed.</p>
<p>Lisa Gill -- JPMorgan Chase -- Analyst</p>
<p>Thanks and good morning. Larry, I just want to talk about the business model, and listening to what you had to say earlier being paid for better outcomes, Dave talking about patient engagement, education getting paid around that. How do you get paid? I mean, do you have to own the vertical integration to truly be paid for that? Or do you see a shift in the model where you start to take more risk like you do with other risk products where the dollar amount that you're paid is based on some outcomes? Or your pharmacist is getting paid for that incremental patient engagement? Or is it just simply, the scripts versus the MinuteClinic visits?</p>
<p>Larry Merlo -- Chief Executive Officer and President</p>
<p>Well, Lisa, it's Larry. Listen, when you think about our business model, you think about the fact that we have over several years now, we've assembled a series of assets that create countless touch points with which we can engage with the patient, with the consumer in an effort not just improve access to care, but create better outcomes. And in doing so, reduce costs. So from an economics point of view, if we're not providing that fulfillment, then there's not an opportunity to do those other things.</p>
<p>So we benefit from that share of going through one of our distribution channels. I think you've heard us begin to talk about the next evolution of that taking element of risk. And Jon can touch on the Transform Care programs, which we are in the process of marketing at least beginning with diabetes and going from there.</p>
<p>Lisa Gill -- JPMorgan Chase -- Analyst</p>
<p>Okay, that's helpful. And then just as a follow-up. Larry, your comment around CVS heal value proposition sounds like it's really geared toward all of the talk around Amazon and why CVS is well positioned even in the face of potentially Amazon coming into this market. Is there anything that you think you could do better? Or how do you think about the Amazon's threat as it pertains to CVS?</p>
<p>Larry Merlo -- Chief Executive Officer and President</p>
<p>Well, Lisa, listen, I'll start and maybe I'll ask Helena jump in well. In our organization and in our culture, we're never done, OK? So we're always listening to our customers. And I think being good listeners help us understand where they have friction points that we need to work to eliminate. So we think we do a good job.</p>
<p>We think we've got a lot of ways in which we can serve the customer, and we're always looking for ways in which we can do that better.</p>
<p>Helena Foulkes -- Executive Vice President, CVS Health and President, CVS Pharmacy</p>
<p>I would agree. I think, Lisa, what we spend a lot of time talking about is serving the customer wherever, whenever and, however, she wants. And as Larry said earlier, getting a prescription in 15 minutes or less is super convenient, but we wanted to add on to that. And so that's why you see as announcing what we did today.</p>
<p>But we're also doing even more just to make the in-store experience grade, adding clinical programs, so we keep pushing ourselves very hard to sell the customer paying points.</p>
<p>Lisa Gill -- JPMorgan Chase -- Analyst</p>
<p>Great. Thanks so much.</p>
<p>Larry Merlo -- Chief Executive Officer and President</p>
<p>Thanks, Lisa</p>
<p>Operator</p>
<p>Thank you. Our next question comes from the line of Robert Jones with Goldman Sachs, Please proceed.</p>
<p>Bob Jones -- Goldman Sachs -- Analyst</p>
<p>Great. Thanks for the questions. I guess, just a follow-up on some of the announcements with the next day delivery for all products and same day for some. Is there anything you can share as far as what you would expect the potential impact to be from this -- from the same-store basis and how it might impact the front-end? I know it's early, but just curious if this -- you guys see this as potentially a needle mover on either of those brands.</p>
<p>And then any costs you would highlight that would be needed to accomplish these accelerated timelines?</p>
<p>Helena Foulkes -- Executive Vice President, CVS Health and President, CVS Pharmacy</p>
<p>Sure. Let me just start by saying that we have had 1,600 stores who's been doing home delivery for a long time. And part of what we did is we really looked at that experience and, said how do make it even better there. It's still fairly small there even in those stores, and I would say that's because ultimately, we think the best experience for the consumer is one where she can toggle back and forth and decide someday she wants to come into the stores and some days, you just can't get out of the house, and we need her to do it, we need to get those prescriptions to her.</p>
<p>So whether it's our drive-through locations, it's our curbside pickup, we've been actively involved with Instacart, which we're now delivering from 2,800 stores. We're pushing the envelope on basically serving the patient wherever she is. And so it's too soon to know exactly what the impact will be, but we do know it's this holistic experience that the consumer is looking for, and I think we've got a set of experiences that gives us confidence this is an addon to her holistic experience. In terms of the cost side of it, we do know that the cost per market can vary, but we've been able to use our scale to negotiate a low-cost competitive option that we think consumers will be willing to pay for, both in same and next-day delivery.</p>
<p>And we've been piloting, as I said, different options. We have a good sense for the U.S. price, but we'll also be looking at options where there will be free delivery with the purchase of some front store items. So we think it's that holistic review, again or wherever, whenever and, however, she wants.</p>
<p>Bob Jones -- Goldman Sachs -- Analyst</p>
<p>Got it. And I guess just a quick follow-up. In the last two years, you guys used 3Q as an opportunity to give a preliminary outlook for the following year. I think in both cases, it seemed that The Street maybe was a little bit of the initial guide came out.</p>
<p>This year, I'm assuming we'll have to wait till December for guidance. But could you share maybe the major swing factors that we should be thinking about as we look out into '18 on a year-over-year basis?</p>
<p>Larry Merlo -- Chief Executive Officer and President</p>
<p>Well, Bob, it's Larry. Maybe I'll start, and Dave will jump in. And Bob, just for our clarity, goal has always been to provide guidance for the following year in December at our Analyst Day. And as you heard from both Mike and Dave, that's what we'll be doing next month, and you shouldn't read anything into that.</p>
<p>In terms of what you would think about as, I'll say, headwinds, tailwinds for '18, I'll start with some of the tail work -- the tailwinds. A lot of the network arrangements that we've been talking about, that certainly will drive retail share next year. As you heard this morning, we've had another strong PBM selling season, and the enterprise streamlining initiative that we began earlier this year will be in year two, and the savings will outweigh the costs. On the headwinds side, we've talked -- we'll continue to see the reimbursement pricing pressures.</p>
<p>And I think when you think about what are the offsets to that, obviously, generic introductions play a role in that. And at least at this point in time, we see '18 contributing, but probably, to a lesser extent than what we've seen in the last couple of years.</p>
<p>Bob Jones -- Goldman Sachs -- Analyst</p>
<p>Great. Thanks for all that. Appreciate it.</p>
<p>Larry Merlo -- Chief Executive Officer and President</p>
<p>You bet.</p>
<p>Operator</p>
<p>Thank you. Our next question comes from The line of John Heinbockel with Guggenheim Securities. Please proceed.</p>
<p>John Heinbockel -- Guggenheim -- Analyst</p>
<p>So, Larry, I want to start with, you're obviously doing a lot of partnerships with competitors, maybe people yet you haven't partnered with in the past. Maybe talk a little bit what's changed the last year or two on you're doing it successfully, managing conflicts? And then are there natural limitations to working with those partners?</p>
<p>Larry Merlo -- Chief Executive Officer and President</p>
<p>Yes, John, listen, I think that we have -- the capabilities that we have created and the guiding principle of partnering with individuals or entities that as they grow, we grow, OK, I think that has helped to create a real partnership where we can create a win-win scenario with that most important win being the clients and customers that we serve, OK? And so we have, whether you're talking about health plans or we've got relationships with more than 70 health plans, and we've talked a lot about how in the Med D space, how we've created of great offering where SilverScript can be a competitor in the market, but we can also support the Med D products for other health plans and how we've seen in the market that through that relationship, they're growing faster than the overall market. And I think the opportunities that we continue to see for innovation, I think gives us the comfort level that even on the retail side, we can partner with, as you pointed out, within a differentiated way from perhaps how we thought about that in the past. So I think we're pleased with the capabilities that we're able to offer and the value that, that can create in the marketplace.</p>
<p>John Heinbockel -- Guggenheim -- Analyst</p>
<p>Just as a follow-up, one of those partnerships to a degree, I guess, is this performance preferred plan with Walgreens. Where do you think that specific plan goes and more offering like that go? Because I think you probably agree that the two of you are probably the lowest cost providers out there. So is this a way to get maybe one of the lowest-cost networks in the market?</p>
<p>Larry Merlo -- Chief Executive Officer and President</p>
<p>Well, John, let me start, and then I'll flip it over to Jon. I mean, you've heard us say for a while now that the market has been focused on network constructs with CVS or Walgreens, pick one, OK? And we've been talking about as healthcare migrates to more value-based care or outcomes that the market may not be thinking about it in the right way that the networks are not going to be based simply on unit cost, they're going to be based on unit cost and the ability to affect outcomes through clinical performance measures. So at the end of the day, that's what this network is all about.</p>
<p>Jon Roberts -- Chief Operating Officer and Executive Vice President</p>
<p>And John, this is Jon. If you just think about diabetes, and we have all the pharmacies that are serving clients diabetic numbers, working on adherence and if they can lower the A1C by 1%, that actually saves $5,800 over the course of the year. So the power of being able to lower overall help your cost I think really has been underappreciated by the market. And so yes, this network with -- what we're calling high-performance network with CVS, Walgreens and independents does deliver unit cost savings.</p>
<p>But I think even more importantly, it delivers clinical outcomes. And part of the reimbursement to these pharmacies won't be based on their ability to deliver clinical outcomes, so we selected providers that we believe have the best capability. And as I go out in the market talking to clients, we have not seen as much penetration in narrow networks as we historically have seen because it was historically unit cost savings. But as we add this clinical component, we're seeing much more interest in moving down this path.</p>
<p>John Heinbockel -- Guggenheim -- Analyst</p>
<p>Thank you.</p>
<p>Operator</p>
<p>Thank you. Our next question comes from the line of Eric Percher with Nephron Research. Please proceed.</p>
<p>Eric Percher -- Nephron Research -- Analyst</p>
<p>Thank you. So maybe combining those questions around partnership and profit, it seems very clear that the relationships you've created have come based on clinical outcomes in part and that also we've seen change in market pricing and there's ability to deliver lower cost. How should we think about the impact next year? You spoke about reimbursement. Is there a change in the way that you've looked at the returns required in order to enter these contracts and any type of material impacts for '18 or even looking out further, what's the balance between partnership and profit?</p>
<p>David Denton -- Chief Financial Officer and Executive Vice President</p>
<p>Yes, Eric, it's Dave. We can't give you a ton of color at this point in time, I'll be certain we'll discuss it at Analyst Day. I will say that our -- conceptually, intellectually, how we thought about this does not change Obviously, we underwrite each one of these -- I'll say underwrite we've looked financially at each one of these relationships to make sure that is both good for the client, good for the member and good for us, both short-term and long-term. So I think our approach to this is pretty disciplined.</p>
<p>Eric Percher -- Nephron Research -- Analyst</p>
<p>Thank you.</p>
<p>Operator</p>
<p>Thank you. Our next question comes from the line of Alvin Concepcion with Citi. Please proceed</p>
<p>Alvin Concepcion -- Citigroup -- Analyst</p>
<p>Thanks for taking my question. Generally, could you -- just wondering if you could reach your vision of improving outcomes, creating holistic experience, driving share to your distribution channels. Can you do that with your current business? I know you've been doing more partnerships to improve those, But down the road, is it becoming harder to win-win scenario as there's more in coach in your PBM business, for example? And with that backdrop, do you view M&amp;A as more of a necessity to accelerate that vision?</p>
<p>David Denton -- Chief Financial Officer and Executive Vice President</p>
<p>Hey, Alvin, this is Dave. I think our business model -- as we think about how it stands today when I think about the evolving marketplace and landscape, I think we're very nicely positioned here. The assets that we've assembled, really, engage members and lower cost and provides a really a robust access point into healthcare, and I think if you look for the next 3, 5, 10 years, those elements are really critical. So we do like our business model.</p>
<p>M&amp;A, and continuing to supplement our business model, has always been at the core of our business, and we will continue to do that as we think -- going forward.</p>
<p>Alvin Concepcion -- Citigroup -- Analyst</p>
<p>Thank you.</p>
<p>Operator</p>
<p>Thank you. Our next question comes from the line of Ricky Goldwasser with Morgan Stanley. Please proceed.</p>
<p>Ricky Goldwasser -- Morgan Stanley -- Analyst</p>
<p>Yes. Hi, can you hear me?</p>
<p>Larry Merlo -- Chief Executive Officer and President</p>
<p>We can hear you. Good morning.</p>
<p>Ricky Goldwasser -- Morgan Stanley -- Analyst</p>
<p>Great. Good morning we have a new phone system here. Thank you, folks, for all the commentary. One follow up on the -- just the Amazon question.</p>
<p>I mean, you've talked about the steps you're taking on the retail side and really kind of bringing pharma to your doorstep. But how should we think about an Amazon initial entry to the drug supply side from a PBM perspective? If you can just talk about kind of how you think about including an Amazon and PBM networks or potentially kind of like partnering with them, get a lot of questions on this topic.</p>
<p>Larry Merlo -- Chief Executive Officer and President</p>
<p>Well, Ricky, it's Larry. When you look -- when you think about it partnering, you sit here, and you ask the question if somebody is able to do something that perhaps doesn't exist in the marketplace, we're certainly open to understanding and working with them in that regard. I think that you've heard this morning from us and quite frankly, from others in terms of some of the -- whether you're talking about capabilities or some of the challenges to entry that we're sitting here saying there's a lot that we're doing today and there's more that can be done, OK? So you would never close the door on any type of partnership, but you have to look at what those capabilities may bring that are being met in the marketplace today.</p>
<p>Ricky Goldwasser -- Morgan Stanley -- Analyst</p>
<p>Okay. And then a follow-up on what you're seeing for the 2018-19 selling season just in terms of opportunities and mix between kind of like health plan, commercial and government.</p>
<p>David Denton -- Chief Financial Officer and Executive Vice President</p>
<p>Hey, Ricky, this is Dave. It's probably something that we'll cover in more depth at Analyst Day. So I'm going to ask you to hold that question until then, we'll go through that in some detail.</p>
<p>Ricky Goldwasser -- Morgan Stanley -- Analyst</p>
<p>Okay. Thank you.</p>
<p>David Denton -- Chief Financial Officer and Executive Vice President</p>
<p>Thank you.</p>
<p>Operator</p>
<p>Thank you. Our next question comes from one of Kevin Caliendo with Needham &amp; Company. Please proceed.</p>
<p>Kevin Callendo -- Needham &amp; Co. -- Analyst</p>
<p>Hi, guys. Thanks for taking my question. I know it's preliminary, but have you done any sort of analysis on the initial Republican tax plan and how it might impact CVS in the future?</p>
<p>Larry Merlo -- Chief Executive Officer and President</p>
<p>Well, Kevin, it's Larry. We've talked a lot about tax, and the fact that our effective tax rate is over 39% or around there, OK, that any type of meaningful comprehensive reform should be beneficial to our business. And we've got our folks going through the house version that was released last week. And listen, they'll be a lot more to say about that in the coming days and weeks as it goes through ways and means and then decides when.</p>
<p>David Denton -- Chief Financial Officer and Executive Vice President</p>
<p>I just think that at the end of the day, given our profile from being a really high taxpayer that most scenarios will have us benefiting at the end of the day.</p>
<p>Kevin Callendo -- Needham &amp; Co. -- Analyst</p>
<p>Understood that CVS is clearly positioned to be one of the beneficiaries. Just looking at some of the things that they're talking about in terms of deductions may be less so on interest and depreciation and more so on CapEx. Is that in any way looking at that, would you potentially change business practices or are there ways to work through this might be even more beneficial versus what the company is doing now?</p>
<p>David Denton -- Chief Financial Officer and Executive Vice President</p>
<p>It's probably too early to tell on that. I will say though that to the degree that we have relief, there's a lot of investments that we think we can make within our business model that can more rapidly expand our business model across the country and deliver better care and higher quality and lower costs. So we would look to take the benefit of that and invest it clearly.</p>
<p>Kevin Callendo -- Needham &amp; Co. -- Analyst</p>
<p>Great. Thanks, guys.</p>
<p>David Denton -- Chief Financial Officer and Executive Vice President</p>
<p>You're welcome.</p>
<p>Larry Merlo -- Chief Executive Officer and President</p>
<p>We'll go ahead and take two more questions.</p>
<p>Operator</p>
<p>Okay. Thank you, our next question comes from the line of Scott Mushkin with Wolfe Research. Please proceed.</p>
<p>Scott Mushkin -- Wolfe Research -- Analyst</p>
<p>Hey, guys. Lot has been asked. I just have kind of odd demands so I'm trying to fire them off here a little bit. The partially reserved receivable, the relinquishment of that.</p>
<p>Dave, what was that? Was that one time on the cost side?</p>
<p>David Denton -- Chief Financial Officer and Executive Vice President</p>
<p>Yes, it is one time. It's one of our states has a receivable that was essentially factored, think about that.</p>
<p>Scott Mushkin -- Wolfe Research -- Analyst</p>
<p>Okay, there's one time gain in the third quarter?</p>
<p>David Denton -- Chief Financial Officer and Executive Vice President</p>
<p>It is, it is.</p>
<p>Scott Mushkin -- Wolfe Research -- Analyst</p>
<p>Okay. And then I know, I think this is kind of a combination question here, so the clinics, you guys have been really adding that many and I think the growth rate was at 0.7%. So I wonder if you can give us any some thoughts there on what's going on. I know it's pretty small part of the business but there's been talk about vertical integration on the call.</p>
<p>And then the last one is your comfort level regarding leverage, and then I'll yield.</p>
<p>David Denton -- Chief Financial Officer and Executive Vice President</p>
<p>Yes. Hey, Scott, it's Dave. A couple of things. One is from a clinic perspective, we took a somewhat costs on expanded clinics geographically only really due to 2 things.</p>
<p>One is we wanted to make sure that we have the epic system fully up and running across our enterprise. We've done that. And two, as we purchase within the clinic's target premises, we want to make sure the target locations, we want to make sure that we fully integrated from that perspective. We'll get back on the growth trajectory going forward, there's no doubt about that.</p>
<p>And then from a leverage perspective, as you know, at this point in time, our balance sheet and our ratings are very important to us, we've been very focused on that. We've been very committed to managing that. At the moment, we're a bit, I'll say, over leverage in a sense of our target at 2.7x, we hover around 3. Our objective, obviously, is to begin to deliver over time, we'll grow our way out of that over the next several periods.</p>
<p>Scott Mushkin -- Wolfe Research -- Analyst</p>
<p>Will you ever do a deal that made you subject to a downgrade?</p>
<p>David Denton -- Chief Financial Officer and Executive Vice President</p>
<p>Besides really big speculatory kind of question, we would make the right investments in our business model to do what's best for us long-term. And we would evaluate it on each transaction point at a time.</p>
<p>Scott Mushkin -- Wolfe Research -- Analyst</p>
<p>And then the size of that one time charge, and then I'll definitely yield.</p>
<p>David Denton -- Chief Financial Officer and Executive Vice President</p>
<p>It's immaterial.</p>
<p>Scott Mushkin -- Wolfe Research -- Analyst</p>
<p>Perfect. Thank you.</p>
<p>Operator</p>
<p>Thank you. Our last question comes from the line of Priya Ohri-Gupta with Barclays. Please proceed.</p>
<p>Priya Ohri-Gupta -- Barclays -- Analyst</p>
<p>Thank you so much for squeezing me in. I guess, Dave, picking out on the last question a little bit. In the past, you talked about how important that the high BBB rating is in the context of your [indiscernible] market as well as the commercial paper market. If you were to think just more strategically around the flexibility you have within the BBB spectrum, would there be a willingness to trade off say Tier two commercial paper access for a short time as they gave you sort of greater access in the long term markets?</p>
<p>David Denton -- Chief Financial Officer and Executive Vice President</p>
<p>Yes. We're not focused on that, Priya. We're focused on maintaining our high BBB rating, and that's consistent with our leverage targets that we've established in two, seven. That's not what we're focusing as of this point.</p>
<p>Priya Ohri-Gupta -- Barclays -- Analyst</p>
<p>Okay. And then just a quick follow-up. Can you talk about how you've been funding your sale-leasebacks because it looks like you've been absent from the one 44 A market for a little bit. Have you been primarily using the private market?</p>
<p>David Denton -- Chief Financial Officer and Executive Vice President</p>
<p>We have -- we've been a little low on the sale-leaseback offering at this point in time. Keep in mind that with the Target pharmacy acquisition, we kind of scale back, if you will, our organic store development program just to tag. So because of that business decision, the sale-leaseback offerings has been relatively anemic.</p>
<p>Priya Ohri-Gupta -- Barclays -- Analyst</p>
<p>Thank you so much.</p>
<p>David Denton -- Chief Financial Officer and Executive Vice President</p>
<p>You're welcome</p>
<p>Larry Merlo -- Chief Executive Officer and President</p>
<p>Okay. So just wrapping up. We appreciate everybody's time. I'll break early on a Monday morning.</p>
<p>And if anyone has any follow-up items, Mike McGuire is available for that as well. So thanks, everyone, and we'll see you next month.</p>
<p>And ladies and gentlemen, that does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your line.</p>
<p>Duration: 87 minutes</p>
<p>Mike McGuire -- Senior Vice President, Investor Relations</p>
<p>Larry Merlo -- Chief Executive Officer and President</p>
<p>David Denton -- Chief Financial Officer and Executive Vice President</p>
<p>Mohan Naidu -- Oppenheimer -- Analyst</p>
<p>George Hill -- RBC -- Analyst</p>
<p>Jon Roberts -- Chief Operating Officer and Executive Vice President</p>
<p>James Auh -- Cowen &amp; Co. -- Analyst</p>
<p>Lisa Gill -- JPMorgan Chase -- Analyst</p>
<p>Helena Foulkes -- Executive Vice President, CVS Health and President, CVS Pharmacy</p>
<p>Bob Jones -- Goldman Sachs -- Analyst</p>
<p>John Heinbockel -- Guggenheim -- Analyst</p>
<p>Eric Percher -- Nephron Research -- Analyst</p>
<p>Alvin Concepcion -- Citigroup -- Analyst</p>
<p>Ricky Goldwasser -- Morgan Stanley -- Analyst</p>
<p>Kevin Calliendo -- Needham &amp; Co. -- Analyst</p>
<p>Scott Mushkin -- Wolfe Research -- Analyst</p>
<p>Priya Ohri-Gupta -- Barclays -- Analyst</p>
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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;referring_guid=4a98ca40-c333-11e7-a19c-0050569d32b9&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | cvs health nyse cvs q3 2017 earnings conference callnov 6 2017 830 et continue reading operator ladies gentlemen thank standing welcome cvs health third quarter 2017 earnings call presentation participants listenonly mode afterwards well conduct question answer session time question please press 1 followed 4 telephone time conference need reach operator may press followed zero reminder conference recorded today monday november 6 2017 would like turn conference mike mcguire senior vice president investor relations please go ahead sir mike mcguire senior vice president investor relations advertisement thank nelson good morning everyone thanks joining us im morning larry merlo president ceo dave denton executive vice president cfo jon roberts chief operating officer helena foulkes president cvs pharmacy also us today participate question answer session following prepared remarks qampa please keep mind policy comment rumors speculations marketplace also order provide people chance ask questions please limit one question quick followup please note slide presentation website summarizes information prepared remarks well additional facts figures regarding operating performance guidance form 10q filed afternoon available website one quick reminder annual analyst day scheduled tuesday december 12 new york city youll opportunity hear several members senior management team provide compressive update strategies drive longterm growth well 2017 guidance unable attend meeting webcast thats tuesday december 12 additionally presentation make certain forwardlooking statements reflect current views related future financial performance future events industry market conditions forwardlooking statements subject risks uncertainties could cause actual results differ materially may indicated forwardlooking statements strongly encourage review information reports file sec regarding specific risks uncertainties particular described risk factors section recently filed annual report form 10k cautionary statement disclosures form 10q also review section entitled forwardlooking statements earnings press release call use nongaap financial measures talking companys performance accordance sec regulations find reconciliations nongaap measures comparable gaap measures investor relations portion website always todays call webcast website archived following call one year well turn larry merlo larry merlo chief executive officer president okay thanks mike good morning everyone thanks joining us today starting thirdquarter results total company revenues increased 35 midpoint guidance range delivered adjusted earnings per share 150 high end guidance despite impact devastating hurricanes swept texas louisiana florida puerto rico ill minutes adjusted basis operating profit 131 within expectations reflecting performance pbm business line expectations along performance retaillongterm care segment expectations due hurricanes generated approximately 24 billion free cash quarter 7 billion yeartodate given yeartodate performance expectations remainder year narrowing fullyear adjusted eps guidance range raising midpoint currently expect achieve adjusted earnings per share 2017 587 591 reflecting yearoveryear growth 05 125 compares previous range 583 593 dave discuss details results guidance detail remarks turning business update want provide color hurricanes regard financial impact business also regard recovery efforts considerable damage storms left path understated stores colleagues immune destruction total 925 stores closed period time today 11 remain closed estimate financial impact approximately 55 million cost primarily cover insurance deductibles vital part communities played roles advance storms afterward aid recovery efforts proprietary messaging platform enabled rapid urgent communications patients hurricanes path helped ensure delivery specialty medications patients transition homes safe shelter locations additionally 10 million cash products supplies raised donated support impacted communities incredibly grateful colleagues dealing personal challenges made extraordinary efforts helping aiding customers rebuilding process many communities take long time continue part providing support turning business update ill start pbm youre aware signed 5year agreement anthem provide services support new pbm ingeniorx beginning january 2020 part agreement well manage certain services ingeniorx including claims processing prescription fulfillment mail order specialty pharmacies services private labeled ingeniorx order ensure seamless experience anthem members relationship anthem ability grow business enhance value proposition help improve financial performance execute operationally optimize ingeniorxs control critical pbm functions additionally anthem focused improving patient health outcomes relying expertise patient messaging engagement pointofsale multiple patient touch points support ingeniorx goal excited new relationship look forward starting implementation working anthem provide services help ensure coordinated holistic care members combined continuing success winning new business believe contract validation important role cvs healths integrated innovative pharmacy care model plays todays healthcare system 2018 selling season weve continued make good progress another 600 million new wins currently gross wins approximately 6 billion net new business 23 billion said last quarter new business numbers include previously announced loss fep specialty contract include impact individual med pdp ill touch shortly today weve completed 90 client renewals 18 thats roughly line point last year retention rate stands 97 additionally recently announced new 30000store performancebased pharmacy network anchored cvs pharmacy walgreens along 10000 communitybased independently owned pharmacies network designed deliver unit cost savings also improve clinical outcomes help overall healthcare costs clients members network innovative solution utilizes valuebased management approach order achieve improved outcomes adherence five highimpact highly utilized drug classes also helps provide cost savings formulary compliance excited make available clients implementation beginning march next year look forward improving overall health wellness lowering cost patients payers turning specialty business revenue growth quarter 106 slowdown revenue growth compared prior year driven several factors first seeing lower levels inflation specialty drugs consistent marketplace second seeing increase generic dispensing within specialty know drag top line benefit margin lastly mix drug within book shifting toward lowerpriced therapies well fewer hep c scripts despite topline pressures overall growth specialty pharmacy remained strong specialty business continues expand gain share turning retail let touch briefly silverscript med pdp reported last quarter silverscript qualified 32 34 regions enables us retain autoassignees currently serve importantly receive new autoassignees 32 regions 2018 annual enrollment periods currently underway enrollees work reduce premiums majority silverscript plans across country providing plan beneficiaries continued access zerodollar deductible drugs tiers im also pleased note third consecutive years silverscript achieved 4star performance rating cms 2018 surpassing industry standards delivering value clinical outcomes clinical service med lives caremark management 83 achieved 4 5star ratings speaks outstanding value deliver health plan clients moving third quarter results retaillongterm care segment total samestore sales decreased 32 slightly better expectations pharmacy samestore sales 34 pharmacy sales comps negatively impacted approximately 435 basis points due recent generic introductions samestore prescription volumes increased 03 30day equivalent basis slightly ahead expectations decisions restrict cvs pharmacy participating tricare fully insured prime networks continue negatively impact pharmacy sales script comps network changes 420 basis point negative impact volumes adjusting network changes samestore prescription volumes would 45 quarter 30day equivalent basis look return healthy growth continue focused partnering payers drive volumes capture share partnerships optum cigna express scripts seen uptake clients pipeline additional opportunities coming years remains promising additionally cvs pharmacy preferred several med networks 2018 planned year include silverscript choice plan well preferred networks aetnafirst health wellcare believe preferred networks help us drive prescription volume growing med market turning front store comps decreased 28 sequentially line q2 comps adjusting easter shift case year decline front store comps reflects number factors including decision rationalize promotional strategies scaling back mass promotions reducing circular page count softer customer traffic partially offset continued increase average front door customer basket personalization promotional strategies successfully contributing growth front store profitability growth store brands store brands represented 232 frontstore sales quarter thats 25 basis points year ago remains area strength opportunity result factors front store gross margin improved quarter versus last year despite decline front store comps turn dave would like say word critical crisis american healthcare thats alarming heartbreaking opioid epidemic know september announced expansion enterprisewide initiatives fight epidemic leveraging national presence cvs pharmacy capabilities cvs caremark expansion strengthening commitment providers patients balance need powerful medication risk abuse misuse past years weve focused prevention collection partnership result weve collected safely disposed 100 metric tons unwanted medications weve also worked 43 states expand access without prescription opioid overdosereversal drug naloxone help save lives get people chance get help need recovery pharmacies teach program connects cvs pharmacists school local communities educated nearly 300000 students dangers prescription drug abuse however theres needs done leading provider pharmacy care believe time institute limits quantity opioids dispensed patients receiving opioid first time treatment acute injuries ensure prescription fits medical condition utilizing retail pharmacies pbm services work physicians patients plan sponsors stakeholders limit supply opioids dispensed certain acute prescriptions seven days continuing ensure patients critical needs access appropriate care let turn dave financial review david denton chief financial officer executive vice president excluding nongaap items remain well way target 35 end 2018 third quarter repurchased approximately five million shares 400 million yeartodate repurchased approximately 55 million shares approximately 44 billion 7868 per share full year guidance includes completion 5 billion share repurchases reflecting increase approximately 11 versus last year dividends share repurchases weve returned nearly 6 billion shareholders first 9 months 2017 expect return 7 billion full year repurchases complete larry mentioned generated nearly 7 billion free cash first 9 months year strong yeartodate performance abnormally high due buildup payable cms associated current medicare part plan year well timing receipts q4 expecting negative free cash flow first time long time plan settle cms payable associated 2016 plan year built last year given maintaining prior guidance full year continue expect produce free cash 6 billion 64 billion 2017 turning income statement delivered adjusted earnings per share 150 per share high end guidance range results comparable basis reconciliation gaap adjusted earnings per share found press release well investor relations portion website larry noted pbm segment delivered profit within expectations retaillongterm care segments profit declined expected primarily driven effects recent hurricanes excluding impact hurricanes retaillongterm cares profit within expectations effective tax rate beat forecast allowing us deliver adjusted earnings per share high end guidance gaap diluted eps 126 per share expectations negative impact hurricanes offset lowerthanexpected loss settlement defined benefit pension plan well better tax rate let quickly walk pampl provide additional color consolidated basis revenues third quarter increased 35 462 billion pbm segment revenues increased 81 329 billion pbm growth quarter 40 basis points low end guidance range primarily driven lowerthanexpected volumes yearoveryear growth driven largely increases pharmacy network claims brand inflation growth specialty pharmacy partially offsetting growth approximate 100 basis point increase generic dispensing rate versus quarter ly 87 retaillongterm care business revenues decreased 27 quarter 196 billion beating expectations driven primarily strongerthanexpected pharmacy samestore sales script growth despite network changes weve discussing retaillongterm cares generic dispensing rate increased approximately 140 basis points 872 turning gross profit gross margin operating expenses operating profit tax rate numbers ill cite reflect nongaap adjustments current prior periods applicable reconciled website keep mind guidance third quarter also reflected adjustments consolidated company gross margin 154 quarter contraction approximately 135 basis points compared q3 16 addition segments performance decline due part mixed shift business lowermargin pbm business continues grow faster retaillongterm care business gross profit dollars decreased 49 versus quarter last year primarily due loss scripts retaillongterm care segment network changes previously discussed well continued pricing reimbursement pressures across enterprise within pbm segment gross margin declined 90 basis points q3 16 5 primarily driven ongoing timing profits within medicare part operations members work benefits slowly year versus last year primarily offset improvement gdr well sable purchasing economics gross profit dollars 84 also primarily due shift timing medicare part profits fourth quarter gross margin retaillongterm care segment 29 approximately 25 basis points last year decline gross margin rate primarily driven lower reimbursement rates continue pressure pharmacy margins pressure partially offset increasing generic dispensing rate well increased front store margin larry mentioned earlier gross profit dollars decreased 36 yearoveryear mainly due loss scripts network changes well continued reimbursement pressures consolidated operating expenses percent revenues improved approximately 35 basis points 10 compared q3 16 primarily driven expense leverage pbms growth revenues quarter saw consolidated operating profit decline consistent expectations operating margin total enterprise declined 105 basis points quarter 54 operating margin pbm declined approximately 70 basis points 41 operating margin retaillongterm care declined approximately 110 basis points 8 adjusted basis quarter operating profit pbm within expectations operating profit retaillongterm care less expected pbm segment posted operating profit decline 72 reflecting shift medicare part profits q4 year compared 16 medicare pdp business excluded periods pbm yearoveryear growth q3 line growth saw q2 ive mentioned last quarter expect similar cadence q4 retaillongterm care segment posted operating profit decline 143 includes impact recent hurricanes excluding hurricane costs operating profit decline retaillongterm care would within expectations going line consolidated income statement net interest expense quarter decreased approximately 8 million last year 245 million due primarily paying debt fourth quarter 16 lower average interest rate debt remains outstanding effective tax rate quarter 379 better expected driven part delta estimates discrete tax benefits wed see sharebased payment accounting actually experienced quarter discussed prior earnings call increased tax rate volatility caused changes share price discretionary actions employees exercise vested options weighted average share count 1 billion shares line expectations let turn 2017 guidance ill start revised guidance year currently expect achieve adjusted eps 2017 587 591 reflecting yearoveryear growth 05 125 narrowing previous range 583 593 weve also raised midpoint 001 per share takes account third quarter results top expectations despite impact hurricanes well favorability tax rate remainder year gaap diluted eps continuing operations expected range 498 502 includes lower anticipated definedbenefit pension plan settlements find reconciliation gaap adjusted eps press release investor relations portion website months left year updating revenue operating profit guidance better reflect current expectations pbm segment lowering top end revenue guidance range 8 85 reflecting lower drug price inflation slightly lower claims growth 177 billion 179 billion claims retaillongterm care segment narrowing raising guidance revenues due higher script volume expectations expect retaillongterm care revenues decline 225 275 total comps decline 275 325 script comps flat 025 changes result narrowing consolidated net revenue growth range 325 375 turning operating profit narrowing pbms operating profit guidance range 6 65 better reflect current volume expectations changes drug mix lowering retail longterm care operating profit guidance range 95 1025 reflect impact hurricanes taking changes account wed lower top end consolidated operating profit guidance range expect operating profit decrease 5 575 change operating profit offset improved outlook effective tax rate full year 17 allowing us take midpoint adjusted eps range 001 moving fourth quarter guidance let quickly remind timing factor affecting q3q4 profit cadence 17 seeing medicare part members move slowly benefits 2016 said earlier negatively affected q3 profitability 17 expect positively affect q4 fourth quarter excluding certain nongaap items described website expect adjusted earnings per share range 188 192 10 125 q4 16 gaap diluted eps continuing operations expected range 175 per share 179 per share find details guidance slides posted online call let take moment point items fourth quarter expect enterprise revenues 25 425 driven primarily pbm growth total samestore sales retail expected 1 275 adjusted script comps expected increase 1 2 additionally enterprise operating profit expected grow 575 8 driven primarily pbm growth shift timing medicare part profitability mike said well provide 2018 guidance analyst day december results third quarter expectations remainder year evidence ability execute plans weve provided earlier year committed returning healthy earnings growth continuing drive shareholder value steps taken past year position well opportunities lie ahead healthcare marketplace continue work diligently toward longterm targets provided last years analyst day turn back larry merlo larry merlo chief executive officer president okay thanks dave move qampa want spend minutes talking evolving consumer expectations may mean convenient affordable pharmacy destination always focused making pharmacy everyday healthcare better patients continues us point differentiation time know theres done terms convenience consumers want medications schedules weve built comprehensive network serve patients combination 9700 retail pharmacies local communities across country sophisticated mail order facilities powered 30000 clinical professionals mail order services provide convenience meets needs certain patients maintenance medications however patients prefer get medications immediately group theres faster way walking cvs pharmacy pharmacists readily available provide counseling answer questions get prescription patients hands 15 minutes also important remember 1 5 prescriptions type clinical intervention requires pharmacists involvement mind despite complexity variation regulations across states built streamline connections utilizing people technology insurance companies pbms providers significantly safely reduce amount time consumers wait issues resolved also immediate need unable make cvs either time transportation mobility issues today announcing starting next year bring pharmacy patients doorsteps nationwide nextday delivery stores select metro areas even offer sameday delivery additionally also announcing offer free sameday delivery pharmacy curated selection front store products manhattan starting december 4 nearly 70 us population living within 3 miles one stores cvs pharmacy convenient choice delivery doorstep also recognize medication costs concern patients important know 50 prescriptions fill stores cost patients 4 less 75 prescriptions cost patients 10 less use deep connections pbms insurance providers help patients maximize insurance benefit using clinical expertise find lowestcost therapeutically equivalent option plans investing tools make easier patients navigate confusing healthcare market improve understanding benefit designs apply manufacturer coupons help reduce cost average patients realizing 55 savings prescription couponeligible addition aggressively source generic alternatives consumers use scale make care affordable adrenaclick lowercost alternative epipen also continue invest digital properties including highly rated retail mobile app helps patients manage want receive medications set reminders manage medications families one place todate cvs pharmacy app downloaded 21 million times time currently 50 million people enrolled text message program enables easily refill prescriptions mobile devices simple typing yes prompted think see solid foundation thats built compelling scale unsurpassed reach extensive pharmacy expertise plan even make pharmacy everyday healthcare even better look forward sharing detail december 12 analyst day lets go ahead open questions operator thank ladies gentlemen like register question please press 1 followed 4 telephone youll hear three tone prompt acknowledge request question asked another youd like withdraw registration may press 1 followed 3 using speakerphone please lift handset entering request press 1 followed 4 telephone register question first question comes line mohan naidu oppenheimer please proceed mohan naidu oppenheimer analyst thanks taking question larry comment little bit think vertical integration leverage physical store location possibly influence plan design way actually use stores deliver care thanks larry merlo chief executive officer president yes mohan always thoughtful terms improve access ok time ensure care providing meets quality standards put two together results improving outcomes lowering cost think weve demonstrated capabilities whether rolled minuteclinic place rolled home infusion place something continue evaluate something thats always radar screen evaluating deciding whats next mohan naidu oppenheimer analyst follow around minuteclinic immediate plant add services right thanks larry merlo chief executive officer president yes mohan think youve seen last couple years added services partnership health system affiliations begun triage patients actively managing patients diagnosed type chronic care condition effort ensure theyre following regimens care effort keep healthy mohan naidu oppenheimer analyst thanks larry larry merlo chief executive officer president thank operator thank next question comes line george hill rbc please proceed george hill rbc analyst good morning thank guys taking question im going follow mohans question larry little bit theres obviously lot talk vertical integration talk youve seen nonpharmacy businesses relates beneficiaries partner payers im sure see information people walk minuteclinics use home infusion business guess plans tightly aligned systems less tightly aligned guess theres lot us sitting thinking vertical integration stories played market guess walk youve seen different partnerships different segments book business much beneficiaries storage capability kind enhances offering larry merlo chief executive officer president well george listen ill start im sure others jump refer storage think role plan design plays ok look minuteclinic example thats offering thats available pbm clients ok many examples whereas look overall healthcare costs adjusted age health status see overall healthcare savings anywhere 8 12 lower respects simple treatment visits migrating emergency room retail clinics think one elements focus site care becomes variable ok recognizing theres cost delta look care administered jump infusion know providing care home versus ambulatory infusion site perhaps outpatient segment hospital pretty dramatic cost differential think able demonstrate local presence fact lead direct engagement customers patients result produce better outcomes reduced cost david denton chief financial officer executive vice president george dave ill add think moving members one channels touch many elements healthcare given assets members move channel typically able prove quantitatively deliver better outcomes totality members theres incentive number one outcomes perspective secondly always care delivery minuteclinic really patient engagement degree engage patients educate best site care best engage healthcare system costeffective point entry think 2 components really demonstrate ability improve outcomes engage member advance journey improving healthcare jon roberts chief operating officer executive vice president hey george jon thing would say see clients offering x range plan designs allow us move patients channel one simply access patient explained dont need get hospital infusion actually get done home see lot patients even realizing becomes incentive see plans creating incentives move one channels larry talked minuteclinic reduction copays finally theres actual narrowing network see quorum assets george hill rbc analyst thats super helpful guess quick followup larry dave guess scratching head little bit macro rx guys trying pick one drive attributed benefit design copay design payer mix seeing tick abandonment intrigue like volumes across phase continuum would pretty helpful larry merlo chief executive officer president yes george seeing anything would tell us patients taking prescriptions prescribed mean think look quarter weve talked little bit hurricanes think tremendously disruptive ok see boluses activity leading peak periods see certainly see unevenness volume would say look say scripts people getting flu shots certainly seeing incidence cold flu season point time may contributing little bit seeing currently george hill rbc analyst appreciate color thanks larry merlo chief executive officer president thanks operator thank next question comes line charles rhyee cowen company please proceed james auh cowen amp co analyst hi james auh charles know seems sales quarter better expected despite hurricane give insight drove performance david denton chief financial officer executive vice president hey james dave think continue ill say rationalize promotional spend kind across channel think whats important look samestore sales probably important look gross profit yield youre seeing gross profit certainly front continue improve sequential basis yearoveryear basis thats really focus would say slightly better expected dont think performance kind line major respects james auh cowen amp co analyst okay great also seems like uptake pbm side part ds 4q compared last year could explain shift compared last year david denton chief financial officer executive vice president yes mostly driven rate beneficiaries using medicare part policy theyre moving benefit year slowly move last year know insurance company hits certain reinsurers corridors insurance company either earns ill say higher profits period actually even loss position timing given cadence beneficiary utilization profits year shifted q3 q4 good line sight jon roberts chief operating officer executive vice president jon add couple specifics additional coverage limits raised year 400 million means members got donut hole little slower seeing less inflation think two factors exactly whats causing dave explained james auh cowen amp co analyst okay great thank larry merlo chief executive officer president thank operator thank next question comes line lisa gill jpmorgan please proceed lisa gill jpmorgan chase analyst thanks good morning larry want talk business model listening say earlier paid better outcomes dave talking patient engagement education getting paid around get paid mean vertical integration truly paid see shift model start take risk like risk products dollar amount youre paid based outcomes pharmacist getting paid incremental patient engagement simply scripts versus minuteclinic visits larry merlo chief executive officer president well lisa larry listen think business model think fact several years weve assembled series assets create countless touch points engage patient consumer effort improve access care create better outcomes reduce costs economics point view providing fulfillment theres opportunity things benefit share going one distribution channels think youve heard us begin talk next evolution taking element risk jon touch transform care programs process marketing least beginning diabetes going lisa gill jpmorgan chase analyst okay thats helpful followup larry comment around cvs heal value proposition sounds like really geared toward talk around amazon cvs well positioned even face potentially amazon coming market anything think could better think amazons threat pertains cvs larry merlo chief executive officer president well lisa listen ill start maybe ill ask helena jump well organization culture never done ok always listening customers think good listeners help us understand friction points need work eliminate think good job think weve got lot ways serve customer always looking ways better helena foulkes executive vice president cvs health president cvs pharmacy would agree think lisa spend lot time talking serving customer wherever whenever however wants larry said earlier getting prescription 15 minutes less super convenient wanted add thats see announcing today also even make instore experience grade adding clinical programs keep pushing hard sell customer paying points lisa gill jpmorgan chase analyst great thanks much larry merlo chief executive officer president thanks lisa operator thank next question comes line robert jones goldman sachs please proceed bob jones goldman sachs analyst great thanks questions guess followup announcements next day delivery products day anything share far would expect potential impact samestore basis might impact frontend know early curious guys see potentially needle mover either brands costs would highlight would needed accomplish accelerated timelines helena foulkes executive vice president cvs health president cvs pharmacy sure let start saying 1600 stores whos home delivery long time part really looked experience said make even better still fairly small even stores would say thats ultimately think best experience consumer one toggle back forth decide someday wants come stores days cant get house need need get prescriptions whether drivethrough locations curbside pickup weve actively involved instacart delivering 2800 stores pushing envelope basically serving patient wherever soon know exactly impact know holistic experience consumer looking think weve got set experiences gives us confidence addon holistic experience terms cost side know cost per market vary weve able use scale negotiate lowcost competitive option think consumers willing pay nextday delivery weve piloting said different options good sense us price well also looking options free delivery purchase front store items think holistic review wherever whenever however wants bob jones goldman sachs analyst got guess quick followup last two years guys used 3q opportunity give preliminary outlook following year think cases seemed street maybe little bit initial guide came year im assuming well wait till december guidance could share maybe major swing factors thinking look 18 yearoveryear basis larry merlo chief executive officer president well bob larry maybe ill start dave jump bob clarity goal always provide guidance following year december analyst day heard mike dave thats well next month shouldnt read anything terms would think ill say headwinds tailwinds 18 ill start tail work tailwinds lot network arrangements weve talking certainly drive retail share next year heard morning weve another strong pbm selling season enterprise streamlining initiative began earlier year year two savings outweigh costs headwinds side weve talked well continue see reimbursement pricing pressures think think offsets obviously generic introductions play role least point time see 18 contributing probably lesser extent weve seen last couple years bob jones goldman sachs analyst great thanks appreciate larry merlo chief executive officer president bet operator thank next question comes line john heinbockel guggenheim securities please proceed john heinbockel guggenheim analyst larry want start youre obviously lot partnerships competitors maybe people yet havent partnered past maybe talk little bit whats changed last year two youre successfully managing conflicts natural limitations working partners larry merlo chief executive officer president yes john listen think capabilities created guiding principle partnering individuals entities grow grow ok think helped create real partnership create winwin scenario important win clients customers serve ok whether youre talking health plans weve got relationships 70 health plans weve talked lot med space weve created great offering silverscript competitor market also support med products health plans weve seen market relationship theyre growing faster overall market think opportunities continue see innovation think gives us comfort level even retail side partner pointed within differentiated way perhaps thought past think pleased capabilities able offer value create marketplace john heinbockel guggenheim analyst followup one partnerships degree guess performance preferred plan walgreens think specific plan goes offering like go think probably agree two probably lowest cost providers way get maybe one lowestcost networks market larry merlo chief executive officer president well john let start ill flip jon mean youve heard us say market focused network constructs cvs walgreens pick one ok weve talking healthcare migrates valuebased care outcomes market may thinking right way networks going based simply unit cost theyre going based unit cost ability affect outcomes clinical performance measures end day thats network jon roberts chief operating officer executive vice president john jon think diabetes pharmacies serving clients diabetic numbers working adherence lower a1c 1 actually saves 5800 course year power able lower overall help cost think really underappreciated market yes network calling highperformance network cvs walgreens independents deliver unit cost savings think even importantly delivers clinical outcomes part reimbursement pharmacies wont based ability deliver clinical outcomes selected providers believe best capability go market talking clients seen much penetration narrow networks historically seen historically unit cost savings add clinical component seeing much interest moving path john heinbockel guggenheim analyst thank operator thank next question comes line eric percher nephron research please proceed eric percher nephron research analyst thank maybe combining questions around partnership profit seems clear relationships youve created come based clinical outcomes part also weve seen change market pricing theres ability deliver lower cost think impact next year spoke reimbursement change way youve looked returns required order enter contracts type material impacts 18 even looking whats balance partnership profit david denton chief financial officer executive vice president yes eric dave cant give ton color point time ill certain well discuss analyst day say conceptually intellectually thought change obviously underwrite one ill say underwrite weve looked financially one relationships make sure good client good member good us shortterm longterm think approach pretty disciplined eric percher nephron research analyst thank operator thank next question comes line alvin concepcion citi please proceed alvin concepcion citigroup analyst thanks taking question generally could wondering could reach vision improving outcomes creating holistic experience driving share distribution channels current business know youve partnerships improve road becoming harder winwin scenario theres coach pbm business example backdrop view mampa necessity accelerate vision david denton chief financial officer executive vice president hey alvin dave think business model think stands today think evolving marketplace landscape think nicely positioned assets weve assembled really engage members lower cost provides really robust access point healthcare think look next 3 5 10 years elements really critical like business model mampa continuing supplement business model always core business continue think going forward alvin concepcion citigroup analyst thank operator thank next question comes line ricky goldwasser morgan stanley please proceed ricky goldwasser morgan stanley analyst yes hi hear larry merlo chief executive officer president hear good morning ricky goldwasser morgan stanley analyst great good morning new phone system thank folks commentary one follow amazon question mean youve talked steps youre taking retail side really kind bringing pharma doorstep think amazon initial entry drug supply side pbm perspective talk kind think including amazon pbm networks potentially kind like partnering get lot questions topic larry merlo chief executive officer president well ricky larry look think partnering sit ask question somebody able something perhaps doesnt exist marketplace certainly open understanding working regard think youve heard morning us quite frankly others terms whether youre talking capabilities challenges entry sitting saying theres lot today theres done ok would never close door type partnership look capabilities may bring met marketplace today ricky goldwasser morgan stanley analyst okay followup youre seeing 201819 selling season terms opportunities mix kind like health plan commercial government david denton chief financial officer executive vice president hey ricky dave probably something well cover depth analyst day im going ask hold question well go detail ricky goldwasser morgan stanley analyst okay thank david denton chief financial officer executive vice president thank operator thank next question comes one kevin caliendo needham amp company please proceed kevin callendo needham amp co analyst hi guys thanks taking question know preliminary done sort analysis initial republican tax plan might impact cvs future larry merlo chief executive officer president well kevin larry weve talked lot tax fact effective tax rate 39 around ok type meaningful comprehensive reform beneficial business weve got folks going house version released last week listen theyll lot say coming days weeks goes ways means decides david denton chief financial officer executive vice president think end day given profile really high taxpayer scenarios us benefiting end day kevin callendo needham amp co analyst understood cvs clearly positioned one beneficiaries looking things theyre talking terms deductions may less interest depreciation capex way looking would potentially change business practices ways work might even beneficial versus company david denton chief financial officer executive vice president probably early tell say though degree relief theres lot investments think make within business model rapidly expand business model across country deliver better care higher quality lower costs would look take benefit invest clearly kevin callendo needham amp co analyst great thanks guys david denton chief financial officer executive vice president youre welcome larry merlo chief executive officer president well go ahead take two questions operator okay thank next question comes line scott mushkin wolfe research please proceed scott mushkin wolfe research analyst hey guys lot asked kind odd demands im trying fire little bit partially reserved receivable relinquishment dave one time cost side david denton chief financial officer executive vice president yes one time one states receivable essentially factored think scott mushkin wolfe research analyst okay theres one time gain third quarter david denton chief financial officer executive vice president scott mushkin wolfe research analyst okay know think kind combination question clinics guys really adding many think growth rate 07 wonder give us thoughts whats going know pretty small part business theres talk vertical integration call last one comfort level regarding leverage ill yield david denton chief financial officer executive vice president yes hey scott dave couple things one clinic perspective took somewhat costs expanded clinics geographically really due 2 things one wanted make sure epic system fully running across enterprise weve done two purchase within clinics target premises want make sure target locations want make sure fully integrated perspective well get back growth trajectory going forward theres doubt leverage perspective know point time balance sheet ratings important us weve focused weve committed managing moment bit ill say leverage sense target 27x hover around 3 objective obviously begin deliver time well grow way next several periods scott mushkin wolfe research analyst ever deal made subject downgrade david denton chief financial officer executive vice president besides really big speculatory kind question would make right investments business model whats best us longterm would evaluate transaction point time scott mushkin wolfe research analyst size one time charge ill definitely yield david denton chief financial officer executive vice president immaterial scott mushkin wolfe research analyst perfect thank operator thank last question comes line priya ohrigupta barclays please proceed priya ohrigupta barclays analyst thank much squeezing guess dave picking last question little bit past talked important high bbb rating context indiscernible market well commercial paper market think strategically around flexibility within bbb spectrum would willingness trade say tier two commercial paper access short time gave sort greater access long term markets david denton chief financial officer executive vice president yes focused priya focused maintaining high bbb rating thats consistent leverage targets weve established two seven thats focusing point priya ohrigupta barclays analyst okay quick followup talk youve funding saleleasebacks looks like youve absent one 44 market little bit primarily using private market david denton chief financial officer executive vice president weve little low saleleaseback offering point time keep mind target pharmacy acquisition kind scale back organic store development program tag business decision saleleaseback offerings relatively anemic priya ohrigupta barclays analyst thank much david denton chief financial officer executive vice president youre welcome larry merlo chief executive officer president okay wrapping appreciate everybodys time ill break early monday morning anyone followup items mike mcguire available well thanks everyone well see next month ladies gentlemen conclude conference call today thank participation ask please disconnect line duration 87 minutes mike mcguire senior vice president investor relations larry merlo chief executive officer president david denton chief financial officer executive vice president mohan naidu oppenheimer analyst george hill rbc analyst jon roberts chief operating officer executive vice president james auh cowen amp co analyst lisa gill jpmorgan chase analyst helena foulkes executive vice president cvs health president cvs pharmacy bob jones goldman sachs analyst john heinbockel guggenheim analyst eric percher nephron research analyst alvin concepcion citigroup analyst ricky goldwasser morgan stanley analyst kevin calliendo needham amp co analyst scott mushkin wolfe research analyst priya ohrigupta barclays analyst cvs analysis opens new window article transcript conference call produced motley fool strive foolish best may errors omissions inaccuracies transcript articles motley fool assume responsibility use content strongly encourage research including listening call reading companys sec filings please see terms conditions opens new window additional details including obligatory capitalized disclaimers liability 10 stocks like better cvs healthwhen 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 cvs health wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns october 9 2017 motley fool recommends cvs health motley fool disclosure policy opens new window | 6,205 |
<p />
<p>This is actually not the first time girls have been able to participate in Boy Scout activities. Pilot programs allowing girls and boys to participate in some shared activities have been in pace for nearly twenty years. However, girls were not allowed formal membership into the Boy Scouts. Until now.</p>
<p>Supporters of the move insist they are not advancing a feminist or political agenda. They say the Boy Scouts offer more opportunities and activities, and girls had long complained that the Girl Scouts only offered arts and crafts and cookie sales.</p>
<p>The integration will not be full or immediate. Young girls will be able to join the Cub Scouts program beginning next year, while older girls can join programs that will integrate them into the Eagle Scout program beginning in 2019.</p>
<p>“This decision is true to the BSA’s mission and core values outlined in the Scout Oath and Law,” the organization’s chief Scout executive, Michael Surbaugh, said in a statement. “We believe it is critical to evolve how our programs meet the needs of families interested in positive and lifelong experiences for their children. We strive to bring what our organization does best — developing character and leadership for young people — to as many families and youth as possible as we help shape the next generation of leaders.”</p>
<p>“This unique approach allows the organization to maintain the integrity of the single gender model while also meeting the needs of today’s families,” the announcement continues. “This decision expands the programs that the Boy Scouts of America offers for both boys and girls.”</p>
<p>The move follows “years” of receiving requests from families and girls, the organization with nearly 2.3 million members between the ages of 7 and 21 announced Thursday.</p>
<p>According to the plan, existing Cub Scout packs may establish a new pack for girls, create a pack consisting of smaller girl dens and boy dens or remain an all-boy unit. Cub Scout dens, meanwhile, will be single-gender, consisting of either all girls or all boys. While primarily known for its programs for boys, the Boy Scouts of America has offered opportunities to co-eds since 1971, including its Venturing program that will celebrate its 20th anniversary next year.</p>
<p>Today, the Boy Scouts of America Board of Directors unanimously approved to welcome girls into its iconic Cub Scout program and to deliver a Scouting program for older girls that will enable them to advance and earn the highest rank of Eagle Scout. The historic decision comes after years of receiving requests from families and girls, the organization evaluated the results of numerous research efforts, gaining input from current members and leaders, as well as parents and girls who’ve never been involved in Scouting – to understand how to offer families an important additional choice in meeting the character development needs of all their children.</p>
<p>“This decision is true to the BSA’s mission and core values outlined in the Scout Oath and Law. The values of Scouting – trustworthy, loyal, helpful, kind, brave and reverent, for example – are important for both young men and women,” said Michael Surbaugh, the BSA’s Chief Scout Executive. “We believe it is critical to evolve how our programs meet the needs of families interested in positive and lifelong experiences for their children. We strive to bring what our organization does best – developing character and leadership for young people – to as many families and youth as possible as we help shape the next generation of leaders.”</p>
<p>Families today are busier and more diverse than ever. Most are dual-earners and there are more single-parent households than ever before [1], making convenient programs that serve the whole family more appealing. Additionally, many groups currently underserved by Scouting, including the Hispanic and Asian communities, prefer to participate in activities as a family. Recent surveys [2] of parents not involved with Scouting showed high interest in getting their daughters signed up for programs like Cub Scouts and Boy Scouts, with 90 percent expressing interest in a program like Cub Scouts and 87 percent expressing interest in a program like Boy Scouts. Education experts also evaluated the curriculum and content and confirmed relevancy of the program for young women.</p>
<p>“The BSA’s record of producing leaders with high character and integrity is amazing” said Randall Stephenson, BSA’s national board chairman. “I’ve seen nothing that develops leadership skills and discipline like this organization. It is time to make these outstanding leadership development programs available to girls.”</p>
<p>Starting in the 2018 program year, families can choose to sign up their sons and daughters for Cub Scouts. Existing packs may choose to establish a new girl pack, establish a pack that consists of girl dens and boy dens or remain an all-boy pack. Cub Scout dens will be single-gender — all boys or all girls. Using the same curriculum as the Boy Scouts program, the organization will also deliver a program for older girls, which will be announced in 2018 and projected to be available in 2019, that will enable them to earn the Eagle Scout rank. This unique approach allows the organization to maintain the integrity of the single gender model while also meeting the needs of today’s families.</p>
<p>This decision expands the programs that the Boy Scouts of America offers for both boys and girls. Although known for its iconic programs for boys, the BSA has offered co-ed programs since 1971 through Exploring and the Venturing program, which celebrates its 20th anniversary in 2018. The STEM Scout pilot program is also available for both boys and girls.</p> | true | 0 | actually first time girls able participate boy scout activities pilot programs allowing girls boys participate shared activities pace nearly twenty years however girls allowed formal membership boy scouts supporters move insist advancing feminist political agenda say boy scouts offer opportunities activities girls long complained girl scouts offered arts crafts cookie sales integration full immediate young girls able join cub scouts program beginning next year older girls join programs integrate eagle scout program beginning 2019 decision true bsas mission core values outlined scout oath law organizations chief scout executive michael surbaugh said statement believe critical evolve programs meet needs families interested positive lifelong experiences children strive bring organization best developing character leadership young people many families youth possible help shape next generation leaders unique approach allows organization maintain integrity single gender model also meeting needs todays families announcement continues decision expands programs boy scouts america offers boys girls move follows years receiving requests families girls organization nearly 23 million members ages 7 21 announced thursday according plan existing cub scout packs may establish new pack girls create pack consisting smaller girl dens boy dens remain allboy unit cub scout dens meanwhile singlegender consisting either girls boys primarily known programs boys boy scouts america offered opportunities coeds since 1971 including venturing program celebrate 20th anniversary next year today boy scouts america board directors unanimously approved welcome girls iconic cub scout program deliver scouting program older girls enable advance earn highest rank eagle scout historic decision comes years receiving requests families girls organization evaluated results numerous research efforts gaining input current members leaders well parents girls whove never involved scouting understand offer families important additional choice meeting character development needs children decision true bsas mission core values outlined scout oath law values scouting trustworthy loyal helpful kind brave reverent example important young men women said michael surbaugh bsas chief scout executive believe critical evolve programs meet needs families interested positive lifelong experiences children strive bring organization best developing character leadership young people many families youth possible help shape next generation leaders families today busier diverse ever dualearners singleparent households ever 1 making convenient programs serve whole family appealing additionally many groups currently underserved scouting including hispanic asian communities prefer participate activities family recent surveys 2 parents involved scouting showed high interest getting daughters signed programs like cub scouts boy scouts 90 percent expressing interest program like cub scouts 87 percent expressing interest program like boy scouts education experts also evaluated curriculum content confirmed relevancy program young women bsas record producing leaders high character integrity amazing said randall stephenson bsas national board chairman ive seen nothing develops leadership skills discipline like organization time make outstanding leadership development programs available girls starting 2018 program year families choose sign sons daughters cub scouts existing packs may choose establish new girl pack establish pack consists girl dens boy dens remain allboy pack cub scout dens singlegender boys girls using curriculum boy scouts program organization also deliver program older girls announced 2018 projected available 2019 enable earn eagle scout rank unique approach allows organization maintain integrity single gender model also meeting needs todays families decision expands programs boy scouts america offers boys girls although known iconic programs boys bsa offered coed programs since 1971 exploring venturing program celebrates 20th anniversary 2018 stem scout pilot program also available boys girls | 551 |
<p>The market is getting a barrage of earnings, economic data and Fed speeches</p>
<p>U.S. stock futures on Thursday signaled a rally at the open, putting the Dow industrials on course to recover somewhat from the prior session's 138-point drop, as Cisco and Wal-Mart's earnings-driven gains provided a boost.</p>
<p>Continue Reading Below</p>
<p>Traders will be digesting a barrage of earnings reports, economic data and Federal Reserve speeches.</p>
<p>What are the main benchmarks doing?</p>
<p>Dow Jones Industrial Average futures gained 75 points, or 0.4%, to 23,337, while S&amp;P 500 futures tacked on 9.15 points, or 0.4%, to 2,574.25. Nasdaq-100 futures jumped by 27.50 points, or 0.4%, to 6,293.75.</p>
<p>On Wednesday, the Dow and the S&amp;P 500 both closed 0.6% lower (http://www.marketwatch.com/story/dow-futures-tumble-more-than-100-points-as-mood-for-risk-sours-2017-11-15), and the Nasdaq Composite gave up 0.5%. The S&amp;P and Dow suffered their biggest percentage drops since Sept. 5, with analysts blaming the fall on worries about a U.S. tax overhaul. In addition, a slide in oil prices on Wednesday put pressure on energy stocks.</p>
<p>What are strategists saying?</p>
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<p>"Markets stand at an intriguing crossroads," said Richard Perry, a Hantec Markets analyst, in a note.</p>
<p>"Asian markets (http://www.marketwatch.com/story/tencent-earnings-buoy-hong-kong-index-nikkei-looks-to-snap-loss-streak-2017-11-15) have bounced (helped by support coming in for oil), with the Nikkei 1.5% higher. European markets (http://www.marketwatch.com/story/european-stocks-rebound-after-longest-losing-streak-in-a-year-2017-11-16) have taken heart from the Asian session and have also found support in early moves. It will be interesting to see if this lasts," Perry said.</p>
<p>What are other assets doing?</p>
<p>Oil futures (http://www.marketwatch.com/story/oil-prices-stabilize-after-prior-days-slump-showing-little-change-2017-11-16) were slightly lower, after earlier showing a small gain. Crude prices are trying to stabilize after a fall on Wednesday (http://www.marketwatch.com/story/oil-tumbles-further-in-wake-of-api-reading-showing-jump-in-us-supply-2017-11-15) that was attributed to a surprise climb in U.S. supplies.</p>
<p>The ICE U.S. Dollar Index (http://www.marketwatch.com/story/dollar-drops-as-fears-build-that-tax-reform-plans-will-drag-2017-11-15) was inching up, while gold futures were roughly unchanged.</p>
<p>Which stocks look like key movers?</p>
<p>Shares in Cisco Systems Inc.(CSCO) jumped 7% in premarket action after the maker of networking equipment late Wednesday delivered better-than-expected quarterly results and an encouraging outlook (http://www.marketwatch.com/story/cisco-shares-surge-as-earnings-outlook-top-street-views-2017-11-15). The tech stock was the Dow's biggest premarket gainer.</p>
<p>Don't miss:Cisco promises return to growth, but for how long? (http://www.marketwatch.com/story/cisco-promises-return-to-growth-but-for-how-long-2017-11-15)</p>
<p>Wal-Mart Stores Inc.(WMT) climbed 4% premarket in the wake of the retailer posting better-than-expected earnings (http://www.marketwatch.com/story/wal-marts-stock-jumps-toward-record-high-after-profit-and-sales-beat-raised-outlook-2017-11-16) early Thursday. It was the Dow's second-biggest winner.</p>
<p>Read more:Wal-Mart's in-store and digital sales put it a step ahead (http://www.marketwatch.com/story/wal-mart-earnings-in-store-and-digital-sales-put-it-a-step-ahead-of-the-competition-2017-11-13)</p>
<p>NetApp Inc.(NTAP) soared 12% after the data-storage company's better-than-expected results (http://www.marketwatch.com/story/netapp-shares-jump-on-earnings-sales-beat-2017-11-15) late Wednesday.</p>
<p>L Brands Inc.(LB) fell 4% ahead of the bell after the Victoria's Secret parent posted earnings that matched forecasts and a drop in same-store sales (http://www.marketwatch.com/story/l-brands-shares-down-35-after-earnings-as-same-store-sales-fall-2017-11-15).</p>
<p>Retailer Best Buy Co.(BBY) , Folgers and Pillsbury parent J.M. Smucker Co.(SJM) and media giant Viacom Inc.(VIA) were also due for active trading as they are among the companies on the earnings docket before the open.</p>
<p>Away from earnings-related moves, Procter &amp; Gamble Co.'s stock (PG) rose 2% premarket following news that storied activist investor Nelson Peltz had narrowly won a seat (http://www.marketwatch.com/story/activist-nelson-peltz-narrowly-wins-seat-on-pg-board-2017-11-15) on the consumer-products giant's board.</p>
<p>Auto maker Tesla Inc.'s stock (TSLA) gained 1% premarket ahead of the unveiling of its electric semi truck (http://www.marketwatch.com/story/four-things-tesla-needs-to-reveal-when-it-launches-the-semi-truck-2017-11-15) that is on tap after the market's close.</p>
<p>See:Elon Musk opens up on love life, traumatic childhood, Tesla goals (http://www.marketwatch.com/story/elon-musk-opens-up-on-love-life-traumatic-childhood-tesla-goals-2017-11-15)</p>
<p>Goldman Sachs Group Inc.(GS) and Morgan Stanley(MS) might make moves following news of a lawsuit that alleges those two banks and other lenders secretly shared client information (http://www.marketwatch.com/story/lawsuit-alleges-goldman-other-big-banks-shared-client-info-to-rig-us-treasurys-auctions-2017-11-16) in order to rig auctions for the U.S. Treasurys market.</p>
<p>What economic releases could help drive markets?</p>
<p>A report on weekly jobless claims is slated to hit at 8:30 a.m. Eastern Time, with economists polled by MarketWatch expecting a reading of 235,000. Data on import prices in October and the Philadelphia Fed's business-outlook survey for November are due at the same time.</p>
<p>October figures for industrial production are scheduled to arrive at 9:15 a.m. Eastern, with 0.6% growth forecast for the headline number. Then a November reading on the housing market is on tap at 10 a.m. Eastern.</p>
<p>Check out:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)</p>
<p>On the Fed front, Cleveland Fed President Loretta Mester is due to give a speech at the libertarian Cato Institute in Washington, D.C., at 9:10 a.m. Eastern Time.</p>
<p>Dallas Fed President Rob Kaplan is taking part in a discussion at a CFA Society of Houston event at 1:10 p.m. Eastern, while Fed Gov. Lael Brainard is scheduled to talk at a University of Michigan Law School conference at 3:45 p.m. Eastern. San Francisco Fed President John Williams is addressing a forum on Asia in the City by the Bay at 4:45 p.m. Eastern.</p>
<p>Now read:CEO Bill McNabb reveals 'probably the thing we worry most about at Vanguard' (http://www.marketwatch.com/story/ceo-bill-mcnabb-reveals-probably-the-thing-we-worry-most-about-at-vanguard-2017-11-16)</p>
<p>(END) Dow Jones Newswires</p>
<p>November 16, 2017 07:27 ET (12:27 GMT)</p> | true | 0 | market getting barrage earnings economic data fed speeches us stock futures thursday signaled rally open putting dow industrials course recover somewhat prior sessions 138point drop cisco walmarts earningsdriven gains provided boost continue reading traders digesting barrage earnings reports economic data federal reserve speeches main benchmarks dow jones industrial average futures gained 75 points 04 23337 sampp 500 futures tacked 915 points 04 257425 nasdaq100 futures jumped 2750 points 04 629375 wednesday dow sampp 500 closed 06 lower httpwwwmarketwatchcomstorydowfuturestumblemorethan100pointsasmoodforrisksours20171115 nasdaq composite gave 05 sampp dow suffered biggest percentage drops since sept 5 analysts blaming fall worries us tax overhaul addition slide oil prices wednesday put pressure energy stocks strategists saying advertisement markets stand intriguing crossroads said richard perry hantec markets analyst note asian markets httpwwwmarketwatchcomstorytencentearningsbuoyhongkongindexnikkeilookstosnaplossstreak20171115 bounced helped support coming oil nikkei 15 higher european markets httpwwwmarketwatchcomstoryeuropeanstocksreboundafterlongestlosingstreakinayear20171116 taken heart asian session also found support early moves interesting see lasts perry said assets oil futures httpwwwmarketwatchcomstoryoilpricesstabilizeafterpriordaysslumpshowinglittlechange20171116 slightly lower earlier showing small gain crude prices trying stabilize fall wednesday httpwwwmarketwatchcomstoryoiltumblesfurtherinwakeofapireadingshowingjumpinussupply20171115 attributed surprise climb us supplies ice us dollar index httpwwwmarketwatchcomstorydollardropsasfearsbuildthattaxreformplanswilldrag20171115 inching gold futures roughly unchanged stocks look like key movers shares cisco systems inccsco jumped 7 premarket action maker networking equipment late wednesday delivered betterthanexpected quarterly results encouraging outlook httpwwwmarketwatchcomstoryciscosharessurgeasearningsoutlooktopstreetviews20171115 tech stock dows biggest premarket gainer dont misscisco promises return growth long httpwwwmarketwatchcomstoryciscopromisesreturntogrowthbutforhowlong20171115 walmart stores incwmt climbed 4 premarket wake retailer posting betterthanexpected earnings httpwwwmarketwatchcomstorywalmartsstockjumpstowardrecordhighafterprofitandsalesbeatraisedoutlook20171116 early thursday dows secondbiggest winner read morewalmarts instore digital sales put step ahead httpwwwmarketwatchcomstorywalmartearningsinstoreanddigitalsalesputitastepaheadofthecompetition20171113 netapp incntap soared 12 datastorage companys betterthanexpected results httpwwwmarketwatchcomstorynetappsharesjumponearningssalesbeat20171115 late wednesday l brands inclb fell 4 ahead bell victorias secret parent posted earnings matched forecasts drop samestore sales httpwwwmarketwatchcomstorylbrandssharesdown35afterearningsassamestoresalesfall20171115 retailer best buy cobby folgers pillsbury parent jm smucker cosjm media giant viacom incvia also due active trading among companies earnings docket open away earningsrelated moves procter amp gamble cos stock pg rose 2 premarket following news storied activist investor nelson peltz narrowly seat httpwwwmarketwatchcomstoryactivistnelsonpeltznarrowlywinsseatonpgboard20171115 consumerproducts giants board auto maker tesla incs stock tsla gained 1 premarket ahead unveiling electric semi truck httpwwwmarketwatchcomstoryfourthingsteslaneedstorevealwhenitlaunchesthesemitruck20171115 tap markets close seeelon musk opens love life traumatic childhood tesla goals httpwwwmarketwatchcomstoryelonmuskopensuponlovelifetraumaticchildhoodteslagoals20171115 goldman sachs group incgs morgan stanleyms might make moves following news lawsuit alleges two banks lenders secretly shared client information httpwwwmarketwatchcomstorylawsuitallegesgoldmanotherbigbankssharedclientinfotorigustreasurysauctions20171116 order rig auctions us treasurys market economic releases could help drive markets report weekly jobless claims slated hit 830 eastern time economists polled marketwatch expecting reading 235000 data import prices october philadelphia feds businessoutlook survey november due time october figures industrial production scheduled arrive 915 eastern 06 growth forecast headline number november reading housing market tap 10 eastern check outmarketwatchs economic calendar httpwwwmarketwatchcomeconomypoliticscalendarseconomic fed front cleveland fed president loretta mester due give speech libertarian cato institute washington dc 910 eastern time dallas fed president rob kaplan taking part discussion cfa society houston event 110 pm eastern fed gov lael brainard scheduled talk university michigan law school conference 345 pm eastern san francisco fed president john williams addressing forum asia city bay 445 pm eastern readceo bill mcnabb reveals probably thing worry vanguard httpwwwmarketwatchcomstoryceobillmcnabbrevealsprobablythethingweworrymostaboutatvanguard20171116 end dow jones newswires november 16 2017 0727 et 1227 gmt | 515 |
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<p>Image source: Disney.</p>
<p>Continue Reading Below</p>
<p>Walt Disney (NYSE: DIS) stock is under considerable pressure lately. Shares of the entertainment powerhouse are down by more than 20% from their highs of the last year, mostly due to growing concerns about online TV and how it could affect Disney's networks business. Short-term uncertainty in fundamentally strong businesses can create buying opportunities for investors, and this seems to be the case when it comes to Disney stock.</p>
<p>It's hard to argue the fact that Disney is one of the strongest players in the entertainment industry on a global scale. Brand differentiation and intellectual properties make the company one of a kind, and the business model is <a href="http://www.fool.com/investing/2016/10/05/disneys-business-model-is-downright-brilliant.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">tremendously powerful Opens a New Window.</a>, as Disney gets to monetize its assets via multiple venues at the same time, including movies, TV shows, music, toys and merchandise, and entertainment parks attractions.</p>
<p>However, the company is facing an important challenge due to <a href="http://www.fool.com/investing/2016/08/13/its-official-the-tv-industry-is-dying.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">changing consumer demand Opens a New Window.</a> in the TV industry. Many consumers are moving away from cable subscriptions and embracing online streaming services, and this is hurting traditional TV operators across the board.</p>
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<p>When looking at Disney's financial performance, the slowdown in the networks division is quite noticeable. Revenue grew by a modest 2% in this segment last quarter, while segment operating income remained flat year-over-year. Thanks to materially stronger performance in segments such as studio and entertainment parks, Disney still reported rock-solid financial performance for the quarter, with total revenue growing 9% and total segment operating income increasing 8% year over year. Nevertheless, the networks business is clearly dragging on overall performance.</p>
<p>Disney is not standing still in the face of changing consumer demand, though. The company has recently invested $1 billion in acquiring 33% of BAMTech, a leading technology services and video streaming company with plenty of experience in sports streaming. Disney CEO Robert Iger explained the rationale for the acquisition in the press release: "Our investment in BAMTech gives us the technology infrastructure we need to quickly scale and monetize our streaming capabilities at ESPN and across our company."</p>
<p>According to a report from The Wall Street Journal, Disney is also working on a deal with Alphabet's (NASDAQ: GOOG) (NASDAQ: GOOGL) Google to join a cable-TV style streaming service that Google is developing. The service will reportedly be called Unplugged, and it could provide a smart venue for Disney and other traditional TV operators to join the online streaming revolution by partnering with an internet juggernaut like Alphabet.</p>
<p>It will probably take time and effort for Disney to completely adapt to the online TV revolution, but the company has both the financial and strategic resources to successfully do so. In spite of short-term challenges in the industry, the company's fundamentals remain intact.</p>
<p>According to data from Morningstar, Disney stock is trading at a price-to-earnings ratio of 16.7, a discount compared to the average P/E of 24.4 for companies in the S&amp;P 500 index. Additionally, the average P/E for Disney over the past five years stands at 19.3, so the stock is also cheap by its own historical standards.</p>
<p>The following chart compares different valuation ratios for Disney in the past five years, including price to earnings, price to free cash flow, enterprise value to EBITDA, and price to operating cash flow. Multiple indicators are pointing in the same direction: Disney stock is currently priced near the low end of its valuation range over this period.</p>
<p><a href="http://ycharts.com/companies/DIS/pe_ratio" type="external">DIS PE Ratio (TTM)</a> data by <a href="http://ycharts.com" type="external">YCharts Opens a New Window.</a>.</p>
<p>The online TV boom is not a risk factor to disregard, as it can have a material impact on Disney's performance in the networks division. However, Disney owns tremendously valuable content, and this is a key strategic advantage. Distribution channels can change over time, but content is king in the sector, and Disney comes second to none when it comes to content quality in the entertainment industry.</p>
<p>In spite of slowing performance in the networks segment, Disney is still doing exceptionally well at the companywide level, and it has the strength to adapt to the online TV paradigm over the years ahead.</p>
<p>Buying high-quality businesses at conservative valuations is a time-proven strategy for superior returns, and Disney stock is offering an attractive entry price for opportunistic investors right now.</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/acardenal/info.aspx" type="external">Andrs Cardenal Opens a New Window.</a> owns shares of Alphabet (A shares), Alphabet (C shares), and Walt Disney. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Walt Disney. 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 disney continue reading walt disney nyse dis stock considerable pressure lately shares entertainment powerhouse 20 highs last year mostly due growing concerns online tv could affect disneys networks business shortterm uncertainty fundamentally strong businesses create buying opportunities investors seems case comes disney stock hard argue fact disney one strongest players entertainment industry global scale brand differentiation intellectual properties make company one kind business model tremendously powerful opens new window disney gets monetize assets via multiple venues time including movies tv shows music toys merchandise entertainment parks attractions however company facing important challenge due changing consumer demand opens new window tv industry many consumers moving away cable subscriptions embracing online streaming services hurting traditional tv operators across board advertisement looking disneys financial performance slowdown networks division quite noticeable revenue grew modest 2 segment last quarter segment operating income remained flat yearoveryear thanks materially stronger performance segments studio entertainment parks disney still reported rocksolid financial performance quarter total revenue growing 9 total segment operating income increasing 8 year year nevertheless networks business clearly dragging overall performance disney standing still face changing consumer demand though company recently invested 1 billion acquiring 33 bamtech leading technology services video streaming company plenty experience sports streaming disney ceo robert iger explained rationale acquisition press release investment bamtech gives us technology infrastructure need quickly scale monetize streaming capabilities espn across company according report wall street journal disney also working deal alphabets nasdaq goog nasdaq googl google join cabletv style streaming service google developing service reportedly called unplugged could provide smart venue disney traditional tv operators join online streaming revolution partnering internet juggernaut like alphabet probably take time effort disney completely adapt online tv revolution company financial strategic resources successfully spite shortterm challenges industry companys fundamentals remain intact according data morningstar disney stock trading pricetoearnings ratio 167 discount compared average pe 244 companies sampp 500 index additionally average pe disney past five years stands 193 stock also cheap historical standards following chart compares different valuation ratios disney past five years including price earnings price free cash flow enterprise value ebitda price operating cash flow multiple indicators pointing direction disney stock currently priced near low end valuation range period dis pe ratio ttm data ycharts opens new window online tv boom risk factor disregard material impact disneys performance networks division however disney owns tremendously valuable content key strategic advantage distribution channels change time content king sector disney comes second none comes content quality entertainment industry spite slowing performance networks segment disney still exceptionally well companywide level strength adapt online tv paradigm years ahead buying highquality businesses conservative valuations timeproven strategy superior returns disney stock offering attractive entry price opportunistic investors right 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 andrs cardenal opens new window owns shares alphabet shares alphabet c shares walt disney motley fool owns shares recommends alphabet shares alphabet c shares walt disney 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 | 555 |
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<p>RUSH: Ladies and gentlemen, I want to expand on something here that I just saw President Trump say right before the end of the previous hour. He said that his plan now is to just let Obamacare fail. He’s not gonna own it. He’s just gonna let it fail. Which he’s been saying for months. He said, you know, the smart thing politically for him to do is to let it fail and let the Democrats absorb all the blame. Let Obama and the Democrats take the blame. Just let it fail. But Trump said — as a show of good faith — he was gonna work with people to try to replace it, to repeal and replace it rather than just to let it implode, let it fail.</p>
<p>Now, we know that the Trumpster engages in The Art of the Deal at all times, and so this statement of his, which was stated in… It looked like he was in the Cabinet Room. Pence was sitting next to him. A lot of people were there. All the media camera shutters were clicking and flicking there, so this got a wide audience. “I’m just gonna let it fail. I’m not gonna own it. I am not gonna sit here and own this. If this is the way it’s gonna go, I’m just gonna let it fail.” He could be negotiating; he could be serious.</p>
<p>He could mean it that he’s just going to sit by and let the thing fail, and that means old Mitch and the boys can go in there and fail to repeal it and that means Obamacare remains the law of the land. This is where it gets interesting. Obamacare is imploding. It is in the process of consuming itself. If Trump follows through and just says, “I’m gonna let it fail,” and we just sit by and watch premiums go up 45, 50% every year… As we watch insurance companies pull out of the exchanges, as we watch the subsidies end, as we watch the exchanges close, as nobody’s able to buy insurance…</p>
<p>You have the Trump opposition in the, quote, unquote, “elite club” known as the establishment.</p>
<p>What are they gonna do now? See, the objective in the original design of Obamacare was to fail. But it was supposed to fail with Hillary Clinton or another Democrat in the White House. And, at the moment of failure, it was then to be suggested almost as a brilliant spur-of-the-moment idea, “Hey, why don’t we just go single payer.” Or, “Hey, why don’t we just put everybody on Medicare? Hey, problem solved!” Because, at that time, that point in time, premiums would be out of reach, deductibles out of reach, insurance companies closing down and closing up shop, exchanges closing up shop. So it’d be eagerly demanded, even maybe by the public.</p>
<p>But now we’ve got Trump who doesn’t want to go single payer, and this the Democrats and the establishment know. So there are two options here, and it’s interesting to note that if you listen to the media and you listen to the Democrats, repealing Obamacare is the worst thing that could be done, but it isn’t. Staying with Obamacare and letting it implode is the absolute worst outcome here. Repealing it means you repeal it. You get rid of every Obamacare law, and that means you start over. But it also raises a question: At what point do you…? Where do you resume?</p>
<p>What do we fall back to?</p>
<p>If Obamacare is repealed and those laws are gone — there are no exchanges, there are no subsidies — then at what point in the past do we go back to? Well, it’s the Wild West, folks. It’s the Wild West. If we repeal it, it’s the Wild West, and then you’re gonna see the traditional manner and behavior of Washington kick into gear and start trying to craft something. This is the theory of the optimists at the vote failure yesterday and last night, that this exact scenario would result, and that the lack of any formal federal health care law (other than what might still be on the books that we’d revert to) will cause, will create the need for immediate legislative action.</p>
<p>Otherwise, it will be said that the insurance companies will once again be in charge of health care because they’re the ones that sell policies. And you can’t get coverage if you don’t have a policy, ’cause it’s so expensive, you can’t pay for it yourself. So that’s Trump’s ultimate… I don’t know if you call it “threat,” but that’s his negotiating position. “Okay. If we can’t vote to repeal this thing, I’m standing by and I’m letting it die. I’m letting it implode. I’m gonna let it fail, and it’s on the Democrats, and I’ll make sure everybody knows it’s on the Democrats.</p>
<p>“I am not gonna own this sucker. It isn’t mine. I had nothing to do with it. I’ve engaged in good-faith efforts to fix this and people aren’t interested. So, fine. If you’re not interested, establishment, you live with the results.” I’m here to tell you: The results of Obamacare imploding are far worse than Obamacare being repealed. Do you agree with me on that, Mr. Snerdley? (interruption) I don’t even think it’s arguable. Everybody agrees. Democrats agree. Well, Nancy Pelosi doesn’t yet see it. She still thinks President Bush is in office running around.</p>
<p>I think she really does, actually. (interruption) Well, I don’t think they care if Pelosi starts imploding. That doesn’t matter. They’re out of party, doesn’t matter. They can shove her off to the side where nobody’s looking and run the show. If the Democrats were in charge, if she was the speaker and were imploding, that’d be problem. But now they can cover it. They can send her off to the home and nobody would know. Just run old Nancy Pelosi videotapes ripping into Bush and Trump and it’d work. But that’s off the topic. Obamacare in place where people can’t afford insurance and they can’t afford the deductible, they can’t afford to use their policy?</p>
<p>The law still says you have to buy it. Remember, the mandates are still there. The fines are still there. Everything’s still there if it isn’t repealed in its present downward spiral, which everybody agrees is happening. Just like everybody agrees the Russians affected the election (laughing), everybody agrees that Obamacare is spiraling out of control. I’m telling you, repealing it would be a much better outcome for people than just sitting with it while it evaporates, and that’s what Trump is threatening to do. Could be a negotiating position.</p>
<p>Could be the case. In any event, our last caller had a great attitude: What if Trump actually decides at some point when it comes to time to reconstitute American health care and they do it legislatively, to bring in some of these outside private sector people and just have ’em do it. Have ’em write legislation. It’s no different now than having it written on K Street. It’s not written in Congress. Most legislation isn’t. But an outright repeal is a political… I wouldn’t say must, but it’s certainly the Republicans have promised this so many times that they have to…</p>
<p>(sigh) It still comes down to this fascinating question to me, and the caller said it’s not the answer to the question they’re afraid of. Here’s the question. Ted Cruz… Let me set this up by reminding you what Ted Cruz has told me I don’t know how many times. <a href="" type="internal">He told me in the last interview he just did last week for upcoming issue Limbaugh Letter</a>, that the thing that shocked him more than anything his first few days in the Senate was how 90% of what senators do is get reelected. Ninety percent of their time is spent raising money, organizing fundraisers, dealing with the consultants and all who raise the money, planning the events.</p>
<p>The other 10%’s being a senator. It shocked him. It was that blatant, that obvious. Why? Because getting reelected is the most important job every senator thinks he has. Probably to a degree this is true in the House, but he was speaking specifically of the Senate. And yet, if getting reelected is the most important thing, then a question occurs to me.</p>
<p>All of these promises and all of these votes to repeal Obamacare since 2010, now when they have the power to actually do it, they don’t do it, they can’t do it. After all these promises, after all these times being elected on the basis of that promise, and yet they obviously don’t fear the voters in their states nearly as much as they fear something else.</p>
<p>They are clearly willing to incur your wrath at reelection time. They would much rather do that than deal with whatever is gonna happen to them if they vote to repeal it. They’re afraid of somebody. They are concerned about somebody or something, but it isn’t you. Despite the most important thing in their lives, being reelected, that’s what you do. So who is it that they’re more afraid of than you? Who is it that they are the least interested in angering?</p>
<p>Well, yeah, money people, but I want get more specific than that. Of course it’s the money people, the donors and all that, but who are they, and what threat do they have? What threat do they have that can make elected officials more fearful of them than of you? ‘Cause if you don’t show up, whatever else happens is academic. It has to be the fact that whoever it is they’re afraid of can supply them with, in their minds, enough money to win reelection no matter what your opinion of them is.</p>
<p>But it all circles around money, understandably. And there’s nothing new about that. I’m not claiming to have discovered anything earth-shattering here. But I just find it interesting. So on the table, Donald Trump: I’m gonna let it fail. I am going to let it fail. I am not gonna own this. This is an utter failure, utter disaster. I’ve tried. I worked with people. Obviously we don’t have enough Republicans who want to vote this way. We need more Republicans in 2018, but I’m gonna let it fail ’cause I am not owning this baby.</p>
<p>So failure, which is Obamacare, stays in place with all of its problems, expenses, failures versus repealing it. I’m telling you, the most painful choice here is leaving Obamacare in place.</p>
<p>BREAK TRANSCRIPT</p>
<p>RUSH: Here’s Patty in is it New Berlin or New Berlin, Illinois?</p>
<p>CALLER: New Berlin.</p>
<p>RUSH: New Berlin. How you doing?</p>
<p>CALLER: I’m doing great. I get to talk to you. I had a comment, and then I would like to ask a question about what you just spoke on.</p>
<p>RUSH: Okay.</p>
<p>CALLER: You made the comment that half of the people in America have awakened and that’s why Donald Trump is in office. And I told Mr. Snerdley, I think you could wake up the rest by Skyping in a White House news conference and have them let you explain to America what you just told us about why Congress is doing what they’re doing.</p>
<p />
<p />
<p>RUSH: Well, you know, the problem with that is you’re supposed to ask questions when they let you Skype into a press conference for the daily —</p>
<p>CALLER: You could.</p>
<p>RUSH: Well, I could say, “Do you think this is right, Mr. Spicer,” and then launch into my five-minute explanation, which of course everybody’d be spellbound by.</p>
<p>CALLER: They would.</p>
<p>RUSH: If you want to see the media blow up, that would be fun. (laughing)</p>
<p>CALLER: It would be fun. And the mainstream media would all be there and maybe let them ask you a question or two. And what would they have to report on the news that night?</p>
<p>RUSH: Yeah, I see your point. I see the way you’re thinking on this. I don’t think they would ask me any questions, and I think when it came time to repeat it, I would be edited out of the daily briefing. But the live broadcast of it, that’s an intriguing thought. The problem with that is — and I’m not trying to be negative here — but the questions, whoever it is, reporters actually in the room or people Skyping in, they don’t get much more than 30 seconds, maybe with a follow-up.</p>
<p>CALLER: Maybe the president would let you have more.</p>
<p>RUSH: Yeah, that probably could be arranged. Spicer, Sarah —</p>
<p>CALLER: It’s a thought.</p>
<p>RUSH: It is a good idea. What is the other thing that you wanted to ask me about?</p>
<p>CALLER: Did you see Senator Lankford make the comment? I saw on the news today that he wanted to have all the senators who disagree on the health care plan get in a room and let ’em talk it out and see if they can’t agree on some things. And he said, but they won’t let us, and I don’t know why.</p>
<p>RUSH: Who is “they” won’t let us?</p>
<p>CALLER: Well, my guess is —</p>
<p>RUSH: McConnell?</p>
<p>CALLER: — McConnell —</p>
<p>RUSH: The leadership?</p>
<p>CALLER: Yeah. But that’s what he said. You can see it. It was on television, so —</p>
<p>RUSH: Well, if it was on television, there’s no question it happened.</p>
<p>CALLER: Yeah. Yeah. But that’s what he said so —</p>
<p>RUSH: I missed — they won’t even let — (crosstalk)</p>
<p>CALLER: — gotta be these RINOs.</p>
<p>RUSH: Look, I know this sounds controversial. It shouldn’t, because it’s staring us in the face. I have a philosophy, folks, and it’s based on my own life. And on this one, I am projecting. I will admit it. I’m using my own life experiences to philosophize about things in general. It has to do with desire. You know, I got fired seven or eight times before I was 32. And of those seven or eight times, I got fired not for reasons of performance or incompetence; I got fired for personal, personality disagreement, whatever other reasons.</p>
<p>I was told I didn’t have what it took, that I don’t understand radio, should go into sales and all this. It was only my desire and love for what I wanted to do and what I was doing that kept me plugging away. I never at any time was motivated by an “I’ll show them” attitude. Never was I motivated by, “I’ll show them,” that wasn’t it. I just loved it. It was what I wanted to do. I was lucky to learn early in life what I wanted to do, and I knew how to define success, even though by the time I’m 33 I still hadn’t had any. I was just on the verge of it, and I’d been working since I was 16.</p>
<p>And I’ve learned from my experience that desire is 80% of achievement. That if you really, really want something, if you really, really, really want to do something, that the vast majority of achieving it is wanting it. I mean, really wanting it. Not a preference, and not, “Gee, I hope this.” I mean really wanting it. It is the desire that makes you do what you have to do to achieve.</p>
<p>I didn’t go to college. I got tired of it. I didn’t want to take ballroom dance taught by a former drill sergeant in the WACs. I didn’t like flunking speech, me, flunking speech. But I realized sometime later, okay, I don’t have a piece of paper that says I’ve been educated, so I’m gonna have to be able to demonstrate that I’m educated. So I began self-teaching. It was all related to desire. These people don’t want to repeal Obamacare. I’m telling you. It’s that obvious to me.</p>
<p>BREAK TRANSCRIPT</p>
<p>RUSH: By the way, we have a sound bite. Our last caller, two callers ago, referenced Senator Lankford. Yes, James Lankford. I have it here. Senator James Lankford is a Republican from Oklahoma, and he was on Fox &amp; Friends with Steve Doocy this morning who said, “The big question, Senator, is can the Republican Party — in its many factions in the U.S. Senate, can you — consolidate around any single idea and get that passed?</p>
<p>LANKFORD: Yes. I’m still optimistic that we can, and because we must. My focus for weeks has been let’s get all the people that disagree in one room —</p>
<p />
<p />
<p>DOOCY: Great.</p>
<p>LANKFORD: — and let’s hammer this out live in one moment. And for whatever reason, we’ve not been allowed to do that, to get all of the different factions in one room at one time. We’ve all been negotiating one at a time. If we can get everybody together at one time and finish this, I think we can get it done.</p>
<p>RUSH: So there it is. Somebody’s not the letting them all get together in one room, but when he says they’re “negotiating one at a time,” with who? With who? Who are you negotiating with? One at a time with who? The White House? McConnell? Schumer? Who? Chuck You is now saying that Democrats have been locked out on health care. Oh, boohoo, Chuck You! Who locked the Republicans out all during Obamacare’s passage? What a bunch of snakes. Democrats locked out on health care? This is Chuck You’s attempt to deflect the blame that’s gonna come if Obamacare is not repealed and just implodes. Chuck You is setting up (paraphrased), “We had nothing to do with it! The Republicans sat by and let it fail. We offered to help ’em; they didn’t want anything to do with us.”</p> | true | 0 | rush ladies gentlemen want expand something saw president trump say right end previous hour said plan let obamacare fail hes gon na hes gon na let fail hes saying months said know smart thing politically let fail let democrats absorb blame let obama democrats take blame let fail trump said show good faith gon na work people try replace repeal replace rather let implode let fail know trumpster engages art deal times statement stated looked like cabinet room pence sitting next lot people media camera shutters clicking flicking got wide audience im gon na let fail im gon na gon na sit way gon na go im gon na let fail could negotiating could serious could mean hes going sit let thing fail means old mitch boys go fail repeal means obamacare remains law land gets interesting obamacare imploding process consuming trump follows says im gon na let fail sit watch premiums go 45 50 every year watch insurance companies pull exchanges watch subsidies end watch exchanges close nobodys able buy insurance trump opposition quote unquote elite club known establishment gon na see objective original design obamacare fail supposed fail hillary clinton another democrat white house moment failure suggested almost brilliant spurofthemoment idea hey dont go single payer hey dont put everybody medicare hey problem solved time point time premiums would reach deductibles reach insurance companies closing closing shop exchanges closing shop itd eagerly demanded even maybe public weve got trump doesnt want go single payer democrats establishment know two options interesting note listen media listen democrats repealing obamacare worst thing could done isnt staying obamacare letting implode absolute worst outcome repealing means repeal get rid every obamacare law means start also raises question point resume fall back obamacare repealed laws gone exchanges subsidies point past go back well wild west folks wild west repeal wild west youre gon na see traditional manner behavior washington kick gear start trying craft something theory optimists vote failure yesterday last night exact scenario would result lack formal federal health care law might still books wed revert cause create need immediate legislative action otherwise said insurance companies charge health care theyre ones sell policies cant get coverage dont policy cause expensive cant pay thats trumps ultimate dont know call threat thats negotiating position okay cant vote repeal thing im standing im letting die im letting implode im gon na let fail democrats ill make sure everybody knows democrats gon na sucker isnt mine nothing ive engaged goodfaith efforts fix people arent interested fine youre interested establishment live results im tell results obamacare imploding far worse obamacare repealed agree mr snerdley interruption dont even think arguable everybody agrees democrats agree well nancy pelosi doesnt yet see still thinks president bush office running around think really actually interruption well dont think care pelosi starts imploding doesnt matter theyre party doesnt matter shove side nobodys looking run show democrats charge speaker imploding thatd problem cover send home nobody would know run old nancy pelosi videotapes ripping bush trump itd work thats topic obamacare place people cant afford insurance cant afford deductible cant afford use policy law still says buy remember mandates still fines still everythings still isnt repealed present downward spiral everybody agrees happening like everybody agrees russians affected election laughing everybody agrees obamacare spiraling control im telling repealing would much better outcome people sitting evaporates thats trump threatening could negotiating position could case event last caller great attitude trump actually decides point comes time reconstitute american health care legislatively bring outside private sector people em em write legislation different written k street written congress legislation isnt outright repeal political wouldnt say must certainly republicans promised many times sigh still comes fascinating question caller said answer question theyre afraid heres question ted cruz let set reminding ted cruz told dont know many times told last interview last week upcoming issue limbaugh letter thing shocked anything first days senate 90 senators get reelected ninety percent time spent raising money organizing fundraisers dealing consultants raise money planning events 10s senator shocked blatant obvious getting reelected important job every senator thinks probably degree true house speaking specifically senate yet getting reelected important thing question occurs promises votes repeal obamacare since 2010 power actually dont cant promises times elected basis promise yet obviously dont fear voters states nearly much fear something else clearly willing incur wrath reelection time would much rather deal whatever gon na happen vote repeal theyre afraid somebody concerned somebody something isnt despite important thing lives reelected thats theyre afraid least interested angering well yeah money people want get specific course money people donors threat threat make elected officials fearful cause dont show whatever else happens academic fact whoever theyre afraid supply minds enough money win reelection matter opinion circles around money understandably theres nothing new im claiming discovered anything earthshattering find interesting table donald trump im gon na let fail going let fail gon na utter failure utter disaster ive tried worked people obviously dont enough republicans want vote way need republicans 2018 im gon na let fail cause owning baby failure obamacare stays place problems expenses failures versus repealing im telling painful choice leaving obamacare place break transcript rush heres patty new berlin new berlin illinois caller new berlin rush new berlin caller im great get talk comment would like ask question spoke rush okay caller made comment half people america awakened thats donald trump office told mr snerdley think could wake rest skyping white house news conference let explain america told us congress theyre rush well know problem youre supposed ask questions let skype press conference daily caller could rush well could say think right mr spicer launch fiveminute explanation course everybodyd spellbound caller would rush want see media blow would fun laughing caller would fun mainstream media would maybe let ask question two would report news night rush yeah see point see way youre thinking dont think would ask questions think came time repeat would edited daily briefing live broadcast thats intriguing thought problem im trying negative questions whoever reporters actually room people skyping dont get much 30 seconds maybe followup caller maybe president would let rush yeah probably could arranged spicer sarah caller thought rush good idea thing wanted ask caller see senator lankford make comment saw news today wanted senators disagree health care plan get room let em talk see cant agree things said wont let us dont know rush wont let us caller well guess rush mcconnell caller mcconnell rush leadership caller yeah thats said see television rush well television theres question happened caller yeah yeah thats said rush missed wont even let crosstalk caller got ta rinos rush look know sounds controversial shouldnt staring us face philosophy folks based life one projecting admit im using life experiences philosophize things general desire know got fired seven eight times 32 seven eight times got fired reasons performance incompetence got fired personal personality disagreement whatever reasons told didnt took dont understand radio go sales desire love wanted kept plugging away never time motivated ill show attitude never motivated ill show wasnt loved wanted lucky learn early life wanted knew define success even though time im 33 still hadnt verge id working since 16 ive learned experience desire 80 achievement really really want something really really really want something vast majority achieving wanting mean really wanting preference gee hope mean really wanting desire makes achieve didnt go college got tired didnt want take ballroom dance taught former drill sergeant wacs didnt like flunking speech flunking speech realized sometime later okay dont piece paper says ive educated im gon na able demonstrate im educated began selfteaching related desire people dont want repeal obamacare im telling obvious break transcript rush way sound bite last caller two callers ago referenced senator lankford yes james lankford senator james lankford republican oklahoma fox amp friends steve doocy morning said big question senator republican party many factions us senate consolidate around single idea get passed lankford yes im still optimistic must focus weeks lets get people disagree one room doocy great lankford lets hammer live one moment whatever reason weve allowed get different factions one room one time weve negotiating one time get everybody together one time finish think get done rush somebodys letting get together one room says theyre negotiating one time negotiating one time white house mcconnell schumer chuck saying democrats locked health care oh boohoo chuck locked republicans obamacares passage bunch snakes democrats locked health care chuck yous attempt deflect blame thats gon na come obamacare repealed implodes chuck setting paraphrased nothing republicans sat let fail offered help em didnt want anything us | 1,436 |
<p>It used to be that the news surrounding SunEdison was pretty much always bad news. SunEdison announced the now agreed upon but arguably questionable acquisition ofVivint Solar in July 2015. Crude prices fell substantially because of the oversupply in the sector during the fourth quarter of 2015 and first quarter of 2016. Hedge fund Appaloosa sued in mid-January to prevent SunEdison from selling part of Vivint's portfolio to SunEdison's captive yieldco,TerraForm Power.</p>
<p>Lately, however, the news flow around SunEdison has started to improve. Crude prices have begun showing signs of life on speculation that Russia might meet with OPEC to cut production. If crude prices jump, MLP yields will decline, and TerraForm Power's yield and SunEdison's cost of capital will become more competitive. Moreover, in late January, David Einhorn'sGreenlight Capital, which owns a 6.8% stake in SunEdison, went active and asked the company to make some major changes. Given SunEdison's leveraged balance sheet and the negative sentiment surrounding it, any meaningful good news could send SunEdison shares soaring. Following are three ways SunEdison shares can regain some of their lost ground.</p>
<p>Continue Reading Below</p>
<p>New managementMany investors feel they've been let down by the current management team. SunEdison executives didn't disclose a $739 million recourse balance sheet error until shares traded in the single digits. They also didn't amend the Vivint deal until December. Because management hasn't executed, many investors have taken their losses and stayed on the sidelines. The hesitation of investors to buy in again has increased SunEdison's cost of capital and has made it difficult for the company to grow profitably.</p>
<p>Now SunEdison could be getting some new management, as David Einhorn of Greenlight Capital stated in an SEC filing that his fund might push for "changes to the company's senior management." If an outsider with a track record of executing on promises replaces current CEO Ahmad Chatila, more investors will trust SunEdison's guidance and buy shares, lowering the company's cost of capital and improving its future outlook.</p>
<p>Selling assets at reasonable prices, or selling itselfSelling assets would simplify SunEdison's difficult-to-understand balance sheet, allowing investors to become more comfortable buying into the stock. The cash raised from an asset sale would also reduce liquidity concerns, lowering SunEdison's cost of capital, and trim SunEdison's interest rate expenses if they were used to pay down debt. Given that SunEdison has promisedto forgo additional secondaries without a board supermajority, asset sales may be the only realistic option for SunEdison to deleverage.</p>
<p>If SunEdison sold itself, on the other hand, it would presumably be sold at a premium. SunEdison's biggest problem is its high cost of capital. If an enterprising electric utility or another solar company with a strong balance sheet acquired SunEdison, the acquirer could realize substantial synergies and profits because the acquirer's cost of capital would be a lot lower.The probability of an outright acquisition isn't very high, however, until SunEdison resolves the Appaloosa lawsuit.</p>
<p>Winning the Appaloosalawsuit and retaining control of TerraForm PowerAppaloosa previously sued to prevent TerraForm Power from acquiring part of Vivint Solar's portfolio for $799 million because the hedge fund believes the acquisition would damage TerraForm Power's finances. Credit Suisse analyst salary Patrick Jobinestimates that the Vivint portfolio would fetch $108 million less if it were sold to another party. If Appaloosa wins the lawsuit, SunEdison would need to find another way to finance the deal and would lose that $108 million, which is one-eighth of SunEdison's market capitalization.</p>
<p>Appaloosa alsowants to separate TerraForm Power and SunEdison so that future unfavorable transactions don't occur again. Since TerraForm Power has liquidity, and SunEdison doesn't have as much as it would like, separating the two would send SunEdison's cost of capital even higher. If SunEdison can win the lawsuit, however, it would save that $108 million and keep a valuable source of cheap liquidity.</p>
<p>Investor takeawaySunEdison is the definition of a high-risk, high-reward play. If SunEdison's cost of capital doesn't decline or if the company's liquidity situation worsens, there isn't much value in the common equity. But if SunEdison deleverages smartly, installs new and credible management, and wins the Appaloosalawsuit, the company will regain some of its lost trust with the market, and its cost of capital will trend lower. If SunEdison's cost of capital falls far enough, the company could make a big comeback.</p>
<p>The article <a href="http://www.fool.com/investing/general/2016/02/29/3-events-that-could-send-sunedison-shares-soaring.aspx" type="external">3 Catalysts That Could Send SunEdison Shares Soaring Further Opens a New Window.</a> originally appeared on Fool.com.</p>
<p><a href="http://my.fool.com/profile/TMFJay22/info.aspx?source=eptfxblnk0000004" type="external">TMFJay22 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=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 | used news surrounding sunedison pretty much always bad news sunedison announced agreed upon arguably questionable acquisition ofvivint solar july 2015 crude prices fell substantially oversupply sector fourth quarter 2015 first quarter 2016 hedge fund appaloosa sued midjanuary prevent sunedison selling part vivints portfolio sunedisons captive yieldcoterraform power lately however news flow around sunedison started improve crude prices begun showing signs life speculation russia might meet opec cut production crude prices jump mlp yields decline terraform powers yield sunedisons cost capital become competitive moreover late january david einhornsgreenlight capital owns 68 stake sunedison went active asked company make major changes given sunedisons leveraged balance sheet negative sentiment surrounding meaningful good news could send sunedison shares soaring following three ways sunedison shares regain lost ground continue reading new managementmany investors feel theyve let current management team sunedison executives didnt disclose 739 million recourse balance sheet error shares traded single digits also didnt amend vivint deal december management hasnt executed many investors taken losses stayed sidelines hesitation investors buy increased sunedisons cost capital made difficult company grow profitably sunedison could getting new management david einhorn greenlight capital stated sec filing fund might push changes companys senior management outsider track record executing promises replaces current ceo ahmad chatila investors trust sunedisons guidance buy shares lowering companys cost capital improving future outlook selling assets reasonable prices selling itselfselling assets would simplify sunedisons difficulttounderstand balance sheet allowing investors become comfortable buying stock cash raised asset sale would also reduce liquidity concerns lowering sunedisons cost capital trim sunedisons interest rate expenses used pay debt given sunedison promisedto forgo additional secondaries without board supermajority asset sales may realistic option sunedison deleverage sunedison sold hand would presumably sold premium sunedisons biggest problem high cost capital enterprising electric utility another solar company strong balance sheet acquired sunedison acquirer could realize substantial synergies profits acquirers cost capital would lot lowerthe probability outright acquisition isnt high however sunedison resolves appaloosa lawsuit winning appaloosalawsuit retaining control terraform powerappaloosa previously sued prevent terraform power acquiring part vivint solars portfolio 799 million hedge fund believes acquisition would damage terraform powers finances credit suisse analyst salary patrick jobinestimates vivint portfolio would fetch 108 million less sold another party appaloosa wins lawsuit sunedison would need find another way finance deal would lose 108 million oneeighth sunedisons market capitalization appaloosa alsowants separate terraform power sunedison future unfavorable transactions dont occur since terraform power liquidity sunedison doesnt much would like separating two would send sunedisons cost capital even higher sunedison win lawsuit however would save 108 million keep valuable source cheap liquidity investor takeawaysunedison definition highrisk highreward play sunedisons cost capital doesnt decline companys liquidity situation worsens isnt much value common equity sunedison deleverages smartly installs new credible management wins appaloosalawsuit company regain lost trust market cost capital trend lower sunedisons cost capital falls far enough company could make big comeback article 3 catalysts could send sunedison shares soaring opens new window originally appeared foolcom tmfjay22 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 copyright 1995 2016 motley fool llc rights reserved motley fool disclosure policy opens new window advertisement | 547 |
<p />
<p>Microsoft has been gradually retreating from the mobile market, but recent rumors suggest that its elusive "Surface Phone" could still arrive next spring. The device will reportedly be powered by Qualcomm 's upcoming Snapdragon 830 processor, which is also expected to arrive in early 2017. The launch should coincide with the "Redstone" update for Windows 10.</p>
<p>Continue Reading Below</p>
<p>Microsoft's Lumia 950 and 950 XL. Image source: Microsoft.</p>
<p>These rumors also suggest that Microsoft will launch three versions of the Surface Phone for the consumer, prosumer, and enterprise markets. The consumer version could be loaded with 4GB of RAM and 64GB of storage, the prosumer version could sport 6GB of RAM and 128GB of storage, and the high-end enterprise version -- dubbed the Surface Phone Pro -- could have 8GB of RAM and 512GB of storage.</p>
<p>Those specs could make Surface Phones the beefiest smartphones on the market, but it's doubtful that they can boost Microsoft's share of the global smartphone market, which recently slipped below 1%, according to Gartner. Launching new higher-end devices also ignores the fact that the cheapest Windows Phones have consistently been more popular than higher-end flagship devices. So is there really any reason at all for Microsoft to launch new Surface Phones next year?</p>
<p>Microsoft's recent layoffs of nearly 10,000 employees, mostly from Nokia'sformer handset unit in Finland, was a clear sign that Apple and Alphabet's Google had won the mobile war. But CEO Satya Nadella refused to admit defeat, claiming that Microsoft just needed to release fewer devices for the three aforementioned markets.</p>
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<p>Nadella likely knew that if Microsoft stopped launching Windows 10 Mobile devices, its dream of creating a "One Windows" ecosystem across mobile devices, PCs, and Xbox consoles would be shattered. Continuum, the feature which turns select phones into dockable PCs, would also be forgotten. Unfortunately, sales of its first two Continuum phones -- theLumia 950 and 950 XL -- were disappointing. The company actually started giving away free Lumia 950s to customers who bought the larger XL from the Microsoft Store in late April.</p>
<p>The PC-docking Continuum feature. Image source: Microsoft.</p>
<p>Last quarter, Microsoft's phone hardware revenue plunged 46% annually in constant currency terms due to the downsizing of the business and market share losses. Meanwhile, Surface device sales rose 61%, thanks to strong demand for the Surface Pro 4 and Surface Book. That's probably why Surface VP Panos Panay's team reportedly inherited the Surface Phone project last year -- launching future mobile devices under the Surface banner instead of the Lumia onemight generate stronger interest among mainstream and enterprise consumers.</p>
<p>Microsoft likely hopes that if enough people buy Surface Phones, it can use Continuum to leverage its dominance of PC operating systems to push back against Apple and Google. Since the Surface Pro has proven popular among enterprises which want to replace aging desktops with 2-in-1 devices, companies might consider buying single phones which can do the same thing.</p>
<p>However, Surface Phones powered by Qualcomm's ARM-based processors can't run older apps designed for x86 processors, which limits their appeal among older companies running legacy software. Instead, ARM-powered Surface Phones will likely only run Windows apps developed for its "universal apps" platform.</p>
<p>Image source: Microsoft.</p>
<p>That's why ARM-powered Surface devices like the Surface RT never caught on and were eventually replaced byIntel -powered ones. Earlier reports indicated that Intel would supply the processors for the Surface Phones, presumably to add support for x86 programs. But Intel recently <a href="http://www.fool.com/investing/general/2016/05/06/why-intel-corporation-quit-smartphones-to-focus-on.aspx?source=eptfxblnk0000004" type="external">killed off Opens a New Window.</a> most of its smartphone and mobile chips, which caused the rumor mill to churn back toward Qualcomm.</p>
<p>Waiting until next year to launch the Surface Phone would also give Apple and Google more time to expand their enterprise efforts. Many iOS and Android apps are already tethered to Windows-based applications through the cloud, which reduces demand for a "unified" OS like Windows 10. Relaxed BYOD (bring your own device) restrictions and improved enterprise mobility management solutions also make it easier for companies to allow employees to use their preferred mobile devices -- which likely don't include Windows Phones.</p>
<p>In my opinion, there's no reason to believe that Microsoft's Hail Mary pass with Surface Phones can be completed. The Surface 2-in-1 devices succeeded because they filled a niche productivity market between laptops and tablets. Trying to fill that niche between smartphones and PCs will be much tougher, since mobile apps are now tightly tethered to their desktop counterparts.</p>
<p>Microsoft's tiny share of the mobile market means that Surface Phones, even with their new branding, could be easily overshadowed by the latest iPhone or Android devices. Therefore, I believe that Microsoft should probably abandon this effort and focus on other ecosystem battles that it can win.</p>
<p>The article <a href="http://www.fool.com/investing/2016/06/21/is-microsoft-corporations-surface-phone-still-aliv.aspx" type="external">Is Microsoft Corporation's Surface Phone Still Alive? Opens a New Window.</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/TMFSunLion/info.aspx?source=eptfxblnk0000004" type="external">Leo Sun Opens a New Window.</a> owns shares of Qualcomm. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Apple, Gartner, and Qualcomm. The Motley Fool owns shares of Microsoft and has the following options: long January 2018 $90 calls on Apple and short January 2018 $95 calls on Apple. The Motley Fool recommends Intel. 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 | microsoft gradually retreating mobile market recent rumors suggest elusive surface phone could still arrive next spring device reportedly powered qualcomm upcoming snapdragon 830 processor also expected arrive early 2017 launch coincide redstone update windows 10 continue reading microsofts lumia 950 950 xl image source microsoft rumors also suggest microsoft launch three versions surface phone consumer prosumer enterprise markets consumer version could loaded 4gb ram 64gb storage prosumer version could sport 6gb ram 128gb storage highend enterprise version dubbed surface phone pro could 8gb ram 512gb storage specs could make surface phones beefiest smartphones market doubtful boost microsofts share global smartphone market recently slipped 1 according gartner launching new higherend devices also ignores fact cheapest windows phones consistently popular higherend flagship devices really reason microsoft launch new surface phones next year microsofts recent layoffs nearly 10000 employees mostly nokiasformer handset unit finland clear sign apple alphabets google mobile war ceo satya nadella refused admit defeat claiming microsoft needed release fewer devices three aforementioned markets advertisement nadella likely knew microsoft stopped launching windows 10 mobile devices dream creating one windows ecosystem across mobile devices pcs xbox consoles would shattered continuum feature turns select phones dockable pcs would also forgotten unfortunately sales first two continuum phones thelumia 950 950 xl disappointing company actually started giving away free lumia 950s customers bought larger xl microsoft store late april pcdocking continuum feature image source microsoft last quarter microsofts phone hardware revenue plunged 46 annually constant currency terms due downsizing business market share losses meanwhile surface device sales rose 61 thanks strong demand surface pro 4 surface book thats probably surface vp panos panays team reportedly inherited surface phone project last year launching future mobile devices surface banner instead lumia onemight generate stronger interest among mainstream enterprise consumers microsoft likely hopes enough people buy surface phones use continuum leverage dominance pc operating systems push back apple google since surface pro proven popular among enterprises want replace aging desktops 2in1 devices companies might consider buying single phones thing however surface phones powered qualcomms armbased processors cant run older apps designed x86 processors limits appeal among older companies running legacy software instead armpowered surface phones likely run windows apps developed universal apps platform image source microsoft thats armpowered surface devices like surface rt never caught eventually replaced byintel powered ones earlier reports indicated intel would supply processors surface phones presumably add support x86 programs intel recently killed opens new window smartphone mobile chips caused rumor mill churn back toward qualcomm waiting next year launch surface phone would also give apple google time expand enterprise efforts many ios android apps already tethered windowsbased applications cloud reduces demand unified os like windows 10 relaxed byod bring device restrictions improved enterprise mobility management solutions also make easier companies allow employees use preferred mobile devices likely dont include windows phones opinion theres reason believe microsofts hail mary pass surface phones completed surface 2in1 devices succeeded filled niche productivity market laptops tablets trying fill niche smartphones pcs much tougher since mobile apps tightly tethered desktop counterparts microsofts tiny share mobile market means surface phones even new branding could easily overshadowed latest iphone android devices therefore believe microsoft probably abandon effort focus ecosystem battles win article microsoft corporations surface phone still alive opens new window originally appeared foolcom suzanne frey executive alphabet member motley fools board directors leo sun opens new window owns shares qualcomm motley fool owns shares recommends alphabet shares alphabet c shares apple gartner qualcomm motley fool owns shares microsoft following options long january 2018 90 calls apple short january 2018 95 calls apple motley fool recommends 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 copyright 1995 2016 motley fool llc rights reserved motley fool disclosure policy opens new window | 645 |
<p>Students for Justice in Palestine (SJP) is an anti-Semitic group that harasses Jewish students and demonizes Israel at the University of California, Los Angeles (UCLA). Their intimidation has reached a new low: bullying a graduate student leader to fund their anti-Semitic propaganda.</p>
<p>For the past three months SJP, a sympathizer with both Hamas and the Muslim Brotherhood, has used all the legal and media resources it could muster to relentlessly bully Graduate Student Association (GSA) President Milan Chatterjee after his administration chose to remain neutral rather than support SJP’s radical movement to “Boycott, Divest, and Sanction” Israel (BDS). Although Chatterjee’s administration was in line with GSA policy and the law, SJP enlisted the radical American Civil Liberties Union (ACLU) and Palestine Legal (PL) to send lawyers after Chatterjee and intimidate him.</p>
<p>The ACLU is making a frivolous legal allegation that the GSA engaged in “viewpoint discrimination” by choosing to remain neutral on the BDS movement.</p>
<p>Erwin Chemerinsky, a leading American constitutional law scholar, wrote that GSA’s policy is “viewpoint neutral and is consistent with the First Amendment.” ACLU’s spurious allegation has also been <a href="http://informedgrads.org/wp-content/uploads/2014/09/ACLJ_on_GSA_Dec15.pdf" type="external">thoroughly debunked</a>by the American Center for Law &amp; Justice (ACLJ).</p>
<p>The ACLU and PL, desperate to push their frivolous claim that Chatterjee has in some way violated the law, spend a great deal of valueless time propagandizing in the UCLA student newspaper; claiming that “there are not two sides to this issue; it’s not up for debate.” The ACLU has even sent lawyers to disrupt GSA meetings.</p>
<p>Now SJP is demanding that the GSA amend its policies so that the GSA will be required to finance SJP’s anti-Semitic activities, under the false guise of "viewpoint neutrality." In a whiny resolution sent to GSA representatives, SJP demanded the GSA apologize for remaining neutral on its divisive BDS platform:</p>
<p>Let it finally be resolved that the GSA extends its apologies to all students affected by this incident.</p>
<p>Radical SJP activists <a href="https://canarymission.org/individuals/rahim-kurwa/" type="external">Rahim Kurwa</a> and <a href="https://canarymission.org/individuals/yacoub-kureh/" type="external">Yacoub Kureh</a>, infamous for their militant harassment of Jewish students, are leading the initiative to force the GSA to fund their anti-Semitic activities. Kurwa once appeared on a panel with a <a href="http://la.indymedia.org/news/2015/02/267281.html" type="external">Hamas supporter</a>in Spain. Kureh placed <a href="http://www.jewishpress.com/news/harvard-jewish-students-contemptuous-of-mock-eviction-notices/2013/03/08/0/?print" type="external">mock eviction notices</a> targeting Jewish students in dorm rooms during his undergraduate years at Harvard. The pair have elicited help from Ian Coley, a GSA Math and Physical Sciences (MPSC) representative, to bully GSA officers and advance SJP’s anti-Semitic interests.</p>
<p>A staunch ally of SJP, Coley voted against a recent GSA resolution condemning anti-Semitism. He was also at the forefront of a failed effort to block the GSA’s endorsement of pro-Israel advocate and UC Regent Avi Oved’s plan to create a Student Advisor position—an initiative that would boost student representation on the UC Board of Regents.</p>
<p>During his undergraduate years as a member of the diversity committee at Northwestern University, Coley <a href="http://dailynorthwestern.com/2013/05/13/campus/political-racial-tensions-flare-in-asg-nominations-controversy/" type="external">reportedly</a> led opposition against the appointment of a student to a “diversity and inclusion post” for being a “heterosexual white male,” stating:</p>
<p>This university is not ready, in any capacity, for a heterosexual white male to be in charge in any way of diversity and inclusion. I don’t know if any university is.</p>
<p>Coley, a friend of Kureh, poses as a sidekick to the anti-Semitic hate group. At a GSA meeting in January, Coley suggested that GSA cabinet officers “need to be slapped around.” Outside of the GSA, Coley has brought up the idea to impeach GSA cabinet members, allegedly in an attempt for Coley and his SJP sidekicks to take over the GSA leadership.</p>
<p>The UCLA administration, under Chancellor Gene Block and Vice Chancellor Janina Montero, have refused to take a stance on this issue and even condemn the legal intimidation used against Chatterjee.</p>
<p>GSA leaders face opposition regardless of the turnout in this case. If SJP’s amendment passes, GSA leaders will likely face large-scale lawsuits from various groups for funding divisive and hateful events under SJP. Moreover, as the GSA continues to be targeted from all sides, the UCLA administration will not provide any support during these legal actions, as they have proven in the current case.</p>
<p>The ACLU speaks falsehood in its claim that the adoption of the SJP legislation is necessary in order for the GSA to be in adherence with the First Amendment. According to legal scholar Erwin Chemerinsky, “subject matter choices are permissible in allocating student activity fees,” and the “GSA may choose that it is not going to fund any speech or events on the topic of abortion, or gun control, or whether there is life on Mars. But once GSA chooses to fund speech and events on a topic, it cannot fund one viewpoint and not others.”</p>
<p>Out of respect to the UCLA community, and in adherence to its duties as a neutral governing body, the GSA will likely abstain from supporting any side of divisive and hateful issues, which is constitutional according to Erwin Chemerinsky. However, if the GSA adopts SJP’s amendment, the organization would be curtailing its own First Amendment rights and be obligated to fund all divisive and hateful events, exposing itself to expensive lawsuits.</p>
<p>To protect the greater UCLA community, the GSA should vote against the disingenuous and dangerous amendment being presented by SJP radicals under the guise of “viewpoint neutrality.”</p>
<p>Furthermore, UCLA’s administration should issue a statement discrediting ACLU’s frivolous legal allegation and making it clear that legal intimidation—as used by the SJP, ACLU, and PL against student leaders like Chatterjee—will not be tolerated.</p> | true | 0 | students justice palestine sjp antisemitic group harasses jewish students demonizes israel university california los angeles ucla intimidation reached new low bullying graduate student leader fund antisemitic propaganda past three months sjp sympathizer hamas muslim brotherhood used legal media resources could muster relentlessly bully graduate student association gsa president milan chatterjee administration chose remain neutral rather support sjps radical movement boycott divest sanction israel bds although chatterjees administration line gsa policy law sjp enlisted radical american civil liberties union aclu palestine legal pl send lawyers chatterjee intimidate aclu making frivolous legal allegation gsa engaged viewpoint discrimination choosing remain neutral bds movement erwin chemerinsky leading american constitutional law scholar wrote gsas policy viewpoint neutral consistent first amendment aclus spurious allegation also thoroughly debunkedby american center law amp justice aclj aclu pl desperate push frivolous claim chatterjee way violated law spend great deal valueless time propagandizing ucla student newspaper claiming two sides issue debate aclu even sent lawyers disrupt gsa meetings sjp demanding gsa amend policies gsa required finance sjps antisemitic activities false guise viewpoint neutrality whiny resolution sent gsa representatives sjp demanded gsa apologize remaining neutral divisive bds platform let finally resolved gsa extends apologies students affected incident radical sjp activists rahim kurwa yacoub kureh infamous militant harassment jewish students leading initiative force gsa fund antisemitic activities kurwa appeared panel hamas supporterin spain kureh placed mock eviction notices targeting jewish students dorm rooms undergraduate years harvard pair elicited help ian coley gsa math physical sciences mpsc representative bully gsa officers advance sjps antisemitic interests staunch ally sjp coley voted recent gsa resolution condemning antisemitism also forefront failed effort block gsas endorsement proisrael advocate uc regent avi oveds plan create student advisor positionan initiative would boost student representation uc board regents undergraduate years member diversity committee northwestern university coley reportedly led opposition appointment student diversity inclusion post heterosexual white male stating university ready capacity heterosexual white male charge way diversity inclusion dont know university coley friend kureh poses sidekick antisemitic hate group gsa meeting january coley suggested gsa cabinet officers need slapped around outside gsa coley brought idea impeach gsa cabinet members allegedly attempt coley sjp sidekicks take gsa leadership ucla administration chancellor gene block vice chancellor janina montero refused take stance issue even condemn legal intimidation used chatterjee gsa leaders face opposition regardless turnout case sjps amendment passes gsa leaders likely face largescale lawsuits various groups funding divisive hateful events sjp moreover gsa continues targeted sides ucla administration provide support legal actions proven current case aclu speaks falsehood claim adoption sjp legislation necessary order gsa adherence first amendment according legal scholar erwin chemerinsky subject matter choices permissible allocating student activity fees gsa may choose going fund speech events topic abortion gun control whether life mars gsa chooses fund speech events topic fund one viewpoint others respect ucla community adherence duties neutral governing body gsa likely abstain supporting side divisive hateful issues constitutional according erwin chemerinsky however gsa adopts sjps amendment organization would curtailing first amendment rights obligated fund divisive hateful events exposing expensive lawsuits protect greater ucla community gsa vote disingenuous dangerous amendment presented sjp radicals guise viewpoint neutrality furthermore uclas administration issue statement discrediting aclus frivolous legal allegation making clear legal intimidationas used sjp aclu pl student leaders like chatterjeewill tolerated | 540 |
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<p>Cut off from the Internet, young Cubans have quietly linked thousands of computers into a hidden network that stretches miles across Havana, letting them chat with friends, play games and download hit movies in a mini-replica of the online world that most can't access.</p>
<p>Continue Reading Below</p>
<p>Home Internet connections are banned for all but a handful of Cubans, and the government charges nearly a quarter of a month's salary for an hour online in government-run hotels and Internet centers. As a result, most people on the island live offline, complaining about their lack of access to information and contact with friends and family abroad.</p>
<p>A small minority have covertly engineered a partial solution by pooling funds to create a private network of more than 9,000 computers with small, inexpensive but powerful hidden Wi-Fi antennas and Ethernet cables strung over streets and rooftops spanning the entire city. Disconnected from the real Internet, the network is limited, local and built with equipment commercially available around the world, with no help from any outside government, organizers say.</p>
<p>Hundreds are online at any moment pretending to be orcs or U.S. soldiers in multiplayer online games such as "World of Warcraft" or "Call of Duty." They trade jokes and photos in chat rooms and organize real-world events like house parties or trips to the beach.</p>
<p>"We really need Internet because there's so much information online, but at least this satisfies you a little bit because you feel like, 'I'm connected with a bunch of people, talking to them, sharing files," said Rafael Antonio Broche Moreno, a 22-year-old electrical engineer who helped build the network known as SNet, short for streetnet.</p>
<p>Cuba's status as one of the world's least-wired countries is central to the new relationship Washington is trying to forge with Havana. As part of a new policy seeking broader engagement, the Obama administration hopes that encouraging wider U.S. technology sales to the island will widen Internet access and help increase Cubans' independence from the state and lay the groundwork for political reform.</p>
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<p>Cuban officials say Internet access is limited largely because the U.S. trade embargo has prevented advanced U.S. technology from reaching Cuba and starved the government of the cash it needs to buy equipment from other nations. But the government says that while it is open to buying telecommunications equipment from the U.S., it sees no possibility of changing its broader system in exchange for normal relations with the U.S.</p>
<p>Outside observers and many Cubans blame the lack of Internet on the government's desire to control the populace and to use disproportionately high cellphone and Internet charges as a source of cash for other government agencies.</p>
<p>Cuba prohibits the use of Wi-Fi equipment without a license from the Ministry of Communications, making SNet technically illegal. Broche Moreno said he believes the law gives authorities latitude to allow networks like SNet to operate. He described a sort of tacit understanding with officials that lets SNet run unmolested as long as it respects Cuban law "?" its hundreds of nodes are informally monitored by volunteer administrators who make sure users don't share pornography, discuss politics or link SNet to illicit connections to the real Internet.</p>
<p>"We aren't anonymous because the country has to know that this type of network exists. They have to protect the country and they know that 9,000 users can be put to any purpose," he said. "We don't mess with anybody. All we want to do is play games, share healthy ideas. We don't try to influence the government or what's happening in Cuba ... We do the right thing and they let us keep at it."</p>
<p>Users who break rules can be blocked from the network by their peers for as a little as a day for minor infractions such as slowing down SNet with file-sharing outside prescribed hours, with lifetime bans for violations like distributing pornography.</p>
<p>"Users show a lot of respect for preserving the network, because it's the only one they have," Broche Moreno said. "But me and the other administrators are watching things to make sure the network does what it's meant for."</p>
<p>The Cuban government did not respond to a request for comment on the network.</p>
<p>Before Obama moved to restore full diplomatic ties with Cuba, the U.S. made several attempts to leverage technology against the Cuban government. Contractor Alan Gross was sentenced to 15 years in prison after a U.S. Agency for International Development contractor sent him to Cuba to set up satellite Internet connections. He was freed after five years as part of the deal last month that paved the way for Obama's new Cuba policy.</p>
<p>A separate USAID contractor tried to build a text message-based social network called Zunzuneo whose brief existence was revealed in an Associated Press investigation last year.</p>
<p>Joining SNet requires resources out of reach of many people in a country where the average salary hovers around $25 a month.</p>
<p>Humberto Vinas, 25, studied medical technology and accounting before finding a relatively well-paying job in the kitchen of a bar. He and nine friends shared an SNet node for several months, running hundreds of feet of Ethernet cable over neighbors' roofs until one demanded they take it down, disconnecting most from the network.</p>
<p>"I miss SNet a lot," he said sadly. "You can find out about soccer scores. It allows you to do so much, right from your home."</p>
<p>Cubans have one of the hemisphere's highest average levels of education and years of practice at improvising solutions to scarcity, allowing many to access and share information despite enormous barriers. For as little as a dollar a week or less, many Cubans receive what's known as "the package," weekly deliveries of pirated TV shows, movies, magazines and instructional texts and videos saved on USB memory drives.</p>
<p>There is no obvious indication the U.S. or any other foreign government or group had anything to do with the creation of SNet, making it by far the most impressive example of Cuba's homemade telecommunications engineering.</p>
<p>The network is a series of connected nodes, powerful home computers with extra-strong Wi-Fi antennas that communicate with each other across relatively long distances and distribute signals to a smaller network of perhaps a dozen other computers in the immediate vicinity.</p>
<p>SNet started as a handful of connected users around 2001 and stayed that way for a decade. More than 9,000 computers have connected over the past five years, and about 2,000 users connect on an average day.</p>
<p>Many use SNet to get access to popular TV shows and movies. The system also stores a copy of Wikipedia. It's not necessarily current, but is routinely refreshed by users with true Internet access. There's also a homegrown version of a social network that functions similarly to Facebook.</p>
<p>Because most data passes from computer to computer in SNet, everything takes place much faster than on the achingly slow and expensive connections available from government servers that pass all information through central points.</p>
<p>Broche Moreno estimated it costs about $200 to equip a group of computers with the antennas and cables needed to become a new node, meaning the cost of networking all the computers in SNet could be as little as $200,000. Similar but smaller networks exist in other Cuban cities and provinces.</p>
<p>"It's proof that it can be done," said Alien Garcia, a 30-year-old systems engineer who publishes a magazine on information technology that's distributed by email and storage devices. "If I as a private citizen can put up a network with far less income than a government, a country should be able to do it, too, no?"</p>
<p>___</p>
<p>Associated Press writer Anne-Marie Garcia contributed to this report.</p>
<p>___</p>
<p>Michael Weissenstein on Twitter: https://twitter.com/mweissenstein</p> | true | 0 | cut internet young cubans quietly linked thousands computers hidden network stretches miles across havana letting chat friends play games download hit movies minireplica online world cant access continue reading home internet connections banned handful cubans government charges nearly quarter months salary hour online governmentrun hotels internet centers result people island live offline complaining lack access information contact friends family abroad small minority covertly engineered partial solution pooling funds create private network 9000 computers small inexpensive powerful hidden wifi antennas ethernet cables strung streets rooftops spanning entire city disconnected real internet network limited local built equipment commercially available around world help outside government organizers say hundreds online moment pretending orcs us soldiers multiplayer online games world warcraft call duty trade jokes photos chat rooms organize realworld events like house parties trips beach really need internet theres much information online least satisfies little bit feel like im connected bunch people talking sharing files said rafael antonio broche moreno 22yearold electrical engineer helped build network known snet short streetnet cubas status one worlds leastwired countries central new relationship washington trying forge havana part new policy seeking broader engagement obama administration hopes encouraging wider us technology sales island widen internet access help increase cubans independence state lay groundwork political reform advertisement cuban officials say internet access limited largely us trade embargo prevented advanced us technology reaching cuba starved government cash needs buy equipment nations government says open buying telecommunications equipment us sees possibility changing broader system exchange normal relations us outside observers many cubans blame lack internet governments desire control populace use disproportionately high cellphone internet charges source cash government agencies cuba prohibits use wifi equipment without license ministry communications making snet technically illegal broche moreno said believes law gives authorities latitude allow networks like snet operate described sort tacit understanding officials lets snet run unmolested long respects cuban law hundreds nodes informally monitored volunteer administrators make sure users dont share pornography discuss politics link snet illicit connections real internet arent anonymous country know type network exists protect country know 9000 users put purpose said dont mess anybody want play games share healthy ideas dont try influence government whats happening cuba right thing let us keep users break rules blocked network peers little day minor infractions slowing snet filesharing outside prescribed hours lifetime bans violations like distributing pornography users show lot respect preserving network one broche moreno said administrators watching things make sure network meant cuban government respond request comment network obama moved restore full diplomatic ties cuba us made several attempts leverage technology cuban government contractor alan gross sentenced 15 years prison us agency international development contractor sent cuba set satellite internet connections freed five years part deal last month paved way obamas new cuba policy separate usaid contractor tried build text messagebased social network called zunzuneo whose brief existence revealed associated press investigation last year joining snet requires resources reach many people country average salary hovers around 25 month humberto vinas 25 studied medical technology accounting finding relatively wellpaying job kitchen bar nine friends shared snet node several months running hundreds feet ethernet cable neighbors roofs one demanded take disconnecting network miss snet lot said sadly find soccer scores allows much right home cubans one hemispheres highest average levels education years practice improvising solutions scarcity allowing many access share information despite enormous barriers little dollar week less many cubans receive whats known package weekly deliveries pirated tv shows movies magazines instructional texts videos saved usb memory drives obvious indication us foreign government group anything creation snet making far impressive example cubas homemade telecommunications engineering network series connected nodes powerful home computers extrastrong wifi antennas communicate across relatively long distances distribute signals smaller network perhaps dozen computers immediate vicinity snet started handful connected users around 2001 stayed way decade 9000 computers connected past five years 2000 users connect average day many use snet get access popular tv shows movies system also stores copy wikipedia necessarily current routinely refreshed users true internet access theres also homegrown version social network functions similarly facebook data passes computer computer snet everything takes place much faster achingly slow expensive connections available government servers pass information central points broche moreno estimated costs 200 equip group computers antennas cables needed become new node meaning cost networking computers snet could little 200000 similar smaller networks exist cuban cities provinces proof done said alien garcia 30yearold systems engineer publishes magazine information technology thats distributed email storage devices private citizen put network far less income government country able ___ associated press writer annemarie garcia contributed report ___ michael weissenstein twitter httpstwittercommweissenstein | 758 |
<p />
<p>Image source: Disney.</p>
<p>Continue Reading Below</p>
<p>It's been three weeks sinceWalt Disney'sAnimal Kingdom transformed itself into an all-day destination. Several new attractions <a href="http://www.fool.com/investing/general/2016/05/27/disney-worlds-animal-kingdom-finally-grows-up-toni.aspx?source=eptfxblnk0000004" type="external">opened during Memorial Day weekend Opens a New Window.</a>, and with that the park's closing time has been bumped from 6 p.m. to 11 p.m.</p>
<p>Extending its hours is long overdue, and seemingly necessary after recently <a href="http://www.fool.com/investing/general/2016/02/28/disney-world-finally-went-too-far.aspx?source=eptfxblnk0000004" type="external">increasing its one-day ticket prices Opens a New Window.</a> by 17.5% -- from $97 to $114 -- for the peak summertime travel season. It's great to see Animal Kingdom finally stay open into the night like Disney World's three older parks, but it may take some time before it truly finds its groove.</p>
<p>I've been able to check out Animal Kingdom at night twice over the past week, but the execution hasn't been as sharp as the concept. There are plenty of good things, and just the fact that the park is open several more hours is great. The expanded operating hours are particularly welcome this time of year when the heat and humidity can be brutal in the afternoon. The festive street performances are keeping things lively in the stylishly dim-lit open spaces, but it's the signature attractions where Animal Kingdom is falling woefully short as the sun starts to set.</p>
<p>The flagship show was supposed to be Rivers of Light, a nightly waterfront celebration of animals with music, lights, performers, and projections on water screens. Technical glitches nixed the originally slated April 22 opening, and persist to the point that the show may not be ready until several months from now. Disney quickly pieced together a Jungle Book-themed show as a replacement for the 5,000-seat amphitheater to debut on Memorial Day.</p>
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<p>I caught the first of two showings ofThe Jungle Book: Alive With Magicon Thursday night. I wish I hadn't. The 24-minute show is little more than performances of songs from the film with animated projections on water screens. The long V-shape of the theater makes it hard to make out the vocalists unless you're sitting near the center of the stage. Disney offsets this by scattering drum-heavy musicians across the front of the long theater and stationing performers along the many stairways, donning ceremonial garb and lanterns when they're not breaking into a dance. The energetic performers are the saving grace of the production, but evenfire dancers twirling flaming torches on boats near the climax isn't enough to save the experience from winding up with a throng of underwhelmed guests shuffling out of the theater into poorly lit bottlenecks on the way out of the park.</p>
<p>Our show also had what turned into a 16-minute delay for technical snags, something that led to a bizarre scene where a quarter of the audience bolted two-thirds of the way into the show. This is Disney, and folks have attraction or dinner reservations to keep. It was also mostly young families defecting early, and it's hard to blame them for leaving with many of them having waited in the muggy open theater for more than an hour in unforgiving bleachers.</p>
<p>The other major disappointment was the nighttime all-terrain caravan ride through the park's wildlife preserve. Kilimanjaro Safari has been the star attraction at Animal Kingdom since the park opened 18 years ago, and the notion of sunset and nighttime safaris were filled with promises of added lighting and new nocturnal animals. It was another letdown. Visibility is poor once night coats the sky, and aside from more activity from the lion and lioness than during the traditional daytime safari, it's an inferior experience to the daytime trek.</p>
<p>Disney seems to know it has a problem with these two signature pieces of its arsenal to woo night owls. An online survey sent to me after visiting the park was all about these two experiences.</p>
<p>Image source: Disney.</p>
<p>There's still a lot that works with Animal Kingdom at night. The illuminated Tree of Life centerpiece is dazzling, even if the majority of guests miss the animated fauna "awakenings," since they happen too infrequently.</p>
<p>Riding the park's Expedition Everest coaster at night is a different kind of thrill, though getting soaked on the Kali River Rapids ride at night isn't as fun when you know the sun won't dry you off.</p>
<p>There's also Tiffins, one of Disney's priciest theme-park restaurants that also opened at Animal Kingdom last month. I haven't been there yet, but the first wave of published reviews have been mixed. Foodies with money to burn are generally walking away impressed by the eclectic menu, but those are the same factors turning off young families with picky eaters.</p>
<p>The situation will continue to get better. Rivers of Light has to be an improvement over the current nighttime water show. The 12-acre Avatar-themed area opens next year with two major rides and a lavishly themed environment ofbioluminescent plants and floating mountains.</p>
<p>Shareholders generally should be happy with the nighttime hours. It keeps guests in the park for big-ticket dinners. It may also find folks extending their vacations by a day to see as much of the park's new features as possible.</p>
<p>Disney will get it right. It's just not there just yet.</p>
<p>The article <a href="http://www.fool.com/investing/general/2016/06/21/disney-worlds-animal-kingdom-is-still-not-ready-fo.aspx" type="external">Disney World's Animal Kingdom Is Still Not Ready for Prime Time Opens a New Window.</a> originally appeared on Fool.com.</p>
<p><a href="http://my.fool.com/profile/TMFBreakerRick/info.aspx?source=eptfxblnk0000004" type="external">Rick Munarriz Opens a New Window.</a> owns shares of Walt Disney. The Motley Fool owns shares of and recommends Walt Disney. 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 disney continue reading three weeks sincewalt disneysanimal kingdom transformed allday destination several new attractions opened memorial day weekend opens new window parks closing time bumped 6 pm 11 pm extending hours long overdue seemingly necessary recently increasing oneday ticket prices opens new window 175 97 114 peak summertime travel season great see animal kingdom finally stay open night like disney worlds three older parks may take time truly finds groove ive able check animal kingdom night twice past week execution hasnt sharp concept plenty good things fact park open several hours great expanded operating hours particularly welcome time year heat humidity brutal afternoon festive street performances keeping things lively stylishly dimlit open spaces signature attractions animal kingdom falling woefully short sun starts set flagship show supposed rivers light nightly waterfront celebration animals music lights performers projections water screens technical glitches nixed originally slated april 22 opening persist point show may ready several months disney quickly pieced together jungle bookthemed show replacement 5000seat amphitheater debut memorial day advertisement caught first two showings ofthe jungle book alive magicon thursday night wish hadnt 24minute show little performances songs film animated projections water screens long vshape theater makes hard make vocalists unless youre sitting near center stage disney offsets scattering drumheavy musicians across front long theater stationing performers along many stairways donning ceremonial garb lanterns theyre breaking dance energetic performers saving grace production evenfire dancers twirling flaming torches boats near climax isnt enough save experience winding throng underwhelmed guests shuffling theater poorly lit bottlenecks way park show also turned 16minute delay technical snags something led bizarre scene quarter audience bolted twothirds way show disney folks attraction dinner reservations keep also mostly young families defecting early hard blame leaving many waited muggy open theater hour unforgiving bleachers major disappointment nighttime allterrain caravan ride parks wildlife preserve kilimanjaro safari star attraction animal kingdom since park opened 18 years ago notion sunset nighttime safaris filled promises added lighting new nocturnal animals another letdown visibility poor night coats sky aside activity lion lioness traditional daytime safari inferior experience daytime trek disney seems know problem two signature pieces arsenal woo night owls online survey sent visiting park two experiences image source disney theres still lot works animal kingdom night illuminated tree life centerpiece dazzling even majority guests miss animated fauna awakenings since happen infrequently riding parks expedition everest coaster night different kind thrill though getting soaked kali river rapids ride night isnt fun know sun wont dry theres also tiffins one disneys priciest themepark restaurants also opened animal kingdom last month havent yet first wave published reviews mixed foodies money burn generally walking away impressed eclectic menu factors turning young families picky eaters situation continue get better rivers light improvement current nighttime water show 12acre avatarthemed area opens next year two major rides lavishly themed environment ofbioluminescent plants floating mountains shareholders generally happy nighttime hours keeps guests park bigticket dinners may also find folks extending vacations day see much parks new features possible disney get right yet article disney worlds animal kingdom still ready prime time opens new window originally appeared foolcom rick munarriz opens new window owns shares walt disney motley fool owns shares recommends walt disney 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 | 579 |
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<p>On Saturday, I will be releasing Dianny’s Ten Most Tiresome People of 2016. But for a change of pace, I decided this year I would also give you my Heroes of 2016.</p>
<p>And there have been quite a few.</p>
<p>I decided to narrow it down to a handful. Otherwise, I’d never finish.</p>
<p>These are the guys who stood up to the Enslaved Press and stripped them of their control over the flow of information.</p>
<p>They’re the ones who fought the Institutional Left on its turf and left them reeling.</p>
<p>They turned the narrative on its head, went around the mainstream news media, and championed the truth.</p>
<p>And they gave me hope for the future.</p>
<p>Milo Yiannopoulos If Liberace and Ann Coulter had a love child, it would be Milo.</p>
<p>He has singlehandedly taken on the sacred cows of College Liberalism.</p>
<p>Milo fights these precious snowflakes on their own turf. And in so doing, exposes just how childish and naïve they really are.</p>
<p>He is one fearless, funny, formidable faggot.</p>
<p>And I love him to death.</p>
<p>The single greatest weapon against the Left is humor.</p>
<p>And Milo wields this weapon with skill and an unwavering sense of fun.</p>
<p>But beneath this witty troublemaker’s flamboyant persona beats the heart of a brilliant and insightful genius.</p>
<p>He’s no mindless bomb-thrower. And there is a method to his madness.</p>
<p>There’s a reason the Left hates him.</p>
<p>Milo pulls back the curtain and reveals just how inconsequential and petty these Leftists really are.</p>
<p>His infectious enthusiasm and fearlessness is giving inspiration and courage to a new generation of conservatives.</p>
<p>How could you not love the guy?</p>
<p>&#160; Paul Joseph Watson 2016 was definitely the Year of the Brits.</p>
<p>First Milo and now Paul Joseph Watson.</p>
<p>Now, in the interests of full disclosure, Alex Jones gives me a headache.</p>
<p>But Paul Joseph Watson gives me a reason to stop by <a href="http://www.infowars.com" type="external">InfoWars.com</a>.</p>
<p>Golly, I love this guy.</p>
<p>I want to hug the stuffing out him. I want to pick him up and put him in my pocket and carry him around with me like I’m a mama kangaroo.</p>
<p>The primary reason I still bother with Twitter at all is Paul Joseph Watson. I retweet this guy on a daily basis. His videos are hard-hitting and cheer-worthy.</p>
<p>Much like Milo, Paul targets the soft underbelly of Leftist Social Justice Warriors and hits them with everything he’s got.</p>
<p>He is unafraid to call out the virulent racism and hatred of these so-called “tolerant Liberals.”</p>
<p>And they respond to him with the very venomous hatred they accuse those of us on the right of having.</p>
<p>The truth is, the façade of tolerance and love these Leftists wear is nothing but a thin veneer.</p>
<p>For years now precious few conservatives have even bothered to strip it away.</p>
<p>Let’s be honest here. The dry and oh so proper intellectual arguments of the National Review set are no match for the Left.</p>
<p>We need fighters who are willing to take the fight to them.</p>
<p>A gaping void was left when Andrew Breitbart left us so soon.</p>
<p>And both Milo and Paul have filled that void masterfully.</p>
<p>Watson proves that you can advance conservative principles while at the same time using humor and mockery to undermine the lies of the Left.</p>
<p>Satire is the most dangerous form of humor. And Leftists react to it like a vampire to sunlight.</p>
<p>Paul Joseph Watson is Van Helsing – taking the fight to these bloodsuckers on the Left.</p>
<p>Instead of simply defending the ground we’ve maintained, Watson seeks to regain the ground we lost in this war with the Institutional Left.</p>
<p>The truth is, the Left believe that they have successfully browbeaten us into submission.</p>
<p>But the Left’s tactics only work if those on the Right refuse to stand up and take the fight to them.</p>
<p>Paul Joseph Watson takes the fight to them.</p>
<p>And in so doing, he’s proven time and again that the Left is a paper tiger.</p>
<p>Watson doesn’t seek to simply expose the Left’s weakness. He’s taking a blowtorch to this paper tiger and setting it aflame.</p>
<p>&#160; Donald Trump If you’ve been a regular reader of PatriotRetort.com, you know that I was not a Trump supporter during the primaries. I supported Ted Cruz and even endorsed him here.</p>
<p>But when Donald Trump first announced his candidacy in June of 2015, I watched what he was doing and had to admit I was impressed.</p>
<p>This is what I <a href="" type="internal">wrote</a> on the day of Trump’s announcement:</p>
<p>The GOP insisting on playing by “Gentlemen’s rules” makes them impeccably polite losers. But losers nonetheless. &#160; We need a fighter — somebody who is unafraid to stand up for America. &#160; We need somebody who has the courage to speak the truth. &#160; I think American voters are hungry for that. &#160; Americans don’t want to be spun. They don’t want to be “handled.” They want some freaking honesty out of Washington. Not double-talk. Not equivocation. And certainly not the outright lies that we’ve been getting for the last eight years.</p>
<p>In a way, I’m surprised at how right I was.</p>
<p>At the same time, I lost sight of what I said here. I began to see Donald Trump through the filter of hysteria and lies of the Enslaved Press. It clouded my own ability to view him in the very context I outlined back in June of 2015.</p>
<p>And it was my biggest mistake of the 2016 election cycle.</p>
<p>When Donald Trump was certain to win the nomination, I said that I would need him to give me a reason to vote for him and not just against Hillary Clinton.</p>
<p>To that end, I once again began to approach him with the same open-mindedness I had when he first announced.</p>
<p>And Trump won me over.</p>
<p>Big League.</p>
<p>There is one thing in which Donald Trump remained utterly consistent.</p>
<p>He never gave up; he never surrendered.</p>
<p>The Enslaved Press and the Clinton campaign (same thing) hit him with everything they had. And he stayed standing.</p>
<p>When the entire establishment wrote him off as defeated, he kept campaigning like a winner.</p>
<p>He never apologized for who he is.</p>
<p>After years of Republican candidates who bend over backwards to accommodate the Left, Trump proved that you can win by refusing to compromise or apologize for what you stand for.</p>
<p>And he was unafraid to use humor to expose the foolishness of the Left.</p>
<p>Trump won me over because he is who he is. He won me over because through it all, he never lost sight of why he was running for President.</p>
<p>He kept the focus on the American people.</p>
<p>While Hillary demanded her supporters be with her and help her shatter the glass ceiling and make history, Donald Trump made it crystal clear that he was on our side.</p>
<p>And before he’s even been Inaugurated, Donald Trump is already making good on his promise to fight for the American people.</p>
<p>I started out 2016 thinking Donald Trump was a joke.</p>
<p>I close 2016 knowing the joke was me.</p>
<p>He’s become my hero – warts and all.</p>
<p>I think back to what I wrote about him on the day he announced and wonder why I ever doubted what I said back then.</p>
<p>And if Donald Trump can succeed in winning over this stubborn gal, I have no doubt whatsoever that he will win many more Americans over as our forty-fifth President of the United States.</p>
<p>&#160;</p>
<p>Finally. My last heroes of 2016 are you, my readers.</p>
<p>I am so grateful for the encouragement and support PatriotRetort.com has received this past year.</p>
<p>My daily readership has more than doubled in 2016. And, frankly, that blows my mind. It is both humbling and invigorating to know that so many people have made PatriotRetort.com a part of their daily trek through the Internet.</p>
<p>Yesterday, I reached seven million hits. Seven million in twenty-two months of existence. That gives me a happy!</p>
<p>I want to take a moment also to thank the people who have already generously contributed to Patriot Retort’s <a href="" type="internal">end of year fundraiser</a> that began on Monday.</p>
<p>To John, Carl, Amy, Darryl, Anne, Jeffrey, Daryle, and Greg: Thank you from the bottom of my heart for your donations. You are helping to keep this site ad-free and content-rich.</p>
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<p>Please consider making a contribution to PatriotRetort.com. Hit DONATE button in the side bar. Even a few bucks can make a world of difference!</p> | true | 0 | saturday releasing diannys ten tiresome people 2016 change pace decided year would also give heroes 2016 quite decided narrow handful otherwise id never finish guys stood enslaved press stripped control flow information theyre ones fought institutional left turf left reeling turned narrative head went around mainstream news media championed truth gave hope future milo yiannopoulos liberace ann coulter love child would milo singlehandedly taken sacred cows college liberalism milo fights precious snowflakes turf exposes childish naïve really one fearless funny formidable faggot love death single greatest weapon left humor milo wields weapon skill unwavering sense fun beneath witty troublemakers flamboyant persona beats heart brilliant insightful genius hes mindless bombthrower method madness theres reason left hates milo pulls back curtain reveals inconsequential petty leftists really infectious enthusiasm fearlessness giving inspiration courage new generation conservatives could love guy 160 paul joseph watson 2016 definitely year brits first milo paul joseph watson interests full disclosure alex jones gives headache paul joseph watson gives reason stop infowarscom golly love guy want hug stuffing want pick put pocket carry around like im mama kangaroo primary reason still bother twitter paul joseph watson retweet guy daily basis videos hardhitting cheerworthy much like milo paul targets soft underbelly leftist social justice warriors hits everything hes got unafraid call virulent racism hatred socalled tolerant liberals respond venomous hatred accuse us right truth façade tolerance love leftists wear nothing thin veneer years precious conservatives even bothered strip away lets honest dry oh proper intellectual arguments national review set match left need fighters willing take fight gaping void left andrew breitbart left us soon milo paul filled void masterfully watson proves advance conservative principles time using humor mockery undermine lies left satire dangerous form humor leftists react like vampire sunlight paul joseph watson van helsing taking fight bloodsuckers left instead simply defending ground weve maintained watson seeks regain ground lost war institutional left truth left believe successfully browbeaten us submission lefts tactics work right refuse stand take fight paul joseph watson takes fight hes proven time left paper tiger watson doesnt seek simply expose lefts weakness hes taking blowtorch paper tiger setting aflame 160 donald trump youve regular reader patriotretortcom know trump supporter primaries supported ted cruz even endorsed donald trump first announced candidacy june 2015 watched admit impressed wrote day trumps announcement gop insisting playing gentlemens rules makes impeccably polite losers losers nonetheless 160 need fighter somebody unafraid stand america 160 need somebody courage speak truth 160 think american voters hungry 160 americans dont want spun dont want handled want freaking honesty washington doubletalk equivocation certainly outright lies weve getting last eight years way im surprised right time lost sight said began see donald trump filter hysteria lies enslaved press clouded ability view context outlined back june 2015 biggest mistake 2016 election cycle donald trump certain win nomination said would need give reason vote hillary clinton end began approach openmindedness first announced trump big league one thing donald trump remained utterly consistent never gave never surrendered enslaved press clinton campaign thing hit everything stayed standing entire establishment wrote defeated kept campaigning like winner never apologized years republican candidates bend backwards accommodate left trump proved win refusing compromise apologize stand unafraid use humor expose foolishness left trump never lost sight running president kept focus american people hillary demanded supporters help shatter glass ceiling make history donald trump made crystal clear side hes even inaugurated donald trump already making good promise fight american people started 2016 thinking donald trump joke close 2016 knowing joke hes become hero warts think back wrote day announced wonder ever doubted said back donald trump succeed winning stubborn gal doubt whatsoever win many americans fortyfifth president united states 160 finally last heroes 2016 readers grateful encouragement support patriotretortcom received past year daily readership doubled 2016 frankly blows mind humbling invigorating know many people made patriotretortcom part daily trek internet yesterday reached seven million hits seven million twentytwo months existence gives happy want take moment also thank people already generously contributed patriot retorts end year fundraiser began monday john carl amy darryl anne jeffrey daryle greg thank bottom heart donations helping keep site adfree contentrich please consider making contribution 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<p />
<p>Instead of punishing Harley-Davidson (NYSE: HOG) stock like it should have for yet another quarter of disappointing results, the market has instead <a href="http://www.fool.com/investing/2016/10/24/harley-davidson-investors-remain-optimistic-despit.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">bid up its shares Opens a New Window.</a> 14% as investors ignored falling sales, weakening profits, and continued losses of industry share in favor of cost-cutting and a new engine helping to rev up a turnaround.</p>
<p>Continue Reading Below</p>
<p>Harley-Davidson still owns more than half the big bike market, but U.S. sales have fallen for two straight years, suggesting its stock price shouldn't be opening its throttle. Image source: Flickr via Nacho.</p>
<p>The big bike maker reported retail motorcycle sales in the third quarter of just under 69,000 bikes, a 4.5% decline from last year and an indication that the industry's condition is worsening. Harley, though, is leading the way down as it's also the eighth straight quarter -- two consecutive years worth -- that it hasn't been able to post a single quarter of higher sales year over year, and there's no indication that trend is about to make a U-turn anytime soon.</p>
<p>Buying Harley-Davidson's stock now will only set up your portfolio for a serious case of road rash later on.</p>
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<p>Big-ticket items like motorcycles, ATVs, and snowmobiles are suffering from a significant downturn. Harley rival Polaris Industries (NYSE: PII) reported its own third-quarter results recently that showed similar weakness, though its own big bike brands, Indian and Victory, still showed combined double-digit growth.</p>
<p>Polaris is looking to expand outside of those markets, announcing an acquisition that would introduce it to the retail market through <a href="http://www.fool.com/investing/2016/10/25/does-polaris-industries-really-need-to-be-making-t.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">accessories for Jeeps Opens a New Window.</a> and off-road trucks. Yet sales for Jeeps tumbled this month, and Ford's top-selling F-series trucks have suffered declining monthly sales all year long.</p>
<p>That doesn't bode well for Harley-Davidson, which <a href="http://www.fool.com/investing/2016/08/07/heres-why-you-shouldnt-believe-harley-davidson-inc.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">steadfastly insists Opens a New Window.</a> it will still be shipping between 264,000 and 269,000 motorcycles this year. Despite sales declines in the U.S. that are accelerating -- a particularly worrisome trend since it's the bike manufacturer's biggest market, accounting for almost two-thirds of total sales -- it says it will still ship as many bikes this year as it sold in all of last year.</p>
<p>Data source: Harley-Davidson quarterly SEC filings. Chart by author.</p>
<p>The shipment guidance may be lower than what it started the year off believing it would ship, but it's still too high based on Harley's sales trends. There's no good reason for the company to ship so many.</p>
<p>That, of course, hasn't stopped Harley-Davidson in the past. In the fourth quarter of each of the past two years, the motorcycle maker has shipped just enough bikes to dealers to make it over the low end of its guidance, even though sales didn't justify it. That it may do so again this year would not be a surprise, but it also doesn't mean investors should be bidding up the stock.</p>
<p>Data source: Harley-Davidson quarterly SEC filings. Chart by author.</p>
<p>Not even Harley's cost-cutting measures make it worth it. Last month, it announced it was <a href="http://www.fool.com/investing/2016/09/08/harley-davidson-incs-latest-signal-that-more-pain.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">laying off Opens a New Window.</a> about 200 workers, with more than half of them coming from its York, Penn., facility that was refurbished a couple of years ago. That plant is also where Harley assembles its touring, Softail, CVO, and Trike models, suggesting its business in those lines isn't doing well.</p>
<p>It might have better luck with its new Milwaukee-Eight engine that debuted on all three new 2017 motorcycles, in addition to a redesigned upgraded suspension. According to the bike maker, the new product introductions helped rev up U.S. sales in September.</p>
<p>Touring bike sales jumped 6% from last year to 23,295 bikes. While touring is Harley's biggest segment, or 48% of total sales, it still wasn't enough to offset the dramatic drop in cruisers and Sportsters and Streets, where sales plunged 24% and 13%, respectively. The Sportster-Street segment should be of particular concern because Harley was counting on these runabouts to drive sales. Now it appears it's counting once again on the heavy bikes, though that might not be so bad since they also tend to be more profitable.</p>
<p>In all, though, the exuberance the market has shown toward Harley-Davidson's results are unjustified. It might have beat analyst expectations, but that was only because the bar had been set so low. Its industry is weakening, its business is falling faster, and the competition remains pointed. Running up its stock as investors did is unwarranted, and they've just set themselves up to be disappointed later.</p>
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<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 owns shares of and recommends Ford and Polaris Industries. 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 | instead punishing harleydavidson nyse hog stock like yet another quarter disappointing results market instead bid shares opens new window 14 investors ignored falling sales weakening profits continued losses industry share favor costcutting new engine helping rev turnaround continue reading harleydavidson still owns half big bike market us sales fallen two straight years suggesting stock price shouldnt opening throttle image source flickr via nacho big bike maker reported retail motorcycle sales third quarter 69000 bikes 45 decline last year indication industrys condition worsening harley though leading way also eighth straight quarter two consecutive years worth hasnt able post single quarter higher sales year year theres indication trend make uturn anytime soon buying harleydavidsons stock set portfolio serious case road rash later advertisement bigticket items like motorcycles atvs snowmobiles suffering significant downturn harley rival polaris industries nyse pii reported thirdquarter results recently showed similar weakness though big bike brands indian victory still showed combined doubledigit growth polaris looking expand outside markets announcing acquisition would introduce retail market accessories jeeps opens new window offroad trucks yet sales jeeps tumbled month fords topselling fseries trucks suffered declining monthly sales year long doesnt bode well harleydavidson steadfastly insists opens new window still shipping 264000 269000 motorcycles year despite sales declines us accelerating particularly worrisome trend since bike manufacturers biggest market accounting almost twothirds total sales says still ship many bikes year sold last year data source harleydavidson quarterly sec filings chart author shipment guidance may lower started year believing would ship still high based harleys sales trends theres good reason company ship many course hasnt stopped harleydavidson past fourth quarter past two years motorcycle maker shipped enough bikes dealers make low end guidance even though sales didnt justify may year would surprise also doesnt mean investors bidding stock data source harleydavidson quarterly sec filings chart author even harleys costcutting measures make worth last month announced laying opens new window 200 workers half coming york penn facility refurbished couple years ago plant also harley assembles touring softail cvo trike models suggesting business lines isnt well might better luck new milwaukeeeight engine debuted three new 2017 motorcycles addition redesigned upgraded suspension according bike maker new product introductions helped rev us sales september touring bike sales jumped 6 last year 23295 bikes touring harleys biggest segment 48 total sales still wasnt enough offset dramatic drop cruisers sportsters streets sales plunged 24 13 respectively sportsterstreet segment particular concern harley counting runabouts drive sales appears counting heavy bikes though might bad since also tend profitable though exuberance market shown toward harleydavidsons results unjustified might beat analyst expectations bar set low industry weakening business falling faster competition remains pointed running stock investors unwarranted theyve set disappointed later 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 rich duprey opens new window position stocks mentioned motley fool owns shares recommends ford polaris industries 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 | 538 |
<p />
<p>The days of the European conglomerate may be numbered, as activist shareholders are pressing diversified groups to spin off secondary businesses and focus on doing one thing well.</p>
<p>Continue Reading Below</p>
<p>Many investors and analysts - and some managers - say that in a world where good returns are hard to come by, breaking up businesses that don't belong together can be profitable.</p>
<p>In theory, spinning off business divisions allows the parent company and the spin-off alike to focus better on their respective strategies, while investors tend to value both more highly due to greater transparency.</p>
<p>"I think demergers and the destruction of conglomerates is the next major trend in the M&amp;A market," said Christer Gardell, co-founder of Cevian, a Swedish-based activist investment fund.</p>
<p>"The trend has already started, it's going to run for the next 10 years," said Gardell, who is pushing Swiss-Swedish engineering giant ABB to spin off its power grid equipment division from its robotics and other operations.</p>
<p>While some conglomerates such as ABB are trying to hold their businesses together, others are embracing the trend either under pressure from investors or even willingly.</p>
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<p>A wave of spin-offs through initial public offerings (IPOs) among energy and industrial groups is already underway. Philips of the Netherlands, Fiat Chrysler of Italy and Germany's biggest energy groups E.ON and RWE have all floated major divisions this year. German engineer Siemens has announced similar plans.</p>
<p>Companies with many business lines are "mostly too complicated, too bureaucratic, too slow, and they usually suffer from poor capital allocation and poor performance", Gardell told Reuters. "Obviously for investors to invest in these complicated structures, they require a discount, and usually it's a significant discount."</p>
<p>Remove these obstacles, and the need for a discount will fade, Cevian argues. It says ABB shares, which are below 21 Swiss francs, would be worth 35 francs if its separate business arms traded in line with listed peers.</p>
<p>ABB disagrees that it power grids business should be spun off. "As part of the strategic review process, we examined all options for the division. The outcome of the review was clear that the most value would be created through the continued transformation of Power Grids under ABB's ownership," spokesman Saswato Das said.</p>
<p>OUTPERFORMANCE</p>
<p>Not every spin-off works out for shareholders. However, a JPMorgan study in 2015 of spin-offs in the United States, where the trend began earlier than in Europe, appears to support Gardell's arguments in general.</p>
<p>It found that U.S. shares typically rose a relatively modest 2-4 percent against the S&amp;P 500 average when a spin-off was announced. But over the next two years, the combined value of the parent company and its spin-off rose 15-20 percent - with the relative values of both usually rising.</p>
<p>Marc Zenner, one of the study's authors, said this U.S. data would show activist investors that there is also potential across the Atlantic to create value through spin-offs. "In Europe one reason why you could see more in the future is that there are more conglomerate companies there," he said.</p>
<p>Conglomerates have lasted longer in Europe due to a mix of factors that can insulate managers from unhappy shareholders. These include "poison pill" rules to discourage hostile takeovers and higher levels of family ownership.</p>
<p>Some countries also have laws stipulating that managers must consider the interests of employees and other groups along with those of shareholders.</p>
<p>Some firms are willing to accept limited change. One such is German industrial group ThyssenKrupp , which is in talks to merge its struggling European steel business with that of India's Tata Steel .</p>
<p>However, ThyssenKrupp has so far resisted calls to isolate its most profitable business, making elevators. It also sells car parts, and engineers military ships and chemical plants. The company announced worse than expected profits for 2016last week and a gloomy outlook for 2017, which analysts said strengthens the case for a breakup.</p>
<p>MANAGEMENT FOCUS OR INVESTOR TRANSPARENCY?</p>
<p>Advocates argue that spin-offs do better because smaller companies have a stronger focus and their chiefs have a greater incentive to succeed than division heads. But for investors, the biggest benefit seems to be increased transparency.</p>
<p>"When (spin-offs) do work, it is more often the market valuing the standalone business more accurately than a stronger clarity of focus by management," said Drew Dickson, managing director of Albert Bridge Capital.</p>
<p>Dickson doesn't look for breakup candidates as a strategy. But he said revaluation paid off for one of his firm's investments, Fiat Chrysler, after the group floated its Ferrari sportscar division in October 2015. "The market knew that Ferrari was valuable, but only could answer the question (of how valuable) once it was standalone," he said.</p>
<p>Under the deal, Fiat Chrysler shareholders were handed an 80 percent stake in Ferrari in January. While the parent company's shares are down 13 percent year to date, the value of their Ferrari stock is such that investors who held onto both have made a gain of roughly 60 percent.</p>
<p>However, the jury is still out on strategies adopted by the German power companies, which are under pressure from government-subsidized wind and solar electricity.</p>
<p>E.ON spun off its fossil fuel operations into Uniper , while RWE carved out its green energy operations as Innogy in an IPO, while still holding a controlling stake.</p>
<p>Both parent companies have lost around 60 percent of their value over the past five years. Uniper and E.ON, if still regarded as one unit, would be up 1.2 percent since they started trading separately in September. RWE is down 12.5 percent since Innogy listed in October.</p>
<p>ECLIPSE</p>
<p>Philips CEO Frans van Houten is an example of a manager who has embraced the spin-off trend. In May, the group floated Philips Lighting , its original business dating back to 1891, allowing the parent to focus on healthcare equipment.</p>
<p>Both divisions were "great opportunities with a lot of room to grow (but) both required investment; the commonality was minimal other than the Philips brand," Van Houten told Reuters.</p>
<p>Proceeds from the IPO will be reinvested in the high margin health operations while the spin-off, the world's largest lighting company, hopes to have greater access to capital markets to fund M&amp;A.</p>
<p>During his career Van Houten has seen Philips eclipsed in value by not one but two former divisions it has spun off: semiconductor equipment maker ASML , and computer chip maker NXP . He left Philips to oversee NXP's restructuring after it was sold to private equity investors in 2006, returning to Philips in 2011. NXP, which had a new IPO in 2010, is now in the process of being acquired by Qualcomm for $38 billion.</p>
<p>"Definitely my learning there helped me in my thinking," VanHouten said.</p>
<p>After lackluster performance for most of Van Houten's tenure, Philips shares are up 17 percent year to date.</p>
<p>For a graphic on Europe's spinoffs, click http://fingfx.thomsonreuters.com/gfx/rngs/EUROPE-SPINOFFS/010030NE1EV/EUROPE-SPINOFFS.jpg</p>
<p>(Additional reporting by Maiya Keidan, Thomas Escritt, John Revill and Georgina Prodhan; editing by David Stamp)</p> | true | 0 | days european conglomerate may numbered activist shareholders pressing diversified groups spin secondary businesses focus one thing well continue reading many investors analysts managers say world good returns hard come breaking businesses dont belong together profitable theory spinning business divisions allows parent company spinoff alike focus better respective strategies investors tend value highly due greater transparency think demergers destruction conglomerates next major trend mampa market said christer gardell cofounder cevian swedishbased activist investment fund trend already started going run next 10 years said gardell pushing swissswedish engineering giant abb spin power grid equipment division robotics operations conglomerates abb trying hold businesses together others embracing trend either pressure investors even willingly advertisement wave spinoffs initial public offerings ipos among energy industrial groups already underway philips netherlands fiat chrysler italy germanys biggest energy groups eon rwe floated major divisions year german engineer siemens announced similar plans companies many business lines mostly complicated bureaucratic slow usually suffer poor capital allocation poor performance gardell told reuters obviously investors invest complicated structures require discount usually significant discount remove obstacles need discount fade cevian argues says abb shares 21 swiss francs would worth 35 francs separate business arms traded line listed peers abb disagrees power grids business spun part strategic review process examined options division outcome review clear value would created continued transformation power grids abbs ownership spokesman saswato das said outperformance every spinoff works shareholders however jpmorgan study 2015 spinoffs united states trend began earlier europe appears support gardells arguments general found us shares typically rose relatively modest 24 percent sampp 500 average spinoff announced next two years combined value parent company spinoff rose 1520 percent relative values usually rising marc zenner one studys authors said us data would show activist investors also potential across atlantic create value spinoffs europe one reason could see future conglomerate companies said conglomerates lasted longer europe due mix factors insulate managers unhappy shareholders include poison pill rules discourage hostile takeovers higher levels family ownership countries also laws stipulating managers must consider interests employees groups along shareholders firms willing accept limited change one german industrial group thyssenkrupp talks merge struggling european steel business indias tata steel however thyssenkrupp far resisted calls isolate profitable business making elevators also sells car parts engineers military ships chemical plants company announced worse expected profits 2016last week gloomy outlook 2017 analysts said strengthens case breakup management focus investor transparency advocates argue spinoffs better smaller companies stronger focus chiefs greater incentive succeed division heads investors biggest benefit seems increased transparency spinoffs work often market valuing standalone business accurately stronger clarity focus management said drew dickson managing director albert bridge capital dickson doesnt look breakup candidates strategy said revaluation paid one firms investments fiat chrysler group floated ferrari sportscar division october 2015 market knew ferrari valuable could answer question valuable standalone said deal fiat chrysler shareholders handed 80 percent stake ferrari january parent companys shares 13 percent year date value ferrari stock investors held onto made gain roughly 60 percent however jury still strategies adopted german power companies pressure governmentsubsidized wind solar electricity eon spun fossil fuel operations uniper rwe carved green energy operations innogy ipo still holding controlling stake parent companies lost around 60 percent value past five years uniper eon still regarded one unit would 12 percent since started trading separately september rwe 125 percent since innogy listed october eclipse philips ceo frans van houten example manager embraced spinoff trend may group floated philips lighting original business dating back 1891 allowing parent focus healthcare equipment divisions great opportunities lot room grow required investment commonality minimal philips brand van houten told reuters proceeds ipo reinvested high margin health operations spinoff worlds largest lighting company hopes greater access capital markets fund mampa career van houten seen philips eclipsed value one two former divisions spun semiconductor equipment maker asml computer chip maker nxp left philips oversee nxps restructuring sold private equity investors 2006 returning philips 2011 nxp new ipo 2010 process acquired qualcomm 38 billion definitely learning helped thinking vanhouten said lackluster performance van houtens tenure philips shares 17 percent year date graphic europes spinoffs click httpfingfxthomsonreuterscomgfxrngseuropespinoffs010030ne1eveuropespinoffsjpg additional reporting maiya keidan thomas escritt john revill georgina prodhan editing david stamp | 691 |
<p />
<p>The craft beer industry is still growing, but it's definitely beginning to show its age. After years of enjoying double-digit growth rates, the craft beer segment only saw single-digit growth last year, and the concern is that the industry's best years may be behind it.</p>
<p>Continue Reading Below</p>
<p>While there are a number of factors contributing to the slowdown, is it possible we have reached a point where growth is about to go flat, or worse, reverse entirely?</p>
<p>Image source: Getty Images.</p>
<p>The industry trade group Brewers Association said craft beer volume growth slowed to just 6% in 2016, compared to 13% the year beforeand an 18% increase in 2014. Of course, a business or industry can't grow at such a torrid pace forever, and craft beer probably did so far longer than most people expected. But now that it has likely fully matured, it's important to consider what the future holds for craft beer producers.</p>
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<p>Data source: Brewers Association. Chart by author.</p>
<p>As can be seen from the chart above, it appears the heady days of growth are behind the industry. Craft beer has ultimately been a victim of its own success.</p>
<p>While certainly not the first craft beer on the market, Boston Beer (NYSE: SAM) quickly became the face of the industry, and its success helped spur many more home brewers to make the leap into the pro leagues. Its Samuel Adams brand also helped ferment a cultural change in attitude toward what a beer should taste like, going from the relatively weak, amber-colored mass-produced beers that regularly poured out of the breweries of Anheuser-Busch InBev (NYSE: BUD), Miller, and Molson Coors (NYSE: TAP) to a richer, darker, more full-bodied brew.</p>
<p>Today, there are more than 5,300 breweries in operation, more than at any time in the country's history, and 99% of them are craft breweries. In 2011, there were fewer than 2,000 breweries, which means breweries have been growing at over 21% annually. So has the industry reached a saturation point?</p>
<p>Boston Beer has pointed to the explosion of competition for shelf space as one of the reasons its depletions fell last year (depletions are sales to wholesalers and retailers -- they are often considered a proxy for consumer demand).</p>
<p>Yet the growth has also attracted the attention of the mega-brewers, which saw their own sales flatline, then decline, as a result. Molson launched Blue Moon as a mass-craft alternative, and Anheuser-Busch soon followed with Shock Top. But as domestic beer sales continued to weaken, they began buying up smaller competitors, with Anheuser-Busch in particular making a dozen acquisitions in the space. Molson, Heineken, and Constellation Brands (NYSE: STZ) have all made big bets in the craft beer space, too.</p>
<p>Data source: Brewers Association. Chart by author.</p>
<p>And therein lies part of the reason for the decline in the headline numbers in the craft beer industry. The acquisitions have taken out some 1.2 million barrels, and as the Brewers Association notes, because most of the breweries "that exited the data set were from regionals, and the vast majority of the growth came from micros and brewpubs, the craft set got 'smaller' this year."</p>
<p>The trade group defines a craft brewery as one that produces six million barrels or less per year, is less than 25% owned or controlled by a mass brewer, and produces most of its beer by using traditional or innovative brewing ingredients and their fermentation. So while Ballast Point Brewing, for example, was once considered a craft brewer, its purchase by Constellation Brands takes it out of the group. Similarly, Anheuser-Busch's dozen craft beer buys over thelast few years also eliminates them from the count.</p>
<p>Still, the breweries that remained in 2016 added 1.4 million barrels during the year, outpacing the volume taken out and indicating that the overall health of the industry remains sound. But even then, there may simply be too many craft brewers competing for limited shelf space.</p>
<p>Craft beer may have to endure a wave of consolidation and contraction in the next few years. It's likely a sign of things to come that 97 breweries closed last year, up from 68 in 2015, and just 46 the year before that. While there are still plenty appearing in the market to replace them, the increasing competition will only make it more difficult to operate profitably.</p>
<p>Ultimately, a craft beer shakeout would be good for the industry, as it ensures the healthiest breweries remain in operation, even if a few local favorites fall by the wayside.</p>
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<p>*StockAdvisor returns as of April 3, 2017The author(s) may have a position in any stocks mentioned.</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 owns shares of and recommends Anheuser-Busch InBev NV and Boston Beer. 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 | craft beer industry still growing definitely beginning show age years enjoying doubledigit growth rates craft beer segment saw singledigit growth last year concern industrys best years may behind continue reading number factors contributing slowdown possible reached point growth go flat worse reverse entirely image source getty images industry trade group brewers association said craft beer volume growth slowed 6 2016 compared 13 year beforeand 18 increase 2014 course business industry cant grow torrid pace forever craft beer probably far longer people expected likely fully matured important consider future holds craft beer producers advertisement data source brewers association chart author seen chart appears heady days growth behind industry craft beer ultimately victim success certainly first craft beer market boston beer nyse sam quickly became face industry success helped spur many home brewers make leap pro leagues samuel adams brand also helped ferment cultural change attitude toward beer taste like going relatively weak ambercolored massproduced beers regularly poured breweries anheuserbusch inbev nyse bud miller molson coors nyse tap richer darker fullbodied brew today 5300 breweries operation time countrys history 99 craft breweries 2011 fewer 2000 breweries means breweries growing 21 annually industry reached saturation point boston beer pointed explosion competition shelf space one reasons depletions fell last year depletions sales wholesalers retailers often considered proxy consumer demand yet growth also attracted attention megabrewers saw sales flatline decline result molson launched blue moon masscraft alternative anheuserbusch soon followed shock top domestic beer sales continued weaken began buying smaller competitors anheuserbusch particular making dozen acquisitions space molson heineken constellation brands nyse stz made big bets craft beer space data source brewers association chart author therein lies part reason decline headline numbers craft beer industry acquisitions taken 12 million barrels brewers association notes breweries exited data set regionals vast majority growth came micros brewpubs craft set got smaller year trade group defines craft brewery one produces six million barrels less per year less 25 owned controlled mass brewer produces beer using traditional innovative brewing ingredients fermentation ballast point brewing example considered craft brewer purchase constellation brands takes group similarly anheuserbuschs dozen craft beer buys thelast years also eliminates count still breweries remained 2016 added 14 million barrels year outpacing volume taken indicating overall health industry remains sound even may simply many craft brewers competing limited shelf space craft beer may endure wave consolidation contraction next years likely sign things come 97 breweries closed last year 68 2015 46 year still plenty appearing market replace increasing competition make difficult operate profitably ultimately craft beer shakeout would good industry ensures healthiest breweries remain operation even local favorites fall wayside 10 stocks like better thanwalmartwhen investing geniuses david tomgardner stock tip pay listen newsletter theyhave run decade motley fool stock advisor tripled market david tomjust revealed believe ten best stocks opens new windowfor investors buy right walmart wasnt one thats right theythink 10 stocks even better buys click opens new windowto learn picks stockadvisor returns april 3 2017the authors may position stocks mentioned rich duprey opens new window position stocks mentioned motley fool owns shares recommends anheuserbusch inbev nv boston beer motley fool disclosure policy opens new window | 520 |
<p />
<p>RUSH:&#160; I just checked the email.&#160; “Rush, how do you know Trump didn’t mean it?”&#160; Come on.&#160; How do I know Trump didn’t mean it?&#160; There’s not a moment in time, a shred in my body, there’s not a molecule, there’s not an atom in my body that ever, ever thought when Donald Trump said what he said meant that he was going to refuse to accept the outcome of the election.&#160;</p>
<p>It’s not what he said.&#160; That’s what they want people to think he said, but they must be afraid of something.&#160; The next day, this is my point about them, no sense of humor.&#160; Trump goes out and how does he react to the controversy?&#160; There’s a number of ways you can react to this.&#160; After the debate when everybody in the media, I mean, everybody!&#160; Even people you think are friendly are just practically having cows over this.&#160; You can go back to your hotel or get on your airplane and fly away, start wringing your hands, “Oh, my God, oh, geez,” and you maybe think you call a press conference, “Hey, you guys misunderstood.&#160; I didn’t say that.&#160; I didn’t mean that.”&#160; You can do that.&#160;</p>
<p>You could sleep on it and then do a press conference the next morning.&#160; What did Trump do?&#160; He waited ’til his next rally and he went out and confirmed what he said. “I want to pledge to you, lest there be any he doesn’t understand what I’m talking about, I pledge, I promise, I will accept the results of the election on November 8th — pause — if I win.”&#160; The crowd gets it, laughs uproariously.&#160; That was Trump tweaking ’em. That was Trump sticking it in a little further.&#160; He’s toying with them.&#160;</p>
<p>They don’t get it.&#160; The lack of sense of humor, being wound so tight to not understand satire, parody, or to not understand somebody’s personality.&#160; We all have different personalities.&#160; I understand Trump from the day he came down that escalator.&#160; And it’s not because I’ve played golf with him a couple of times.&#160; I know the way he thinks and I way he says things to people, talks to people, the way he makes points, the way he tries to tell people what he thinks, the way he tries to be persuasive.&#160; It isn’t hard.&#160;</p>
<p>But it’s, as I say, a teachable moment for me because they don’t understand. For example — talk about myself for a minute — when I do this program, there’s a whole heck of a lot of it here where I’m just trying to be funny, outrageously funny, a little over the line funny, push the envelope, that’s where they lose it.&#160; We’re not allowed to push the envelope anymore, not allowed to cross the line of propriety that they define.&#160; There isn’t anything funny. There isn’t anything funny about whatever it is I’m talking about.&#160;</p>
<p>So they take things that are intended as humorous comments or a joke and they attach serious political meaning to it and then proceed to get profoundly, deeply outraged and say it’s unacceptable, this is intolerable, this will not stand.&#160; And they’re doing the same thing to Trump, or trying to.&#160; But his supporters all get it.&#160; “But, Mr. Limbaugh, it’s not his supporters that are the problem.&#160; Trump must engage in outreach and try to explain to the people who don’t get what he’s trying to say.”&#160; Well, I understand all that, I understand that thinking.&#160; But that isn’t my point.&#160;</p>
<p>My point is that all of this near unanimous, belief in something that genuinely is — you talk about unhinged, to believe Trump said what you think he said when he didn’t say it.&#160; Didn’t even say it.&#160; To go out then and believe he said it or try to convince other people he said it, convince yourself what he really meant, it’s unhinged.&#160; If these people had been around in the 1700s we’d have never had a revolution.&#160; They would have never tolerated the Founding Fathers’ objections to King George.&#160;</p>
<p>They would have wanted to put in jail people like James Madison and Patrick Henry because they dared speak out against the establishment.&#160; We’d have never had the revolution if the people in the Democrat Party today had been ruling the roost in the media back then.&#160;&#160;</p>
<p>BREAK TRANSCRIPT</p>
<p>RUSH:&#160; Let me ask you a question, folks.&#160; How many people in the establishment have said Donald Trump is unacceptable?&#160; Obama said it, Hillary has said it, every Democrat, Tim Kaine, Biden, they’ve all said he’s unacceptable. Even some Republicans have said he’s unacceptable.&#160; Donald Trump is unacceptable.&#160; They’re the ones trying to tell us that Trump poses this great threat that he might not accept the results of the election, but who is it that’s actually telling us who and who isn’t unacceptable?&#160; And that’s Trump, and they’re telling us about him.</p>
<p>JOHNNY DONOVAN:&#160; And now, from sunny south Florida, it’s Open Line Friday!</p>
<p>RUSH:&#160; Yeah!&#160; Donald Trump’s unacceptable!&#160; We’re not gonna put up with Donald Trump!&#160; Nobody should.&#160; Why’s Trump unacceptable?&#160; That means over half the country’s unacceptable as far as these people are concerned.&#160; It’s a classic example.&#160; We can’t have Trump look what Trump, Trump say he won’t accept the result of the election.&#160; Which is not what he said.&#160; Well, they’re saying they won’t accept him!&#160;</p>
<p>It’s Open Line Friday.&#160; 800-282-2882 if you want to be on the program.&#160; The email address, [email protected].&#160; I’m sorry.&#160; Eibnet.us.&#160; Sorry.&#160; I keep screwing — I need to write this down.&#160; ‘Cause I have gotta have 25 years of syllabic memory here.&#160; [email protected].&#160;</p>
<p>I thought of something.&#160; I made a comment in the last hour that I’m just like you, I know what it’s like to feel ostracized. I know what it’s like.&#160; They work it on all of us, folks.&#160; Snerdley said, “What do you mean, what you mean?&#160; How?”&#160; I’ll give you the greatest — not the greatest, but I’ll give you a good example of it.&#160;</p>
<p>It wasn’t that long ago, maybe, I don’t even remember, five, eight years ago that I was approached to join a group of people that wanted to buy the St. Louis Rams.&#160; I was gonna be a minority investor in the project.&#160; And somehow that information leaked out.&#160; Now, I had been approached by people who knew me, and there had been no more public fan of the NFL for 24 years than me, from the environmentalist wacko picks to violating my no guest rule by having football people on on Fridays, especially Super Bowl week, there was no question.</p>
<p>I was such an NFL fan that I had people calling here saying, “Stick to the issues.&#160; We don’t want to hear about this.”&#160; But then somebody leaked to the media that I was in this group that was going to try to buy the Rams.&#160; You know what happened next?&#160; A bunch of reporters started writing stories quoting me, things I’d never said about wishing for the return of slavery and other abominable things.&#160; Things I had never said that were just totally made up that turned out having emanated from Media Matters.&#160;</p>
<p>These reporters were heralded as doing great work.&#160; A reporter for the New York Daily News went to a couple of NFL locker rooms armed with these quotes seeking out black players.&#160; “Do you want somebody like this owning a team in the NFL?”&#160; We can’t have somebody who wants to return to slavery in this league, no way.&#160; And it mushroomed and it blew up.&#160; I’m sure those of you who were listening around then remember it.</p>
<p>The thing is, everything about it was manufactured and made up.&#160; And the reporters that engaged in this were heralded as doing Pulitzer type work.&#160; So I am entirely familiar with how the left operates.&#160; By the way, what harm could there have ever been with somebody like me owning a smidgen of an NFL team?&#160; But even that was unacceptable.&#160; And the reason it was unacceptable is because the NFL’s mainstream and they were not gonna let that happen, not me being perceived as mainstream or human or any of this simply because I was effective as a conservative.</p>
<p>And the same thing’s being done to Trump.&#160; The exact same hysteria.&#160; Something he didn’t say is being reported as something he did say, and, furthermore, something that he really means, to the point they’re trying to convince people that Trump might go so far as to mount a coup if he loses.&#160; It’s hysteria beyond any boundaries of reality.&#160; So I ask myself, “Why?&#160; What’s behind this hysteria?”&#160;</p>
<p>If it’s so outrageous what Trump said, laugh it off and make fun of the guy and just ridicule him and so forth.&#160; Why this hand-wringing outrage?&#160; I’m not even sure it’s mock outrage.&#160; I think these people are genuinely blown away.&#160; I think they really do think what they think.&#160; Some of them do.&#160; And to them it is maybe the most offensive thing that Trump has ever said. It’s more offensive than whatever they think he did with these women. It’s more offensive than what he did when they claim he mocked a disabled reporter.</p>
<p>To say he’s gonna wait for the outcome of the election to decide how he wants to approach it.&#160; Why, this may constitute the single greatest assault on freedom as we have known it, if you listen to these people.&#160; And there’s no exception.&#160; Every one of ’em, hundreds, thousands of reporters and media people and professional political people around the country all act and think the same way.&#160; And it just doesn’t make sense, unless there’s something going on that we don’t know.&#160; ‘Cause this is not rational behavior.&#160; It’s not a rational reaction.&#160;</p>
<p>And it’s further emphasized by Trump going out the next day and jamming ’em by saying, “Okay.&#160; I’ll accept the results, if I win.”&#160; That’s designed to make ’em explode after they’ve been simmering all night long.&#160; He’s toying with ’em. He’s tweaking ’em.&#160; I know it well.&#160; I do it all the time.&#160; I sometimes even tell you in advance when gonna tweak the media here.&#160; I can do it any time I want.&#160; They fall for it. Even when they know I’m gonna do it, I can make ’em freak out and go get the vapors.&#160;</p>
<p>And I think it has to do with they must really think they’ve got a tentative hold on whatever it is they think of themselves as being members of the establishment, the youthful, young, small club of elites.&#160; I mean, whatever it is, they must think their hold on it is tentative because, man, it seems like they really think it could be taken away from them like that.&#160;</p>
<p>So what are they really afraid of?&#160; Afraid of a rigged election. They’re out there saying, “Trump is impugning hundreds of years of American tradition.&#160; Donald Trump is such a reprobate.&#160; Donald Trump is such scum.&#160; Donald Trump is such human debris.&#160; He’s challenging the integrity of one of the greatest traditions of America.&#160; How dare he.”&#160;</p>
<p>Yet the Democrats constantly engage in the very behavior they accuse Trump of engaging in.&#160; They’re out alleging that this was fraudulent, that was cheated from them, that was taken away from them as though they are somehow the paragons of virtue in all this.&#160; It’s laughable.&#160; I mean, these are the people that stand in the way of every idea to take fraud out of elections.&#160;</p>
<p>They oppose every idea, every great idea to remove fraud from elections, they oppose it.&#160; Photo IDs, purging the voter rolls of people who’ve passed away.&#160; It’s the Democrats who stand in the way, “No, no, no, no, no, no, you can’t take dead people off the rolls.”&#160; Why not?&#160; It’s just clutter, they can’t vote.&#160; Well, you can’t do it.&#160; Wonder why.&#160;</p>
<p>Photo ID.&#160; It’s racist.&#160; It’s racist to demand a photo ID.&#160; How in the hell is that racist?&#160; “Well, black people know the history of this country and you make them go down to city hall, you make them go down to a big, giant government building and tell ’em they have to pose for a picture, damn right they think they’re gonna be sent back to the next plantation.”&#160; Are you kidding me?&#160; This is what they say.&#160; You can’t do photo ID because bring about horrible memories of generations ago in plantation south.&#160; And we can’t do that.&#160; It’s too traumatic.&#160; We can’t have African-Americans being asked to go to a federal building to pose for a picture.&#160;</p>
<p>Well, how many times have they had to do it?&#160; They go to federal buildings for a whole bunch of other reasons.&#160; They go to state government buildings, some of them to work, some of them for other reasons.&#160; What do you mean, you can’t go there to get a picture?&#160; It’s too horrible, too traumatic.&#160;</p>
<p>BREAK TRANSCRIPT</p>
<p>Now, Democrats are worried about cheating, right?&#160; The Democrats are worried about the election being rigged.&#160; Why?&#160; ‘Cause Trump claims that it’s gonna be rigged.&#160; Trump’s out there saying that if he loses, it’s rigged.&#160; This is funny in itself.&#160; You know what they’re thinking?&#160; Trump knows he’s gonna lose, and so Trump in his own mind can’t lose.&#160; Trump is so sick, Trump has such an out-of-control ego, that Trump is so out of touch with reality, he can’t possibly lose, so that if he does, it’s going to be rigged. And, see, Trump knows he’s gonna lose and so he’s out there giving everybody on his side, all of his supporters, he’s telling them right now it’s rigged, because in his mind he can’t legitimately lose an election.&#160;</p>
<p>So they’re trying to construct this picture where Trump knows he’s gonna lose, but he’s such a sick, narcissistic ego maniac that he can’t handle losing, like Algore can, for example.&#160; Ahem.&#160; He can’t handle losing, so he’s already blaming the system.&#160; That’s what he’s doing and in the process he is also tarnishing and besmirching and ripping to shreds our precious election system where there is never any cheating and there’s never any fraud and this guy is coming along and poisoning everything we hold dear.&#160;</p>
<p>I’m telling you the reaction to this is akin to a bunch of people that are on the verge of getting caught.&#160;&#160;</p>
<p>BREAK TRANSCRIPT</p>
<p>RUSH: Let me run something by you, folks, because for the second day in a row I say this. This hysterical reaction to Trump’s essentially common sense and harmless answer, when you get right down to it, did you hear Trump say that he was going to definitely refuse to accept the outcome?&#160; No.&#160; Had he done that, the story the next day would have been “Trump concedes election at final debate.”&#160;</p>
<p>Okay, so why the hysteria?&#160; They know he didn’t say what they want you to think he said.&#160; Why they hysteria?&#160; There has to be a reason for this hysteria, folks.&#160; This is not normal.&#160; This massive identical reaction from hundreds of people is hysterical.&#160; Why?&#160; Could it be — just posing a possibility — could it be that what they actually heard Trump say was this:&#160; “You know you’re cheating, and I know you’re cheating, and I’m not gonna act like your average Republican loser and let you get away with it.”&#160; Could that have been what they heard?&#160;</p>
<p>When Trump said “Stand by.&#160; Let’s wait and see,” could they have heard Trump actually saying, “Look, you guys, I know you’re cheating and you know you’re cheating,” or “I know you’ve cheated and you know you’ve cheated, and I’m not your average Republican loser that isn’t gonna challenge you on it”?&#160; Maybe they heard something like that.&#160; Something has to explain this fear, this hysteria.&#160;</p> | true | 0 | rush160 checked email160 rush know trump didnt mean it160 come on160 know trump didnt mean it160 theres moment time shred body theres molecule theres atom body ever ever thought donald trump said said meant going refuse accept outcome election160 said160 thats want people think said must afraid something160 next day point sense humor160 trump goes react controversy160 theres number ways react this160 debate everybody media mean everybody160 even people think friendly practically cows this160 go back hotel get airplane fly away start wringing hands oh god oh geez maybe think call press conference hey guys misunderstood160 didnt say that160 didnt mean that160 that160 could sleep press conference next morning160 trump do160 waited til next rally went confirmed said want pledge lest doesnt understand im talking pledge promise accept results election november 8th pause win160 crowd gets laughs uproariously160 trump tweaking em trump sticking little further160 hes toying them160 dont get it160 lack sense humor wound tight understand satire parody understand somebodys personality160 different personalities160 understand trump day came escalator160 ive played golf couple times160 know way thinks way says things people talks people way makes points way tries tell people thinks way tries persuasive160 isnt hard160 say teachable moment dont understand example talk minute program theres whole heck lot im trying funny outrageously funny little line funny push envelope thats lose it160 allowed push envelope anymore allowed cross line propriety define160 isnt anything funny isnt anything funny whatever im talking about160 take things intended humorous comments joke attach serious political meaning proceed get profoundly deeply outraged say unacceptable intolerable stand160 theyre thing trump trying to160 supporters get it160 mr limbaugh supporters problem160 trump must engage outreach try explain people dont get hes trying say160 well understand understand thinking160 isnt point160 point near unanimous belief something genuinely talk unhinged believe trump said think said didnt say it160 didnt even say it160 go believe said try convince people said convince really meant unhinged160 people around 1700s wed never revolution160 would never tolerated founding fathers objections king george160 would wanted put jail people like james madison patrick henry dared speak establishment160 wed never revolution people democrat party today ruling roost media back then160160 break transcript rush160 let ask question folks160 many people establishment said donald trump unacceptable160 obama said hillary said every democrat tim kaine biden theyve said hes unacceptable even republicans said hes unacceptable160 donald trump unacceptable160 theyre ones trying tell us trump poses great threat might accept results election thats actually telling us isnt unacceptable160 thats trump theyre telling us johnny donovan160 sunny south florida open line friday rush160 yeah160 donald trumps unacceptable160 gon na put donald trump160 nobody should160 whys trump unacceptable160 means half countrys unacceptable far people concerned160 classic example160 cant trump look trump trump say wont accept result election160 said160 well theyre saying wont accept him160 open line friday160 8002822882 want program160 email address elrushboeibnetcom160 im sorry160 eibnetus160 sorry160 keep screwing need write down160 cause got ta 25 years syllabic memory here160 elrushboeibnetus160 thought something160 made comment last hour im like know like feel ostracized know like160 work us folks160 snerdley said mean mean160 how160 ill give greatest greatest ill give good example it160 wasnt long ago maybe dont even remember five eight years ago approached join group people wanted buy st louis rams160 gon na minority investor project160 somehow information leaked out160 approached people knew public fan nfl 24 years environmentalist wacko picks violating guest rule football people fridays especially super bowl week question nfl fan people calling saying stick issues160 dont want hear this160 somebody leaked media group going try buy rams160 know happened next160 bunch reporters started writing stories quoting things id never said wishing return slavery abominable things160 things never said totally made turned emanated media matters160 reporters heralded great work160 reporter new york daily news went couple nfl locker rooms armed quotes seeking black players160 want somebody like owning team nfl160 cant somebody wants return slavery league way160 mushroomed blew up160 im sure listening around remember thing everything manufactured made up160 reporters engaged heralded pulitzer type work160 entirely familiar left operates160 way harm could ever somebody like owning smidgen nfl team160 even unacceptable160 reason unacceptable nfls mainstream gon na let happen perceived mainstream human simply effective conservative things done trump160 exact hysteria160 something didnt say reported something say furthermore something really means point theyre trying convince people trump might go far mount coup loses160 hysteria beyond boundaries reality160 ask why160 whats behind hysteria160 outrageous trump said laugh make fun guy ridicule forth160 handwringing outrage160 im even sure mock outrage160 think people genuinely blown away160 think really think think160 do160 maybe offensive thing trump ever said offensive whatever think women offensive claim mocked disabled reporter say hes gon na wait outcome election decide wants approach it160 may constitute single greatest assault freedom known listen people160 theres exception160 every one em hundreds thousands reporters media people professional political people around country act think way160 doesnt make sense unless theres something going dont know160 cause rational behavior160 rational reaction160 emphasized trump going next day jamming em saying okay160 ill accept results win160 thats designed make em explode theyve simmering night long160 hes toying em hes tweaking em160 know well160 time160 sometimes even tell advance gon na tweak media here160 time want160 fall even know im gon na make em freak go get vapors160 think must really think theyve got tentative hold whatever think members establishment youthful young small club elites160 mean whatever must think hold tentative man seems like really think could taken away like that160 really afraid of160 afraid rigged election theyre saying trump impugning hundreds years american tradition160 donald trump reprobate160 donald trump scum160 donald trump human debris160 hes challenging integrity one greatest traditions america160 dare he160 yet democrats constantly engage behavior accuse trump engaging in160 theyre alleging fraudulent cheated taken away though somehow paragons virtue this160 laughable160 mean people stand way every idea take fraud elections160 oppose every idea every great idea remove fraud elections oppose it160 photo ids purging voter rolls people whove passed away160 democrats stand way cant take dead people rolls160 not160 clutter cant vote160 well cant it160 wonder why160 photo id160 racist160 racist demand photo id160 hell racist160 well black people know history country make go city hall make go big giant government building tell em pose picture damn right think theyre gon na sent back next plantation160 kidding me160 say160 cant photo id bring horrible memories generations ago plantation south160 cant that160 traumatic160 cant africanamericans asked go federal building pose picture160 well many times it160 go federal buildings whole bunch reasons160 go state government buildings work reasons160 mean cant go get picture160 horrible traumatic160 break transcript democrats worried cheating right160 democrats worried election rigged160 why160 cause trump claims gon na rigged160 trumps saying loses rigged160 funny itself160 know theyre thinking160 trump knows hes gon na lose trump mind cant lose160 trump sick trump outofcontrol ego trump touch reality cant possibly lose going rigged see trump knows hes gon na lose hes giving everybody side supporters hes telling right rigged mind cant legitimately lose election160 theyre trying construct picture trump knows hes gon na lose hes sick narcissistic ego maniac cant handle losing like algore example160 ahem160 cant handle losing hes already blaming system160 thats hes process also tarnishing besmirching ripping shreds precious election system never cheating theres never fraud guy coming along poisoning everything hold dear160 im telling reaction akin bunch people verge getting caught160160 break transcript rush let run something folks second day row say hysterical reaction trumps essentially common sense harmless answer get right hear trump say going definitely refuse accept outcome160 no160 done story next day would trump concedes election final debate160 okay hysteria160 know didnt say want think said160 hysteria160 reason hysteria folks160 normal160 massive identical reaction hundreds people hysterical160 why160 could posing possibility could actually heard trump say this160 know youre cheating know youre cheating im gon na act like average republican loser let get away it160 could heard160 trump said stand by160 lets wait see could heard trump actually saying look guys know youre cheating know youre cheating know youve cheated know youve cheated im average republican loser isnt gon na challenge it160 maybe heard something like that160 something explain fear hysteria160 | 1,370 |
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<p>It may be too early to tell, but Britain's vote to leave the European Union, which is more affably known as the "Brexit," may go down as the straw that broke the EU's back.</p>
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<p>In the two business days following the Brexit vote (Friday, June 24, and Monday, June 27), the three biggest U.K. banks -- Barclays , Royal Banks of Scotland , and Lloyds Banking Group -- shed a third of their value, or about $46.4 billion. With little clarity as to how long a Brexit might take, or if the Brexit could indeed push the U.K. into recession as some pundits fear, banks are expected to feel the brunt of the uncertainty. Not to mention the Brexit essentially takes any chance of interest-rate hikes firmly off the table, thus eliminating any chance of net interest margin expansion.</p>
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<p>The referendum vote isn't just a potential blow for Britain; it could be even more trouble for some EU nations. With the EU now perceived as financially weaker without Britain, member nations with more precarious debt loads, such as Portugal, Italy, Greece, and Spain -- a.k.a. the PIGS -- could be in even worse shape. During the two-day period following the Brexit, the stock indexes in Portugal, Italy, Greece, and Spain lost 9.2%, 15.9%, 12.4% and 14%, respectively.</p>
<p>Once more, the Brexit isn't just going to be confined to Britain and even the EU. The possibility of lost growth in Britain and the EU, and the need to rework trade deals, could result in economic instability throughout the developed world. In the two-day period following the Brexit, $3 trillion (with a "T") in market value was wiped out globally. This includes $2.1 trillion in total market losses registered on Friday, eclipsing the previous single-day record of $1.9 trillion in lost market value that occurred on Sept. 29, 2008, when the U.S. Congress voted against a Wall Street bailout. Friday's 610-point plummet from the Dow Jones represented its eighth-largest point drop in history, albeit just 3.4% in percentage terms.</p>
<p>Currency markets may make large moves over substantial periods of time, but it's often rare to see currencies move more than, say, 1% or 2% on a daily basis. In a matter of hours following the Brexit vote, the British pound versus the U.S. dollar fell from just north of $1.50 to as low as $1.33, marking the biggest single-day move for the pound, ever. Currencies tend to move in step with economic expectations; thus, the plunge in the pound would portend U.K. economic weakness on the horizon.</p>
<p>Image source: Getty Images.</p>
<p>Understanding the unprecedented nature of the Brexit, and the uncertainty it caused in global markets, the Bank of England announced on Friday that it would stand at the ready to pump approximately $335 billion (250 billion pounds) into "normal facilities" to stabilize U.K. markets and financial institutions, if need be. A similar message was heard from the European Central Bank, which added that it was on stand-by to provide additional liquidity, although it didn't list a specific figure.</p>
<p>While the markets were tanking, flight-to-safety defensive plays were mostly soaring. There's perhaps no more sought-after investment during times of market instability than gold. Having already logged its <a href="http://www.fool.com/investing/general/2016/04/27/7-stock-market-events-in-2016-that-havent-occurred.aspx?source=eptfxblnk0000004" type="external">best quarter in 30 years Opens a New Window.</a> during Q1, gold wound up bouncing off of its lows of $1,252 an ounce to trade, just hours later, as high as $1,364 an ounce. The move put gold at a two-year high and signaled a discernible shift in investor sentiment. Spot prices have since eased a bit, but gold is still trading near $1,320 an ounce and may have further room to run.</p>
<p>With gold prices rising, domestic investors' appetite for risk has been falling -- fast! U.S. Treasury bonds are often viewed as another safe-haven to park your money because of their essentially guaranteed returns, since they're backed by the full faith of the U.S. government. However, bond prices and bond yields have an inverse relationship. As investors have flocked to buy bonds, yields on those bonds have fallen to near record lows. The yield on the 10-year U.S. Treasury has dipped to just 1.46% and could wind up pushing into record-low yield territory. This would be great for those with debt or a mortgage, but terrible for seniors looking for interest-based income in retirement.</p>
<p>Image source: Getty Images.</p>
<p>Finally, in the wake of Thursday's referendum vote, some 3.9 million British citizens have now signed a petition requesting a do-over vote. Keep in mind that this petition was begun back in late May. The British Parliament is required to debate petitions that gather more than 100,000 signatures, but a second vote appears unlikely at the moment, unless anti-Brexit sentiment swells and global financial markets take a beating.</p>
<p>It's certainly been a rough go out there for investors, but the only statistic you need to keep in mind is that out of 35 stock market corrections since 1950, every single one has been wiped out by a rally of some sort within a matter of weeks, months, or, in some cases, years. Buying with regularity when we're off our highs has worked out well for long-term investors for decades, and I don't see that pattern changing anytime soon.</p>
<p>The article <a href="http://www.fool.com/investing/2016/06/29/8-stunning-figures-that-sum-up-whats-happened-sinc.aspx" type="external">8 Stunning Figures That Sum Up What's Happened Since the Brexit Vote 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>, 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 getty images continue reading may early tell britains vote leave european union affably known brexit may go straw broke eus back stunning vote last week 722 britains 465 million eligible voters cast ballots 519 favor leaving eu 481 favor staying financial pundits expecting tight race openly expected britains voters would choose exit eu brexit happening theres real possibility countries could follow suit precedent entire world witnessing global markets havent taken things well fact postbrexit investing environment downright ugly eight stunning figures sum whats happened days passed since brexit advertisement two business days following brexit vote friday june 24 monday june 27 three biggest uk banks barclays royal banks scotland lloyds banking group shed third value 464 billion little clarity long brexit might take brexit could indeed push uk recession pundits fear banks expected feel brunt uncertainty mention brexit essentially takes chance interestrate hikes firmly table thus eliminating chance net interest margin expansion image source getty images referendum vote isnt potential blow britain could even trouble eu nations eu perceived financially weaker without britain member nations precarious debt loads portugal italy greece spain aka pigs could even worse shape twoday period following brexit stock indexes portugal italy greece spain lost 92 159 124 14 respectively brexit isnt going confined britain even eu possibility lost growth britain eu need rework trade deals could result economic instability throughout developed world twoday period following brexit 3 trillion market value wiped globally includes 21 trillion total market losses registered friday eclipsing previous singleday record 19 trillion lost market value occurred sept 29 2008 us congress voted wall street bailout fridays 610point plummet dow jones represented eighthlargest point drop history albeit 34 percentage terms currency markets may make large moves substantial periods time often rare see currencies move say 1 2 daily basis matter hours following brexit vote british pound versus us dollar fell north 150 low 133 marking biggest singleday move pound ever currencies tend move step economic expectations thus plunge pound would portend uk economic weakness horizon image source getty images understanding unprecedented nature brexit uncertainty caused global markets bank england announced friday would stand ready pump approximately 335 billion 250 billion pounds normal facilities stabilize uk markets financial institutions need similar message heard european central bank added standby provide additional liquidity although didnt list specific figure markets tanking flighttosafety defensive plays mostly soaring theres perhaps soughtafter investment times market instability gold already logged best quarter 30 years opens new window q1 gold wound bouncing lows 1252 ounce trade hours later high 1364 ounce move put gold twoyear high signaled discernible shift investor sentiment spot prices since eased bit gold still trading near 1320 ounce may room run gold prices rising domestic investors appetite risk falling fast us treasury bonds often viewed another safehaven park money essentially guaranteed returns since theyre backed full faith us government however bond prices bond yields inverse relationship investors flocked buy bonds yields bonds fallen near record lows yield 10year us treasury dipped 146 could wind pushing recordlow yield territory would great debt mortgage terrible seniors looking interestbased income retirement image source getty images finally wake thursdays referendum vote 39 million british citizens signed petition requesting doover vote keep mind petition begun back late may british parliament required debate petitions gather 100000 signatures second vote appears unlikely moment unless antibrexit sentiment swells global financial markets take beating certainly rough go investors statistic need keep mind 35 stock market corrections since 1950 every single one wiped rally sort within matter weeks months cases years buying regularity highs worked well longterm investors decades dont see pattern changing anytime soon article 8 stunning figures sum whats happened since brexit vote opens new window originally appeared foolcom 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 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 | 694 |
<p>Dollar jumps to 2-week high as Federal Reserve says it will start asset next month</p>
<p>U.S. stock benchmarks retreated Wednesday afternoon as the Federal Reserve announced that, for the first time in nine years, it would start reducing the size of its $4.5 trillion asset portfolio starting in October.</p>
<p>Continue Reading Below</p>
<p>The U.S. central bank kept interest rates unchanged, as widely expected, but said it would start to shrink its balance sheet by $10 billion a month. The start of the asset unwind also places another rate increase before the end of the year by the Fed back on the table, signaling more definitively an end to the easy-money policies in the U.S. and an unprecedented unwind of crisis-era asset purchases that had helped to buoy markets over the past decade.</p>
<p>"Even though this is a slow and deliberate and thoughtful unwind plan, it is not without its potential to rattle markets," said Kristina Hooper, global market strategist at Invesco.</p>
<p>The Dow Jones Industrial Average was down 41 points, or 0.2%, at 22,337, after hitting a fresh intraday record at 22,399.33.</p>
<p>The S&amp;P 500 index was down 8 points, or 0.3%, at 2,597, after briefly touching its own fresh intraday day record at 2,508.85.</p>
<p>The Nasdaq Composite Index , meanwhile, was down a firmer 43 points, or 0.7%, at 6,420.</p>
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<p>Meanwhile, 10-year Treasury note yield jumped to 2.27%, compared with 2.23% earlier in the session, with expectations for higher rates and additional monetary tightening, via the portfolio decrease, encouraging selling in government bonds, pushing yields, which move in the opposite direction to prices, higher. The dollar, which draws bidders in a higher interest-rate regime, enjoyed a fillip, up 0.7% at 92.475, based on the ICE U.S. Dollar Index , which measures the buck against a half-dozen currencies.</p>
<p>Read:Why stock market investors shouldn't sweat a shrinking Fed balance sheet (http://www.marketwatch.com/story/why-stock-market-investors-shouldnt-sweat-a-shrinking-fed-balance-sheet-2017-09-19)</p>
<p>The Fed kept its targeted federal-funds rate between 1% to 1.25%, and said the devastation caused by Hurricanes Harvey and Irma isn't likely to materially alter the course of the economy over the medium term.</p>
<p>The Fed's interest rate projections, known as the so-called dot plot, suggests an interest-rate hike in December and three more in 2018.</p>
<p>A news conference hosted by Chairwoman Janet Yellen was set for 2:30 p.m. Eastern.</p>
<p>Check out:A live blog of the Fed's news conference (http://blogs.marketwatch.com/capitolreport/2017/09/20/fed-decision-and-janet-yellen-press-conference-live-blog-and-video-2/)</p>
<p>Some industry participants have been describing the asset reduction as the "great unwind (http://www.marketwatch.com/story/how-the-great-central-bank-unwind-could-ignite-the-next-financial-crisis-2017-09-20)" and worrying that it might roil markets. "It is the start of something unknown, it is going to start jitters. It is going to make us tremble," said John Manley, chief equity strategist at Wells Fargo Funds Management.</p>
<p>However, the Fed is aiming to offer as little disruption as possible, he noted.</p>
<p>Several central-bank officials already wanted to start winding down the Fed's portfolio of government securities in July, but the majority wanted to hold until a later date. Traders now expect the FOMC on Wednesday to reveal details on a balance-sheet reduction (http://www.marketwatch.com/story/feds-balance-sheet-unwind-will-be-moment-of-truth-for-financial-markets-2017-09-18) that could start as early as October.</p>
<p>In other economic news on Wednesday, a reading on existing-home sales for August showed that sales dropped for the fourth time in five months as real-estate agents continue to blame a lack of available homes to buy. The National Association of Realtors said existing home sales fell (http://www.marketwatch.com/story/existing-home-sales-fall-in-august-for-the-fourth-time-in-five-months-2017-09-20)1.7% to a seasonally adjusted rate of 5.35 million.</p>
<p>See:MarketWatch's economic calendar (http://www.marketwatch.com/economy-politics/calendars/economic).</p>
<p>Stock movers: Shares of General Mills Inc.(GIS) slid 5% after the food company, which brands include Cheerios, Haagen-Dazs and Betty Crocker, missed profit and sales expectations (http://www.marketwatch.com/story/general-mills-stock-tumbles-after-profit-and-sales-miss-2017-09-20).</p>
<p>Alnylam Pharmaceuticals Inc. (ALNY) soared 40% after positive results in a late-stage trial (http://www.marketwatch.com/story/sanofi-alnylam-report-positive-results-from-late-stage-trial-of-hattr-amyloidosis-treatment-2017-09-20).</p>
<p>Shares of American Outdoor Brands Corp.(AOBC) declined 3.6%, despite reports late Tuesday that President Donald Trump will ease rules on gun exports.</p>
<p>Bed Bath &amp; Beyond Inc.(BBBY) slumped more than 14% ahead of the bell after the retailer late on Tuesday released earnings that widely missed forecasts (http://www.marketwatch.com/story/bed-bath-beyond-earnings-miss-widely-stock-halted-2017-09-19).</p>
<p>FedEx Corp.(FDX) added 2.2% after the logistics company late Tuesday reported earnings below forecasts (http://www.marketwatch.com/story/fedex-shares-down-after-earnings-company-pins-miss-on-cyberattack-hurricane-harvey-2017-09-19), saying the quarter offered "significantly operational challenges" due to a cyberattack and Hurricane Harvey.</p>
<p>Microsoft Corp. (MSFT) slipped less than 0.8%, even as the software major late Tuesday increased its dividend to 42 cents a share (http://www.marketwatch.com/story/microsoft-hikes-quarterly-dividend-announces-changes-to-board-of-directors-2017-09-19).</p>
<p>Other markets: Stocks in Europe were mostly higher, although the U.K.'s FTSE 100 index (http://www.marketwatch.com/story/ftse-100-edges-up-as-fed-decision-takes-center-stage-2017-09-20)underperformed due to a rise in the pound. Sterling strengthened after U.K. retail sales for August showed a bigger rise than expected (http://www.marketwatch.com/story/uk-retail-sales-rise-faster-than-expected-2017-09-20).</p>
<p>Asian stocks closed mixed (http://www.marketwatch.com/story/asian-markets-press-pause-ahead-of-fed-announcement-2017-09-19) as traders there remained cautious ahead of the Fed call.</p>
<p>Crude-oil prices rose firmly (http://www.marketwatch.com/story/crude-prices-rise-on-signs-of-drop-in-global-inventories-2017-09-20) to $50.81 a barrel, while metals gained across the board, with gold futures trading at around $1,305 an ounce, falling in electronic trade after the Fed announcement. (http://www.marketwatch.com/story/gold-prices-pause-losing-skid-as-fed-signals-awaited-2017-09-20)</p>
<p>(END) Dow Jones Newswires</p>
<p>September 20, 2017 14:40 ET (18:40 GMT)</p> | true | 0 | dollar jumps 2week high federal reserve says start asset next month us stock benchmarks retreated wednesday afternoon federal reserve announced first time nine years would start reducing size 45 trillion asset portfolio starting october continue reading us central bank kept interest rates unchanged widely expected said would start shrink balance sheet 10 billion month start asset unwind also places another rate increase end year fed back table signaling definitively end easymoney policies us unprecedented unwind crisisera asset purchases helped buoy markets past decade even though slow deliberate thoughtful unwind plan without potential rattle markets said kristina hooper global market strategist invesco dow jones industrial average 41 points 02 22337 hitting fresh intraday record 2239933 sampp 500 index 8 points 03 2597 briefly touching fresh intraday day record 250885 nasdaq composite index meanwhile firmer 43 points 07 6420 advertisement meanwhile 10year treasury note yield jumped 227 compared 223 earlier session expectations higher rates additional monetary tightening via portfolio decrease encouraging selling government bonds pushing yields move opposite direction prices higher dollar draws bidders higher interestrate regime enjoyed fillip 07 92475 based ice us dollar index measures buck halfdozen currencies readwhy stock market investors shouldnt sweat shrinking fed balance sheet httpwwwmarketwatchcomstorywhystockmarketinvestorsshouldntsweatashrinkingfedbalancesheet20170919 fed kept targeted federalfunds rate 1 125 said devastation caused hurricanes harvey irma isnt likely materially alter course economy medium term feds interest rate projections known socalled dot plot suggests interestrate hike december three 2018 news conference hosted chairwoman janet yellen set 230 pm eastern check outa live blog feds news conference httpblogsmarketwatchcomcapitolreport20170920feddecisionandjanetyellenpressconferenceliveblogandvideo2 industry participants describing asset reduction great unwind httpwwwmarketwatchcomstoryhowthegreatcentralbankunwindcouldignitethenextfinancialcrisis20170920 worrying might roil markets start something unknown going start jitters going make us tremble said john manley chief equity strategist wells fargo funds management however fed aiming offer little disruption possible noted several centralbank officials already wanted start winding feds portfolio government securities july majority wanted hold later date traders expect fomc wednesday reveal details balancesheet reduction httpwwwmarketwatchcomstoryfedsbalancesheetunwindwillbemomentoftruthforfinancialmarkets20170918 could start early october economic news wednesday reading existinghome sales august showed sales dropped fourth time five months realestate agents continue blame lack available homes buy national association realtors said existing home sales fell httpwwwmarketwatchcomstoryexistinghomesalesfallinaugustforthefourthtimeinfivemonths2017092017 seasonally adjusted rate 535 million seemarketwatchs economic calendar httpwwwmarketwatchcomeconomypoliticscalendarseconomic stock movers shares general mills incgis slid 5 food company brands include cheerios haagendazs betty crocker missed profit sales expectations httpwwwmarketwatchcomstorygeneralmillsstocktumblesafterprofitandsalesmiss20170920 alnylam pharmaceuticals inc alny soared 40 positive results latestage trial httpwwwmarketwatchcomstorysanofialnylamreportpositiveresultsfromlatestagetrialofhattramyloidosistreatment20170920 shares american outdoor brands corpaobc declined 36 despite reports late tuesday president donald trump ease rules gun exports bed bath amp beyond incbbby slumped 14 ahead bell retailer late tuesday released earnings widely missed forecasts httpwwwmarketwatchcomstorybedbathbeyondearningsmisswidelystockhalted20170919 fedex corpfdx added 22 logistics company late tuesday reported earnings forecasts httpwwwmarketwatchcomstoryfedexsharesdownafterearningscompanypinsmissoncyberattackhurricaneharvey20170919 saying quarter offered significantly operational challenges due cyberattack hurricane harvey microsoft corp msft slipped less 08 even software major late tuesday increased dividend 42 cents share httpwwwmarketwatchcomstorymicrosofthikesquarterlydividendannounceschangestoboardofdirectors20170919 markets stocks europe mostly higher although uks ftse 100 index httpwwwmarketwatchcomstoryftse100edgesupasfeddecisiontakescenterstage20170920underperformed due rise pound sterling strengthened uk retail sales august showed bigger rise expected httpwwwmarketwatchcomstoryukretailsalesrisefasterthanexpected20170920 asian stocks closed mixed httpwwwmarketwatchcomstoryasianmarketspresspauseaheadoffedannouncement20170919 traders remained cautious ahead fed call crudeoil prices rose firmly httpwwwmarketwatchcomstorycrudepricesriseonsignsofdropinglobalinventories20170920 5081 barrel metals gained across board gold futures trading around 1305 ounce falling electronic trade fed announcement httpwwwmarketwatchcomstorygoldpricespauselosingskidasfedsignalsawaited20170920 end dow jones newswires september 20 2017 1440 et 1840 gmt | 539 |
<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: Invesco Ltd.</p>
<p>Advertisement</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 2018</p>
<p>For an opening position disclosure, state the latest</p>
<p>practicable date prior to the disclosure</p>
<p>(f) In addition to the company in 1(c) above, is the Yes: Booker Group Plc.</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>1. Interests and short positions in the relevant securities of the offeror</p>
<p>or offeree to which the disclosure relates following the dealing (if any)</p>
<p>GB0008847096</p>
<p>Class of relevant security: 5p Ordinary</p>
<p>Interests Short positions</p>
<p>Number % Number %</p>
<p>(1) Relevant securities owned and/or controlled: 28,477,787 0.34%</p>
<p>(2) Cash-settled derivatives:</p>
<p>(3) Stock-settled derivatives (including options)</p>
<p>and agreements to purchase/sell:</p>
<p>TOTAL: 28,477,787 0.34%</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>1. Purchases and sales</p>
<p>Class of relevant Purchase/sale Number of securities Price per unit</p>
<p>security</p>
<p>Ordinary Purchase 2,515,429 2.09 GBP</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 Nature of dealing Details Price per unit</p>
<p>relevant e.g. subscription, conversion (if</p>
<p>security 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: Philippa Holmes</p>
<p>Telephone number: 01491 417 447</p>
<p>Public disclosures under Rule 8 of the Code must be made to a Regulatory</p>
<p>Information Service and must also be emailed to the Takeover Panel at</p>
<p>[email protected]. The Panel's Market Surveillance Unit is</p>
<p>available for consultation in relation to the Code's disclosure</p>
<p>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: Invesco Ltd. via Globenewswire</p>
<p>http://www.invescoperpetual.co.uk/</p>
<p>(END) Dow Jones Newswires</p>
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<p>Vacuum cleaners that pose an electric shock risk to users are among this week's recalled consumer products. Others include Trek bicycles with a defect that has caused several injuries.</p>
<p>Here's a more detailed look:</p>
<p>Continue Reading Below</p>
<p>VACUUM CLEANERS</p>
<p>DETAILS: Four models of Shark brand Rotator Powered Lift-Away series upright vacuum cleaners. They are either maroon or purple with a clear plastic middle section. Shark and Rotator are printed on the front of the vacuum cleaners. Recalled model numbers include NV650W, NV651, NV652 and NV660. The model number is printed on a silver sticker on the upper right-hand corner of the back of the unit. They were sold at Bed Bath &amp; Beyond, Best Buy, Kohl's, Lowes, Target and other stores nationwide, online at www.sharkclean.com and through television infomercials from August 2014 through March 2015.</p>
<p>WHY: The aluminum wand can disconnect from the handle and remain energized with electricity, posing a risk of electric shock.</p>
<p>INCIDENTS: 62 reports of incidents in which the aluminum wand disconnected from the handle. No injuries have been reported.</p>
<p>HOW MANY: About 142,000 in the U.S. and about 650 in Canada.</p>
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<p>FOR MORE: Call Euro-Pro at 877-593-5140 from 7 a.m. to 11 p.m. ET Monday through Saturday and from 9 a.m. to 8 p.m. ET on Sunday or visit www.sharkrecall.com , or click on "Recall" at www.sharkclean.com or www.europro.com for more information.</p>
<p>BICYCLES</p>
<p>DETAILS: All models of Trek bicycles from model years 2000 through 2015 equipped with front disc brakes and a black or silver quick release lever on the front wheel hub that opens far enough to contact the disc brake. Bicycles with front quick release levers that do not open a full 180 degrees from the closed position, are not included in this recall. They were sold at bicycle stores nationwide from about September 1999 through April 2015.</p>
<p>WHY: An open quick release lever on the bicycle's front wheel hub can come into contact with the front disc brake assembly, causing the front wheel to come to a sudden stop or separate from the bicycle, posing a risk of injury to the rider.</p>
<p>INCIDENTS: Three incidents, all including injuries, with one resulting in quadriplegia, a second facial injuries and a third resulting in a fractured wrist.</p>
<p>HOW MANY: About 900,000 in the U.S. and 98,000 in Canada.</p>
<p>FOR MORE: Call Trek at 800-373-4594 from 8 a.m. to 6 p.m. CT Monday through Friday, or visit www.trekbikes.com and click on "Safety &amp; Recalls" at the bottom of the page for more information.</p>
<p>SKI BOOT LINERS</p>
<p>DETAILS: Ertlrenz Trim Heat and Foam Heat ski boot liners. Every product is accompanied by a charger and a remote control for the heating system. There also is an accompanying Ertlrenz instruction manual supplied with the heat liners at the time of purchase. They were sold at Gorsuch Ltd. stores in Aspen, Vail and Beaver Creek, Colorado from November 2011 through March 2015.</p>
<p>WHY: The liner can overheat when charging, posing a fire hazard.</p>
<p>INCIDENTS: Three reports of the heat liners smoldering during the charging process. No injuries have been reported.</p>
<p>HOW MANY: About 300.</p>
<p>FOR MORE: Call Gorsuch at 844-451-8650 between 9 a.m. and 5 p.m. ET Monday through Friday, or visit www.gorsuch.com and click on "Recall Heat Liners" for more information.</p>
<p>NOTEBOOK COMPUTER BATTERY PACKS</p>
<p>DETAILS: Lenovo battery packs sold from February 2010 through June 2012 with the following ThinkPad notebook computers: the Edge 11, 13, 14, 15, 120, 125, 320, 325, 420, 425, 430, 520, 525 and 530 series; the L412, L420/421, L512 and L520 series; the T410, T420, T510 and T520 series; the W510 and W520 series; and the X100e, X120e, X121e, X130e, X200, X200s, X201, X201s, X220 and X220t series. The battery packs were also sold separately and more details on those can be found at http://www.cpsc.gov/en/Recalls/2015/Lenovo-Expands-Recall-of-Battery-Packs-for-ThinkPad-Notebook-Computers/</p>
<p>WHY: The battery packs can overheat, posing a fire hazard.</p>
<p>INCIDENTS: Four reports of battery packs overheating and damaging the computers, battery packs and surrounding property. One incident included a consumer's skin being reddened and burn marks on the consumer's clothing.</p>
<p>HOW MANY: About 148,800 in the U.S. and 17,700 in Canada. About 34,500 in the U.S. and 2,900 in Canada were recalled in March 2014.</p>
<p>FOR MORE: Call Lenovo at 800-426-7378 from 9 a.m. to 5 p.m. ET Monday through Friday or visit www.lenovo.com and select "Support" at the top of the page, then click on the link to the recall page in the "News and Alerts" section at the bottom right of the page for more information.</p>
<p>HAIR DRYERS</p>
<p>DETAILS: Sweet Heat hand-held hair dryers. The hair dryers are white and have the words "Sweet Heat" printed in black near the blower nozzle. "AG Hair" is printed in grey and black on the back of the blower nozzle, above the handle. They were sold at ULTA Beauty and other beauty supply stores and hair salons nationwide from May 2013 through March 2015.</p>
<p>WHY: The hair dryers do not have an immersion protection device, which guards against electrocution or shock if the dryer is immersed in water.</p>
<p>INCIDENTS: None reported.</p>
<p>HOW MANY: About 3,100.</p>
<p>FOR MORE: Call AG Hair at 866-924-4247 from 11:30 a.m. to 7 p.m. ET, Monday through Friday, send email to [email protected], or visit www.aghair.com and click on "Recall Notice" for more information.</p>
<p>BABY COVERALLS</p>
<p>DETAILS: J. Crew baby coveralls in sizes newborn to 2T. They were sold in J. Crew stores in California, Florida, Georgia, Illinois, Massachusetts, New Jersey, New York, Texas, and Washington, D.C., online at jcrew.com and the J.Crew catalog from April 2014 to March 2015. A care label sewn into the inside left seam of the garment lists the PO number, style number and "SU '14." PO and style numbers included in the recall are:</p>
<p>Style #A8248, PO numbers: 8044696, 8044697, 5046904 and SU '14</p>
<p>Style #A8249, PO numbers: 8044644, 5046905 and SU '14</p>
<p>Style #A8251, PO number: 8044643 and SU '14</p>
<p>Style #A8252, PO numbers: 8044642, 5046906 and SU '14</p>
<p>Style #A8273, PO number: 8044659 and SU '14</p>
<p>Style #A8274, PO numbers: 8044660, 5046909 and SU '14</p>
<p>Style #A8276, PO numbers: 8044661, 5046910 and SU '14</p>
<p>Style #A8341, PO number: 8044663 and SU '14</p>
<p>Style #A8358, PO numbers: 8044662, 5046911 and SU '14</p>
<p>Style #B3605, PO number: 8046744 and SU '14</p>
<p>Style #B3606, PO number: 8046743 and SU '14</p>
<p>Style #B3607, PO numbers: 8046745, 8046746, 5048693 and SU '14</p>
<p>WHY: Snaps on the coveralls can detach, posing a choking hazard to young children.</p>
<p>INCIDENTS: 10 reports of snaps detaching. No injuries have been reported.</p>
<p>HOW MANY: About 20,000. 8,700 additional baby coveralls were recalled in May 2014.</p>
<p>FOR MORE: Call J. Crew at 800-261-7422 anytime, send email to [email protected] or visit www.jcrew.com/baby and click on "Important Notice" for more information.</p>
<p>CHILDREN'S PAJAMA SETS</p>
<p>DETAILS: Children's pajamas from Roberta Roller Rabbit by Roberta Freyman. The 100-percent cotton, two-piece pajama sets were sold in toddler size 1 through youth 12. The sets were sold in two styles; long-sleeve with pants or short-sleeve with shorts. Both styles were sold in eighteen prints in various colors: Babar, Bump, Christopher, Colada, Dino, Elephant, Goby, Hathi, Heart, Heebo, Moby, Monkey, Owl, Rain, Rico, Scotty, Teddy, and Ticochon. Roberta Roller Rabbit is identified on a yellow label sewn into the neck and waist of both the top and bottom. This recall includes all children's sleepwear garments with a sewn-in label at the neck. They were sold at Roberta Roller Rabbit retail stores, online at www.robertarollerrabbit.com and through other retail and wholesale outlets from January 2012 through February 2015.</p>
<p>WHY: The children's pajama sets fail to meet federal flammability standards for children's sleepwear, posing a risk of burn injury to children.</p>
<p>INCIDENTS: None reported.</p>
<p>HOW MANY: About 32,000.</p>
<p>FOR MORE: Call Roberta Roller Rabbit at 866-227-6938 from 9 a.m. to 5 p.m. ET Monday through Friday or visit www.robertarollerrabbit.com and click on the "Recall" tab located under the "Product Recall" section on the bottom left side of the home page.</p> | true | 0 | vacuum cleaners pose electric shock risk users among weeks recalled consumer products others include trek bicycles defect caused several injuries heres detailed look continue reading vacuum cleaners details four models shark brand rotator powered liftaway series upright vacuum cleaners either maroon purple clear plastic middle section shark rotator printed front vacuum cleaners recalled model numbers include nv650w nv651 nv652 nv660 model number printed silver sticker upper righthand corner back unit sold bed bath amp beyond best buy kohls lowes target stores nationwide online wwwsharkcleancom television infomercials august 2014 march 2015 aluminum wand disconnect handle remain energized electricity posing risk electric shock incidents 62 reports incidents aluminum wand disconnected handle injuries reported many 142000 us 650 canada advertisement call europro 8775935140 7 11 pm et monday saturday 9 8 pm et sunday visit wwwsharkrecallcom click recall wwwsharkcleancom wwweuroprocom information bicycles details models trek bicycles model years 2000 2015 equipped front disc brakes black silver quick release lever front wheel hub opens far enough contact disc brake bicycles front quick release levers open full 180 degrees closed position included recall sold bicycle stores nationwide september 1999 april 2015 open quick release lever bicycles front wheel hub come contact front disc brake assembly causing front wheel come sudden stop separate bicycle posing risk injury rider incidents three incidents including injuries one resulting quadriplegia second facial injuries third resulting fractured wrist many 900000 us 98000 canada call trek 8003734594 8 6 pm ct monday friday visit wwwtrekbikescom click safety amp recalls bottom page information ski boot liners details ertlrenz trim heat foam heat ski boot liners every product accompanied charger remote control heating system also accompanying ertlrenz instruction manual supplied heat liners time purchase sold gorsuch ltd stores aspen vail beaver creek colorado november 2011 march 2015 liner overheat charging posing fire hazard incidents three reports heat liners smoldering charging process injuries reported many 300 call gorsuch 8444518650 9 5 pm et monday friday visit wwwgorsuchcom click recall heat liners information notebook computer battery packs details lenovo battery packs sold february 2010 june 2012 following thinkpad notebook computers edge 11 13 14 15 120 125 320 325 420 425 430 520 525 530 series l412 l420421 l512 l520 series t410 t420 t510 t520 series w510 w520 series x100e x120e x121e x130e x200 x200s x201 x201s x220 x220t series battery packs also sold separately details found httpwwwcpscgovenrecalls2015lenovoexpandsrecallofbatterypacksforthinkpadnotebookcomputers battery packs overheat posing fire hazard incidents four reports battery packs overheating damaging computers battery packs surrounding property one incident included consumers skin reddened burn marks consumers clothing many 148800 us 17700 canada 34500 us 2900 canada recalled march 2014 call lenovo 8004267378 9 5 pm et monday friday visit wwwlenovocom select support top page click link recall page news alerts section bottom right page information hair dryers details sweet heat handheld hair dryers hair dryers white words sweet heat printed black near blower nozzle ag hair printed grey black back blower nozzle handle sold ulta beauty beauty supply stores hair salons nationwide may 2013 march 2015 hair dryers immersion protection device guards electrocution shock dryer immersed water incidents none reported many 3100 call ag hair 8669244247 1130 7 pm et monday friday send email recallaghaircom visit wwwaghaircom click recall notice information baby coveralls details j crew baby coveralls sizes newborn 2t sold j crew stores california florida georgia illinois massachusetts new jersey new york texas washington dc online jcrewcom jcrew catalog april 2014 march 2015 care label sewn inside left seam garment lists po number style number su 14 po style numbers included recall style a8248 po numbers 8044696 8044697 5046904 su 14 style a8249 po numbers 8044644 5046905 su 14 style a8251 po number 8044643 su 14 style a8252 po numbers 8044642 5046906 su 14 style a8273 po number 8044659 su 14 style a8274 po numbers 8044660 5046909 su 14 style a8276 po numbers 8044661 5046910 su 14 style a8341 po number 8044663 su 14 style a8358 po numbers 8044662 5046911 su 14 style b3605 po number 8046744 su 14 style b3606 po number 8046743 su 14 style b3607 po numbers 8046745 8046746 5048693 su 14 snaps coveralls detach posing choking hazard young children incidents 10 reports snaps detaching injuries reported many 20000 8700 additional baby coveralls recalled may 2014 call j crew 8002617422 anytime send email 247jcrewcom visit wwwjcrewcombaby click important notice information childrens pajama sets details childrens pajamas roberta roller rabbit roberta freyman 100percent cotton twopiece pajama sets sold toddler size 1 youth 12 sets sold two styles longsleeve pants shortsleeve shorts styles sold eighteen prints various colors babar bump christopher colada dino elephant goby hathi heart heebo moby monkey owl rain rico scotty teddy ticochon roberta roller rabbit identified yellow label sewn neck waist top bottom recall includes childrens sleepwear garments sewnin label neck sold roberta roller rabbit retail stores online wwwrobertarollerrabbitcom retail wholesale outlets january 2012 february 2015 childrens pajama sets fail meet federal flammability standards childrens sleepwear posing risk burn injury children incidents none reported many 32000 call roberta roller rabbit 8662276938 9 5 pm et monday friday visit wwwrobertarollerrabbitcom click recall tab located product recall section bottom left side home page | 851 |
<p />
<p>Image source: Getty Images.</p>
<p>Continue Reading Below</p>
<p>You don't need to own the next big information technology stock to see eye-popping returns. Sometimes the most obvious long term opportunities are hiding in plain sight; the mistake is that the boring can be overlooked for the flashy. But in investing, "boring" can be great. That's helped Pfizer (NYSE: PFE), Hormel Foods (NYSE: HRL), and Ecolab (NYSE: ECL) turn $7,000 into $145,600 or more in the last 26 years.</p>
<p>In 2013 there was a lot of talk of the patent cliff affecting major pharmaceutical companies. Pfizer wasn't exactly spared from the brunt of that trend -- sales have decreased every year since at least 2011 -- but it has taken action to keep shares humming along. Despite a pullback from all-time highs set earlier this year, parking $7,000 in Pfizer stock in November 1990 would have investors looking at a position worth $145,600 today, including dividends.</p>
<p><a href="http://ycharts.com/companies/PFE/total_return_price" type="external">PFE Total Return Price</a> data by <a href="http://ycharts.com" type="external">YCharts Opens a New Window.</a>.</p>
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<p>The largest run-up during the period occurred alongside the amazing market success of Lipitor, a statin that generated over $125 billion in sales from 1996 to 2012 on its way to becoming the former best-selling drug in the world. Lipitor succumbed to generic competition years ago, but share buybacks have allowed Pfizer to mitigate the effects of lost income. The company is now looking to spread its dependency over a portfolio of blockbuster drugs, with several potential blockbusters among the drug candidates in its pipeline. Those hopes took a brief hit with the recent failure of a cholesterol-lowering drug, but investors are optimistic that a formidable late-stage pipeline will reward their patience.</p>
<p>Hormel Foods may not be well-known among investors, but it has actually been one of the greatest-performing stocks of the last half-century. That's also true when dialing back the clock to November 1990. Since then, the owner of the infamous Spam brand has delivered a total return of 3,040%, which would have turned a $7,000 investment into $212,800 with dividends included.</p>
<p><a href="http://ycharts.com/companies/HRL/total_return_price" type="external">HRL Total Return Price</a> data by <a href="http://ycharts.com" type="external">YCharts</a>.</p>
<p>Today, Hormel Foods sports a market cap of $19.5 billion. In 2015 revenue topped $9.2 billion, a slight decrease from 2014, but earnings per share grew 13.4% from the prior year. The company is pinning growth hopes on brands of the future, which include Skippy (acquired in 2013), Muscle Milk (acquired in 2014), and Justin's (acquired in 2016). An eye for acquisitions helped to notch record third-quarter results in 2016, and allowed management to raise its full-year guidance -- with growth expected in 2017.</p>
<p>Environmental services have been big business for Ecolab, which has outperformed the S&amp;P 500 in 21 of the past 25 years. A win streak of that order helped to turn an investment of $7,000 into $447,300 since November 1990 if dividends are included. The stock is currently lagging behind the index in 2016, but has benefited from steadily improving market conditions in recent quarters. The biggest slouch in operations, energy, is expected to begin improving in 2017.</p>
<p><a href="http://ycharts.com/companies/ECL/total_return_price" type="external">ECL Total Return Price</a> data by <a href="http://ycharts.com" type="external">YCharts</a>.</p>
<p>Ecolab has grown into a $33.3 billion company that posted $13.5 billion in revenue in 2015. While that was a slight decrease from 2014, currency headwinds and a sluggish energy sector -- Ecolab technology aids the production of 40% of the world's oil -- accounted for substantially all of the declines. Management sees smoother sailing ahead and expects full-year 2016 earnings per share to fall between $4.35 and $4.45 -- well ahead of 2015 EPS of $3.32.</p>
<p>As Pfizer, Hormel Foods, and Ecolab demonstrate, buying solid companies and holding them for the long term can lead to incredible gains. They also serve as a great reminder that success isn't achieved in a linear upward path; there will be bumps, recessions, and factors out of management's control along the way. The important thing is to keep a level head and check that the long-term viability of the company remains on track.</p>
<p>Forget the 2016 Election: 10 stocks we like better than Pfizer 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://my.fool.com/profile/TMFBlacknGold/info.aspx" type="external">Maxx Chatsko Opens a New Window.</a> has no position in any stocks mentioned. <a href="https://twitter.com/MaxxChatsko" type="external">Follow him on Twitter Opens a New Window.</a>to keep up with developments in engineered biology and materials science.</p>
<p>The Motley Fool owns shares of and recommends Ecolab. 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 dont need next big information technology stock see eyepopping returns sometimes obvious long term opportunities hiding plain sight mistake boring overlooked flashy investing boring great thats helped pfizer nyse pfe hormel foods nyse hrl ecolab nyse ecl turn 7000 145600 last 26 years 2013 lot talk patent cliff affecting major pharmaceutical companies pfizer wasnt exactly spared brunt trend sales decreased every year since least 2011 taken action keep shares humming along despite pullback alltime highs set earlier year parking 7000 pfizer stock november 1990 would investors looking position worth 145600 today including dividends pfe total return price data ycharts opens new window advertisement largest runup period occurred alongside amazing market success lipitor statin generated 125 billion sales 1996 2012 way becoming former bestselling drug world lipitor succumbed generic competition years ago share buybacks allowed pfizer mitigate effects lost income company looking spread dependency portfolio blockbuster drugs several potential blockbusters among drug candidates pipeline hopes took brief hit recent failure cholesterollowering drug investors optimistic formidable latestage pipeline reward patience hormel foods may wellknown among investors actually one greatestperforming stocks last halfcentury thats also true dialing back clock november 1990 since owner infamous spam brand delivered total return 3040 would turned 7000 investment 212800 dividends included hrl total return price data ycharts today hormel foods sports market cap 195 billion 2015 revenue topped 92 billion slight decrease 2014 earnings per share grew 134 prior year company pinning growth hopes brands future include skippy acquired 2013 muscle milk acquired 2014 justins acquired 2016 eye acquisitions helped notch record thirdquarter results 2016 allowed management raise fullyear guidance growth expected 2017 environmental services big business ecolab outperformed sampp 500 21 past 25 years win streak order helped turn investment 7000 447300 since november 1990 dividends included stock currently lagging behind index 2016 benefited steadily improving market conditions recent quarters biggest slouch operations energy expected begin improving 2017 ecl total return price data ycharts ecolab grown 333 billion company posted 135 billion revenue 2015 slight decrease 2014 currency headwinds sluggish energy sector ecolab technology aids production 40 worlds oil accounted substantially declines management sees smoother sailing ahead expects fullyear 2016 earnings per share fall 435 445 well ahead 2015 eps 332 pfizer hormel foods ecolab demonstrate buying solid companies holding long term lead incredible gains also serve great reminder success isnt achieved linear upward path bumps recessions factors managements control along way important thing keep level head check longterm viability company remains track forget 2016 election 10 stocks like better pfizer 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 pfizer wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns november 7 2016 maxx chatsko opens new window position stocks mentioned follow twitter opens new windowto keep developments engineered biology materials science motley fool owns shares recommends ecolab 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 | 547 |
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<p>Image source: BP plc.</p>
<p>Continue Reading Below</p>
<p>Oil giant BP (NYSE: BP) has undergone an enormous transformation since the Deepwater Horizon disaster in 2010. The company has sold a stunning $75 billion in assets to pay for the related liabilities as well as to reposition its portfolio for future growth. Because of that the company is sitting on $23.5 billion in cash, which is the largest war chest among the top-five big oil companies:</p>
<p><a href="http://ycharts.com/companies/XOM/cash_and_equivalents" type="external">XOM Cash and Equivalents (Quarterly)</a> data by <a href="http://ycharts.com" type="external">YCharts Opens a New Window.</a>.</p>
<p>A war chest that big might have investors wondering if a major acquisition or a massive buyback could be on the horizon. Unfortunately, after drilling down into the company's liabilities and cash flow, it is evident that BP has two primary purposes for that money right now: Fund its remaining Deepwater Horizon liabilities and its dividend to shareholders.</p>
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<p>This past June BP said that it made enough progress resolving its outstanding claims that it can now reliably estimate all of the material future liabilities resulting from that disaster. According to the company, the cumulative pre-tax charge for the incident will be $61.6 billion. However, it has already paid a substantial portion of that amount including $20 billion for the Trust Fund and another $24.8 billion in other related payments. Meanwhile, it received $5.4 billion in cash from various settlements. That leaves the oil giant with an estimated $22.2 billion in future cash payments from the spill.</p>
<p>While that amount would seem to consume nearly all of BP's cash position, that is not necessarily the plan for its war chest. Instead, CFO Brian Gilvary said on the company's second-quarter conference call that it is actively pursuing additional asset sales to bolster its cash position to "provide additional flexibility and cover for our Deepwater Horizon payment commitments in the United States." In fact, the company is planning to sell $3 billion to $5 billion in assets this year and around $2 billion to $3 billion per year in the future. It has already sold $1.9 billion in assets this year, which helped fund a significant portion of its $2.7 billion in Gulf of Mexico oil spill payments.</p>
<p>Due to the downturn in oil prices, BP has not been generating enough cash flow to fund both capex and dividends. As the chart below shows, there's a pretty wide gap between the two:</p>
<p>Source: BP Plc Investor Presentation.</p>
<p>That gap is one reason why the company's cash balance is down from $26.3 billion at the end of last year while total debt is up from $46 billion to more than $50 billion. That shift resulted intotal gearing increasing from less than 20% to 24.7% last quarter, though that is well within the company's 30% range.</p>
<p>The company is working hard to close the gap by cutting spending. It is aiming to be in the position where operating cash flow covers both capex and the dividend in a $50 to $55 oil price environment in 2017. That said, in the meantime, it will need some of its cash to sustain the dividend this year.</p>
<p>BP is far from the only oil company that's using its balance sheet to maintaindividends these days. ExxonMobil (NYSE: XOM), for example, paid out $6.2 billion in dividends and spent $10.3 billion in capex through the first half of this year. Unfortunately, ExxonMobil did not come close to generating enough cash flow to cover those expenditures, only generating $10.5 billion in cash, supported by $1.2 billion in asset sales. Chevron (NYSE: CVX), likewise fell short, generating just $5.8 billion in cash flow after excluding working capital effects. That did not even come close to covering the $12 billion Chevron spent on capex, let alone the amount paid out in dividends. That is why Chevron's cash position fell from $11 billion to $8.7 billion over the past six months while debt jumped from $38.5 billion to $45 billion.</p>
<p>While BP might have an enormous amount of cash on its balance sheet right now, that is because it needs it for future outflows such as dividends and Gulf of Mexico liabilities. Because of that, investors should not bet that the company will use its war chest for a major acquisition or a stock buyback.</p>
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<p>Universities are ramping up efforts to defeat a Republican plan to tax private-college endowments and other proposals that would hit their finances, as they confront a building wave of resentment against higher education.</p>
<p>Separate measures proposed in Congress earlier this year -- some with bipartisan support -- would demand universities pay back part of the loans on which their graduates default, and for schools to produce vast amounts of new data so consumers can better gauge the value of college degrees.</p>
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<p>The proposals are testing the might of the powerful higher-education lobby, which has defeated recent efforts to increase government oversight. Republican lawmakers are empowered by a shift in attitudes toward higher education. A Wall Street Journal NBC/News poll this summer showed majorities of key groups -- including young people under 34, men and those who define themselves as white working class -- think college isn't worth the cost, a reversal from four years earlier.</p>
<p>Student debt totals $1.3 trillion, according to the New York Federal Reserve, and tuition has climbed at triple the rate of inflation over the past decade, according to the Labor Department.</p>
<p>"There certainly has been a string of bills that betray a kind of structural antipathy toward higher education," said Barmak Nassarian of the American Association of State Colleges and Universities, a lobbying group in Washington. "I suspect it's payback for rising costs and alleged opacity of outcomes and run-of-the-mill complaints that have been escalating over the years."</p>
<p>Perhaps no measure better represents the populist pushback than the House Republican tax plan, which calls for a new 1.4% excise tax on the annual investment earnings of the largest private-university endowments. The tax would apply to private, nonprofit schools with at least 500 students and endowments equal to at least $250,000 a student, under an amendment adopted by a House panel this week.</p>
<p>That would affect about 66 schools, including Harvard, Princeton and Yale universities, according to New America, a think tank. Harvard's endowment, the largest in the country, exceeds $36 billion. The measure would increase tax revenue by between $2 billion and $3 billion over 10 years, according to the congressional Joint Committee on Taxation.</p>
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<p>Republicans and other critics of colleges have criticized universities for socking away billions of dollars in endowment money that they say would be better used to reduce tuition and provide more scholarships.</p>
<p>"There is an absurd amount of inequality when it comes to the value of college endowments," said Doug Webber, an associate professor of economics at Temple University.</p>
<p>Mr. Webber, who thinks the tax would have a negligible effect on college finances, said he doesn't support the measure but understands the motivation behind it: "This is recognition that if you're going to hoard all this money and it's just kind of sitting there and not being spent on students, we should actually tax it."</p>
<p>College and university endowment assets totaled $516 billion in 2014, according to a 2015 report of the Congressional Research Service, but those funds were concentrated among a small group of schools. About 11% of institutions held 74% of all endowment assets. On average, those assets earned a rate of return of 15.5% in 2014.</p>
<p>The higher-education lobby has begun pushing back against the attacks, according to Karin Johns, director of tax policy for the National Association of Independent Colleges and Universities. The lobby's most significant advantages are that most lawmakers' districts are home to colleges and that many schools are large employers and regional economic engines. Some, like Bryn Mawr College, Haverford College and Swarthmore College, have supplied talking-point memos to their alumni, asking them to call or write their local representatives that the bill will harm students, colleges and American global competitiveness.</p>
<p>Calls from university presidents to elected officials often stress that endowments are already used to provide tuition assistance.</p>
<p>"Endowment support is critical when we make new initiatives or support students from low-income backgrounds," Princeton University President Christopher L. Eisgruber said.</p>
<p>He said the GOP tax provision would cost the school between $20 million and $30 million annually. Princeton's endowment fund ranked fifth among all universities at $22.2 billion as of June 30, 2016, according to the National Association of College and University Business Officers.</p>
<p>Other provisions of the GOP plan would hit some of the longstanding perks associated with higher education. For example, it would repeal a law that allows employers to cover up to $5,250 in tuition for employees without it being taxed as income. Likewise, it would end an exemption on free or reduced tuition for university employees, their family members, and graduate students who teach at schools. The changes would effectively raise the cost of attending college and graduate school, university groups say.</p>
<p>It is far from clear whether the provisions, along with the broader tax bill, will become law. Congressional Democrats have vowed to oppose the tax overhaul bill as well as the provisions affecting higher education.</p>
<p>In May, a bipartisan group of senators -- including Sens. Elizabeth Warren (D., Mass.) and Orrin Hatch (R., Utah) -- proposed a bill to overturn a federal prohibition on tracking the educational and employment outcomes of college students. Last month, four Senate Democrats introduced legislation known as "risk sharing," which would require colleges to cover a portion of unpaid loan money when a high share of their former students default.</p>
<p>Higher-education lobbyists say they expect the measures to be included in higher-education legislation that could be unveiled later this year.</p>
<p>Write to Josh Mitchell at [email protected] and Douglas Belkin at [email protected]</p>
<p>(END) Dow Jones Newswires</p>
<p>November 10, 2017 07:14 ET (12:14 GMT)</p> | true | 0 | universities ramping efforts defeat republican plan tax privatecollege endowments proposals would hit finances confront building wave resentment higher education separate measures proposed congress earlier year bipartisan support would demand universities pay back part loans graduates default schools produce vast amounts new data consumers better gauge value college degrees continue reading proposals testing might powerful highereducation lobby defeated recent efforts increase government oversight republican lawmakers empowered shift attitudes toward higher education wall street journal nbcnews poll summer showed majorities key groups including young people 34 men define white working class think college isnt worth cost reversal four years earlier student debt totals 13 trillion according new york federal reserve tuition climbed triple rate inflation past decade according labor department certainly string bills betray kind structural antipathy toward higher education said barmak nassarian american association state colleges universities lobbying group washington suspect payback rising costs alleged opacity outcomes runofthemill complaints escalating years perhaps measure better represents populist pushback house republican tax plan calls new 14 excise tax annual investment earnings largest privateuniversity endowments tax would apply private nonprofit schools least 500 students endowments equal least 250000 student amendment adopted house panel week would affect 66 schools including harvard princeton yale universities according new america think tank harvards endowment largest country exceeds 36 billion measure would increase tax revenue 2 billion 3 billion 10 years according congressional joint committee taxation advertisement republicans critics colleges criticized universities socking away billions dollars endowment money say would better used reduce tuition provide scholarships absurd amount inequality comes value college endowments said doug webber associate professor economics temple university mr webber thinks tax would negligible effect college finances said doesnt support measure understands motivation behind recognition youre going hoard money kind sitting spent students actually tax college university endowment assets totaled 516 billion 2014 according 2015 report congressional research service funds concentrated among small group schools 11 institutions held 74 endowment assets average assets earned rate return 155 2014 highereducation lobby begun pushing back attacks according karin johns director tax policy national association independent colleges universities lobbys significant advantages lawmakers districts home colleges many schools large employers regional economic engines like bryn mawr college haverford college swarthmore college supplied talkingpoint memos alumni asking call write local representatives bill harm students colleges american global competitiveness calls university presidents elected officials often stress endowments already used provide tuition assistance endowment support critical make new initiatives support students lowincome backgrounds princeton university president christopher l eisgruber said said gop tax provision would cost school 20 million 30 million annually princetons endowment fund ranked fifth among universities 222 billion june 30 2016 according national association college university business officers provisions gop plan would hit longstanding perks associated higher education example would repeal law allows employers cover 5250 tuition employees without taxed income likewise would end exemption free reduced tuition university employees family members graduate students teach schools changes would effectively raise cost attending college graduate school university groups say far clear whether provisions along broader tax bill become law congressional democrats vowed oppose tax overhaul bill well provisions affecting higher education may bipartisan group senators including sens elizabeth warren mass orrin hatch r utah proposed bill overturn federal prohibition tracking educational employment outcomes college students last month four senate democrats introduced legislation known risk sharing would require colleges cover portion unpaid loan money high share former students default highereducation lobbyists say expect measures included highereducation legislation could unveiled later year write josh mitchell joshuamitchellwsjcom douglas belkin dougbelkinwsjcom end dow jones newswires november 10 2017 0714 et 1214 gmt | 587 |
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<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 (July 31, 2017).</p>
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<p>A quartet of well-known activist investors has lined up to pounce on plans to break up DowDuPont, the $150 billion chemicals behemoth that will be created by merging Dow Chemical Co. and DuPont Co., potentially waging an unprecedented attack on the firm and Dow chief Andrew Liveris.</p>
<p>Jana Partners LLC and Trian Fund Management LP have privately levied concerns with how the merged company might be divided, according to people familiar with the matter, joining Glenview Capital Management and Third Point LLC, which had already voiced criticism. All four view Mr. Liveris as a roadblock to shifting certain pieces in ways they think will create value, the people said.</p>
<p>The swelling discontent threatens to upend his plans to close out his legacy by transforming two storied companies.</p>
<p>Since the merger announcement in December 2015, the plan was to combine the two firms and then splinter them into three. The investors have voiced a view that the materials company expected to emerge from the breakup -- the new version of Dow Chemical -- needs to shrink.</p>
<p>An attack by four activists on one company or executive would be highly unusual and would complicate the already daunting task of standing up three separate, publicly traded companies in the 18 months after the merger closes, expected in August.</p>
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<p>"The sole focus should be on creating the right number of spinoff entities and stocking them with the right assets to position each to create maximum long-term shareholder value, and not on empire-building or ego-massaging by Mr. Liveris or anyone else," Jana founder Barry Rosenstein said in an email to The Wall Street Journal.</p>
<p>In an interview from his office, Mr. Liveris called such assumptions "BS."</p>
<p>"I've spent a decade rejiggering the company's portfolio for the future, " he said. "I will tell you that I see nothing sacred in the portfolio, ever."</p>
<p>He said the next iteration of Dow will be poised for growth and innovation.</p>
<p>Dow and DuPont are in the midst of reviewing how they will break up, and some changes from the current plan are likely, people familiar with the matter said. Both Dow and DuPont say everything is on the table.</p>
<p>The investors' complaints could grow louder if the review doesn't produce the moves they want, people familiar with some of their thinking said.</p>
<p>A war on multiple fronts would also be the clearest test yet of whether activists can keep successfully pushing companies to slim down -- or if their corporate counterparts are regaining ground in arguing that breadth of business is sometimes needed to ensure stability and spur innovation and gains over the long term.</p>
<p>Mr. Liveris said "noisy" investors who don't understand the chemicals business are trying to push him to create value in a spreadsheet. He said he wouldn't judge the review until it is finished and added that any changes must take into account how employees would be affected. Mr. Liveris, 63 years old, has agreed to stay on for another year as DowDuPont's executive chairman, postponing his planned retirement.</p>
<p>The business at the nexus of the dispute with the activists is Dow Corning, a pioneer in silicones used in products from laundry detergent to building insulation. Dow Chemical took full ownership of the longtime joint venture with Corning Inc. in a separate deal announced the same day as the Dow-DuPont merger.</p>
<p>Dow Chemical executives say Dow Corning fits hand in glove with traditional chemicals and thus should belong with the materials business, which would become the new Dow in an eventual split. Undoing the deal in the coming breakup would destroy benefits, they argue.</p>
<p>They also say Dow Corning's earnings before interest, taxes, depreciation and amortization have doubled since the takeover after years of stagnant growth -- evidence, they say, of the boost the combination has gotten. They now expect silicones to generate $2 billion in additional Ebitda, double the original goal.</p>
<p>Executives from both Dow and Dow Corning talk about how having silicones and commodity chemicals together has helped sales grow because they are visible to more customers when combined. Dow's head of research talks excitedly about scientists using robots to experiment with mixing silicone with chemicals Dow has long manufactured, hoping to discover new materials. Dow Chemical shares, meanwhile, are at record highs.</p>
<p>"When you come to a fork and you go left, everyone can always hypothesize on what would have happened if you went right, but no one can ever know," Dow Chief Financial Officer Howard Ungerleider said in an interview. "Dow Corning is the perfect example of: We know both sides of the fork."</p>
<p>The activists argue Dow Corning is among the pieces that should be removed from the new Dow. Instead, they say, it should be part of the specialty-products company.</p>
<p>Days after the review was announced in May, Third Point released a proposal it said would add $20 billion in market value when compared with the original plan. In that proposal, Third Point estimated Dow Corning would be worth $20.4 billion based on current valuations of specialty-chemical firms, compared with $11.9 billion as part of a larger materials company.</p>
<p>In a quarterly letter to investors, Glenview said it largely backed Third Point's proposal and raised the prospect of calling a special meeting to replace directors. Trian and Jana have both privately pushed changes, according to people familiar with the matter.</p>
<p>At the same time, the activists could be happy if several other changes are made, but Dow Corning isn't moved, people familiar with those investors said.</p>
<p>The original breakup plan can be revised if 11 members of the DowDuPont board agree. The 16-member board comprises eight directors from each company.</p>
<p>Third Point is among the biggest holders in Dow Chemical. Even after selling some of its stake, it still owns $1 billion of Dow shares. It, Glenview and Jana together hold 2.5%. Trian owns 1.1% of DuPont after cutting its stake by more than half since the deal was announced.</p>
<p>The activists say DuPont and its chief executive, Edward Breen, appear more receptive to their ideas than Mr. Liveris. Mr. Breen told analysts last week the review aimed to "ensure maximum shareholder value is created" and that the work was being done as fast as possible.</p>
<p>Mr. Liveris said he is aligned with Mr. Breen and in close contact, even briefly taking a call from him during an interview for this article.</p>
<p>By David Benoit</p>
<p>(END) Dow Jones Newswires</p>
<p>July 31, 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 july 31 2017 continue reading quartet wellknown activist investors lined pounce plans break dowdupont 150 billion chemicals behemoth created merging dow chemical co dupont co potentially waging unprecedented attack firm dow chief andrew liveris jana partners llc trian fund management lp privately levied concerns merged company might divided according people familiar matter joining glenview capital management third point llc already voiced criticism four view mr liveris roadblock shifting certain pieces ways think create value people said swelling discontent threatens upend plans close legacy transforming two storied companies since merger announcement december 2015 plan combine two firms splinter three investors voiced view materials company expected emerge breakup new version dow chemical needs shrink attack four activists one company executive would highly unusual would complicate already daunting task standing three separate publicly traded companies 18 months merger closes expected august advertisement sole focus creating right number spinoff entities stocking right assets position create maximum longterm shareholder value empirebuilding egomassaging mr liveris anyone else jana founder barry rosenstein said email wall street journal interview office mr liveris called assumptions bs ive spent decade rejiggering companys portfolio future said tell see nothing sacred portfolio ever said next iteration dow poised growth innovation dow dupont midst reviewing break changes current plan likely people familiar matter said dow dupont say everything table investors complaints could grow louder review doesnt produce moves want people familiar thinking said war multiple fronts would also clearest test yet whether activists keep successfully pushing companies slim corporate counterparts regaining ground arguing breadth business sometimes needed ensure stability spur innovation gains long term mr liveris said noisy investors dont understand chemicals business trying push create value spreadsheet said wouldnt judge review finished added changes must take account employees would affected mr liveris 63 years old agreed stay another year dowduponts executive chairman postponing planned retirement business nexus dispute activists dow corning pioneer silicones used products laundry detergent building insulation dow chemical took full ownership longtime joint venture corning inc separate deal announced day dowdupont merger dow chemical executives say dow corning fits hand glove traditional chemicals thus belong materials business would become new dow eventual split undoing deal coming breakup would destroy benefits argue also say dow cornings earnings interest taxes depreciation amortization doubled since takeover years stagnant growth evidence say boost combination gotten expect silicones generate 2 billion additional ebitda double original goal executives dow dow corning talk silicones commodity chemicals together helped sales grow visible customers combined dows head research talks excitedly scientists using robots experiment mixing silicone chemicals dow long manufactured hoping discover new materials dow chemical shares meanwhile record highs come fork go left everyone always hypothesize would happened went right one ever know dow chief financial officer howard ungerleider said interview dow corning perfect example know sides fork activists argue dow corning among pieces removed new dow instead say part specialtyproducts company days review announced may third point released proposal said would add 20 billion market value compared original plan proposal third point estimated dow corning would worth 204 billion based current valuations specialtychemical firms compared 119 billion part larger materials company quarterly letter investors glenview said largely backed third points proposal raised prospect calling special meeting replace directors trian jana privately pushed changes according people familiar matter time activists could happy several changes made dow corning isnt moved people familiar investors said original breakup plan revised 11 members dowdupont board agree 16member board comprises eight directors company third point among biggest holders dow chemical even selling stake still owns 1 billion dow shares glenview jana together hold 25 trian owns 11 dupont cutting stake half since deal announced activists say dupont chief executive edward breen appear receptive ideas mr liveris mr breen told analysts last week review aimed ensure maximum shareholder value created work done fast possible mr liveris said aligned mr breen close contact even briefly taking call interview article david benoit end dow jones newswires july 31 2017 0247 et 0647 gmt | 673 |
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<p>RELATED STORY: <a href="" type="internal">Faith, Works and the Judgment Seat of Christ</a></p>
<p>"My sheep hear my voice, and I know them, and they follow me: And I give unto them eternal life; and they shall never perish, neither shall any man pluck them out of my hand. My Father, which gave them me, is greater than all; and no man is able to pluck them out of my Father's hand. I and my Father are one. " <a href="http://www.blueletterbible.org/Bible.cfm?b=Col" type="external">John 10:27-30</a> We are kept by the power of His blood, and not by our own works, good deeds, or our own righteousness. "Now the just shall live by faith: but if any man draw back, my soul shall have no pleasure in him. But we are not of them who draw back unto perdition; but of them that believe to the saving of the soul." <a href="http://www.blueletterbible.org/Bible.cfm?t=KJV&amp;b=Hbr&amp;c=10&amp;v=1&amp;x=0&amp;y=0" type="external">Hebrews 10:38,39</a></p>
<p>In Christian circles, the topic of eternal security is a hotly-debated subject. But we are not so much interested in man's opinion as we are in what the bible has to say about Eternal Security. So any sincere treatise on eternal security must first start with a look at salvation, and how it is accomplished. <a href="javascript:;" type="external" /></p>
<p>Believe on the Lord Jesus Christ, and you shall be saved</p>
<p>The Lord is gracious, and good to us, much better than we deserve. He is so good to us, that He made sure to make the process by which one is saved unbelievably simple to understand, and simple to do. As I read my bible, I see that there is one thing and one thing only that one must do to be saved, as shown here in Acts 16:</p>
<p>"And brought them out, and said, Sirs, what must I do to be saved? And they said, Believe on the Lord Jesus Christ, and thou shalt be saved, and thy house." <a href="http://www.blueletterbible.org/Bible.cfm?t=KJV&amp;b=Act&amp;c=16&amp;v=1&amp;x=0&amp;y=0" type="external">Acts 16:30,31</a></p>
<p>That's truly all there is to it - an honest and sincere belief within yourself that Jesus is who He said He is, that He is THE Way, THE Truth and THE Life. It's not complicated, and God purposely set it up that way to make it easy for us. All the work of salvation was done by Jesus Himself. He took upon Himself the punishment for our sins as well as the sins themselves, and went to ther cross and paid for every sin that would ever be committed throughout history. And when you, by faith, BELIEVE that sincerely in your heart, then the price He paid is applied to YOUR sin debt, and your salvation is secured forever. In fact, the bible says that you are not simply secure, but also "sealed" until the Day of redemption.</p>
<p>You are eternally secure because you have beem sealed at salvation</p>
<p>"That we should be to the praise of his glory, who first trusted in Christ. In whom ye also [trusted], after that ye heard the word of truth, the gospel of your salvation: in whom also after that ye believed, ye were sealed with that holy Spirit of promise, Which is the earnest of our inheritance until the redemption of the purchased possession, unto the praise of his glory." <a href="http://www.blueletterbible.org/Bible.cfm?t=KJV&amp;b=Eph&amp;c=1&amp;v=1&amp;x=0&amp;y=0" type="external">Ephesians 1:12-14</a> Dear one, you are not kept saved because of your good works, or because you read your bible, or because you're nice to people, or anything else. You are saved and sealed by the works of Jesus on the cross and His resurrection, and by the power of the Holy Spirit. This makes sense as you did nothing to earn your salvation, so why would you think you could do anything to keep it? Jesus is the Good Shepard, and as such the responsibilty to keep all the sheep safe are His, not the sheep's. The whole reason why sheep need a Shepard is because they cannot do it themselves.</p>
<p>Forever Safe in the Master's Hands One of the strongest passages for eternal security is found in the gospel of John, chapter 10, where we read this -</p>
<p>"I am the good shepherd, and know my [sheep], and am known of mine. As the Father knoweth me, even so know I the Father: and I lay down my life for the sheep. My sheep hear my voice, and I know them, and they follow me: And I give unto them eternal life; and they shall never perish, neither shall any [man] pluck them out of my hand. My Father, which gave [them] me, is greater than all; and no [man] is able to pluck [them] out of my Father's hand. I and [my] Father are one." <a href="http://www.blueletterbible.org/Bible.cfm?t=KJV&amp;b=Jhn&amp;c=10&amp;v=1&amp;x=0&amp;y=0" type="external">John 10</a></p>
<p>Please go back and reread that passage selection, and let His words and promise to keep to safe eternally sink down deep into your ears, and into your hearts. Jesus promises here that once you are in His Hand, nothing, nothing, nothing anyone can do can put you out of it. He says that "neither shall ANY" take you out. Thats everyone. That includes all external forces like the world, the flesh and the Devil, and internal forces like ourselves. Now if your church teaches something different, don't get mad at us. We are just going by what the bible says. And not only are we safe in the hands of God eternally, we are more than just "in his hand", we are also part of His body.</p>
<p>"For we are members of his body, of his flesh, and of his bones. For this cause shall a man leave his father and mother, and shall be joined unto his wife, and they two shall be one flesh. This is a great mystery: but I speak concerning Christ and the church." <a href="http://www.blueletterbible.org/Bible.cfm?t=KJV&amp;b=Eph&amp;c=5&amp;v=1&amp;x=0&amp;y=0" type="external">Ephesians 5:30-32</a></p>
<p>That is the state of the true believer in Jesus Christ, that we are part of His flesh, a part of His bones. He is not only holding us in His hands, we are grafted into His very body. Nothing exists in this universe or any other that is capable of undoing that. You think you can sin your way out? How? ALL your sins are already paid for at Calvary. All of them. But there is one thing that you can lose, and that is fellowship with our Lord.</p>
<p />
<p>Sealed Until The Day Of Redemption When we become saved, there is also another action that takes place that many Christians who do not study their bible may not be aware of. The sealing of the believer so that they can never fall away. Please note the following verses that discuss the sealing of the believer:</p>
<p>"In whom ye also trusted, after that ye heard the word of truth, the gospel of your salvation: in whom also after that ye believed, ye were sealed with that holy Spirit of promise, Which is the earnest of our inheritance until the redemption of the purchased possession, unto the praise of his glory." Ephesians 1:13,14</p>
<p>"And grieve not the holy Spirit of God, whereby ye are sealed unto the day of redemption." Ephesians 4:30</p>
<p>"For all the promises of God in him are yea, and in him Amen, unto the glory of God by us. Now he which stablisheth us with you in Christ, and hath anointed us, is God; Who hath also sealed us, and given the earnest of the Spirit in our hearts." 2 Corinthians 1:20-22</p>
<p>Read those verse very carefully, can you see that you are sealed? Remember when Noah and his family got into the ark, what did God do? He sealed them in so they couldn't change their mind once the journey got rough. And it got very rough.</p>
<p>Thats how much God loves us, He has given us a complete salvation. Not a salvation that is part His works and part your works. Thats not biblical salvation by a long shot.</p>
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<p>Fellowship and the Judgement Seat of Christ</p>
<p>Scoffers who disallow the eternal security that the bible clearly teaches mockingly say that the doctrine of eternal security is a license to sin, and that is completely untrue. Eternal security is a promise from God to keep those that are His, and as such it is a great comfort to all true believers. But a license to sin? God forbid. If the Christian backslides and becomes a prodigal son, there is something that they absolutely lose for a time, and that is felllowship with the Lord. Note the following onthe prodigal son -</p>
<p>"And not many days after the younger son gathered all together, and took his journey into a far country, and there wasted his substance with riotous living." <a href="http://www.blueletterbible.org/Bible.cfm?t=KJV&amp;b=Luk&amp;c=15&amp;v=1&amp;x=0&amp;y=0" type="external">Luke 15:13</a></p>
<p>When the prodigal son took his inheritance and went out to revel in sin, the first thing he had to do was to leave his father's house. The father would not keep him there against his will, that's not love. If you, as a believer in Jesus, backslide and go out into the world, you are free to do so. The son wanted to go join the world, the father whom we can imagine with tears in his eyes, let him go have at it. And Luke goes on to describe the sins that the son fell into. But all the while that the son was engaged in sin, he lost the sweet, intimate fellowship he had with his father. But when did he stop being his father's son? Never.</p>
<p>We all know the story...he spends all his money on booze, whores, nightclubs, dancing and whatever else he could find, until he has nothing. His new-found friends turn on him, he's broke, hungry, and winds up feeding the pigs when all of a sudden he has an idea -</p>
<p>"And when he came to himself, he said, How many hired servants of my father's have bread enough and to spare, and I perish with hunger! I will arise and go to my father, and will say unto him, Father, I have sinned against heaven, and before thee, And am no more worthy to be called thy son: make me as one of thy hired servants." <a href="http://www.blueletterbible.org/Bible.cfm?t=KJV&amp;b=Luk&amp;c=15&amp;v=1&amp;x=0&amp;y=0" type="external">Luke 15:17-19</a></p>
<p>What's his great idea? To return to where is is truly and eternally loved...in his father's house. So he shakes the dust off and returns at full speed to find his father. And what does he find when he gets back to his father's house? He finds this -</p>
<p>"And he arose, and came to his father. But when he was yet a great way off, his father saw him, and had compassion, and ran, and fell on his neck, and kissed him." <a href="http://www.blueletterbible.org/Bible.cfm?t=KJV&amp;b=Luk&amp;c=15&amp;v=1&amp;x=0&amp;y=0" type="external">Luke 15:20</a> He ran back to find his father only to discover that the father was already looking for him to return, and when he did come back it was a joyous reunion with a full restoration of fellowship. But he lost a few things along the way. He took his inheritance and wasted it. He lost his testimony. And he lost all that time that he could have been with his father. But he did not lose his position as his father's son, that is eternally secure. Another reason that the true believer in Jesus Christ knows that eternal security is not a license to sin is the Judgment Seat of Christ.</p>
<p>"For we must all appear before the judgment seat of Christ; that every one may receive the things [done] in [his] body, according to that he hath done, whether [it be] good or bad. Knowing therefore the terror of the Lord, we persuade men; but we are made manifest unto God; and I trust also are made manifest in your consciences." <a href="http://www.blueletterbible.org/Bible.cfm?t=KJV&amp;b=2Cr&amp;c=5&amp;v=1&amp;x=0&amp;y=0" type="external">2 Corinthians 5:10,11</a></p>
<p>When we stand before the Lord, we will be judged on how we lived our lives, the things we said and the things we did, as it says in Matthew -</p>
<p>"But I say unto you, That every idle word that men shall speak, they shall give account thereof in the day of judgment." <a href="http://www.blueletterbible.org/Bible.cfm?t=KJV&amp;b=Mat&amp;c=12&amp;v=1&amp;x=0&amp;y=0" type="external">Matthew 12:36</a></p>
<p>The bible says that even as saved Christians, we will sin again. But the Christian who falls into a sin is sealed, and while they may lose fellowship with the Lord, like the prodigal they remain sons and daughters of the Father. Charles Spurgeon said it like this -</p>
<p>"When he was yet a great way off, his father saw him." It was not with icy eyes that the father looked on his returning son. Love leaped into them, and as he beheld him, he "had compassion on him"; that is, he felt for him. There was no anger in his heart toward his son; he had nothing but pity for his poor boy, who had got into such a pitiable condition. It was true that it was all his own fault, but that did not come before his father's mind. It was the state that he was in, his poverty, his degradation, that pale face of his so wan with hunger, that touched his father to the quick. And God has compassion on the woes and miseries of men.</p>
<p>They may have brought their troubles on themselves, and they have indeed done so; but nevertheless God has compassion upon them. "It is of the Lord's mercies that we are not consumed, because His compassions fail not." We read that the father "ran." The compassion of God is followed by swift movements. He is slow to anger, but He is quick to bless. He does not take any time to consider how He shall show His love to penitent prodigals; that was all done long ago in the eternal covenant. He has no need to prepare for their return to Him; that was done on Calvary. God comes flying in the greatness of His compassion to help every poor penitent soul." <a href="http://www.spurgeon.org/sermons/2236.htm" type="external">Spurgeon Archive</a></p>
<p>It is the heart's desire of every blood-bought believer in Jesus Christ to live right, think right, do right and be right. But when we fall short, as we all will do to varying degrees, the bible assures and reassures us that our loving, Heavenly Father is waiting for us with kisses, and full restoration to fellowship with Him, if we will only repent of the sin that dragged us down, and run with all abandon back to the Father's house.</p>
<p>There is so much more to teach on this topic, but for now grasp by faith the simple and amazing promise of God towards us to never, ever let us go.</p> RELATED STORY: | true | 0 | 160 related story faith works judgment seat christ sheep hear voice know follow give unto eternal life shall never perish neither shall man pluck hand father gave greater man able pluck fathers hand father one john 102730 kept power blood works good deeds righteousness shall live faith man draw back soul shall pleasure draw back unto perdition believe saving soul hebrews 103839 christian circles topic eternal security hotlydebated subject much interested mans opinion bible say eternal security sincere treatise eternal security must first start look salvation accomplished believe lord jesus christ shall saved lord gracious good us much better deserve good us made sure make process one saved unbelievably simple understand simple read bible see one thing one thing one must saved shown acts 16 brought said sirs must saved said believe lord jesus christ thou shalt saved thy house acts 163031 thats truly honest sincere belief within jesus said way truth life complicated god purposely set way make easy us work salvation done jesus took upon punishment sins well sins went ther cross paid every sin would ever committed throughout history faith believe sincerely heart price paid applied sin debt salvation secured forever fact bible says simply secure also sealed day redemption eternally secure beem sealed salvation praise glory first trusted christ ye also trusted ye heard word truth gospel salvation also ye believed ye sealed holy spirit promise earnest inheritance redemption purchased possession unto praise glory ephesians 11214 dear one kept saved good works read bible youre nice people anything else saved sealed works jesus cross resurrection power holy spirit makes sense nothing earn salvation would think could anything keep jesus good shepard responsibilty keep sheep safe sheeps whole reason sheep need shepard forever safe masters hands one strongest passages eternal security found gospel john chapter 10 read good shepherd know sheep known mine father knoweth even know father lay life sheep sheep hear voice know follow give unto eternal life shall never perish neither shall man pluck hand father gave greater man able pluck fathers hand father one john 10 please go back reread passage selection let words promise keep safe eternally sink deep ears hearts jesus promises hand nothing nothing nothing anyone put says neither shall take thats everyone includes external forces like world flesh devil internal forces like church teaches something different dont get mad us going bible says safe hands god eternally hand also part body members body flesh bones cause shall man leave father mother shall joined unto wife two shall one flesh great mystery speak concerning christ church ephesians 53032 state true believer jesus christ part flesh part bones holding us hands grafted body nothing exists universe capable undoing think sin way sins already paid calvary one thing lose fellowship lord sealed day redemption become saved also another action takes place many christians study bible may aware sealing believer never fall away please note following verses discuss sealing believer ye also trusted ye heard word truth gospel salvation also ye believed ye sealed holy spirit promise earnest inheritance redemption purchased possession unto praise glory ephesians 11314 grieve holy spirit god whereby ye sealed unto day redemption ephesians 430 promises god yea amen unto glory god us stablisheth us christ hath anointed us god hath also sealed us given earnest spirit hearts 2 corinthians 12022 read verse carefully see sealed remember noah family got ark god sealed couldnt change mind journey got rough got rough thats much god loves us given us complete salvation salvation part works part works thats biblical salvation long shot 160 fellowship judgement seat christ scoffers disallow eternal security bible clearly teaches mockingly say doctrine eternal security license sin completely untrue eternal security promise god keep great comfort true believers license sin god forbid christian backslides becomes prodigal son something absolutely lose time felllowship lord note following onthe prodigal son many days younger son gathered together took journey far country wasted substance riotous living luke 1513 prodigal son took inheritance went revel sin first thing leave fathers house father would keep thats love believer jesus backslide go world free son wanted go join world father imagine tears eyes let go luke goes describe sins son fell son engaged sin lost sweet intimate fellowship father stop fathers son never know storyhe spends money booze whores nightclubs dancing whatever else could find nothing newfound friends turn hes broke hungry winds feeding pigs sudden idea came said many hired servants fathers bread enough spare perish hunger arise go father say unto father sinned heaven thee worthy called thy son make one thy hired servants luke 151719 whats great idea return truly eternally lovedin fathers house shakes dust returns full speed find father find gets back fathers house finds arose came father yet great way father saw compassion ran fell neck kissed luke 1520 ran back find father discover father already looking return come back joyous reunion full restoration fellowship lost things along way took inheritance wasted lost testimony lost time could father lose position fathers son eternally secure another reason true believer jesus christ knows eternal security license sin judgment seat christ must appear judgment seat christ every one may receive things done body according hath done whether good bad knowing therefore terror lord persuade men made manifest unto god trust also made manifest consciences 2 corinthians 51011 stand lord judged lived lives things said things says matthew say unto every idle word men shall speak shall give account thereof day judgment matthew 1236 bible says even saved christians sin christian falls sin sealed may lose fellowship lord like prodigal remain sons daughters father charles spurgeon said like yet great way father saw icy eyes father looked returning son love leaped beheld compassion felt anger heart toward son nothing pity poor boy got pitiable condition true fault come fathers mind state poverty degradation pale face wan hunger touched father quick god compassion woes miseries men may brought troubles indeed done nevertheless god compassion upon lords mercies consumed compassions fail read father ran compassion god followed swift movements slow anger quick bless take time consider shall show love penitent prodigals done long ago eternal covenant need prepare return done calvary god comes flying greatness compassion help every poor penitent soul spurgeon archive hearts desire every bloodbought believer jesus christ live right think right right right fall short varying degrees bible assures reassures us loving heavenly father waiting us kisses full restoration fellowship repent sin dragged us run abandon back fathers house much teach topic grasp faith simple amazing promise god towards us never ever let us go related story | 1,096 |
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<p>Ford Motor Company Corporate Headquarters. Image source: Ford Motor Company.</p>
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<p>Ford Motor Company (NYSE: F) is putting the finishing touches on its fourth-quarter and full-year earnings presentations, which are due out on Thursday January 26, 2017. When it's all said and done, 2016 will go down as one of the automaker's best years in company history, even if it falls slightly short of 2015's strong result. Let's take a look at guidance, what could make or break the fourth quarter, and where Ford is headed this year.</p>
<p>According to analysts' expectations, Ford's top line is expected to check in at $35.1 billion. That result would be down slightly from last year's $37.84 billion. Consensus estimates for the company's earnings per share are $0.32, which would be well below last year's $0.58 per share. Here's a look at Ford's guidance on a number of other metrics, compared to 2015.</p>
<p>Image source: Ford Motor Company'sDeutsche Bank presentation.</p>
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<p>For the most part, investors know what to expect from Ford's North American region: the vast majority of company profits. But two things that could make the difference in the quarter will be Ford's results in Europe and with its finance division, Ford Credit.</p>
<p>As new-vehicle sales slow in the United States, it's becoming more important for Ford to develop a second pillar of profitability to help offset slowing growth here. On a positive note, trends in Europe are increasingly favoring profits. Ford's sales in Europe moved 5% higher in 2016, to nearly 1.4 million vehicles, but sales of SUVs increased 31% last year.</p>
<p>In addition to accelerating SUV sales, nearly 60% of Ford's passenger car sales in Europe last year were high-series trims, including Titanium and Vignale, which are more profitable models. "Customers appreciate the enhanced performance and style in our high-series models," says Roelant de Waard, vice president of marketing, sales, and service for Ford of Europe, in a press release. "We are excited to launch the next-generation Fiesta with Titanium, Vignale and ST Line editions coming this summer."</p>
<p>Europe is more of a wildcard this quarter than usual, thanks to the U.K.'s decision to leave the European Union. Over the summer, Ford noted that Brexit had already cost the company $60 million due to the pound's decline and expects to lose roughly $200 million in Europe due to the development in 2016 and more than double that amount in 2017.</p>
<p>Sales haven't been as negatively impacted, at least so far, as many initially expected, and if automakers were overdramatic about costs, Europe could turn in a better bottom line than expected -- and that would be a big win for Ford during the fourth quarter.</p>
<p>Many investors don't give enough credit, no pun intended, to Ford Credit. During the third quarter, it generated $552 million in pre-tax net income, higher than Europe and Asia-Pacific regions combined -- and those are Ford's two most profitable markets outside of North America. However, as a slew of used vehicles come off lease and are returned, if residual values continue to decline, it's going to pressure Ford Credit's bottom line. In fact, Ford already shaved $300 million from Ford Credit's full-year guidance.</p>
<p>The way it works is that Ford Credit will estimate the value of its vehicle when the lease is signed, and if it comes back less valuable than it expected, it quickly erodes the bottom line. Unfortunately, the National Automobile Dealers Association index of used-vehicle prices declined in each of the past six months of 2016 and dropped roughly 4% from 2015's average. That's the first significant decrease since the recession. Furthermore, the average used car depreciated about 23% during 2016, faster than the typical 18%.</p>
<p>Ford has already begun pulling back the percentage of total vehicles that it leases. During the fourth quarter, it leased just 19% of its U.S. vehicles, down from the 26% it leased during the first quarter of 2016 and much lower than the industry average, which is around 30%.</p>
<p>Ford's likely to put up another strong quarter for adjusted EBITDA, capping off another solid year, but whether or not the results top estimates is going to come down to how the company performed in Europe and how a flood of off-lease vehicles impacts Ford Credit's bottom line.</p>
<p>10 stocks we like better than Ford 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>
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<p><a href="http://my.fool.com/profile/TMFTwoCoins/info.aspx" type="external">Daniel Miller Opens a New Window.</a> owns shares of Ford. The Motley Fool owns shares of and recommends Ford. 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 | ford motor company corporate headquarters image source ford motor company continue reading ford motor company nyse f putting finishing touches fourthquarter fullyear earnings presentations due thursday january 26 2017 said done 2016 go one automakers best years company history even falls slightly short 2015s strong result lets take look guidance could make break fourth quarter ford headed year according analysts expectations fords top line expected check 351 billion result would slightly last years 3784 billion consensus estimates companys earnings per share 032 would well last years 058 per share heres look fords guidance number metrics compared 2015 image source ford motor companysdeutsche bank presentation advertisement part investors know expect fords north american region vast majority company profits two things could make difference quarter fords results europe finance division ford credit newvehicle sales slow united states becoming important ford develop second pillar profitability help offset slowing growth positive note trends europe increasingly favoring profits fords sales europe moved 5 higher 2016 nearly 14 million vehicles sales suvs increased 31 last year addition accelerating suv sales nearly 60 fords passenger car sales europe last year highseries trims including titanium vignale profitable models customers appreciate enhanced performance style highseries models says roelant de waard vice president marketing sales service ford europe press release excited launch nextgeneration fiesta titanium vignale st line editions coming summer europe wildcard quarter usual thanks uks decision leave european union summer ford noted brexit already cost company 60 million due pounds decline expects lose roughly 200 million europe due development 2016 double amount 2017 sales havent negatively impacted least far many initially expected automakers overdramatic costs europe could turn better bottom line expected would big win ford fourth quarter many investors dont give enough credit pun intended ford credit third quarter generated 552 million pretax net income higher europe asiapacific regions combined fords two profitable markets outside north america however slew used vehicles come lease returned residual values continue decline going pressure ford credits bottom line fact ford already shaved 300 million ford credits fullyear guidance way works ford credit estimate value vehicle lease signed comes back less valuable expected quickly erodes bottom line unfortunately national automobile dealers association index usedvehicle prices declined past six months 2016 dropped roughly 4 2015s average thats first significant decrease since recession furthermore average used car depreciated 23 2016 faster typical 18 ford already begun pulling back percentage total vehicles leases fourth quarter leased 19 us vehicles 26 leased first quarter 2016 much lower industry average around 30 fords likely put another strong quarter adjusted ebitda capping another solid year whether results top estimates going come company performed europe flood offlease vehicles impacts ford credits bottom line 10 stocks like better ford 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 ford wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns january 4 2017 daniel miller opens new window owns shares ford motley fool owns shares recommends ford motley fool disclosure policy opens new window | 524 |
<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 (July 12, 2017).</p>
<p>With its latest energy bid, Warren Buffett's Berkshire Hathaway Inc. is looking to extend its shift away from stock picking to power its growth.</p>
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<p>Last week, the billionaire investor's firm offered to buy bankrupt power-transmission firm Energy Future Holdings Corp. for $9 billion in cash. Should the deal go through, Berkshire would be expanding its reliance on running stable and highly regulated industries to deliver growth.</p>
<p>Mr. Buffett rose to fame as a stock picker and continues to invest tens of billions in equities and other securities for Berkshire's portfolio.</p>
<p>But today, those investments are "de-emphasized," as Berkshire earns significantly more income from its operating businesses, Mr. Buffett said in his February letter to shareholders. Berkshire has undergone a "gradual shift from a company obtaining most of its gains from investment activities to one that grows in value by owning businesses," he wrote.</p>
<p>The conglomerate's shift toward regulated businesses began in 1999, when Berkshire announced an agreement to buy its first utility business, and accelerated with the 2009 agreement to acquire railroad Burlington Northern Santa Fe. Regulated businesses can yield steady returns, while stock investments are more volatile but can produce bigger wins. Berkshire also operates less-regulated businesses including retailers and manufacturers.</p>
<p>The energy and railroad businesses accounted for 24% of Berkshire's 2016 net earnings, up from 8% a decade ago.</p>
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<p>"The franchise has pivoted away from equity investments toward acquisitions," said James Shanahan, senior equity-research analyst at Edward Jones. "The bigger the utility business gets, I think the more important it becomes that the leader of Berkshire Hathaway has a strong understanding of the operations of utility businesses."</p>
<p>If Berkshire Hathaway Energy's deal to buy Energy Future Holdings and its Texas-based utility Oncor is approved, Oncor would increase the conglomerate's earnings by about 2%, according to Morgan Stanley analysts.</p>
<p>The deal has been challenged by hedge fund Elliott Management Corp., which said it plans to put together its own deal with a higher valuation for Oncor.</p>
<p>One major ramification of the Oncor deal, should it go through, is that it would give more power to Berkshire Hathaway Energy's chief executive, Greg Abel. Analysts say this purchase make them increasingly confident Mr. Abel is the leading candidate to succeed Mr. Buffett as chief executive of the parent company.</p>
<p>Mr. Abel, 55 years old, runs Berkshire Hathaway Energy similarly to how Mr. Buffett, 86, runs Berkshire. Both managers maintain small head offices -- 27 employees at Berkshire Hathaway Energy and 25 at Berkshire's headquarters -- and grant their subsidiary managers autonomy to run their businesses.</p>
<p>Before making its bid to buy Energy Future, Berkshire Hathaway Energy participated in talks with Texas regulators and major Oncor customers to make sure its bid would be acceptable to them, Oncor executives said in an interview. Regulators have scuttled two previous attempts to buy Energy Future's 80% stake in Oncor.</p>
<p>"They went to Texas first," said Bob Shapard, Oncor's chief executive. "Berkshire brought [Energy Future] a deal that essentially had been settled with the major players in Austin."</p>
<p>Berkshire Hathaway Energy, formerly known as MidAmerican Energy Holdings Co., has led some of Berkshire's biggest acquisitions. This deal would significantly expand its customer base. Dallas-based Oncor serves 10 million Texans, and Berkshire Hathaway Energy serves 11.6 million customers in Midwestern and Western states, the U.K. and Canada through its utility and natural-gas businesses.</p>
<p>Mr. Abel joined the company in 1992 and became chief executive in 2008. Berkshire Hathaway Energy declined to make Mr. Abel available to comment.</p>
<p>Ajit Jain, who oversees many of Berkshire's insurance operations, is also widely considered a potential successor to Mr. Buffett. Mr. Jain declined to comment. Berkshire has acquired insurers in recent years and launched a commercial-insurance company in 2013.</p>
<p>More broadly, Berkshire's utility investments mark a different strategy than how Mr. Buffett built his firm decades ago, when he sought to buy companies like See's Candies that required little capital investment.</p>
<p>As Berkshire has grown into a behemoth, Mr. Buffett has turned to acquiring regulated businesses that require consistent maintenance. The downside is these businesses require continuing capital investments, but that helps use up some of Berkshire's massive cash pile. The utility businesses also earn tax credits for their significant investments in renewable energy.</p>
<p>"It is probably a different act to maintain this company than it was to build it," said Lawrence Cunningham, a law professor at George Washington University who has written about Berkshire. "Warren wasn't doing this when Berkshire was much smaller, but nowadays, in the last 10 years, they've got so much capital."</p>
<p>Mr. Buffett didn't respond to a request for comment.</p>
<p>Mr. Buffett told shareholders at the company's annual meeting in May that the next CEO's main job would be capital allocation. Even if the Oncor deal closes, Berkshire has about $50 billion in cash available to spend, according to CFRA Research.</p>
<p>Write to Nicole Friedman at [email protected]</p>
<p>(END) Dow Jones Newswires</p>
<p>July 12, 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 july 12 2017 latest energy bid warren buffetts berkshire hathaway inc looking extend shift away stock picking power growth continue reading last week billionaire investors firm offered buy bankrupt powertransmission firm energy future holdings corp 9 billion cash deal go berkshire would expanding reliance running stable highly regulated industries deliver growth mr buffett rose fame stock picker continues invest tens billions equities securities berkshires portfolio today investments deemphasized berkshire earns significantly income operating businesses mr buffett said february letter shareholders berkshire undergone gradual shift company obtaining gains investment activities one grows value owning businesses wrote conglomerates shift toward regulated businesses began 1999 berkshire announced agreement buy first utility business accelerated 2009 agreement acquire railroad burlington northern santa fe regulated businesses yield steady returns stock investments volatile produce bigger wins berkshire also operates lessregulated businesses including retailers manufacturers energy railroad businesses accounted 24 berkshires 2016 net earnings 8 decade ago advertisement franchise pivoted away equity investments toward acquisitions said james shanahan senior equityresearch analyst edward jones bigger utility business gets think important becomes leader berkshire hathaway strong understanding operations utility businesses berkshire hathaway energys deal buy energy future holdings texasbased utility oncor approved oncor would increase conglomerates earnings 2 according morgan stanley analysts deal challenged hedge fund elliott management corp said plans put together deal higher valuation oncor one major ramification oncor deal go would give power berkshire hathaway energys chief executive greg abel analysts say purchase make increasingly confident mr abel leading candidate succeed mr buffett chief executive parent company mr abel 55 years old runs berkshire hathaway energy similarly mr buffett 86 runs berkshire managers maintain small head offices 27 employees berkshire hathaway energy 25 berkshires headquarters grant subsidiary managers autonomy run businesses making bid buy energy future berkshire hathaway energy participated talks texas regulators major oncor customers make sure bid would acceptable oncor executives said interview regulators scuttled two previous attempts buy energy futures 80 stake oncor went texas first said bob shapard oncors chief executive berkshire brought energy future deal essentially settled major players austin berkshire hathaway energy formerly known midamerican energy holdings co led berkshires biggest acquisitions deal would significantly expand customer base dallasbased oncor serves 10 million texans berkshire hathaway energy serves 116 million customers midwestern western states uk canada utility naturalgas businesses mr abel joined company 1992 became chief executive 2008 berkshire hathaway energy declined make mr abel available comment ajit jain oversees many berkshires insurance operations also widely considered potential successor mr buffett mr jain declined comment berkshire acquired insurers recent years launched commercialinsurance company 2013 broadly berkshires utility investments mark different strategy mr buffett built firm decades ago sought buy companies like sees candies required little capital investment berkshire grown behemoth mr buffett turned acquiring regulated businesses require consistent maintenance downside businesses require continuing capital investments helps use berkshires massive cash pile utility businesses also earn tax credits significant investments renewable energy probably different act maintain company build said lawrence cunningham law professor george washington university written berkshire warren wasnt berkshire much smaller nowadays last 10 years theyve got much capital mr buffett didnt respond request comment mr buffett told shareholders companys annual meeting may next ceos main job would capital allocation even oncor deal closes berkshire 50 billion cash available spend according cfra research write nicole friedman nicolefriedmanwsjcom end dow jones newswires july 12 2017 0247 et 0647 gmt | 573 |
<p>S&amp;P seen at 'inflection point'; Home Depot falls after results</p>
<p>The Dow industrials managed to eke out a third day of gains, but overall the main benchmarks ended little changed amid better-then-expected retail sales data and an abatement of tensions between the U.S. and North Korea.</p>
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<p>The Dow Jones Industrial Average finished up 5.28 points, or less than 0.1%, at 21,998.99, following a gain of up to 45 points earlier, with shares of Home Depot Inc.(HD) and Nike Inc.(NKE) representing the largest decliners, while American Express Co.(AXP) and Apple Inc.(AAPL) were the biggest gainers.</p>
<p>The S&amp;P 500 index declined 1.23 points to finish at 2,464.61, with telecom and consumer-discretionary stocks representing the largest decliners, while consumer-staples and utilities stocks were the biggest gainers.</p>
<p>The Nasdaq Composite Index slipped 7.22 points, or 0.1%, to close at 6,333.01.</p>
<p>All three indexes had traded higher earlier in the session, and at its peak of the day, the S&amp;P moved within 1 percentage point of record levels.</p>
<p>Home Depot shares finished down 2.7% even as the Atlanta-based home-improvement company raised its outlook (http://www.marketwatch.com/story/home-depot-raises-guidance-for-second-time-in-2017-2017-08-15) for the second time this year and reported second-quarter results that topped Wall Street estimates. The stock was the biggest drag on the Dow on Tuesday.</p>
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<p>Read: Home Depot's stock cuts about 30 points from Dow industrials (http://www.marketwatch.com/story/home-depots-stock-cuts-more-than-30-points-from-dow-industrials-2017-08-15)</p>
<p>Retail sales rose 0.6% in July (http://www.marketwatch.com/story/us-retail-sales-soar-in-july-to-7-month-high-2017-08-15), above expectations for a 0.4% rise, helped by strong demand for new autos and Amazon's Prime Day shopping specials, but for the most part, retail stocks suffered on Tuesday.</p>
<p>That focus on strength in Amazon and auto sales raises concerns about the broader retail space, especially with Home Depot selling off, said Ian Winer, head of the equities division at Wedbush Securities, in an interview.</p>
<p>"The fact that [Home Depot] is selling off after a good quarter is disconcerting to some people," Winer said. "The big question is what's going on with the U.S. consumer," he said.</p>
<p>Amazon.com Inc.(AMZN) shares finished down less than 0.1% while traditional retailers closed with steeper losses as shares of Target Corp.(TGT) ended down 2.6%, Nordstrom Inc.(JWN) and Kohl's Corp.(KSS) shares both closed down 1.5%, and Dollar General Corp.(DG) shares fell 3.8%. Bucking the trend, Wal-Mart Stores Inc. (WMT) shares finished up 0.1%.</p>
<p>Tuesday's weak showing comes after an upbeat close on Monday (http://www.marketwatch.com/story/dow-futures-flirt-with-100-point-gain-as-north-korea-fears-put-on-back-burner-2017-08-14), when the S&amp;P gained 1% for the first time in three months as the verbal standoff between the U.S. and North Korea cooled. The Nasdaq rallied 1.3% while the Dow ended 0.6% higher. The blue-chip average has now gone 62 sessions without a 1% move in either direction, according to data from WSJ Market Data Group.</p>
<p>"We're at an inflection point, and right now the market is trying to figure out whether this is still a valid, healthy trend higher, or the start of a deeper pullback of some kind," said John Kosar, chief market strategist at Asbury Research.</p>
<p>Tensions between the two nations appeared to ease on Tuesday, with North Korean leader Kim Jong Un deciding not to launch a threatened missile attack on Guam (http://www.marketwatch.com/story/north-korea-steps-back-from-plan-to-launch-missiles-at-guam-2017-08-14), according to Pyongyang's state media. The leader, however, warned that he could change his mind "if the Yankees persist in their extremely dangerous reckless actions."</p>
<p>The isolated nation said last week it would complete its plans to strike Guam in mid-August.</p>
<p>The dollar initially welcomed the de-escalation of the conflict and economic data (http://www.marketwatch.com/story/pound-slides-below-129-as-uk-inflation-unexpectedly-stalls-2017-08-15)on Tuesday, but ticked lower. The ICE Dollar Index , which measures the dollar against six rival currencies, declined less than 0.1% to 93.81, compared with a 0.4% gain on Monday.</p>
<p>The recovery from last week's selloff--the worst for major indexes in months--was the latest example of investors using any weakness to buy on market declines (http://www.marketwatch.com/story/a-problem-for-buy-the-dip-investors-no-dips-to-buy-2017-08-08). It has been an atypically long time since the market fell even 3% from a peak, let alone more.</p>
<p>(https://twitter.com/michaelbatnick/status/897426975568121865)</p>
<p>In what could become a headwind, however, the rally is occurring against a backdrop of falling profit forecasts (http://www.marketwatch.com/story/stock-rally-is-occurring-against-a-backdrop-of-falling-profit-forecasts-2017-08-14).</p>
<p>Economic news: The import price index rose 0.1% last month (http://www.marketwatch.com/story/cost-of-imported-goods-rise-for-first-time-in-three-months-2017-08-15), its first gain in three months.</p>
<p>See:MarketWatch's economic calendar (http://www.marketwatch.com/economy-politics/calendars/economic)</p>
<p>There were no Federal Reserve officials scheduled to speak on Tuesday.</p>
<p>Stock movers: Shares of Dick's Sporting Goods Inc.(DKS) plunged 23% after the retailer reported (http://www.marketwatch.com/story/dicks-sporting-goods-shares-plummet-after-earnings-miss-profit-warning-2017-08-15)second-quarter earnings that missed estimates and issued a profit warning.</p>
<p>Coach Inc.(COH) stock slumped (http://www.marketwatch.com/story/coachs-stock-drops-after-profit-beats-expectations-but-sales-fall-shy-2017-08-15)more than 15% Tuesday after the luxury-goods retailer reported fiscal fourth-quarter net profit that rose to $151.7 million, or 53 cents a share, from $81.5 million, or 29 cents a share, from a year ago.</p>
<p>Shares of General Electric Co.(GE) shed 0.9% after a Securities and Exchange Commission filing late Monday showed Warren Buffett's Berkshire Hathaway Inc.(BRKA) (BRKA) had dropped its position the conglomerate (http://www.marketwatch.com/story/berkshire-hathaway-drops-ge-starts-synchrony-position-2017-08-14).</p>
<p>Berkshire also trimmed positions in International Business Machines Corp.(IBM), Costco Wholesale Corp.(COST) and Sirius XM Holdings Inc.(SIRI), while buying shares of Synchrony Financial(SYF).</p>
<p>Wynn Resorts Ltd.(WYNN) shares rose 6.4% after Deutsche Bank upgrade the stock to a buy rating.</p>
<p>Advance Auto Parts Inc.(AAP) shares dropped 20% the auto-parts retailer reported weaker-than-expected profit (http://www.marketwatch.com/story/advance-auto-parts-shares-slide-7-after-profit-miss-2017-08-15) for the quarter.</p>
<p>J.C. Penney Co.(JCP) shares declined 2.3% and were suffering from their worst five-day stretch in over 45 years (http://www.marketwatch.com/story/jc-penneys-stock-suffering-worst-5-day-stretch-in-over-45-years-2017-08-15).</p>
<p>VF Corp.(VFC), the parent of clothing brands such as North Face and Timberland, late Monday reached a deal to buy Williamson-Dickie Manufacturing Co (http://www.marketwatch.com/story/vf-parent-of-north-face-to-acquire-dickies-owner-in-820-million-apparel-deal-2017-08-14). for $820 million in cash. Shares rose 0.6%.</p>
<p>TJX Cos.(TJX) rose 0.8% after it reported second-quarter earnings and revenue that beat expectations (http://www.marketwatch.com/story/tjx-shares-rise-after-earnings-revenue-beat-2017-08-15).</p>
<p>Other markets: Stocks in Asia closed mostly higher (http://www.marketwatch.com/story/asian-markets-bounce-back-as-north-korean-threat-recedes-2017-08-14), while European markets finished slightly higher (http://www.marketwatch.com/story/european-stocks-cheer-north-koreas-pullback-on-missile-threat-2017-08-15) on continued North Korea relief.</p>
<p>Oil prices (http://www.marketwatch.com/story/oil-at-3-week-low-pressured-by-growth-in-us-shale-output-2017-08-15) slipped 0.1% to settle at $47.55 a barrel, while gold prices (http://www.marketwatch.com/story/gold-sinks-for-second-straight-day-as-north-korea-backs-off-guam-threat-2017-08-15) settled down 0.8% at $1,279.70 an ounce and most other havens retreated. The 10-year benchmark Treasury note was up firmly at 2.264% as prices fell. Bond prices move inversely to yields.</p>
<p>--Sara Sjolin in London contributed to this article.</p>
<p>(END) Dow Jones Newswires</p>
<p>August 15, 2017 20:46 ET (00:46 GMT)</p> | true | 0 | sampp seen inflection point home depot falls results dow industrials managed eke third day gains overall main benchmarks ended little changed amid betterthenexpected retail sales data abatement tensions us north korea continue reading dow jones industrial average finished 528 points less 01 2199899 following gain 45 points earlier shares home depot inchd nike incnke representing largest decliners american express coaxp apple incaapl biggest gainers sampp 500 index declined 123 points finish 246461 telecom consumerdiscretionary stocks representing largest decliners consumerstaples utilities stocks biggest gainers nasdaq composite index slipped 722 points 01 close 633301 three indexes traded higher earlier session peak day sampp moved within 1 percentage point record levels home depot shares finished 27 even atlantabased homeimprovement company raised outlook httpwwwmarketwatchcomstoryhomedepotraisesguidanceforsecondtimein201720170815 second time year reported secondquarter results topped wall street estimates stock biggest drag dow tuesday advertisement read home depots stock cuts 30 points dow industrials httpwwwmarketwatchcomstoryhomedepotsstockcutsmorethan30pointsfromdowindustrials20170815 retail sales rose 06 july httpwwwmarketwatchcomstoryusretailsalessoarinjulyto7monthhigh20170815 expectations 04 rise helped strong demand new autos amazons prime day shopping specials part retail stocks suffered tuesday focus strength amazon auto sales raises concerns broader retail space especially home depot selling said ian winer head equities division wedbush securities interview fact home depot selling good quarter disconcerting people winer said big question whats going us consumer said amazoncom incamzn shares finished less 01 traditional retailers closed steeper losses shares target corptgt ended 26 nordstrom incjwn kohls corpkss shares closed 15 dollar general corpdg shares fell 38 bucking trend walmart stores inc wmt shares finished 01 tuesdays weak showing comes upbeat close monday httpwwwmarketwatchcomstorydowfuturesflirtwith100pointgainasnorthkoreafearsputonbackburner20170814 sampp gained 1 first time three months verbal standoff us north korea cooled nasdaq rallied 13 dow ended 06 higher bluechip average gone 62 sessions without 1 move either direction according data wsj market data group inflection point right market trying figure whether still valid healthy trend higher start deeper pullback kind said john kosar chief market strategist asbury research tensions two nations appeared ease tuesday north korean leader kim jong un deciding launch threatened missile attack guam httpwwwmarketwatchcomstorynorthkoreastepsbackfromplantolaunchmissilesatguam20170814 according pyongyangs state media leader however warned could change mind yankees persist extremely dangerous reckless actions isolated nation said last week would complete plans strike guam midaugust dollar initially welcomed deescalation conflict economic data httpwwwmarketwatchcomstorypoundslidesbelow129asukinflationunexpectedlystalls20170815on tuesday ticked lower ice dollar index measures dollar six rival currencies declined less 01 9381 compared 04 gain monday recovery last weeks selloffthe worst major indexes monthswas latest example investors using weakness buy market declines httpwwwmarketwatchcomstoryaproblemforbuythedipinvestorsnodipstobuy20170808 atypically long time since market fell even 3 peak let alone httpstwittercommichaelbatnickstatus897426975568121865 could become headwind however rally occurring backdrop falling profit forecasts httpwwwmarketwatchcomstorystockrallyisoccurringagainstabackdropoffallingprofitforecasts20170814 economic news import price index rose 01 last month httpwwwmarketwatchcomstorycostofimportedgoodsriseforfirsttimeinthreemonths20170815 first gain three months seemarketwatchs economic calendar httpwwwmarketwatchcomeconomypoliticscalendarseconomic federal reserve officials scheduled speak tuesday stock movers shares dicks sporting goods incdks plunged 23 retailer reported httpwwwmarketwatchcomstorydickssportinggoodssharesplummetafterearningsmissprofitwarning20170815secondquarter earnings missed estimates issued profit warning coach inccoh stock slumped httpwwwmarketwatchcomstorycoachsstockdropsafterprofitbeatsexpectationsbutsalesfallshy20170815more 15 tuesday luxurygoods retailer reported fiscal fourthquarter net profit rose 1517 million 53 cents share 815 million 29 cents share year ago shares general electric coge shed 09 securities exchange commission filing late monday showed warren buffetts berkshire hathaway incbrka brka dropped position conglomerate httpwwwmarketwatchcomstoryberkshirehathawaydropsgestartssynchronyposition20170814 berkshire also trimmed positions international business machines corpibm costco wholesale corpcost sirius xm holdings incsiri buying shares synchrony financialsyf wynn resorts ltdwynn shares rose 64 deutsche bank upgrade stock buy rating advance auto parts incaap shares dropped 20 autoparts retailer reported weakerthanexpected profit httpwwwmarketwatchcomstoryadvanceautopartssharesslide7afterprofitmiss20170815 quarter jc penney cojcp shares declined 23 suffering worst fiveday stretch 45 years httpwwwmarketwatchcomstoryjcpenneysstocksufferingworst5daystretchinover45years20170815 vf corpvfc parent clothing brands north face timberland late monday reached deal buy williamsondickie manufacturing co httpwwwmarketwatchcomstoryvfparentofnorthfacetoacquiredickiesownerin820millionappareldeal20170814 820 million cash shares rose 06 tjx costjx rose 08 reported secondquarter earnings revenue beat expectations httpwwwmarketwatchcomstorytjxsharesriseafterearningsrevenuebeat20170815 markets stocks asia closed mostly higher httpwwwmarketwatchcomstoryasianmarketsbouncebackasnorthkoreanthreatrecedes20170814 european markets finished slightly higher httpwwwmarketwatchcomstoryeuropeanstockscheernorthkoreaspullbackonmissilethreat20170815 continued north korea relief oil prices httpwwwmarketwatchcomstoryoilat3weeklowpressuredbygrowthinusshaleoutput20170815 slipped 01 settle 4755 barrel gold prices httpwwwmarketwatchcomstorygoldsinksforsecondstraightdayasnorthkoreabacksoffguamthreat20170815 settled 08 127970 ounce havens retreated 10year benchmark treasury note firmly 2264 prices fell bond prices move inversely yields sara sjolin london contributed article end dow jones newswires august 15 2017 2046 et 0046 gmt | 676 |
<p />
<p>T-Mobile's CEO has been campaigning against data plans for years. Image source: T-Mobile.</p>
<p>Continue Reading Below</p>
<p>Thanks are in order for CEO John Legere and T-Mobile (NASDAQ: TMUS) for lots of changes in the wireless industry. His most notable accomplishment, however, may be getting his industry to either abandon or move away from data overage charges.</p>
<p>Dropping overage charges was among the first moves T-Mobile made as part of its Un-carrier efforts to shake up the wireless industry. The magenta-clad, outspoken executive has aggressively pointed out that his rivals AT&amp;T (NYSE: T), Verizon (NYSE: VZ), and Sprint (NYSE: S) put consumers in a no-win situation where they either have to buy plans that are bigger than they need or risk going over their data allotment and incurring extra charges.</p>
<p>"No matter how miserable things become for 'Big Red' and 'The Death Star,' there's one bright spot that stays constant," Legere said in an October 2015 <a href="https://newsroom.t-mobile.com/media-kits/abolish-overages-skywriting.htm" type="external">video blog Opens a New Window.</a>. "I'm talking about overages, of course, which they are still raking in to the tune of $1.5 billion every year."</p>
<p>The numbers are actually much higher when you factor in people paying for plans that include more data than they need just so they don't go over their allotment. But, since Legere's 2015 blog post, social media campaign, and Change.org <a href="https://www.change.org/p/wireless-carriers-abolishoverages-att-verizonwireless-and-sprint" type="external">petition Opens a New Window.</a> all four major carriers have made big changes.</p>
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<p>Here's a look at how each one handles overages with most of its customers:</p>
<p>Legere's company dropped overage charges in 2014when the company went to its Simple Choice plans. Under these plans consumers got unlimited talk and text (which has become an industry standard) while paying for an allotment of high-speed data. Once they exhaust that data, the consumer can buy more, or continue to use his or her phone, but at slowed down speeds.</p>
<p>The number-three carrier went even further in August when it unveiled T-Mobile One, a plan that offers unlimited high-speed data for $70 for the first line, $50 for the second, and $20 for each one after that up to eight (though a special was running as this was written, which makes the fourth line free) as long as the customer uses autopay. The only caveat to the unlimited, no overage, all-high-speed offer is that "customers who use more data than 97% of our customers (currently over 26 GB per month) will have their usage prioritized below other traffic and may notice slower speeds," according to the company.</p>
<p>T-Mobile has let existing customers keep their previous Simple Choice plans. New users who want to be billed, however, must select an unlimited One plan or they can opt for the company's prepaid plans, which operate like Simple Choice with no overages.</p>
<p>While the company has denied that it has patterned any of its moves after T-Mobile's, Sprint has launched an unlimited plan very similar to its rivals. The fourth-place carrier offers what it calls "Unlimited Freedom," a plan offering unlimited talk, text, and data for $60 for the first line, $40 for the second, and $30 for each line after that (up to 10).</p>
<p>Unlike T-Mobile, Sprint still offers a variety of other plans including its "Family Plans," which come with a shared data allotment. Once that data amount has been used, the carrier slows users down to 2G speeds or lets them add more high-speed data at $15 per GB.</p>
<p>Basically, while there are some differences in their offers, Sprint and T-Mobile are both in agreement on not charging overages. The two companies may enjoy squabbling about which got where first, but both are basically on the same page.</p>
<p>Aside from a dwindling number of grandfathered plans AT&amp;T only offers unlimited plans as part of a special bundle offer for people who also subscribe to its DirecTV service. The company has eliminated overages for some customers with its "Mobile Share Advantage" plans, which are offered along with its previous "Mobile Share Value" plans. It's a bit confusing, and perhaps it's meant to be, but the company laid out the following scenario in a <a href="http://about.att.com/story/att_introduces_mobile_share_advantage.html" type="external">press release Opens a New Window.</a>:</p>
<p>If a consumer elects Mobile Share Advantage, which seems to be the only option for new customers, he or she gets a plan where slower speeds kick in after the allotted data has been used (much like what Sprint and T-Mobile offer). The company also has a caveat for those who use the most data, which is similar to T-Mobile's.</p>
<p>The catch for AT&amp;T customers is that the new plans are opt-in. Existing customers have the right to keep their old data plans (and a few low-end options have been discontinued as part of the new offerings) but to get the overage-free service the have to actively switch plans. That's true of Sprint and T-Mobile users who want to move from their current plan to an unlimited data offer, but both already offered overage protection on their legacy plans.</p>
<p>Verizon seems like the wireless carrier that most wants to cling to overage charges. The company has introduced a plan to protect consumers from those charges called "Safety Mode." At first the company charged $5 a month for consumers to elect "Safety Mode," but those charges were quickly dropped.</p>
<p>In order to use "Safety Mode," which alerts customers that they have reached their data limit, letting them chose to buy more data or operate at slower speeds, Verizon requires customers to opt in and existing customers must move to an updated plan as the no-overage feature is not offered with legacy plans. Customers who like their previous plan can keep it, but they risk incurring overages.</p>
<p>Legere can take credit for ending overages. Some Verizon and AT&amp;T customers will still pay them -- either because they like something about their old plan or because they don't realize they can switch -- but thanks to T-Mobile's efforts, customers on all four major carriers now have the option to use plans that do not charge overage fees. That's a stunning win for consumers even if in some cases getting a new plan requires a bit more vigilance than many people pay to their wireless plan.</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/Dankline/info.aspx" type="external">Daniel Kline Opens a New Window.</a> has no position in any stocks mentioned. He is a T-Mobile customer even though Sprint would be a little cheaper. The Motley Fool recommends T-Mobile US and Verizon Communications. 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 | tmobiles ceo campaigning data plans years image source tmobile continue reading thanks order ceo john legere tmobile nasdaq tmus lots changes wireless industry notable accomplishment however may getting industry either abandon move away data overage charges dropping overage charges among first moves tmobile made part uncarrier efforts shake wireless industry magentaclad outspoken executive aggressively pointed rivals atampt nyse verizon nyse vz sprint nyse put consumers nowin situation either buy plans bigger need risk going data allotment incurring extra charges matter miserable things become big red death star theres one bright spot stays constant legere said october 2015 video blog opens new window im talking overages course still raking tune 15 billion every year numbers actually much higher factor people paying plans include data need dont go allotment since legeres 2015 blog post social media campaign changeorg petition opens new window four major carriers made big changes advertisement heres look one handles overages customers legeres company dropped overage charges 2014when company went simple choice plans plans consumers got unlimited talk text become industry standard paying allotment highspeed data exhaust data consumer buy continue use phone slowed speeds numberthree carrier went even august unveiled tmobile one plan offers unlimited highspeed data 70 first line 50 second 20 one eight though special running written makes fourth line free long customer uses autopay caveat unlimited overage allhighspeed offer customers use data 97 customers currently 26 gb per month usage prioritized traffic may notice slower speeds according company tmobile let existing customers keep previous simple choice plans new users want billed however must select unlimited one plan opt companys prepaid plans operate like simple choice overages company denied patterned moves tmobiles sprint launched unlimited plan similar rivals fourthplace carrier offers calls unlimited freedom plan offering unlimited talk text data 60 first line 40 second 30 line 10 unlike tmobile sprint still offers variety plans including family plans come shared data allotment data amount used carrier slows users 2g speeds lets add highspeed data 15 per gb basically differences offers sprint tmobile agreement charging overages two companies may enjoy squabbling got first basically page aside dwindling number grandfathered plans atampt offers unlimited plans part special bundle offer people also subscribe directv service company eliminated overages customers mobile share advantage plans offered along previous mobile share value plans bit confusing perhaps meant company laid following scenario press release opens new window consumer elects mobile share advantage seems option new customers gets plan slower speeds kick allotted data used much like sprint tmobile offer company also caveat use data similar tmobiles catch atampt customers new plans optin existing customers right keep old data plans lowend options discontinued part new offerings get overagefree service actively switch plans thats true sprint tmobile users want move current plan unlimited data offer already offered overage protection legacy plans verizon seems like wireless carrier wants cling overage charges company introduced plan protect consumers charges called safety mode first company charged 5 month consumers elect safety mode charges quickly dropped order use safety mode alerts customers reached data limit letting chose buy data operate slower speeds verizon requires customers opt existing customers must move updated plan nooverage feature offered legacy plans customers like previous plan keep risk incurring overages legere take credit ending overages verizon atampt customers still pay either like something old plan dont realize switch thanks tmobiles efforts customers four major carriers option use plans charge overage fees thats stunning win consumers even cases getting new plan requires bit vigilance many people pay wireless plan 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 daniel kline opens new window position stocks mentioned tmobile customer even though sprint would little cheaper motley fool recommends tmobile us verizon communications 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 | 682 |
<p>One of the topics in Tuesday's healthcare debate between Sens. Ted Cruz (R-TX) and Bernie Sanders (I-VT) was Medicaid. Ezra Klein writes in <a href="http://www.vox.com/policy-and-politics/2017/2/8/14536074/obamacare-aca-polling-republicans" type="external">Vox</a> that a recent poll showed that only 47 percent of Republicans knew that the Medicaid expansion under Obamacare would vanish if the law is the repealed (although at least one of the Republican replacement plans keep the Medicaid spending levels in place).</p>
<p>Here are five things you need to know about Medicaid.</p>
<p>1. Medicaid was first signed into law in 1965 as part of Lyndon Johnson's Great Society programs. Mark Levin explains in his book <a href="https://www.amazon.com/Liberty-Tyranny-Conservative-Mark-Levin/dp/1416562877/ref=sr_1_1?ie=UTF8&amp;qid=1486589638&amp;sr=8-1&amp;keywords=mark+levin+liberty+and+tyranny" type="external">Liberty and Tyranny: A Conservative Manifesto</a> that it originally only covered the poorest Americans, but as with most government programs "it has since evolved into much more, covering the elderly, people with disabilities, children and pregnant women."</p>
<p>2. Medicaid's Obamacare expansion will bankrupt states. In his most recent book <a href="http://townhall.com/tipsheet/aaronbandler/2015/08/11/plunder-and-deceit-a-millennials-take-on-mark-levins-new-book-n2036858" type="external">Plunder and Deceit: Big Government's Exploitation of Young People and the Future</a>, Levin writes that Medicaid now includes "those making 138 percent of the poverty line–that is, an annual income of $16,105 for an individual and $32,913 for a family of four" in the <a href="http://kff.org/health-reform/state-indicator/state-activity-around-expanding-medicaid-under-the-affordable-care-act/?currentTimeframe=0" type="external">31 states and Washington, D.C.</a> that chose to agree to the expansion. The problem is that Medicaid already swallows almost 26 percent of states' budgets, and while the federal government agreed to pay the entire cost of the expansion for the first three years, their share of the burden decreasingly falls until the states likely have to pay for the full burden of the Medicaid expansion.</p>
<p>3. People on Medicaid suffer from worse health outcomes than those who don't have insurance at all. This is because a lot of doctors don't accept Medicaid since it drastically underpays doctors; leaving those on Medicaid forced to wade through the bureaucratic quagmire to find a doctor that does. There have been <a href="http://www.usatoday.com/story/opinion/2013/11/11/obamacare-health-care-obama-medicaid-avik-roy-column/3489067/" type="external">studies</a> conducted that confirm this:</p>
<p>A University of Virginia study found that Medicaid patients hospitalized for major surgery were actually 13% more likely to die in the hospital than those without any health insurance. Likewise, the National Cancer Institute found that late-stage prostate cancer, late-stage breast cancer, and late-stage melanoma were actually much more common in Medicaid recipients than in the uninsured. And a Johns Hopkins study of patients receiving lung transplants found that Medicaid patients were 29% more likely to die within three years.</p>
<p>What's more, a University of Pennsylvania study (published in the journal Cancer) found that colon cancer patients with Medicaid had a higher mortality rate than uninsured patients, and a higher rate of surgical complications. And these findings hold up even when you correct for age and socioeconomic status.</p>
<p>One heartbreaking example that demonstrates this was 12 year-old <a href="https://www.forbes.com/sites/peterferrara/2012/10/05/obamas-medicaid-plan-exposes-him-as-an-enemy-of-the-poor/#68f36904562d" type="external">Deamonte Driver</a>. He had a toothache that later turned into an infection that spread to his brain because his mother was unable to find a dentist that took Medicaid before the infection occurred. She also couldn't find a neurologist to treat the infection; consequently Deamonte Driver had to be taken to the hospital, where he passed away from the infection.</p>
<p>4. Medicaid and Medicare are projected to be major drivers of the debt in coming years. According to the Committee for a Responsible Federal Budget, "federal health spending is the fastest growing part of the budget":</p>
<p>Spending on federal health care programs is projected to rise substantially over the next thirty years. Medicare spending is expected to increase from 3.2 percent of Gross Domestic Product (GDP) this year to 5.7 percent by 2046, while Medicaid, the Children's Health Insurance Program, and ACA subsides will grow from 2.3 percent of GDP to 3.1 percent. As a result, total federal health spending will increase by 3.4 percent of GDP over the next three decades.</p>
<p>The budget is expected to look something like <a href="https://www.cbo.gov/publication/51580" type="external">this</a> in 30 years:</p>
<p />
<p>With Medicaid being one of the key factors in the rise of federal health spending, reforming the program is clearly needed.</p>
<p>5. The best way to reform Medicaid is to block grant it to the states. Avik Roy has <a href="https://www.forbes.com/sites/theapothecary/2012/09/30/why-block-granting-medicaid-will-result-in-better-health-care-for-the-poor/#24daece01271" type="external">argued</a> that block grants–giving money to the states without strings attached–provide states with flexibility to experiment with Medicaid reforms to better save money. Roy cites two examples of success with block grants in Rhode Island and Indiana:</p>
<p>Rhode Island was able to save $100 million, and slow the growth of Medicaid from 8 percent per year to 3 percent, by making a few tweaks to their program that they couldn’t before: shifting more Medicaid patients from nursing homes to home- and community-based services; automatically enrolling children with special needs and adults with disabilities into care-management programs; etc.</p>
<p>The best part is that, under a block-grant system, states can identify ways to save money while improving care, and other states can adopt best practices. Indiana, for example, took advantage of a waiver to introduce subsidized health-savings accounts into its Medicaid program, a reform that has been very popular with Medicaid enrollees—one survey showed a 94 percent satisfaction rate—and given Medicaid patients more control over their own health dollars. In theory, HSAs could allow Medicaid enrollees to pay market rates for needed care, improving access and health outcomes.</p>
<p>Roy also noted that block grants should be allocated on a per-capita basis, meaning that the amount doled out to the states is based on the number of patients in Medicaid to prevent states from spending the money in a wasteful manner.</p>
<p>Follow Aaron Bandler on Twitter <a href="https://twitter.com/bandlersbanter" type="external">@bandlersbanter</a>.</p> | true | 0 | one topics tuesdays healthcare debate sens ted cruz rtx bernie sanders ivt medicaid ezra klein writes vox recent poll showed 47 percent republicans knew medicaid expansion obamacare would vanish law repealed although least one republican replacement plans keep medicaid spending levels place five things need know medicaid 1 medicaid first signed law 1965 part lyndon johnsons great society programs mark levin explains book liberty tyranny conservative manifesto originally covered poorest americans government programs since evolved much covering elderly people disabilities children pregnant women 2 medicaids obamacare expansion bankrupt states recent book plunder deceit big governments exploitation young people future levin writes medicaid includes making 138 percent poverty linethat annual income 16105 individual 32913 family four 31 states washington dc chose agree expansion problem medicaid already swallows almost 26 percent states budgets federal government agreed pay entire cost expansion first three years share burden decreasingly falls states likely pay full burden medicaid expansion 3 people medicaid suffer worse health outcomes dont insurance lot doctors dont accept medicaid since drastically underpays doctors leaving medicaid forced wade bureaucratic quagmire find doctor studies conducted confirm university virginia study found medicaid patients hospitalized major surgery actually 13 likely die hospital without health insurance likewise national cancer institute found latestage prostate cancer latestage breast cancer latestage melanoma actually much common medicaid recipients uninsured johns hopkins study patients receiving lung transplants found medicaid patients 29 likely die within three years whats university pennsylvania study published journal cancer found colon cancer patients medicaid higher mortality rate uninsured patients higher rate surgical complications findings hold even correct age socioeconomic status one heartbreaking example demonstrates 12 yearold deamonte driver toothache later turned infection spread brain mother unable find dentist took medicaid infection occurred also couldnt find neurologist treat infection consequently deamonte driver taken hospital passed away infection 4 medicaid medicare projected major drivers debt coming years according committee responsible federal budget federal health spending fastest growing part budget spending federal health care programs projected rise substantially next thirty years medicare spending expected increase 32 percent gross domestic product gdp year 57 percent 2046 medicaid childrens health insurance program aca subsides grow 23 percent gdp 31 percent result total federal health spending increase 34 percent gdp next three decades budget expected look something like 30 years medicaid one key factors rise federal health spending reforming program clearly needed 5 best way reform medicaid block grant states avik roy argued block grantsgiving money states without strings attachedprovide states flexibility experiment medicaid reforms better save money roy cites two examples success block grants rhode island indiana rhode island able save 100 million slow growth medicaid 8 percent per year 3 percent making tweaks program couldnt shifting medicaid patients nursing homes home communitybased services automatically enrolling children special needs adults disabilities caremanagement programs etc best part blockgrant system states identify ways save money improving care states adopt best practices indiana example took advantage waiver introduce subsidized healthsavings accounts medicaid program reform popular medicaid enrolleesone survey showed 94 percent satisfaction rateand given medicaid patients control health dollars theory hsas could allow medicaid enrollees pay market rates needed care improving access health outcomes roy also noted block grants allocated percapita basis meaning amount doled states based number patients medicaid prevent states spending money wasteful manner follow aaron bandler twitter bandlersbanter | 544 |
<p>Back when oil prices started to climb out from the abyss in February of 2016, it would have been reasonable to think that oil and gas stocks wouldn't get that cheap ever again. That is especially true with integrated oil and gas companies that are some of the best-capitalized businesses in the world, with assets touching every part of the oil &amp; gas value chain to offset commodity volatility. Yet here we are more than 18 months later, and the valuations for integrated oil &amp; gas companies ExxonMobil (NYSE: XOM) and Total SA (NYSE: TOT) are getting incredibly close to those levels we saw early last year.</p>
<p>Despite the challenges of today's market, there is reason to believe that better days are still ahead for the oil industry. So let's look at why investors seem to be down on these two stocks and why this could make for another great buying opportunity.</p>
<p>Continue Reading Below</p>
<p>ExxonMobil has caught quite a bit of flack lately. Even though the company's earnings are on the upswing thanks to lower production costs and reasonable oil prices, one thing that has been lacking is production growth. Much of the additional production over the past couple of years has barely been enough to keep pace with the decline of legacy assets or offset lost production from asset sales. This has been a significant factor as to why shares of ExxonMobil now trade at a price to tangible book value similar to levels we saw in the 1980s.</p>
<p>If Exxon were to only maintain its current production for many more years, then perhaps today's valuation would be justified. However, there are two major growth catalysts that could help spur production growth in the coming years. The first is its position in the Permian Basin of West Texas. Exxon has been slow-playing its position here for years to figure out the geology and the best extraction techniques, but now it has a position in the region where its development costs are low. Management has been ramping up activity there with additional rigs and will likely continue to do so in the coming years.</p>
<p>The other big catalyst is its offshore field in Guyana. Management has already given the green light for a 120,000 offshore facility that should start up before 2020, and it's already developing a second phase for 300,000 barrels per day. These two development phases represent just a small portion of the total oil Exxon found in this prolific offshore basin. It wouldn't be surprising if we see even more coming from this region soon.</p>
<p>Exxon has always been known for being the steady ship in the stormy sea that is the oil and gas industry. It may not be able to quickly respond, but the elements are there for sustained growth over the next few years.</p>
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<p>Total has been in the exact opposite situation as ExxonMobil in recent years regarding production. Many of the company's largest capital projects have come online since 2015, and it has led to production growth rates well above what investors would normally expect from an integrated oil &amp; gas company. What's also encouraging is that the group has coupled that production growth with significant operational cost reductions for both the upstream and downstream segments of the business.</p>
<p>Thanks to those efforts, Total has been able to achieve two rather incredible feats in the past several quarters. It took the return on equity crown from ExxonMobil, which was the first time in over a decade that a company outperformed Exxon. The other was that Total was able to generate the <a href="https://www.fool.com/investing/2017/04/28/total-sa-accomplished-something-remarkable-this-pa.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=25c13326-88df-11e7-b23c-0050569d32b9&amp;utm_source=foxbusiness" type="external">same level of free cash flow</a> as it did back in 2013, when oil was north of $100 a barrel. Having these levels of profitability have given management enough confidence <a href="https://www.fool.com/investing/2017/07/27/total-sa-plans-to-open-up-the-checkbook-after-impr.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=25c13326-88df-11e7-b23c-0050569d32b9&amp;utm_source=foxbusiness" type="external">to invest in new projects and acquire new assets</a> such as its recent purchase of Danish conglomerate&#160;Maersk's oil and gas assets in the North Sea.</p>
<p>Even though the company has a high rate of return, a reasonable balance sheet, and the ability to make aggressive acquisitions, shares of Total are still selling for a price to tangible book value of just 1.42 times, the lowest ratio among the integrated majors.</p>
<p>Some investors are a little concerned that management has elected to keep its scrip dividend -- a dividend that is paid out in shares instead of cash -- and that it will be difficult to grow its dividend once it's paying an all-cash dividend again. With Total's dividend yield at 5% already, the concern is certainly justified. However, management plans to keep growing production by 5% or more between now and 2020. If it can continue to keep a lid on per-barrel operational costs while growing production at these rates, then the company should find little issue with getting back to a full cash dividend and a modest growth rating.</p>
<p>10 stocks we like better than TotalWhen 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 September 5, 2017</p>
<p><a href="http://my.fool.com/profile/TMFDirtyBird/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=25c13326-88df-11e7-b23c-0050569d32b9&amp;utm_source=foxbusiness" type="external">Tyler Crowe</a> owns shares of ExxonMobil and Total. The Motley Fool owns shares of ExxonMobil. 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;uuid=25c13326-88df-11e7-b23c-0050569d32b9&amp;utm_source=foxbusiness" type="external">disclosure policy</a>.</p> | true | 0 | back oil prices started climb abyss february 2016 would reasonable think oil gas stocks wouldnt get cheap ever especially true integrated oil gas companies bestcapitalized businesses world assets touching every part oil amp gas value chain offset commodity volatility yet 18 months later valuations integrated oil amp gas companies exxonmobil nyse xom total sa nyse tot getting incredibly close levels saw early last year despite challenges todays market reason believe better days still ahead oil industry lets look investors seem two stocks could make another great buying opportunity continue reading exxonmobil caught quite bit flack lately even though companys earnings upswing thanks lower production costs reasonable oil prices one thing lacking production growth much additional production past couple years barely enough keep pace decline legacy assets offset lost production asset sales significant factor shares exxonmobil trade price tangible book value similar levels saw 1980s exxon maintain current production many years perhaps todays valuation would justified however two major growth catalysts could help spur production growth coming years first position permian basin west texas exxon slowplaying position years figure geology best extraction techniques position region development costs low management ramping activity additional rigs likely continue coming years big catalyst offshore field guyana management already given green light 120000 offshore facility start 2020 already developing second phase 300000 barrels per day two development phases represent small portion total oil exxon found prolific offshore basin wouldnt surprising see even coming region soon exxon always known steady ship stormy sea oil gas industry may able quickly respond elements sustained growth next years advertisement total exact opposite situation exxonmobil recent years regarding production many companys largest capital projects come online since 2015 led production growth rates well investors would normally expect integrated oil amp gas company whats also encouraging group coupled production growth significant operational cost reductions upstream downstream segments business thanks efforts total able achieve two rather incredible feats past several quarters took return equity crown exxonmobil first time decade company outperformed exxon total able generate level free cash flow back 2013 oil north 100 barrel levels profitability given management enough confidence invest new projects acquire new assets recent purchase danish conglomerate160maersks oil gas assets north sea even though company high rate return reasonable balance sheet ability make aggressive acquisitions shares total still selling price tangible book value 142 times lowest ratio among integrated majors investors little concerned management elected keep scrip dividend dividend paid shares instead cash difficult grow dividend paying allcash dividend totals dividend yield 5 already concern certainly justified however management plans keep growing production 5 2020 continue keep lid perbarrel operational costs growing production rates company find little issue getting back full cash dividend modest growth rating 10 stocks like better totalwhen 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 total wasnt one thats right think 10 stocks even better buys click learn picks stock advisor returns september 5 2017 tyler crowe owns shares exxonmobil total motley fool owns shares exxonmobil motley fool recommends total motley fool disclosure policy | 519 |
<p>KOLLAM, India -- Behold the humble cashew nut. Turns out it isn't so humble, or even a nut.</p>
<p>Dangling from the bottom of the cashew apple, a rare example of a seed that grows outside its own fruit, the cashew embodies globalization -- and some of its discontents.</p>
<p>Continue Reading Below</p>
<p>How global?</p>
<p>Cashew trees were transported to India by Portuguese explorers sailing from Brazil in the 16th century. The trees soon found their way to the city of Kollam, an Indian Ocean port on trade routes once plied by the Italian wanderer Marco Polo and the Muslim adventurer Ibn Battuta.</p>
<p>The crescent-shaped kernels made it into the world market from there starting in the late 1920s, when executives from a subsidiary of the former General Foods Co. contracted with local Indian entrepreneurs to collect raw cashews and remove them from their hard shells. General Foods shipped the shelled kernels to Hoboken, N.J., using a patented vacuum packing process. From there they were roasted, packaged and sold across the U.S. under the brand name Baker's Vitapack Cashews.</p>
<p>This was the beginning of what is now a rapidly growing $6.5 billion global business. In the U.S., the largest export market, cashews are pitched as healthy snacks and have made their way into products from nut bars to substitutes for butter and milk. In India, the largest overall consumer market for cashews, a growing middle class is increasingly adding them to cakes and sweets served at weddings and births.</p>
<p>For decades, Kollam was the cashew capital of the world. The factories that did nearly all the shelling, peeling and sorting -- the guts of the cashew industry -- remained in the southern Indian city, exactly where General Foods executive Lindsay Johnson first nurtured them in the 1930s.</p>
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<p>Today Vietnam is cashew king, thanks to an ingenious push to automate the business. Kollam is reeling, a victim of misguided government protectionism and its own unwillingness to adapt to the realities of the freewheeling global economy.</p>
<p>It is a parable of the global age. Globalization creates sprawling world-wide markets. International supply chains crisscross the Earth. The combination can raise communities up out of dire poverty, and generate brutal competition that can undercut those communities just as quickly.</p>
<p>Kollam's cashew tycoons displayed an early entrepreneurial bent. After a few years visiting to forge supply contracts for General Foods, Mr. Johnson and his wife moved across the world to Kollam, where he set up his own cashew processing outfit with a local partner and sold to General Foods himself.</p>
<p>He amassed a small fortune and even named a daughter born there Kerala, after the state. After the U.S. entered World War II and ordered all American women and children out of India, Mr. Johnson left, fully expecting to return. He never did.</p>
<p>A handful of families came to dominate. Known locally as cashew barons, they wrangled with a local labor force even as they provided the main source of jobs.</p>
<p>From the beginning the cashew business turned on cheap but skilled labor to carry out the complicated process of removing cashews from their shells. Almost all of it was done by women. They earned a small, often second income for their families.</p>
<p>"They were sitting in their homes before that," says 85-year-old K. Ravindranathan Nair, whose father was among the first into cashews. "The income was not very big, but for them it was additional money."</p>
<p>Mr. Nair took over the family business at age 24 when his father died. He built it into one of Kollam's biggest cashew processors, VijayAlaxmi Cashew Co.</p>
<p>One generation of workers taught the next. Experienced workers who could quickly shell, peel and cull tens of thousands of kernels each day were highly valued, though their pay didn't reflect it. Especially talented ones could quickly, by sight and feel, sort kernels into specific grades that measured out to exactly the number of flawless kernels per pound that demanding international buyers required.</p>
<p>"This is a skill that only we know," says Khadeeja, a 39-year-old worker who goes by only one name and has worked in Kollam's cashew facilities since she was 15.</p>
<p>"Kollam was the place where markets were made," says Krishnan G. Nair, who runs KGN Cashew. The company was started by his father, who was a brother and one-time business partner of K. Ravindranathan Nair.</p>
<p>On his desk sit copies of two books: "The Wealth of Nations," Adam Smith's treatise applauding free markets; and Karl Marx's Das Kapital. They capture the competing forces that have shaped Kollam's cashew industry from its beginnings.</p>
<p>Business boomed. But for workers wages remained low, benefits few, hours long and workplace abuse common. Labor politics soon took hold.</p>
<p>From the 1970s, union leaders helped shape the industry into an engine of community development. Two local communist parties, which competed for votes cast by unionized cashew workers, populated local government with pro-labor officials.</p>
<p>To widen employment and push up wages, the state established two large government cashew processors. Those companies dominated the local industry. Minimum wages, even for private producers, were mandated by the state government.</p>
<p>Salaries rose, health care improved, pensions were instituted, workplace abuses addressed. Hard though they were, cashew processing jobs kept families out of poverty. Women were the biggest beneficiaries, along with the children they were better able to support. Newly minted Kollam cashew fortunes helped build a local theater, a public library, the city's best hotel. Kerala became one of India's most advanced states.</p>
<p>"Almost every establishment, almost every institution here, is the result of cashews," says N.K. Premachandran, the local representative to the legislature of Kerala.</p>
<p>For a time, a balance between capitalism and Marxist ideals seemed to prevail. Indian exports of cashew kernels reached 97,000 metric tons in 1999, double what they were at the beginning of the decade. They accounted for about 80% of the global market. Overall, India processed 173,000 metric tons of kernels that year, tops in the world.</p>
<p>In Kollam, pillars of an industry were elevated, literally, to objects of worship by those they employed. A portrait of one founder of a cashew processing facility still sits inside a small temple out back of the factory.</p>
<p>"He is our provider, our god," says Bhaiamma, an 80-year-old woman with black and red dots smudged on her forehead as a sign of humility, who worked in the factory from age 11 to her retirement in 2006. "Life was tough for us. Cashews are everything for people here."</p>
<p>The visitors from Vietnam started arriving in Kollam in the mid-1990s. Producers figured they represented growers, since Vietnam was a source of raw cashew nuts for many here. The producers happily demonstrated how cashews were processed.</p>
<p>But some of the visitors were actually engineers who worked for a very determined man named Nguyen Van Lang.</p>
<p>As early as the 1980s, Vietnam's government encouraged landowners in some of its poorest districts to plant cashew trees. By the 1990s a few processors had established themselves. They operated with thousands of workers, just like those in Kollam.</p>
<p>But Western supermarkets such as Wal-Mart, Carrefour and Tesco -- the biggest buyers of cashews -- were flexing their growing muscle across a global web of suppliers, pressing relentlessly for cost cuts.</p>
<p>Mr. Lang, who owned a business packaging food for sale abroad, was asked by the government in 1995 to explore how Vietnam might boost cashew exports to the U.S. or any place else that would buy them.</p>
<p>He'd never seen a cashew. When he couldn't get a visa to visit India, a brother living in Paris traveled there on Mr. Lang's behalf.</p>
<p>Mr. Lang's critical insight: Cashew processing was essentially a manufacturing job in which mechanization might provide an edge. It wouldn't be easy. An Italian company made a machine that could cut cashew nut shells. The machine was expensive and damaged many of the kernels. Cutting the nuts also was just one step, arguably the simplest.</p>
<p>He decided to invent his own machines.</p>
<p>"I spent a lot of my own money," says the 73-year-old, now retired and living in a suburb of Ho Chi Minh City with a dozen Chihuahuas, a Pit Bull terrier and a goldfish. "We tried again and again until we figured out each step."</p>
<p>As recently as the early 2000s, Vietnamese processing plants still looked much like their counterparts in Kollam: rooms filled with mostly women furiously shelling, peeling, sorting, grading and packing cashews by hand.</p>
<p>Pham Thi My Le, now 60 years old, started one of Vietnam's first cashew processing companies in 1993, after years of buying up raw nuts in her home province of Binh Phuoc and selling them to brokers who shipped them to processors in India.</p>
<p>Between 2000 and 2007, her company in verdant hill country rich with cashew trees employed about 2,000 workers during peak months. Most of those workers traveled almost a thousand miles from northern Vietnam, temporarily housed in cramped dormitories.</p>
<p>Ms. My Le was aware of machines like those Mr. Lang was developing. She didn't see the logic of investing in them -- until her workforce started drying up. Foreign companies in the north were offering year-round jobs in auto and white-goods factories they were setting up as Vietnam opened its borders.</p>
<p>Her workers opted for better-paying jobs where they lived.</p>
<p>Ms. My Le started buying the machines and incorporating them into production. Over time they greatly improved efficiency.</p>
<p>These days, her machine-laden plant employs just 170 workers. They process 66,000 pounds of raw cashew nuts daily, roughly the same amount that 2,000 once did.</p>
<p>Today's workers live in the same dormitories, but permanently accompanied by their families, each with several rooms of their own. Their children attend a nearby day care.</p>
<p>Not far down the road, Le Quang Luyen, another local businessman, has taken automation to higher levels still. His company, Phuc An, recently spent $40 million to build a fully automated facility, which opened this year. It can process up to 110,000 pounds of raw nuts a day with just 30 employees.</p>
<p>His facility looks like a factory floor, a whir of mechanized slicers, conveyor belts, tubes, chutes, slides, sensors and automated sorters.</p>
<p>In Kollam, having achieved domination of the global cashew trade, political leaders discouraged mechanization and the job losses that would entail.</p>
<p>"When mechanization comes, who loses jobs? The poor people. We can't do that," says R. Rajesh, managing director at the Kerala State Cashew Workers Apex Industrial Cooperative Society, commonly known as Capex, which operates 10 processing facilities.</p>
<p>Private processors were inhibited from aggressively automating by local laws that prevented them from laying off workers and thus denied much of the cost savings and efficiencies more machines would have brought.</p>
<p>Government policies vexed matters further. In a bid to protect cashew growers and expand the domestic crop, India's central government in 2006 imposed a 9% tariff on imports of raw cashews. Kerala's state government bestowed a 35% pay increase on workers in the industry. They now make 350 rupees a day, or $5.40. That fulfilled a campaign promise made by the winning political party during the last election.</p>
<p>The result has been disaster for Kollam. Private processors have moved operations to other states in India, often just across the border from Kerala, where wages are lower and they can mechanize factories.</p>
<p>Kerala state government-controlled companies, which cannot move production, simply operate in the red.</p>
<p>The average Capex employee worked 165 days last year compared with 200 days five years ago, the company says. With the mandated 35% raises, the company, in other words, is paying the average worker 22% more to produce 18% less.</p>
<p>Earlier this year Capex couldn't afford to buy raw nuts and had to shut down for weeks. To trim its workforce, Capex says it hasn't hired new workers in more than five years. Through attrition, it now employs 3,500, half its workforce in 2010. Its goal of protecting jobs has backfired badly.</p>
<p>Capex says it has done its best to preserve jobs given government wage policies.</p>
<p>India's processing of raw nuts stagnated last year at 1.5 million metric tons, while its kernel exports fell by 38% to 82,302 metric tons, according to India's ministry of agriculture.</p>
<p>Meanwhile, Vietnam processed 1.4 million metric tons of raw cashews, more than double the amount five years earlier, according to the Ministry of Agriculture and Rural Development. It doubled exports of kernels over the same period to 348,000 metric tons.</p>
<p>Like Bhaiamma, the retired worker in Kollam, Vietnamese worker Nguyen Thi Thinh deeply appreciates her career in cashews.</p>
<p>She, too, began young, sorting and peeling raw cashew nuts by hand. But when Bhaiamma retired in 2006, she still did those same tasks, still by hand.</p>
<p>At Ms. My Le's company in Vietnam, Ms. Thinh learned to operate machines that did the peeling and sorting.</p>
<p>She began managing other workers who operated those machines. Now she oversees all production at a facility where a few dozen workers process more cashews than thousands once did.</p>
<p>"Thanks to that I became who I am today," says Ms. Thinh, who makes the equivalent of $352.40 a month, with weekends off and paid vacations.</p>
<p>But Vietnamese processors aren't gloating. Domestic cashew crop yields have fallen in recent years. As Vietnam's wealth grows, farmlands are being repurposed. Processors increasingly depend on imports.</p>
<p>They're automating ever more aggressively to stay ahead. But they're also trying something else those in Kollam might recognize: pressing the government to restrict exports of the cashew processing machinery Vietnamese companies have developed.</p>
<p>When Vietnamese cashew buyers arrive in the up-and-coming growing regions of Africa to buy raw nuts, they say they increasingly find local government officials have one request: In addition to being paid for the cashew nuts they grow, they want to know where they can get some of those machines that process them.</p>
<p>"The value chain is always moving," says Dang Hoang Giap, head of the Vinacas, Vietnam's national cashew industry association. "We're trying to focus on adding value to the finished product. At some point, the African countries will be processing the nuts for us."</p>
<p>--Vu Trong Khanh in Vietnam contributed to this article.</p>
<p>Write to Bill Spindle at [email protected] and Vibhuti Agarwal at [email protected]</p>
<p>(END) Dow Jones Newswires</p>
<p>December 01, 2017 10:55 ET (15:55 GMT)</p> | true | 0 | kollam india behold humble cashew nut turns isnt humble even nut dangling bottom cashew apple rare example seed grows outside fruit cashew embodies globalization discontents continue reading global cashew trees transported india portuguese explorers sailing brazil 16th century trees soon found way city kollam indian ocean port trade routes plied italian wanderer marco polo muslim adventurer ibn battuta crescentshaped kernels made world market starting late 1920s executives subsidiary former general foods co contracted local indian entrepreneurs collect raw cashews remove hard shells general foods shipped shelled kernels hoboken nj using patented vacuum packing process roasted packaged sold across us brand name bakers vitapack cashews beginning rapidly growing 65 billion global business us largest export market cashews pitched healthy snacks made way products nut bars substitutes butter milk india largest overall consumer market cashews growing middle class increasingly adding cakes sweets served weddings births decades kollam cashew capital world factories nearly shelling peeling sorting guts cashew industry remained southern indian city exactly general foods executive lindsay johnson first nurtured 1930s advertisement today vietnam cashew king thanks ingenious push automate business kollam reeling victim misguided government protectionism unwillingness adapt realities freewheeling global economy parable global age globalization creates sprawling worldwide markets international supply chains crisscross earth combination raise communities dire poverty generate brutal competition undercut communities quickly kollams cashew tycoons displayed early entrepreneurial bent years visiting forge supply contracts general foods mr johnson wife moved across world kollam set cashew processing outfit local partner sold general foods amassed small fortune even named daughter born kerala state us entered world war ii ordered american women children india mr johnson left fully expecting return never handful families came dominate known locally cashew barons wrangled local labor force even provided main source jobs beginning cashew business turned cheap skilled labor carry complicated process removing cashews shells almost done women earned small often second income families sitting homes says 85yearold k ravindranathan nair whose father among first cashews income big additional money mr nair took family business age 24 father died built one kollams biggest cashew processors vijayalaxmi cashew co one generation workers taught next experienced workers could quickly shell peel cull tens thousands kernels day highly valued though pay didnt reflect especially talented ones could quickly sight feel sort kernels specific grades measured exactly number flawless kernels per pound demanding international buyers required skill know says khadeeja 39yearold worker goes one name worked kollams cashew facilities since 15 kollam place markets made says krishnan g nair runs kgn cashew company started father brother onetime business partner k ravindranathan nair desk sit copies two books wealth nations adam smiths treatise applauding free markets karl marxs das kapital capture competing forces shaped kollams cashew industry beginnings business boomed workers wages remained low benefits hours long workplace abuse common labor politics soon took hold 1970s union leaders helped shape industry engine community development two local communist parties competed votes cast unionized cashew workers populated local government prolabor officials widen employment push wages state established two large government cashew processors companies dominated local industry minimum wages even private producers mandated state government salaries rose health care improved pensions instituted workplace abuses addressed hard though cashew processing jobs kept families poverty women biggest beneficiaries along children better able support newly minted kollam cashew fortunes helped build local theater public library citys best hotel kerala became one indias advanced states almost every establishment almost every institution result cashews says nk premachandran local representative legislature kerala time balance capitalism marxist ideals seemed prevail indian exports cashew kernels reached 97000 metric tons 1999 double beginning decade accounted 80 global market overall india processed 173000 metric tons kernels year tops world kollam pillars industry elevated literally objects worship employed portrait one founder cashew processing facility still sits inside small temple back factory provider god says bhaiamma 80yearold woman black red dots smudged forehead sign humility worked factory age 11 retirement 2006 life tough us cashews everything people visitors vietnam started arriving kollam mid1990s producers figured represented growers since vietnam source raw cashew nuts many producers happily demonstrated cashews processed visitors actually engineers worked determined man named nguyen van lang early 1980s vietnams government encouraged landowners poorest districts plant cashew trees 1990s processors established operated thousands workers like kollam western supermarkets walmart carrefour tesco biggest buyers cashews flexing growing muscle across global web suppliers pressing relentlessly cost cuts mr lang owned business packaging food sale abroad asked government 1995 explore vietnam might boost cashew exports us place else would buy hed never seen cashew couldnt get visa visit india brother living paris traveled mr langs behalf mr langs critical insight cashew processing essentially manufacturing job mechanization might provide edge wouldnt easy italian company made machine could cut cashew nut shells machine expensive damaged many kernels cutting nuts also one step arguably simplest decided invent machines spent lot money says 73yearold retired living suburb ho chi minh city dozen chihuahuas pit bull terrier goldfish tried figured step recently early 2000s vietnamese processing plants still looked much like counterparts kollam rooms filled mostly women furiously shelling peeling sorting grading packing cashews hand pham thi le 60 years old started one vietnams first cashew processing companies 1993 years buying raw nuts home province binh phuoc selling brokers shipped processors india 2000 2007 company verdant hill country rich cashew trees employed 2000 workers peak months workers traveled almost thousand miles northern vietnam temporarily housed cramped dormitories ms le aware machines like mr lang developing didnt see logic investing workforce started drying foreign companies north offering yearround jobs auto whitegoods factories setting vietnam opened borders workers opted betterpaying jobs lived ms le started buying machines incorporating production time greatly improved efficiency days machineladen plant employs 170 workers process 66000 pounds raw cashew nuts daily roughly amount 2000 todays workers live dormitories permanently accompanied families several rooms children attend nearby day care far road le quang luyen another local businessman taken automation higher levels still company phuc recently spent 40 million build fully automated facility opened year process 110000 pounds raw nuts day 30 employees facility looks like factory floor whir mechanized slicers conveyor belts tubes chutes slides sensors automated sorters kollam achieved domination global cashew trade political leaders discouraged mechanization job losses would entail mechanization comes loses jobs poor people cant says r rajesh managing director kerala state cashew workers apex industrial cooperative society commonly known capex operates 10 processing facilities private processors inhibited aggressively automating local laws prevented laying workers thus denied much cost savings efficiencies machines would brought government policies vexed matters bid protect cashew growers expand domestic crop indias central government 2006 imposed 9 tariff imports raw cashews keralas state government bestowed 35 pay increase workers industry make 350 rupees day 540 fulfilled campaign promise made winning political party last election result disaster kollam private processors moved operations states india often across border kerala wages lower mechanize factories kerala state governmentcontrolled companies move production simply operate red average capex employee worked 165 days last year compared 200 days five years ago company says mandated 35 raises company words paying average worker 22 produce 18 less earlier year capex couldnt afford buy raw nuts shut weeks trim workforce capex says hasnt hired new workers five years attrition employs 3500 half workforce 2010 goal protecting jobs backfired badly capex says done best preserve jobs given government wage policies indias processing raw nuts stagnated last year 15 million metric tons kernel exports fell 38 82302 metric tons according indias ministry agriculture meanwhile vietnam processed 14 million metric tons raw cashews double amount five years earlier according ministry agriculture rural development doubled exports kernels period 348000 metric tons like bhaiamma retired worker kollam vietnamese worker nguyen thi thinh deeply appreciates career cashews began young sorting peeling raw cashew nuts hand bhaiamma retired 2006 still tasks still hand ms les company vietnam ms thinh learned operate machines peeling sorting began managing workers operated machines oversees production facility dozen workers process cashews thousands thanks became today says ms thinh makes equivalent 35240 month weekends paid vacations vietnamese processors arent gloating domestic cashew crop yields fallen recent years vietnams wealth grows farmlands repurposed processors increasingly depend imports theyre automating ever aggressively stay ahead theyre also trying something else kollam might recognize pressing government restrict exports cashew processing machinery vietnamese companies developed vietnamese cashew buyers arrive upandcoming growing regions africa buy raw nuts say increasingly find local government officials one request addition paid cashew nuts grow want know get machines process value chain always moving says dang hoang giap head vinacas vietnams national cashew industry association trying focus adding value finished product point african countries processing nuts us vu trong khanh vietnam contributed article write bill spindle billspindlewsjcom vibhuti agarwal vibhutiagarwalwsjcom end dow jones newswires december 01 2017 1055 et 1555 gmt | 1,457 |
<p>AP</p>
<p>BY: <a href="" type="internal">Adam Kredo</a> September 3, 2013 11:54 am</p>
<p>The Iranian Navy unveiled on Tuesday a new warship equipped with "advanced weapons and radar systems" and warned that Israel would be the "main loser" if America decides to launch a military strike in Syria, according to regional media reports.</p>
<p>Iranian Navy commander Habibollah Sayyari announced that Iran had overhauled a warship, installing new radar and weapons systems that would "improve its performance and fire power," <a href="http://english.farsnews.com/newstext.aspx?nn=13920612000737" type="external">according</a> to Iran’s state run Fars News Agency.</p>
<p>"The warship needed an overhaul and equipment with the state of the art and novel technologies and therefore the warship's weapons have been modernized," Sayyari was quoted as saying by Fars.</p>
<p>"Sonar and radar systems, weapons and information-gathering sensors of the warship" have been significantly <a href="http://presstv.com/detail/2013/09/03/321891/iran-mounts-hitech-arms-on-lavan-warship/" type="external">upgraded</a>, according to Sayyari.</p>
<p>Iranian military leaders also <a href="http://english.farsnews.com/newstext.aspx?nn=13920612000834" type="external">announced</a> on Tuesday that the military had enhanced its "electronic warfare" capabilities by testing a domestically made radar system that can reportedly detect "stealth targets and cruise missiles," according to Fars.</p>
<p>The military announcements come as the Obama administration attempts to convince Congress of the need for a targeted U.S. strike in Syria, where President Bashar al Assad stands accused of using chemical weapons on opposition fighters and civilians.</p>
<p>Iran has served as the Assad regime’s top regional defender, providing diplomatic and military cover for the embattled leader.</p>
<p>When President Barack Obama first hinted at a possible strike on Syria, Iranian leaders quickly promised to support retaliatory strikes on Israel, which it claimed would be the "first victim" of any U.S. strike against Assad.</p>
<p>Iranian military leaders suggested on Tuesday that the newly upgraded warships would boost the "Iranian Navy's power of safeguarding the country's territorial waters as well as maintaining security in regional and international waters," according to Fars.</p>
<p>A domestically engineered warship will also debut within the year, according to Iranian military leaders.</p>
<p>The newly announced long-range radar systems could also help Iran combat and deter Western forces in the region.</p>
<p>"This radar which has been manufactured by the experts of the country’s defense industry and Navy is currently undergoing (different) tests and will be mounted on some warships of the Navy in future," Rear Admiral Ali Qolamzadeh, the Head of the Self-Sufficiency Jihad of the Iranian Navy, was quoted as saying on Tuesday.</p>
<p>Separate military leaders in Iran announced over the weekend that the military had begun using "passive phased array radars" that are purportedly capable of detecting Western missiles and "stealth targets."</p>
<p>Iranian military leaders have stated in the past that electronic warfare systems such as these are the "first need and requirement in sea battles."</p>
<p>The announcement of these new military capabilities was accompanied by threatening rhetoric against Israel and the United States.</p>
<p>A senior Iranian lawmaker said on Tuesday morning that Israel would be the "first loser" following a U.S. attack on Syria.</p>
<p>"The first loser of this crisis will be the Zionist regime," Alaeddin Boroujerdi, chairman of the Iranian parliament’s National Security and Foreign Policy Commission, was <a href="http://english.farsnews.com/newstext.aspx?nn=13920612001310" type="external">quoted</a> as saying by Fars.</p>
<p>"We hope that as the U.S. President has avoided a hasty move on Syria, the U.S. congress will also act logically in this regard," Boroujerdi was <a href="http://english.farsnews.com/newstext.aspx?nn=13920612001195" type="external">quoted</a> as saying following a meeting with Lebanon’s foreign minister.</p>
<p>Former Iranian President Ali-Akbar Hashemi&#160;Rafsanjani also weighed in on Syria, claiming that the United States had fabricated evidence of a chemical weapons attack.</p>
<p>"The U.S. had prepared everything beforehand and they themselves have stated that they had known the chemical materials were due to be used three days before the attack took place,"&#160;Rafsanjani was quoted as saying by Fars.</p>
<p>Rafsanjani, who currently heads Iran’s Expediency Council, also called on "Iranian officials to act vigilantly and wisely in the current situation and continue support for Syria," according to Fars.</p>
<p>Meanwhile, the Iranian media has <a href="http://english.farsnews.com/newstext.aspx?nn=13920612001308" type="external">jumped on</a> reports that a group of U.S. veterans are opposing U.S. intervention in Syria.</p>
<p>State-run outlets such as Fars have reported extensively on these veterans, who the Iranians view as proof that U.S. action in Syria would be unwise.</p>
<p>Iran expert Ahmad Majidyar said Iran is known to project power when the region is in crisis.</p>
<p>"Whenever a crisis emerges in the Gulf region, Iran unveils new defense assets for deterrence and to project power," Majidyar said. "But Iran is known for exaggerating its defense capabilities and its recent claim of military achievements cannot be independently assessed."</p>
<p>Should the U.S. attack Syria, Iran will likely respond with cyber attacks and terrorism, he said.</p>
<p>"Despite Iranian leaders’ strong rhetoric, however, Tehran is unlikely to retaliate to a potential military attack on Syria by openly engaging in a conventional war with the United States or Israel," Majidyar said. "Any Iranian retaliation is more likely to come in the form of irregular warfare, including cyber attacks and terrorism through regional proxies."</p>
<p>Ahmad Majidyar, a&#160;Middle East expert from the American Enterprise Institute,&#160;&#160;said Iran is known to project power when the region is in crisis.</p>
<p>"Whenever a crisis emerges in the Gulf region, Iran unveils new defense assets for deterrence and to project power," Majidyar said. "But Iran is known for exaggerating its defense capabilities and its recent claim of military achievements cannot be independently assessed."</p>
<p>Should the United States attack Syria, Iran will likely respond with cyber attacks and terrorism.</p>
<p>"Despite Iranian leaders’ strong rhetoric, however, Tehran is unlikely to retaliate to a potential military attack on Syria by openly engaging in a conventional war with the United States or Israel," Majidyar said. "Any Iranian retaliation is more likely to come in the form of irregular warfare, including cyber attacks and terrorism through regional proxies"</p> | true | 0 | ap adam kredo september 3 2013 1154 iranian navy unveiled tuesday new warship equipped advanced weapons radar systems warned israel would main loser america decides launch military strike syria according regional media reports iranian navy commander habibollah sayyari announced iran overhauled warship installing new radar weapons systems would improve performance fire power according irans state run fars news agency warship needed overhaul equipment state art novel technologies therefore warships weapons modernized sayyari quoted saying fars sonar radar systems weapons informationgathering sensors warship significantly upgraded according sayyari iranian military leaders also announced tuesday military enhanced electronic warfare capabilities testing domestically made radar system reportedly detect stealth targets cruise missiles according fars military announcements come obama administration attempts convince congress need targeted us strike syria president bashar al assad stands accused using chemical weapons opposition fighters civilians iran served assad regimes top regional defender providing diplomatic military cover embattled leader president barack obama first hinted possible strike syria iranian leaders quickly promised support retaliatory strikes israel claimed would first victim us strike assad iranian military leaders suggested tuesday newly upgraded warships would boost iranian navys power safeguarding countrys territorial waters well maintaining security regional international waters according fars domestically engineered warship also debut within year according iranian military leaders newly announced longrange radar systems could also help iran combat deter western forces region radar manufactured experts countrys defense industry navy currently undergoing different tests mounted warships navy future rear admiral ali qolamzadeh head selfsufficiency jihad iranian navy quoted saying tuesday separate military leaders iran announced weekend military begun using passive phased array radars purportedly capable detecting western missiles stealth targets iranian military leaders stated past electronic warfare systems first need requirement sea battles announcement new military capabilities accompanied threatening rhetoric israel united states senior iranian lawmaker said tuesday morning israel would first loser following us attack syria first loser crisis zionist regime alaeddin boroujerdi chairman iranian parliaments national security foreign policy commission quoted saying fars hope us president avoided hasty move syria us congress also act logically regard boroujerdi quoted saying following meeting lebanons foreign minister former iranian president aliakbar hashemi160rafsanjani also weighed syria claiming united states fabricated evidence chemical weapons attack us prepared everything beforehand stated known chemical materials due used three days attack took place160rafsanjani quoted saying fars rafsanjani currently heads irans expediency council also called iranian officials act vigilantly wisely current situation continue support syria according fars meanwhile iranian media jumped reports group us veterans opposing us intervention syria staterun outlets fars reported extensively veterans iranians view proof us action syria would unwise iran expert ahmad majidyar said iran known project power region crisis whenever crisis emerges gulf region iran unveils new defense assets deterrence project power majidyar said iran known exaggerating defense capabilities recent claim military achievements independently assessed us attack syria iran likely respond cyber attacks terrorism said despite iranian leaders strong rhetoric however tehran unlikely retaliate potential military attack syria openly engaging conventional war united states israel majidyar said iranian retaliation likely come form irregular warfare including cyber attacks terrorism regional proxies ahmad majidyar a160middle east expert american enterprise institute160160said iran known project power region crisis whenever crisis emerges gulf region iran unveils new defense assets deterrence project power majidyar said iran known exaggerating defense capabilities recent claim military achievements independently assessed united states attack syria iran likely respond cyber attacks terrorism despite iranian leaders strong rhetoric however tehran unlikely retaliate potential military attack syria openly engaging conventional war united states israel majidyar said iranian retaliation likely come form irregular warfare including cyber attacks terrorism regional proxies | 591 |
<p>Why There Will Be No Middle East Peace Without Messiah</p>
<p>Iranian leader predicts desctruction of Israel - quoting from a <a href="javascript:;" type="external">Yahoo! News article</a> this morning "Iran's supreme leader Ayatollah Ali Khamenei is confident Islamic nations will one day watch the destruction of arch-foe Israel, his website Wednesday quoted him as saying. Khamenei made the remark during a meeting with Mauritanian President Mohammed Ould Abdel Aziz in Tehran, the website said. The all-powerful Iranian leader also said that Israel's continued "pressure to erase Palestine from the world of Islamic nations" will fail. "Surely, the day will come when the nations of the region will witness the destruction of the Zionist regime... when the destruction happens will depend on how the Islamic nations approach the issue," Khamenei told Aziz, who arrived in Tehran on Monday." Now, I ask you - how much land does Israel have to give up before Muslims will agree to stop all the violence? Answer - all of it. Look at this picture, and see what they teach their kids when they should be watching Sesame Street. They are being taught to hate and kill Jews. You can search the Internet 24 hours a day for a hundred years and never see Jewish kids being taught that. You cannot have "peace" if the people you are trying to have peace with are committed to your complete and total destruction. Muslims don't want the West Bank, the Gaza Strip, or any other Jewish territory. What they want is for the Jews to be "driven into the sea", and killed. Muslims could care less about the land of Israel or it's Holy Sites. <a href="javascript:;" type="external" />If tomorrow they woke up and all the Jews were gone and they had complete control of it, they would wipe away any and all traces of what makes that land holy. Just look at what they are doing to the Tomb of Ezekiel that exists just outside of Bagdad. They are cementing over any references to Jews, Israel or even Ezekiel, and replacing them with Muslim writings and symbols. Why would we think that they would do anything less with the entire land of Israel?</p>
<p>God Has A One State Solution How tempting it is for all the meddling nations like <a href="javascript:;" type="external">The Quartet</a> to want to carve up Israel like a pie, and award the peices to the highest bidder on the delusion that peace would follow. In the bible, God foresaw and predicted this would happen in the End Times after He had regatherd the Jews to Israel. In Joel we read this: "For behold, in those days and at that time, When I bring back the captives of Judah and Jerusalem, I will also gather all nations, And bring them down to the Valley of Jehoshaphat; And I will enter into judgment with them there On account of My people, My heritage Israel, Whom they have scattered among the nations; They have also divided up My land. They have cast lots for My people, Have given a boy [as payment] for a harlot, And sold a girl for wine, that they may drink." <a href="javascript:;" type="external">Joel 3: 1-3</a></p>
<p>Isn't that amazing? What God wrote in Joel, over 2,500 years ago, is EXACTLY where we find the state of things to be right at this present moment in 2010. God does not want a "two state solution" because He has a One State Solution in mind. Interesing note: in the last 15 years, 2 Israeli leaders have met with an untimely end when they were making plans to give away Jerusalem. The first, Prime Minister Yitzhak Rabin, was assinated at a Peace Rally by Igal Amir. The interesting thing is that Amir is an Israeli Jew who saw Rabin's signing of the Oslo Peace Accords as treason against the State of Israel because he would be giving away too much Jewish land to appease the Palestinians. The second is Ariel Sharon, who was elected Prime Minister because a majority of Jews no longer believed in the promises of the Oslo Accords. Sharon was elected to preserve Israel, and yet once in office he did the exact opposite. He promoted a Palestinian state, was soft on Arab terrorism, and announced that he was planning to remove Jews from settlements in Gaza. - <a href="javascript:;" type="external">ACPR.org</a> Current Prime Minister Binyamin Netanyahu, who currently is very much againsrt concessions to the Arabs is hopefullly learning his lessons from the predecessors with regard to the "land for peace" quagmire. It is God's Land, and no one, Jew or Gentile, friend or foe, is going to give it away for God has promised that when the Jews were returned to Israel, that they would never be moved by anyone or anything. "For, lo, the days come, saith the LORD, that I will bring again the captivity of my people Israel and Judah, saith the LORD: and I will cause them to return to the land that I gave to their fathers, and they shall possess it." <a href="javascript:;" type="external">Jeremiah 30: 3</a></p>
<p>The Peace Treaty That Will be Signed So..will there ever be a successful Middle East peace treaty? The bible says there will be, and it will be for a duration of exactly 7 years. The person who will convince the Jews and Arabs to finally make peace? The Antichrist. We read this in the Book of Daniel - "Know therefore and understand, [That] from the going forth of the command To restore and build Jerusalem Until Messiah the Prince, [There shall be] seven weeks and sixty-two weeks; The street [fn] shall be built again, and the wall, [fn] Even in troublesome times. And after the sixty-two weeks Messiah shall be cut off, but not for Himself; And the people of the prince who is to come Shall destroy the city and the sanctuary. The end of it [shall be] with a flood, And till the end of the war desolations are determined. Then he shall confirm a covenant with many for one week; But in the middle of the week He shall bring an end to sacrifice and offering. And on the wing of abominations shall be one who makes desolate, Even until the consummation, which is determined, Is poured out on the desolate." <a href="javascript:;" type="external">Daniel 9: 25-27</a> The 70 Weeks the bible mentions are "weeks of years". That is to say that for every day in each week is one year. God said that this period of time, 483 years would pass until "Messiah would be cut off". That happened when Jesus went to the cross, and it stopped the last "week", the final 7 years from happening. For more insight on the prophecy of Daniel's 70 Weeks, watch this clip from Hal Lindsay.</p>
<p>The is only one Holy Land that God knows about, and that is the land of Israel that was first promised to Abraham, Issac and Jacob. The bible says that God is unchanging, that "Jesus Christ the same yesterday, and to day, and for ever." <a href="javascript:;" type="external">Hebrews 13: 8</a></p>
<p>God's Promises don't change, even if in this case it took nearly 2,000 years to occur. God is not is a rush, He is always right on time. Will YOU trust Him today with YOUR LIFE? The God who cannot lie, the God whose Promises ALWAYS come true wants to have a relationship with you. Yeshua HaMaschiac is the most important person you will ever meet. He is the Holy One of Israel, and the Promised Messiah of Scripture.</p>
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<p>&#160;</p> Iranian leader predicts desctruction of Israel Yahoo! News article Israel Today Zechariah 14: 4, 5, 8, 9 Hebrews 13: 8 | true | 0 | middle east peace without messiah iranian leader predicts desctruction israel quoting yahoo news article morning irans supreme leader ayatollah ali khamenei confident islamic nations one day watch destruction archfoe israel website wednesday quoted saying khamenei made remark meeting mauritanian president mohammed ould abdel aziz tehran website said allpowerful iranian leader also said israels continued pressure erase palestine world islamic nations fail surely day come nations region witness destruction zionist regime destruction happens depend islamic nations approach issue khamenei told aziz arrived tehran monday ask much land israel give muslims agree stop violence answer look picture see teach kids watching sesame street taught hate kill jews search internet 24 hours day hundred years never see jewish kids taught peace people trying peace committed complete total destruction muslims dont want west bank gaza strip jewish territory want jews driven sea killed muslims could care less land israel holy sites tomorrow woke jews gone complete control would wipe away traces makes land holy look tomb ezekiel exists outside bagdad cementing references jews israel even ezekiel replacing muslim writings symbols would think would anything less entire land israel god one state solution tempting meddling nations like quartet want carve israel like pie award peices highest bidder delusion peace would follow bible god foresaw predicted would happen end times regatherd jews israel joel read behold days time bring back captives judah jerusalem also gather nations bring valley jehoshaphat enter judgment account people heritage israel scattered among nations also divided land cast lots people given boy payment harlot sold girl wine may drink joel 3 13 isnt amazing god wrote joel 2500 years ago exactly find state things right present moment 2010 god want two state solution one state solution mind interesing note last 15 years 2 israeli leaders met untimely end making plans give away jerusalem first prime minister yitzhak rabin assinated peace rally igal amir interesting thing amir israeli jew saw rabins signing oslo peace accords treason state israel would giving away much jewish land appease palestinians second ariel sharon elected prime minister majority jews longer believed promises oslo accords sharon elected preserve israel yet office exact opposite promoted palestinian state soft arab terrorism announced planning remove jews settlements gaza acprorg current prime minister binyamin netanyahu currently much againsrt concessions arabs hopefullly learning lessons predecessors regard land peace quagmire gods land one jew gentile friend foe going give away god promised jews returned israel would never moved anyone anything lo days come saith lord bring captivity people israel judah saith lord cause return land gave fathers shall possess jeremiah 30 3 peace treaty signed sowill ever successful middle east peace treaty bible says duration exactly 7 years person convince jews arabs finally make peace antichrist read book daniel know therefore understand going forth command restore build jerusalem messiah prince shall seven weeks sixtytwo weeks street fn shall built wall fn even troublesome times sixtytwo weeks messiah shall cut people prince come shall destroy city sanctuary end shall flood till end war desolations determined shall confirm covenant many one week middle week shall bring end sacrifice offering wing abominations shall one makes desolate even consummation determined poured desolate daniel 9 2527 70 weeks bible mentions weeks years say every day week one year god said period time 483 years would pass messiah would cut happened jesus went cross stopped last week final 7 years happening insight prophecy daniels 70 weeks watch clip hal lindsay one holy land god knows land israel first promised abraham issac jacob bible says god unchanging jesus christ yesterday day ever hebrews 13 8 gods promises dont change even case took nearly 2000 years occur god rush always right time trust today life god lie god whose promises always come true wants relationship yeshua hamaschiac important person ever meet holy one israel promised messiah scripture 160 160 160 iranian leader predicts desctruction israel yahoo news article israel today zechariah 14 4 5 8 9 hebrews 13 8 | 656 |
<p>Five years ago, Freeport-McMoRan (NYSE: FCX) decided to diversify into oil and gas in a move that it thought would pay big dividends down the road. Unfortunately, that <a href="https://www.fool.com/investing/2017/07/20/i-still-cant-believe-freeport-mcmoran-inc-spent-20.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=a041a2b0-93d5-11e7-9a1b-0050569d32b9&amp;utm_source=foxbusiness" type="external">decision didn't pay off as expected Opens a New Window.</a>, because commodity prices plunged across the board. That downturn forced the company to shed several assets in recent years to stay afloat, including unloading most of its energy assets for a fraction of their purchase price.</p>
<p>While the company has improved its financial situation dramatically, it still has work to do. Overall, Freeport-McMoRan remains in transition. While it has unwound most of its oil and gas business, it now must sell a majority stake in its crown jewel copper and gold mine in Indonesia as part of a new framework agreement to continue operating in the country. Thus, the company will likely look different in five years.</p>
<p>Continue Reading Below</p>
<p>Currently, Freeport-McMoRan operates 10 mines around the world -- seven in North America, two in South America and one in Indonesia -- that produce copper, gold, and molybdenum. However, its Grasberg mine, in Indonesia, accounted for a quarter of its copper output last year and the bulk of its gold production. Unit costs at that mine were just $0.83 per pound of copper, versus $1.41 per pound across its other mines, which means it makes more money off every pound produced in Indonesia.</p>
<p>At current commodity prices, these mines are on pace to generate $3.8 billion of operating cash flow for the company this year. Given that the miner expects to invest only $1.6 billion on capital projects this year, it's&#160;on pace to produce $2.2 billion of free cash flow. That excess will enable the company to continue to improve its balance sheet, with it likely getting net debt below $10 billion by year-end, which would represent a 50% decline over the last two years. That said, even at that level, its leverage ratio would still be high at around 2.0. For perspective, rival global mining giant Rio Tinto's (NYSE: RIO) leverage ratio was just 0.6 at the end of June, while BHP Billiton's (NYSE: BHP) was 1.2. Given its weaker balance sheet relative to those peers, it seems likely that Freeport-McMoRan will continue to divert the bulk of its excess cash toward debt reduction in the near term.</p>
<p>Aside from bolstering its balance sheet, one of Freeport-McMoRan's other priorities over the past few years has been to secure a new long-term agreement to continue operating the Grasberg mine. After much negotiation, the company recently announced a new framework for an agreement with the Indonesian government. While that deal will provide the company with long-term operating rights through 2041, Freeport-McMoRan had to give up a lot to secure that certainty. It agreed to sell down its 90.64% stake in the operating entity at fair market value so that Indonesian interests own a majority 51% stake in that operating partnership, though the company will retain operational and governing control of the entity.</p>
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<p>That agreement to sell down its stake will do two things to Freeport-McMoRan in the future. First, the company should receive a significant cash infusion upon completion of the sale, which the company will likely initially use to bolster its balance sheet. That said, Freeport's&#160;future copper output and cash flow will decline since it will only receive 49% of the entity's production instead of 90%.</p>
<p>Once the company completes this transition, it will become a leaner copper producer, with what should be a top-notch balance sheet. That gives the company options for its excess cash flow, including investing to expand production at its other mines to offset the lost output at Grasberg, making acquisitions, buying back stock, and reinstating the dividend. That said, the most likely course of action seems to be that the company will focus its investment dollars toward expansion projects in the Americas as opposed to acquisitions, given the botched oil and gas deals. Meanwhile, shareholder returns will likely come from dividends as opposed to buybacks because that will enable Freeport-McMoRan to draw in income-focused investors since they have few <a href="https://www.fool.com/investing/2017/05/17/5-top-dividend-stocks-in-metals-and-mining.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=a041a2b0-93d5-11e7-9a1b-0050569d32b9&amp;utm_source=foxbusiness" type="external">top income-producing options in the mining sector Opens a New Window.</a> other than Rio Tinto and BHP Billiton.</p>
<p>Freeport-McMoRan has learned a valuable lesson over the last five years, that taking on a mountain of debt to acquire a commodity producer when prices are high can blow up should they unexpectedly fall. The miner is unlikely to make that same mistake twice, which is why I believe that it will focus on maintaining a fortress-like balance sheet with growth coming from organic expansion in the coming years. Furthermore, I suspect that it will eventually reinstate its dividend. As a result, the Freeport-McMoRan of five years from now could be a lower-risk, copper-focused producer that offers investors a blend of growth and income, much like BHP and Rio.</p>
<p>10 stocks we like better than Freeport-McMoRan Copper &amp; GoldWhen 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=7aa340bc-1ba7-4c54-9dd8-c91612f83bc9&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=a041a2b0-93d5-11e7-9a1b-0050569d32b9&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now... and Freeport-McMoRan Copper &amp; Gold 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=7aa340bc-1ba7-4c54-9dd8-c91612f83bc9&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=a041a2b0-93d5-11e7-9a1b-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 September 5, 2017</p>
<p><a href="http://my.fool.com/profile/TMFmd19/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=a041a2b0-93d5-11e7-9a1b-0050569d32b9&amp;utm_source=foxbusiness" type="external">Matthew DiLallo Opens a New Window.</a> owns shares of BHP Billiton. 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=a041a2b0-93d5-11e7-9a1b-0050569d32b9&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | five years ago freeportmcmoran nyse fcx decided diversify oil gas move thought would pay big dividends road unfortunately decision didnt pay expected opens new window commodity prices plunged across board downturn forced company shed several assets recent years stay afloat including unloading energy assets fraction purchase price company improved financial situation dramatically still work overall freeportmcmoran remains transition unwound oil gas business must sell majority stake crown jewel copper gold mine indonesia part new framework agreement continue operating country thus company likely look different five years continue reading currently freeportmcmoran operates 10 mines around world seven north america two south america one indonesia produce copper gold molybdenum however grasberg mine indonesia accounted quarter copper output last year bulk gold production unit costs mine 083 per pound copper versus 141 per pound across mines means makes money every pound produced indonesia current commodity prices mines pace generate 38 billion operating cash flow company year given miner expects invest 16 billion capital projects year its160on pace produce 22 billion free cash flow excess enable company continue improve balance sheet likely getting net debt 10 billion yearend would represent 50 decline last two years said even level leverage ratio would still high around 20 perspective rival global mining giant rio tintos nyse rio leverage ratio 06 end june bhp billitons nyse bhp 12 given weaker balance sheet relative peers seems likely freeportmcmoran continue divert bulk excess cash toward debt reduction near term aside bolstering balance sheet one freeportmcmorans priorities past years secure new longterm agreement continue operating grasberg mine much negotiation company recently announced new framework agreement indonesian government deal provide company longterm operating rights 2041 freeportmcmoran give lot secure certainty agreed sell 9064 stake operating entity fair market value indonesian interests majority 51 stake operating partnership though company retain operational governing control entity advertisement agreement sell stake two things freeportmcmoran future first company receive significant cash infusion upon completion sale company likely initially use bolster balance sheet said freeports160future copper output cash flow decline since receive 49 entitys production instead 90 company completes transition become leaner copper producer topnotch balance sheet gives company options excess cash flow including investing expand production mines offset lost output grasberg making acquisitions buying back stock reinstating dividend said likely course action seems company focus investment dollars toward expansion projects americas opposed acquisitions given botched oil gas deals meanwhile shareholder returns likely come dividends opposed buybacks enable freeportmcmoran draw incomefocused investors since top incomeproducing options mining sector opens new window rio tinto bhp billiton freeportmcmoran learned valuable lesson last five years taking mountain debt acquire commodity producer prices high blow unexpectedly fall miner unlikely make mistake twice believe focus maintaining fortresslike balance sheet growth coming organic expansion coming years furthermore suspect eventually reinstate dividend result freeportmcmoran five years could lowerrisk copperfocused producer offers investors blend growth income much like bhp rio 10 stocks like better freeportmcmoran copper amp goldwhen 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 freeportmcmoran copper amp gold wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns september 5 2017 matthew dilallo opens new window owns shares bhp billiton motley fool position stocks mentioned motley fool disclosure policy opens new window | 560 |
<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>Finding good companies at a reasonable valuation isn't as hard of a task as you might think, even amid a market that's still hitting new highs daily.</p>
<p>I recently scoured the universe of stocks, looking for those that not only trade well below the market average but are also expected to grow earnings at a respectable pace for the next few years and produce generous <a href="https://www.fool.com/knowledge-center/free-cash-flow.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=42220b7e-8f44-11e7-95bc-0050569d32b9&amp;utm_source=foxbusiness" type="external">free cash flow Opens a New Window.</a> that the market has failed to properly value. I turned up Big Lots (NYSE: BIG), Carrols Restaurants (NASDAQ: TAST), and Party City (NYSE: PRTY) as the best low-P/E stocks to buy in September. As of this writing, each sports a <a href="https://www.fool.com/investing/general/2015/01/17/how-to-use-the-pe-ratio.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=42220b7e-8f44-11e7-95bc-0050569d32b9&amp;utm_source=foxbusiness" type="external">price-to-earnings Opens a New Window.</a>ratio below 20, is expected to grow earnings at 10% or more annually for the next five years, and has a price-to-free-cash-flow ratio below 15.</p>
<p>Continue Reading Below</p>
<p>The stock of deep discounter Big Lots was recently beaten up over an earnings report that failed to inspire. Although Big Lots reported that sales grew 1.5% in the second quarter as <a href="https://www.fool.com/knowledge-center/what-are-same-store-sales.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=42220b7e-8f44-11e7-95bc-0050569d32b9&amp;utm_source=foxbusiness" type="external">comparable-store sales Opens a New Window.</a> rose 1.8%, leading to record profits of $0.67 per share, the market still sent its shares lower because results seemed tepid in a dicey retail market.</p>
<p>Dollar Tree, in contrast, reported <a href="https://www.fool.com/investing/2017/08/24/why-dollar-tree-inc-stock-popped-today.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=42220b7e-8f44-11e7-95bc-0050569d32b9&amp;utm_source=foxbusiness" type="external">better-than-expected increases Opens a New Window.</a> in revenues, comps, and profits, as did rival Dollar General. The much stronger showings had their stocks jumping afterward.</p>
<p>Yet Big Lots has a dependable track record of margin expansion and exceeding Wall Street's earnings estimates, and with the market marking down its stock compared with its rivals, it gives investors an opportunity to pick shares up cheap.</p>
<p>Big Lots stock trades at less than 13 times earnings and 11 times next year's estimates, but analysts still think it can widen profits by almost 13% for the next few years. It also trades at just a fraction of its sales, and with its stock going for only 13 times the free cash flow it produces, it's a discounted company that still has big things in front of it.</p>
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<p>The biggest franchiser of Burger King restaurants, Carrols Restaurants operates almost 800 restaurants that are expected to generate a total of over $1 billion in revenues this year. Like its rivals&#160;McDonald's and Wendy's, Burger King is staging a comeback as better-burger rivals stumble.</p>
<p>It's quite likely the fad of overpaying for a hamburger has <a href="https://www.fool.com/investing/2017/08/16/the-1-sign-showing-shake-shack-is-in-real-trouble.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=42220b7e-8f44-11e7-95bc-0050569d32b9&amp;utm_source=foxbusiness" type="external">run its course Opens a New Window.</a>, as both Shake Shack and The Habit have watched same-restaurant sales evaporate and even turn negative. In contrast, the big three fast-food chains -- McDonald's, Wendy's, and Burger King -- are rebounding sharply. Burger King is owned by Restaurant Brands International, which also owns&#160; Tim Hortons and Popeyes.</p>
<p>However, Carrols stock took a hit last quarter after reporting lower profitability as higher labor costs, rising beef prices, and greater discounting nibbled away at earnings. But even more so than at Big Lots, investors have a chance to pick up Carrols at a tremendous discount.</p>
<p>While the stock trades at just under 20 times earnings and 38 times earnings estimates, because analysts forecast it growing profits at a 25% compounded rate for the long term, it's trading at a fraction of both its growth rate and sales. Incredibly, the stock is valued at only seven times its free cash flow, meaning the market has thrown this stock into the bargain-basement bin.</p>
<p>Get ready for specialty retailer Party City to come into its own. Like the memes that tell you to brace yourself because everything pumpkin spice is coming, Party City is bracing for the onslaught that is Halloween, its biggest holiday of the year, representing more than 20% of its total annual sales.</p>
<p>Head into any local big-box store today and you'll see Halloween decorations beginning to appear, but Party City opens up a string of 250 to 300 pop-up stores every year under the Halloween City banner, which last year contributed $59 million in revenues.</p>
<p>Even bigger for Party City is the sale of balloons, which kicked in $106 million in revenues globally last year. And earlier this year it picked up the largest balloon retailer in Australia, so we should see those Mylar celebratory icons generating even more this year.</p>
<p>Yet it, too, has been left behind in this overheated market. Trading at 14 times earnings and only nine times earnings estimates, the specialty retailer is another stock valued fractionally compared with its sales. And its stock price goes for a deeply discounted nine times free cash flow, suggesting investors who pick up Party City's stock now may have a reason to celebrate later on.</p>
<p>10 stocks we like better than Carrols Restaurant GroupWhen 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=6a5e9ec8-58ae-40a6-98a2-5c417fae317a&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=42220b7e-8f44-11e7-95bc-0050569d32b9&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now... and Carrols Restaurant 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=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=6a5e9ec8-58ae-40a6-98a2-5c417fae317a&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=42220b7e-8f44-11e7-95bc-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 September 5, 2017</p>
<p><a href="http://my.fool.com/profile/TMFCop/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=42220b7e-8f44-11e7-95bc-0050569d32b9&amp;utm_source=foxbusiness" type="external">Rich Duprey Opens a New Window.</a> has no position in any of the stocks mentioned. The Motley Fool is short shares of Shake Shack. The Motley Fool recommends Carrols Restaurant 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=42220b7e-8f44-11e7-95bc-0050569d32b9&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | finding good companies reasonable valuation isnt hard task might think even amid market thats still hitting new highs daily recently scoured universe stocks looking trade well market average also expected grow earnings respectable pace next years produce generous free cash flow opens new window market failed properly value turned big lots nyse big carrols restaurants nasdaq tast party city nyse prty best lowpe stocks buy september writing sports pricetoearnings opens new windowratio 20 expected grow earnings 10 annually next five years pricetofreecashflow ratio 15 continue reading stock deep discounter big lots recently beaten earnings report failed inspire although big lots reported sales grew 15 second quarter comparablestore sales opens new window rose 18 leading record profits 067 per share market still sent shares lower results seemed tepid dicey retail market dollar tree contrast reported betterthanexpected increases opens new window revenues comps profits rival dollar general much stronger showings stocks jumping afterward yet big lots dependable track record margin expansion exceeding wall streets earnings estimates market marking stock compared rivals gives investors opportunity pick shares cheap big lots stock trades less 13 times earnings 11 times next years estimates analysts still think widen profits almost 13 next years also trades fraction sales stock going 13 times free cash flow produces discounted company still big things front advertisement biggest franchiser burger king restaurants carrols restaurants operates almost 800 restaurants expected generate total 1 billion revenues year like rivals160mcdonalds wendys burger king staging comeback betterburger rivals stumble quite likely fad overpaying hamburger run course opens new window shake shack habit watched samerestaurant sales evaporate even turn negative contrast big three fastfood chains mcdonalds wendys burger king rebounding sharply burger king owned restaurant brands international also owns160 tim hortons popeyes however carrols stock took hit last quarter reporting lower profitability higher labor costs rising beef prices greater discounting nibbled away earnings even big lots investors chance pick carrols tremendous discount stock trades 20 times earnings 38 times earnings estimates analysts forecast growing profits 25 compounded rate long term trading fraction growth rate sales incredibly stock valued seven times free cash flow meaning market thrown stock bargainbasement bin get ready specialty retailer party city come like memes tell brace everything pumpkin spice coming party city bracing onslaught halloween biggest holiday year representing 20 total annual sales head local bigbox store today youll see halloween decorations beginning appear party city opens string 250 300 popup stores every year halloween city banner last year contributed 59 million revenues even bigger party city sale balloons kicked 106 million revenues globally last year earlier year picked largest balloon retailer australia see mylar celebratory icons generating even year yet left behind overheated market trading 14 times earnings nine times earnings estimates specialty retailer another stock valued fractionally compared sales stock price goes deeply discounted nine times free cash flow suggesting investors pick party citys stock may reason celebrate later 10 stocks like better carrols restaurant groupwhen 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 carrols restaurant group wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns september 5 2017 rich duprey opens new window position stocks mentioned motley fool short shares shake shack motley fool recommends carrols restaurant group motley fool disclosure policy opens new window | 569 |
<p>In this segment from <a href="https://www.fool.com/podcasts/marketfoolery?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">Market Foolery Opens a New Window.</a>, Chris Hill is joined by Motley Fool analysts Jason Moser andTaylor Muckerman to discuss the viral video that has resulted in major backlash for United(NYSE: UAL) Airlines.</p>
<p>Regardless of how the stock moves short term -- it has declined 2.5% this week -- the Fools believe this incident could hurt the airline going forward. And major competitors are taking the opportunity to step in and poach upset customers.</p>
<p>Continue Reading Below</p>
<p>A full transcript follows the video.</p>
<p>10 stocks we like better than United Continental HoldingsWhen 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=d7fc38e7-b75e-483e-a65c-884838fb575b&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 United Continental Holdings 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=d7fc38e7-b75e-483e-a65c-884838fb575b&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>
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<p>*Stock Advisor returns as of April 3, 2017</p>
<p>This video was recorded on April 10, 2017.</p>
<p>Chris Hill:The head ofpublic relations for United Airlines,whoever he or she is, ishaving a tough day,and that is because,as you have probably already seenby the time you're listening to this episode ofMarket Foolery, video has surfaced of a passenger being forciblyremoved from a flight that was going from Chicago toLouisville. This was on Sunday. Everything about this, I think, is bad for United Airlines, because the backstory -- this is not somepassenger who was drunk or causing trouble. This was,United overbooked the flight, they asked forvolunteers to leave so that they could get four United employees to Louisville to service another flight. And they offered $400, and then they offered $800, and then they said, "You know what? We'rejust going to have a computer pick people at random." So apassenger who had paid for his flight got removed. And Taylor, as you were saying before we started taping, theaviation police,who were doing their job,seemed relatively unconcerned that so many people on that flight had their phones outand were videotaping thissituation. And I know this isn't going to hurt their stock today, but among other things, I think,if I were another airline,I would be trolling Unitedso hard with this for so long.I don't know. I think there could be some potential long-term trouble here for United,but maybe I'm wrong.</p>
<p>Taylor Muckerman:It'sunfortunate for them, because like you said,it was the Chicago Aviation Police. It wasn't their employees thatapparently knocked this gentleman unconscious whiletrying to drag him off the airplane. Yeah, theFacebookvideo I saw I had been viewed 360,000 times, and it wasn't a company's page that was liked 360,000 times,it was a regular citizen who probably only had a few thousand friends on there, but 360,000 views shows the virality of this video andhow widespread it become in less than 48 hours. Was it yesterday that this happened?</p>
<p>Hill:This was yesterday.</p>
<p>Muckerman:Less than 24 hours, viewed almost 400,000 times on one person's account. Yeah,they're definitely going to see this on social media for quite some time.</p>
<p>Hill:And,you're right, it wasn't United employees who removed this guy. But I look at the underlying business systems that United put in place, and I think,ultimately, it falls back on them. It highlights how airlines overbook.</p>
<p>Muckerman:Yeah,they're not the only ones that overbook. All of them do it.</p>
<p>Hill:Yeah. But in this case, they'reoverbooking so that they can get employees from point A to point B. Why are you stopping at $800 if you'retrying to get people to leave a flightvoluntarily?</p>
<p>Muckerman:This is going to cost them way more than $800.</p>
<p>Jason Moser:And if you think, too, if you go 10 or 20 years back, to when this was something airlines would do, and I think travelers probably assigned more value to thattravel voucher back then than they do. I think a lot of that is because the waythe internet has changed everything we do, from e-commerce to travel to banking. What I think the internet hasultimately done is helped us realize placing more value on our time. In any scenario,you value your time moreso today than I think we could have 10 or 20 years ago,because there were not as many choices. So when you get stuck on an airplane and they're trying to get people to take off andtake a travel voucher and take a later flight, like, "That $400,I guess I could do something, butit's such a nightmare going to the airport anddealing with getting through security and getting on the plane,nobody likes flying on those planeswith those little tiny seats." All of the sudden, United becomes ...any airline is going to have to look at that and say, "Maybe$400 isn't going to cut it." Maybe $800 does cut it. Maybe there are a few people on the plane that will go ahead and take that offer. But, again, I think,why in the worlddo they so consistently overbook flights? You have a fixed number of seats. It's not like it takes a PhD to figure this out. So obviously, they do something where they're relying on some sort of statistical measure, where it sayshow many people might not show up for a flight, orhowever many cancellations might exist, and they can overbook by this amount. But, I do think, for someone, I look at myself and I am, generally speaking, about asapathetic to any given airline brand when it comes to flying.I'm just looking for a plane that's not going to go down,and I want a reasonable price, andI want you to get me there quickly. But man, after this, I have to say,I don't think I would want to buy a ticket for a United flight because of this. I don't seeanything good that came of this. There was thedress code thing that wasn't too terribly long ago, either,which I found to be pretty absurd, honestly. They'rejust not doing themselves any favors.</p>
<p>Hill:AndI don't know if you saw this, but in response to the whole United flight not letting the two young women on because they had leggings,Delta Air Linestweeted outsomething about how, "Flying Delta means flying comfortable,even if you just want to wear leggings."</p>
<p>Moser:Yeah,you should go out in public and you should be dressed insuch a way that is not provocative or questionable. But hey,instead of focusing on the dress code,why don't you focus on people that smell bad? Right? Have you ever sat on a planenext to somebody who stinks? Because that's offensive.</p>
<p>Hill:I think that's going to be a tough one to put into a system.</p>
<p>Muckerman:Well, they're both subjective.</p>
<p>Moser:I don't think so. I think fashion is subjective. Objectively,you either smell or you don't. And if you smell, I don't want to sit next to you.</p>
<p><a href="http://my.fool.com/profile/TMFWizard/info.aspx" type="external">Chris Hill Opens a New Window.</a> has no position in any stocks mentioned. <a href="http://my.fool.com/profile/TMFJMo/info.aspx" type="external">Jason Moser Opens a New Window.</a> has no position in any stocks mentioned. <a href="http://my.fool.com/profile/TMFrunAMuck/info.aspx" type="external">Taylor Muckerman Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Facebook. 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 | segment market foolery opens new window chris hill joined motley fool analysts jason moser andtaylor muckerman discuss viral video resulted major backlash unitednyse ual airlines regardless stock moves short term declined 25 week fools believe incident could hurt airline going forward major competitors taking opportunity step poach upset customers continue reading full transcript follows video 10 stocks like better united continental holdingswhen 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 united continental holdings wasnt one thats right think 10 stocks even better buys click opens new window learn picks advertisement stock advisor returns april 3 2017 video recorded april 10 2017 chris hillthe head ofpublic relations united airlineswhoever ishaving tough dayand becauseas probably already seenby time youre listening episode ofmarket foolery video surfaced passenger forciblyremoved flight going chicago tolouisville sunday everything think bad united airlines backstory somepassenger drunk causing trouble wasunited overbooked flight asked forvolunteers leave could get four united employees louisville service another flight offered 400 offered 800 said know werejust going computer pick people random apassenger paid flight got removed taylor saying started taping theaviation policewho jobseemed relatively unconcerned many people flight phones outand videotaping thissituation know isnt going hurt stock today among things thinkif another airlinei would trolling unitedso hard longi dont know think could potential longterm trouble unitedbut maybe im wrong taylor muckermanitsunfortunate like saidit chicago aviation police wasnt employees thatapparently knocked gentleman unconscious whiletrying drag airplane yeah thefacebookvideo saw viewed 360000 times wasnt companys page liked 360000 timesit regular citizen probably thousand friends 360000 views shows virality video andhow widespread become less 48 hours yesterday happened hillthis yesterday muckermanless 24 hours viewed almost 400000 times one persons account yeahtheyre definitely going see social media quite time hillandyoure right wasnt united employees removed guy look underlying business systems united put place thinkultimately falls back highlights airlines overbook muckermanyeahtheyre ones overbook hillyeah case theyreoverbooking get employees point point b stopping 800 youretrying get people leave flightvoluntarily muckermanthis going cost way 800 jason moserand think go 10 20 years back something airlines would think travelers probably assigned value thattravel voucher back think lot waythe internet changed everything ecommerce travel banking think internet hasultimately done helped us realize placing value time scenarioyou value time moreso today think could 10 20 years agobecause many choices get stuck airplane theyre trying get people take andtake travel voucher take later flight like 400i guess could something butits nightmare going airport anddealing getting security getting planenobody likes flying planeswith little tiny seats sudden united becomes airline going look say maybe400 isnt going cut maybe 800 cut maybe people plane go ahead take offer thinkwhy worlddo consistently overbook flights fixed number seats like takes phd figure obviously something theyre relying sort statistical measure sayshow many people might show flight orhowever many cancellations might exist overbook amount think someone look generally speaking asapathetic given airline brand comes flyingim looking plane thats going go downand want reasonable price andi want get quickly man sayi dont think would want buy ticket united flight dont seeanything good came thedress code thing wasnt terribly long ago eitherwhich found pretty absurd honestly theyrejust favors hillandi dont know saw response whole united flight letting two young women leggingsdelta air linestweeted outsomething flying delta means flying comfortableeven want wear leggings moseryeahyou go public dressed insuch way provocative questionable heyinstead focusing dress codewhy dont focus people smell bad right ever sat planenext somebody stinks thats offensive hilli think thats going tough one put system muckermanwell theyre subjective moseri dont think think fashion subjective objectivelyyou either smell dont smell dont want sit next chris hill opens new window position stocks mentioned jason moser opens new window position stocks mentioned taylor muckerman opens new window position stocks mentioned motley fool owns shares recommends facebook motley fool disclosure policy opens new window | 649 |
<p />
<p>Last week, Delta Air Lines (NYSE: DAL) reported a <a href="http://www.fool.com/investing/2016/10/13/delta-air-lines-inc-earnings-a-disappointing-summe.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">sharp decline in unit revenue Opens a New Window.</a> for the third quarter. Falling fuel prices weren't enough to prevent Delta's profit from sinking on a year-over-year basis. However, Delta did forecast that its unit revenue trajectory will start to improve in Q4.</p>
<p>Continue Reading Below</p>
<p>Following the earnings release, Delta's management spent about an hour discussing the company's results and outlook with analysts and members of the media. The earnings call focused heavily on Delta's plans for returning to unit revenue growth. Here are five key points that Delta Air Lines executives emphasized.</p>
<p>For a while, Delta executives have been projecting that unit revenue would soon stabilize. Fares for advanced bookings started moving in the right direction earlier this year. However, Delta's revenue growth efforts were undermined by persistent weakness in close-in yields: fares for the last-minute tickets that are frequently sold to business travelers.</p>
<p>Delta has been hurt in 2016 by falling fares for last-minute business travel. Image source: The Motley Fool.</p>
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<p>That harmful trend is finally petering out. Close-in yields for domestic travel have improved significantly since mid-August and are now roughly flat year over year. Barring another downturn in demand, domestic revenue per available seat mile should return to growth by early 2017 at the latest.</p>
<p>Slower capacity growth will be one of Delta's key tools for returning to sustainable unit revenue growth. Through the first seven months of 2016, Delta increased its domestic capacity by about 5% year over year. During Q4, it plans to grow at half that rate in the U.S. Looking ahead to 2017, Delta plans to grow global capacity by just 1% relative to 2016.</p>
<p>Additionally, based on the discussion during the earnings call, Delta's management appears to expect rising fuel prices to quickly change the competitive environment. According to this line of reasoning, as higher costs crimp airlines' profit margins, they will all stop trying to undercut one another's fares.</p>
<p>At some point, this is bound to occur. It's much more profitable to cut some capacity if demand misses forecasts than to drive fares ever lower. However, it's not clear yet whether rising fuel prices will translate to higher fares as quickly as Delta expects.</p>
<p>The one geographic region that has turned the corner is Latin America. Delta reported 1.5% unit revenue growth there, driven by an astonishing turnaround in Brazil. Unit revenue had declined on Delta's routes to Brazil for four years running, including particularly steep declines last year. However, a rebound in the Brazilian real led to a 30% surge in unit revenue on routes to Brazil during Q3.</p>
<p>Mexico was the other main point of strength in Latin America. Indeed, solid demand in Mexican business markets has driven steady unit revenue growth there throughout 2016.</p>
<p>On the other hand, Delta faces more intractable problems in many of its other international markets. Overcapacity and fare wars are having a particularly severe impact on unit revenue for routes to Europe and China.</p>
<p>Delta Air Lines' revenue recovery efforts are becoming particularly vital because unit costs are starting to creep higher again. After non-fuel unit costs increased just 0.1% in Q3, Delta is projecting a 1%-2% rise in Q4. Fuel prices are also starting to move higher, although for now Delta is still benefiting on a year-over-year basis from lower hedging losses.</p>
<p>The big whammy is Delta's new <a href="http://www.fool.com/investing/2016/10/08/deltas-new-pilot-contract-offer-puts-southwest-air.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">tentative pilot contract Opens a New Window.</a>. If it is ratified, it will add hundreds of millions of dollars in labor costs. That could drive non-fuel unit cost growth above 3%.</p>
<p>The combination of cost creep and fare pressure in international markets may drive Delta to make bigger changes to its product offerings to remain competitive. Those could include creating new aircraft configurations.</p>
<p>Delta President Glen Hauenstein remained vague about what Delta may change. However, he hinted that Delta could squeeze more seats onto airplanes flying some transatlantic routes. By spreading its costs over more seats, Delta would be better able to match fares from no-frills airlines like Norwegian Air without undermining its margins.</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=2691&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/TMFGemHunter/info.aspx" type="external">Adam Levine-Weinberg Opens a New Window.</a> is long January 2017 $40 calls on Delta Air Lines. 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 | last week delta air lines nyse dal reported sharp decline unit revenue opens new window third quarter falling fuel prices werent enough prevent deltas profit sinking yearoveryear basis however delta forecast unit revenue trajectory start improve q4 continue reading following earnings release deltas management spent hour discussing companys results outlook analysts members media earnings call focused heavily deltas plans returning unit revenue growth five key points delta air lines executives emphasized delta executives projecting unit revenue would soon stabilize fares advanced bookings started moving right direction earlier year however deltas revenue growth efforts undermined persistent weakness closein yields fares lastminute tickets frequently sold business travelers delta hurt 2016 falling fares lastminute business travel image source motley fool advertisement harmful trend finally petering closein yields domestic travel improved significantly since midaugust roughly flat year year barring another downturn demand domestic revenue per available seat mile return growth early 2017 latest slower capacity growth one deltas key tools returning sustainable unit revenue growth first seven months 2016 delta increased domestic capacity 5 year year q4 plans grow half rate us looking ahead 2017 delta plans grow global capacity 1 relative 2016 additionally based discussion earnings call deltas management appears expect rising fuel prices quickly change competitive environment according line reasoning higher costs crimp airlines profit margins stop trying undercut one anothers fares point bound occur much profitable cut capacity demand misses forecasts drive fares ever lower however clear yet whether rising fuel prices translate higher fares quickly delta expects one geographic region turned corner latin america delta reported 15 unit revenue growth driven astonishing turnaround brazil unit revenue declined deltas routes brazil four years running including particularly steep declines last year however rebound brazilian real led 30 surge unit revenue routes brazil q3 mexico main point strength latin america indeed solid demand mexican business markets driven steady unit revenue growth throughout 2016 hand delta faces intractable problems many international markets overcapacity fare wars particularly severe impact unit revenue routes europe china delta air lines revenue recovery efforts becoming particularly vital unit costs starting creep higher nonfuel unit costs increased 01 q3 delta projecting 12 rise q4 fuel prices also starting move higher although delta still benefiting yearoveryear basis lower hedging losses big whammy deltas new tentative pilot contract opens new window ratified add hundreds millions dollars labor costs could drive nonfuel unit cost growth 3 combination cost creep fare pressure international markets may drive delta make bigger changes product offerings remain competitive could include creating new aircraft configurations delta president glen hauenstein remained vague delta may change however hinted delta could squeeze seats onto airplanes flying transatlantic routes spreading costs seats delta would better able match fares nofrills airlines like norwegian air without undermining margins 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 levineweinberg opens new window long january 2017 40 calls delta air lines 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 | 547 |
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<p>Image source: Getty Images.</p>
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<p>Options trading can be a good way to manage your risk, as well as to take advantage of a stock's upside potential with less required capital. However, there are some options trading mistakes to avoid -- particularly when it comes to making and managing risky, complex, and speculative trades.</p>
<p>As of this writing (June 9, 2016), Apple stock trades for just under $100 per share. And, I can buy options to buy the stock for $110 at any time before August 19, 2016, for $0.80 -- or, $80 per contract to buy 100 shares. If the company has a great summer and rises to $115 by expiration, those options will be worth $500 per contract, a return of 525%. However, if the share price stays below $110, they'll become completely worthless.</p>
<p>Now, there is nothing wrong with doing a bit of speculating as long as it's money you can afford to lose and you know you're taking a gamble. One mistake new option traders often make is buying out-of-the money options with large sums of money, hoping to pocket some huge gains. More often, however, they lose it all.</p>
<p>Unless you're using them to hedge another investment, or you're buying them with money you'd also be willing to take to a casino, I recommend avoiding out-of-the money options until you really know what you're doing.</p>
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<p>When entering into an options trade, regardless of whether it's a simple or complex one, you should have a clear goal and exit strategy in mind. When doing something simple like selling a <a href="http://wiki.fool.com/Covered_call?source=eptfxblnk0000004" type="external">covered call Opens a New Window.</a> against a stock position you own, the goal can be something like "the call will expire worthless and I'll keep the premium."</p>
<p>And, you should have an exit strategy you're ready to deploy whether the trade goes your way or not. With the covered call example, if the trade is working out favorably, the exit plan may be to simply wait until expiration and then write another covered call. If the stock price starts to rise, you need to decide whether you want to let your shares get called away, or if you want to roll it into a longer-dated covered call.</p>
<p>Obviously, for more complex options trades, there are many different scenarios that could happen, so your exit strategy can (and should) be significantly more complex than this example. However, the point is that a solid goal and exit strategy can help you lock in gains and mitigate losses -- in other words, it takes emotion out of the equation.</p>
<p>This is one that I've been guilty of at times in the past, and there's really no excuse for it other than a lack of discipline. If you place an options trade and the stock's price starts moving against where you want it to go, it can be tempting to throw more money into the trade to attempt to get back to even.</p>
<p>This is especially true when simply buying call options. For instance, if you buy $40 call options on a $45 stock, and the stock falls to $35, it may be tempting to add some (now out-of-the-money) calls to your position. After all, the options are probably much cheaper right now, and if you liked the stock at $45, it might seem really attractive at $35.</p>
<p>As I pointed out in the first section, buying out-of-the-money options is rarely a good idea. This is doubly true when you're putting in more money than you originally planned.</p>
<p>Sometimes, optionson companies that pay high dividends may seem cheap. There's a good reason for this -- the options don't entitle you to any dividend payments. So, make sure you take this fact into account when evaluating options prices, especially when using options as a stock-replacement strategy.</p>
<p>For example, let's say that you want to invest in AT&amp;T, but you don't want to tie up the money required to buy 100 shares. So, you buy a $30 call option expiring in January 2017 for $9.80 ($980 for one contract), which is almost exactly the difference between the strike price and the current stock price. Well, if the stock price remains the same until expiration, so will the value of your option. You'll have no gains at all.</p>
<p>On the other hand, if you had purchased 100 shares, you would receive three dividend payments between now and expiration. Since AT&amp;T's dividend is currently $0.48 per quarter, this translates to dividend income of $144 that shareholders get, but option holders don't. I'm not saying that using options as a stock-replacement strategy is a bad idea -- in fact, I do it regularly. Just remember to take dividends into account when you're doing your research.</p>
<p>For those new to options trading, the best piece of advice I can give is to take it slow. Don't put too much money into any one trade, don't make speculative bets and consider them "investments," and have a clear plan of action when entering into a trade. Start off with basic strategies such as covered call writing and deep in-the-money call and put buying as a stock-replacement strategy. As you learn the ins and outs of <a href="http://www.fool.com/investing/2016/06/09/what-is-options-trading.aspx?source=eptfxblnk0000004" type="external">options trading Opens a New Window.</a>, you can add to your arsenal over time, when you're ready to do so.</p>
<p>The article <a href="http://www.fool.com/investing/2016/06/10/4-options-trading-mistakes-to-avoid.aspx" type="external">4 Options Trading Mistakes to Avoid Opens a New Window.</a> originally appeared on Fool.com.</p>
<p><a href="http://my.fool.com/profile/KWMatt82/info.aspx?source=eptfxblnk0000004" type="external">Matthew Frankel Opens a New Window.</a> owns shares of Apple and AT&amp;T. The Motley Fool owns shares of and recommends Apple. 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=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 options trading good way manage risk well take advantage stocks upside potential less required capital however options trading mistakes avoid particularly comes making managing risky complex speculative trades writing june 9 2016 apple stock trades 100 per share buy options buy stock 110 time august 19 2016 080 80 per contract buy 100 shares company great summer rises 115 expiration options worth 500 per contract return 525 however share price stays 110 theyll become completely worthless nothing wrong bit speculating long money afford lose know youre taking gamble one mistake new option traders often make buying outofthe money options large sums money hoping pocket huge gains often however lose unless youre using hedge another investment youre buying money youd also willing take casino recommend avoiding outofthe money options really know youre advertisement entering options trade regardless whether simple complex one clear goal exit strategy mind something simple like selling covered call opens new window stock position goal something like call expire worthless ill keep premium exit strategy youre ready deploy whether trade goes way covered call example trade working favorably exit plan may simply wait expiration write another covered call stock price starts rise need decide whether want let shares get called away want roll longerdated covered call obviously complex options trades many different scenarios could happen exit strategy significantly complex example however point solid goal exit strategy help lock gains mitigate losses words takes emotion equation one ive guilty times past theres really excuse lack discipline place options trade stocks price starts moving want go tempting throw money trade attempt get back even especially true simply buying call options instance buy 40 call options 45 stock stock falls 35 may tempting add outofthemoney calls position options probably much cheaper right liked stock 45 might seem really attractive 35 pointed first section buying outofthemoney options rarely good idea doubly true youre putting money originally planned sometimes optionson companies pay high dividends may seem cheap theres good reason options dont entitle dividend payments make sure take fact account evaluating options prices especially using options stockreplacement strategy example lets say want invest atampt dont want tie money required buy 100 shares buy 30 call option expiring january 2017 980 980 one contract almost exactly difference strike price current stock price well stock price remains expiration value option youll gains hand purchased 100 shares would receive three dividend payments expiration since atampts dividend currently 048 per quarter translates dividend income 144 shareholders get option holders dont im saying using options stockreplacement strategy bad idea fact regularly remember take dividends account youre research new options trading best piece advice give take slow dont put much money one trade dont make speculative bets consider investments clear plan action entering trade start basic strategies covered call writing deep inthemoney call put buying stockreplacement strategy learn ins outs options trading opens new window add arsenal time youre ready article 4 options trading mistakes avoid opens new window originally appeared foolcom matthew frankel opens new window owns shares apple atampt motley fool owns shares recommends apple 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 copyright 1995 2016 motley fool llc rights reserved motley fool disclosure policy opens new window | 578 |
<p>Investing for retirement can seem tricky, but it doesn't have to be. With a little bit of homework, you can construct a bulletproof retirement plan full of safe, income-generating stocks and bonds that can grow your nest egg over time. Specifically, here are the steps you'll need to take:</p>
<p>Continue Reading Below</p>
<p>Let's take a closer look at each of these:</p>
<p>Asset allocation simply means how much of your investment capital should be invested in each type of assets. Since we're talking about investing for retirement in an IRA, 401(k), or other type of brokerage account, your investment choices can be broken down into three main categories -- stocks, bonds, and cash.</p>
<p>While it's a good idea to hold cash and equivalents in an emergency fund, they're generally not a good idea for a retirement account. In other words, your retirement assets should generally be invested in stocks and bonds, or funds that invest in those two asset classes. You should familiarize yourself with the basic <a href="https://www.fool.com/how-to-invest/a-quick-guide-to-asset-allocation-stocks-vs-bonds.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1ca0f74c-829d-11e7-a235-0050569d4be0&amp;utm_source=foxbusiness" type="external">rules of asset allocation Opens a New Window.</a>, but the main idea is that the younger you are, the more stock-oriented your retirement portfolio should be, and the older you are, the more of your assets should be shifted into bonds.</p>
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<p>Within the general classifications of stocks and bonds, there is a wide variety of risk. As an example, investing in a long-maturity corporate bond mutual fund is significantly riskier than investing in a short-term Treasury mutual fund.</p>
<p>While retirement assets shouldn't be invested in overly risky investments, there is still some room to decide whether you have more or less risk tolerance than the average investor. For example, if you have significant assets outside of your retirement savings, you might feel a little more comfortable with risk. On the other hand, if you plan to retire at 55 and you're 52, you may have a little less risk tolerance than the average person your age.</p>
<p>Taking a <a href="https://www.fool.com/retirement/2017/05/21/whats-your-investment-style-take-this-risk-toleran.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1ca0f74c-829d-11e7-a235-0050569d4be0&amp;utm_source=foxbusiness" type="external">risk-tolerance quiz Opens a New Window.</a> could help you fine-tune your ideal asset allocation, and give you a better idea of your appetite for risk.</p>
<p>As far as bond investments go, the vast majority of retirement investors should simply buy a few bond index funds.</p>
<p>With stock investments, there's a good case to be made for buying stock-based funds, and there's also a good case to be made for buying individual stocks.</p>
<p>Warren Buffett has said that investing in low-cost index funds is the <a href="https://www.fool.com/investing/2017/02/26/warren-buffett-just-revealed-the-best-investment-m.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1ca0f74c-829d-11e7-a235-0050569d4be0&amp;utm_source=foxbusiness" type="external">smartest way to invest in stocks Opens a New Window.</a> for most people. By doing so, and leaving your investments alone, you're guaranteed to match the market's performance over time, which historically has been quite good.</p>
<p>Now, Buffett didn't mean that people shouldn't ever buy individual stocks in an effort to beat the market. In fact, if you have the time, desire, and knowledge required to research individual stocks, and the discipline not to make rash, emotional investment decisions, we encourage you to do so. However, the point is that if you don't have all of those characteristics, you may want to consider putting your retirement investing on auto-pilot with <a href="https://www.fool.com/investing/mutual-funds/mutual-funds.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1ca0f74c-829d-11e7-a235-0050569d4be0&amp;utm_source=foxbusiness" type="external">mutual funds Opens a New Window.</a> and <a href="https://www.fool.com/investing/etf/index.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1ca0f74c-829d-11e7-a235-0050569d4be0&amp;utm_source=foxbusiness" type="external">ETFs Opens a New Window.</a>.</p>
<p>Once you've assessed your risk tolerance and determined your ideal asset allocation, the next step is to open and fund a retirement account, which for most Americans means an IRA.</p>
<p>IRAs come in two basic varieties -- traditional and Roth -- and the main difference between the two is the tax treatment. Traditional IRA contributions <a href="https://www.fool.com/retirement/2016/11/05/ira-income-limits-for-2016-and-2017.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1ca0f74c-829d-11e7-a235-0050569d4be0&amp;utm_source=foxbusiness" type="external">may be tax-deductible Opens a New Window.</a>, but your eventual withdrawals in retirement will count as taxable income. Roth contributions, on the other hand, are not tax-deductible, but qualified withdrawals in retirement are 100% tax-free. Compare the <a href="https://www.fool.com/retirement/2017/03/17/ask-a-fool-is-a-traditional-or-roth-ira-better-for.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1ca0f74c-829d-11e7-a235-0050569d4be0&amp;utm_source=foxbusiness" type="external">pros and cons Opens a New Window.</a> of each account type and choose the best for you.</p>
<p>IRAs are offered by most major brokerages, and the investment fees and client features can vary, so check out a few options before deciding.</p>
<p>After you've opened and funded your IRA or other retirement account, it's time to select your investments and build your initial retirement portfolio. To help get you started:</p>
<p>The final step is an ongoing one -- doing maintenance. For one thing, this means investing future contributions to your retirement account appropriately, and maintaining your desired asset allocation when you do.</p>
<p>It also means doing <a href="https://www.fool.com/retirement/2017/06/04/1-important-portfolio-checkup-you-need-to-do-in-20.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=1ca0f74c-829d-11e7-a235-0050569d4be0&amp;utm_source=foxbusiness" type="external">occasional rebalancing Opens a New Window.</a> to ensure that your portfolio doesn't become too dependent on any of your investments. As a simplified example, if your target asset allocation is 70% stocks and 30% bonds, a particularly strong year for the stock market could drive your stocks higher, and they could make up 75% of your portfolio. Rebalancing means selling some stocks and buying some bond investments to bring the mix back down to 70%/30%.</p>
<p>Once you've learned the basics of retirement investing, the ongoing maintenance shouldn't take up much of your time, but it's important to do every so often.</p>
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<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=1ca0f74c-829d-11e7-a235-0050569d4be0&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | investing retirement seem tricky doesnt little bit homework construct bulletproof retirement plan full safe incomegenerating stocks bonds grow nest egg time specifically steps youll need take continue reading lets take closer look asset allocation simply means much investment capital invested type assets since talking investing retirement ira 401k type brokerage account investment choices broken three main categories stocks bonds cash good idea hold cash equivalents emergency fund theyre generally good idea retirement account words retirement assets generally invested stocks bonds funds invest two asset classes familiarize basic rules asset allocation opens new window main idea younger stockoriented retirement portfolio older assets shifted bonds advertisement within general classifications stocks bonds wide variety risk example investing longmaturity corporate bond mutual fund significantly riskier investing shortterm treasury mutual fund retirement assets shouldnt invested overly risky investments still room decide whether less risk tolerance average investor example significant assets outside retirement savings might feel little comfortable risk hand plan retire 55 youre 52 may little less risk tolerance average person age taking risktolerance quiz opens new window could help finetune ideal asset allocation give better idea appetite risk far bond investments go vast majority retirement investors simply buy bond index funds stock investments theres good case made buying stockbased funds theres also good case made buying individual stocks warren buffett said investing lowcost index funds smartest way invest stocks opens new window people leaving investments alone youre guaranteed match markets performance time historically quite good buffett didnt mean people shouldnt ever buy individual stocks effort beat market fact time desire knowledge required research individual stocks discipline make rash emotional investment decisions encourage however point dont characteristics may want consider putting retirement investing autopilot mutual funds opens new window etfs opens new window youve assessed risk tolerance determined ideal asset allocation next step open fund retirement account americans means ira iras come two basic varieties traditional roth main difference two tax treatment traditional ira contributions may taxdeductible opens new window eventual withdrawals retirement count taxable income roth contributions hand taxdeductible qualified withdrawals retirement 100 taxfree compare pros cons opens new window account type choose best iras offered major brokerages investment fees client features vary check options deciding youve opened funded ira retirement account time select investments build initial retirement portfolio help get started final step ongoing one maintenance one thing means investing future contributions retirement account appropriately maintaining desired asset allocation also means occasional rebalancing opens new window ensure portfolio doesnt become dependent investments simplified example target asset allocation 70 stocks 30 bonds particularly strong year stock market could drive stocks higher could make 75 portfolio rebalancing means selling stocks buying bond investments bring mix back 7030 youve learned basics retirement investing ongoing maintenance shouldnt take much time important every often 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 | 518 |
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<p>President Barack Obama turned up the political pressure on Republicans on Tuesday, saying he would be willing to negotiate on budget issues only after they agree to re-open the federal government and raise the debt limit with no conditions.</p>
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<p>At a news conference, an unbending Obama said he would not hold talks on ways to end the fiscal impasse under threat from "more extreme parts of the Republican Party."</p>
<p>"If reasonable Republicans want to talk about these things again, I'm ready to head up to the Hill and try," Obama told reporters.</p>
<p>"But I'm not gonna do it until the more extreme parts of the Republican Party stop forcing (House Speaker) John Boehner to issue threats about our economy. We can't make extortion routine as part of our democracy."</p>
<p>Obama's comments followed an earlier phone call to Boehner, who had adopted a slightly more conciliatory tone in comments to reporters after a meeting with House Republicans.</p>
<p>"There are no boundaries here. There's nothing on the table, there's nothing off the table," Boehner said, making no mention of his recent demands to delay parts of Obama's healthcare law in return for approving funds to end the government shutdown.</p>
<p>House Republicans emerged from their meeting saying they would insist on deficit-reduction talks with Obama as a condition for raising the federal debt limit, but some signaled they might pass short-term legislation to avert a default in exchange for immediate talks.</p>
<p>"If we have a negotiation and a framework set up, we can probably reach a way to raise the debt ceiling while the negotiation is in progress. But nobody is going to raise it before there is a negotiation," Republican Representative Tom Cole of Oklahoma said.</p>
<p>The bitter fiscal stalemate has shut down the federal government for eight days and threatens to prevent the raising of the country's $16.7 trillion borrowing limit before an October 17 deadline identified by Treasury Secretary Jack Lew.</p>
<p>The possibility the government could default on its debt sparked fears of potential global economic havoc, with foreign creditors and the International Monetary Fund's chief economist warning of the potential consequences.</p>
<p>"I think what could be said is if there was a problem lifting the debt ceiling, it could well be that what is now a recovery would turn into a recession or even worse," IMF chief economist Olivier Blanchard said.</p>
<p>Obama said he did not think the crisis would create lasting international damage. "As I said, if we deal with this the way we should, then, you know, folks around the world will attribute this to the usual messy process of American democracy but it doesn't do lasting damage."</p>
<p>Investors remain skeptical the parties are ready to resolve the standoff and are exhibiting increasing anxiety as the deadline for raising the debt ceiling approaches.</p>
<p>One of the stock market's most closely watched measures of investor nervousness, the Chicago Board Options Exchange Volatility Index, on Tuesday surged to its highest level since late June. The Standard &amp; Poor's 500 index was down 1.2 percent in late afternoon trading.</p>
<p>In the U.S. Treasury market, the sale of $30 billion of 1-month bills maturing November 7, not long after the government could run out of cash unless the debt ceiling is raised, met with weak demand that pushed bill interest rates to a five-year high.</p>
<p>'FISCAL CRISIS'</p>
<p>Japan's finance minister said a failure by the United States to quickly resolve its political deadlock over government finances could damage the global economy.</p>
<p>"The U.S. must avoid a situation where it cannot pay (for its debt) and its triple-A ranking plunges all of a sudden," Japanese Finance Minister Taro Aso told reporters after a cabinet meeting.</p>
<p>"The U.S. must be fully aware that if that happens, the U.S. would fall into fiscal crisis," he said in the latest sign that Japan and China, the biggest foreign creditors to the United States, are worried the fiscal crisis could harm their trillions of dollars of investments in U.S. Treasury bonds.</p>
<p>The U.S. Chamber of Commerce, a traditional supporter of pro-business Republicans, also warned about further delays in reopening the federal government and raising Treasury's borrowing authority.</p>
<p>"The debt ceiling specifically must pass on a timely basis to avoid inflicting substantial and enduring damage on the U.S. economy," said Bruce Josten, the group's executive vice president.</p>
<p>Polls show growing public concern over the impasse, with Republicans getting slightly more of the blame.</p>
<p>A Reuters/Ipsos poll on Tuesday found the percentage of Americans concerned about the shutdown rose to 75 percent from 66 percent last week. Blame for Republicans grew to 30 percent from 26 percent, with the level of blame for Obama and Democrats at 19 percent, up from 18 percent.</p>
<p>Plenty of obstacles remain to settling the issue. U.S. Senate Democrats plan to introduce a bill on Tuesday to raise the government's borrowing authority by enough to last through 2014.</p>
<p>The measure would not contain any of the deficit reductions that Republicans have demanded, a Senate Democratic aide said.</p>
<p>Republican leaders unveiled a proposal for a 20-member committee to make recommendations on a debt limit increase and look at ways to rein in the country's deficits, but Democrats quickly rejected the idea.</p>
<p>Under the legislation, the Republican House would name 10 members to the panel while the Democratic-led Senate would name the other 10. The panel would also make recommendations on a measure to fund the government for the 2014 fiscal year, ending the shutdown.</p>
<p>The plan is reminiscent of a failed 2011 "supercommittee" of Republicans and Democrats from the House and Senate that was asked to find trillions of new budget savings.</p>
<p>Obama was among the skeptics: "I don't know that we need to set up a new committee for a process like that to move forward."</p>
<p>Despite widespread warnings about failing to raise the debt limit, some House Republicans dismissed the prospect of a first-ever default.</p>
<p>"There's no way to default. There is enough money coming into the Treasury to pay interest and roll over principle," said Representative Justin Amash of Michigan, a favorite of the smaller-government Tea Party wing of the Republican Party.</p>
<p>Asked about warnings of catastrophic consequences if the debt limit is not increased, Amash told reporters: "I say it's patently not true what they are saying."</p>
<p>A Democratic aide said Democrats were hopeful they could get the 60 votes needed to overcome procedural hurdles in the 100-member Senate and pass the debt ceiling bill with no strings attached.</p>
<p>The measure would likely run into opposition from Senate Republicans such as Ted Cruz of Texas, who has been leading the drive to make delaying Obama's healthcare law a condition for raising the debt ceiling.</p>
<p>(By Roberta Rampton and Tim Reid; Additional reporting by David Lawder, Richard Cowan, Caren Bohan, Jeff Mason, Matt Spetalnick and Mark Felsenthal; Writing by John Whitesides; Editing by Tim Dobbyn)</p>
<p>Advertisement</p> | true | 0 | president barack obama turned political pressure republicans tuesday saying would willing negotiate budget issues agree reopen federal government raise debt limit conditions continue reading news conference unbending obama said would hold talks ways end fiscal impasse threat extreme parts republican party reasonable republicans want talk things im ready head hill try obama told reporters im gon na extreme parts republican party stop forcing house speaker john boehner issue threats economy cant make extortion routine part democracy obamas comments followed earlier phone call boehner adopted slightly conciliatory tone comments reporters meeting house republicans boundaries theres nothing table theres nothing table boehner said making mention recent demands delay parts obamas healthcare law return approving funds end government shutdown house republicans emerged meeting saying would insist deficitreduction talks obama condition raising federal debt limit signaled might pass shortterm legislation avert default exchange immediate talks negotiation framework set probably reach way raise debt ceiling negotiation progress nobody going raise negotiation republican representative tom cole oklahoma said bitter fiscal stalemate shut federal government eight days threatens prevent raising countrys 167 trillion borrowing limit october 17 deadline identified treasury secretary jack lew possibility government could default debt sparked fears potential global economic havoc foreign creditors international monetary funds chief economist warning potential consequences think could said problem lifting debt ceiling could well recovery would turn recession even worse imf chief economist olivier blanchard said obama said think crisis would create lasting international damage said deal way know folks around world attribute usual messy process american democracy doesnt lasting damage investors remain skeptical parties ready resolve standoff exhibiting increasing anxiety deadline raising debt ceiling approaches one stock markets closely watched measures investor nervousness chicago board options exchange volatility index tuesday surged highest level since late june standard amp poors 500 index 12 percent late afternoon trading us treasury market sale 30 billion 1month bills maturing november 7 long government could run cash unless debt ceiling raised met weak demand pushed bill interest rates fiveyear high fiscal crisis japans finance minister said failure united states quickly resolve political deadlock government finances could damage global economy us must avoid situation pay debt triplea ranking plunges sudden japanese finance minister taro aso told reporters cabinet meeting us must fully aware happens us would fall fiscal crisis said latest sign japan china biggest foreign creditors united states worried fiscal crisis could harm trillions dollars investments us treasury bonds us chamber commerce traditional supporter probusiness republicans also warned delays reopening federal government raising treasurys borrowing authority debt ceiling specifically must pass timely basis avoid inflicting substantial enduring damage us economy said bruce josten groups executive vice president polls show growing public concern impasse republicans getting slightly blame reutersipsos poll tuesday found percentage americans concerned shutdown rose 75 percent 66 percent last week blame republicans grew 30 percent 26 percent level blame obama democrats 19 percent 18 percent plenty obstacles remain settling issue us senate democrats plan introduce bill tuesday raise governments borrowing authority enough last 2014 measure would contain deficit reductions republicans demanded senate democratic aide said republican leaders unveiled proposal 20member committee make recommendations debt limit increase look ways rein countrys deficits democrats quickly rejected idea legislation republican house would name 10 members panel democraticled senate would name 10 panel would also make recommendations measure fund government 2014 fiscal year ending shutdown plan reminiscent failed 2011 supercommittee republicans democrats house senate asked find trillions new budget savings obama among skeptics dont know need set new committee process like move forward despite widespread warnings failing raise debt limit house republicans dismissed prospect firstever default theres way default enough money coming treasury pay interest roll principle said representative justin amash michigan favorite smallergovernment tea party wing republican party asked warnings catastrophic consequences debt limit increased amash told reporters say patently true saying democratic aide said democrats hopeful could get 60 votes needed overcome procedural hurdles 100member senate pass debt ceiling bill strings attached measure would likely run opposition senate republicans ted cruz texas leading drive make delaying obamas healthcare law condition raising debt ceiling roberta rampton tim reid additional reporting david lawder richard cowan caren bohan jeff mason matt spetalnick mark felsenthal writing john whitesides editing tim dobbyn advertisement | 696 |
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<p>ExxonMobil recently raised $12 billion in cash from a debt salethat it doesn't need for either dividend payments or organic growth purposes. To wit, ExxonMobil made $2.8 billion in profits in the fourth quarter and $16.2 billion for all of 2015. With ExxonMobil's $8 billion in planned capital expenditures cuts for 2016, the company's free cash flow should be enough to cover its $12.1 billion annual dividend for the year.</p>
<p>Continue Reading Below</p>
<p>Many analysts think ExxonMobil raised the money to do acquisitions. Given the cheap valuations in the energy sector, ExxonMobil could use acquisitions to build reserves and increase production, just as Royal Dutch Shell did with its BG Group acquisition. The only difference, of course, is that ExxonMobil will probably purchase its reserves or production at a discount to Shell because energy prices are substantially lower. Following are three companies that ExxonMobil could potentially target.</p>
<p>1. An energy company with Texas-sized reserve potentialWith an enterprise value of $47 billion,EOG Resources is a little bit more than bite-sized even to a giant such as ExxonMobil. Given that an acquiring company would have to pay a premium to get a deal done, ExxonMobil would probably have to bid $55 billion to $65 billion to acquire EOG Resources outright, meaning ExxonMobil would either have to raise more debt and potentially lose its "AAA" credit rating or finance the deal with equity and dilute its shareholders.</p>
<p>Given EOG Resources' massive reserves, however, it might be worth it. According to its financial reports, the company has total resource potential of almost 7 billion barrels of oil equivalent spread across 1.3 million net acres in several promising basins, including the Eagle Ford, Bakken, and Delaware Basins. If shale technology improves, that total resource potential number will probably increase.</p>
<p>Source: EOG Investor Relations.</p>
<p>More crucially,EOG Resources has a low cost of production. Research firm PIRA estimates that EOG's breakeven oil price is $30 per barrel versus U.S. tight oil's general breakeven of $40-$65 per barrel. If ExxonMobil were to purchase EOG, it would instantly add billions of low-cost potential reserves and increase its production by around half of million BOE per day, too.</p>
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<p>2. An independent with a major presence in the PermianPioneer Natural Resources has a major presence in the Permian basin, whichhas tens of billions of BOE in resource potential and is surprisingly competitive at sub-$50-per-barrel WTI prices. According to statistics from the Energy Information Administration, oil production in the Permian basin has held steady or risen even while production in other basins such as the Eagle Ford and Bakken have declined.</p>
<p>An ExxonMobil purchase of Pioneer would give the company 800,000 gross acres in the Spraberry/Wolfcamp shalein the basin, 664 million barrels of proved oil equivalent, billions more of potential oil equivalent, and roughly 224,000 BOE of production a day. Although 664 million barrels of proven oil equivalent doesn't sound like much for a company of ExxonMobil's size (Exxon added 1 billion barrels of oil equivalent in proved reserves in 2015 alone), Pioneer's proven reserves are growing very quickly. In 2015, Pioneer added 210 million barrels of proven oil equivalent despite the sharp drop in energy prices.</p>
<p>3. The dominant company in the BakkenContinental Resources is the dominantproducer in the Bakken, with over 1.045 million net acres in the basin.Although production in the Bakken is generally more expensive than production in the Eagle Ford or Permian because of wider price differentials resulting from limited pipeline capacity and tougher geography,Continental Resources is also substantially cheaper than its peers. Continental has an enterprise value of $18.5 billion versus Pioneer's enterprise value of $25 billion even though Continental has almost twice the amount of proven reserves, with 1.226 billion BOE at the end of 2015, and roughly the same amount of production witharound 200,000 barrels of oil equivalent per day. If crude prices rise past $60-$70 per barrel, an acquisition of Continental Resources would make great sense, as the company would grow production at a healthy rate organically and be profitable.</p>
<p>How ExxonMobil benefits from the potentialacquisitionsAlthough it isn't in danger of running out, given its totalproven reserves of 24.8 billion BOE, ExxonMobil replaced just 67% of its production last year, down from the 115% average over its past 10 years.An acquisition of EOG, Pioneer, or Continental would help bridge ExxonMobil's replacement gap for several years and would give the company a low-capital-intensity, short-lead-time method to increase its own production. With its unparalleled scale and low cost of capital, ExxonMobil could realize more return from every barrel of oil and gas it produces, and a potential acquisition could pay off substantially if crude prices rebound.</p>
<p>The article <a href="http://www.fool.com/investing/general/2016/03/29/3-potential-acquisitions-that-exxonmobil-might-tar.aspx" type="external">3 Potential Takeover Targets for ExxonMobil</a> originally appeared on Fool.com.</p>
<p><a href="http://my.fool.com/profile/TMFJay22/info.aspx?source=eptfxblnk0000004" type="external">TMFJay22</a> has no position in any stocks mentioned. The Motley Fool owns shares of EOG Resources, and ExxonMobil. 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 | exxonmobil recently raised 12 billion cash debt salethat doesnt need either dividend payments organic growth purposes wit exxonmobil made 28 billion profits fourth quarter 162 billion 2015 exxonmobils 8 billion planned capital expenditures cuts 2016 companys free cash flow enough cover 121 billion annual dividend year continue reading many analysts think exxonmobil raised money acquisitions given cheap valuations energy sector exxonmobil could use acquisitions build reserves increase production royal dutch shell bg group acquisition difference course exxonmobil probably purchase reserves production discount shell energy prices substantially lower following three companies exxonmobil could potentially target 1 energy company texassized reserve potentialwith enterprise value 47 billioneog resources little bit bitesized even giant exxonmobil given acquiring company would pay premium get deal done exxonmobil would probably bid 55 billion 65 billion acquire eog resources outright meaning exxonmobil would either raise debt potentially lose aaa credit rating finance deal equity dilute shareholders given eog resources massive reserves however might worth according financial reports company total resource potential almost 7 billion barrels oil equivalent spread across 13 million net acres several promising basins including eagle ford bakken delaware basins shale technology improves total resource potential number probably increase source eog investor relations cruciallyeog resources low cost production research firm pira estimates eogs breakeven oil price 30 per barrel versus us tight oils general breakeven 4065 per barrel exxonmobil purchase eog would instantly add billions lowcost potential reserves increase production around half million boe per day advertisement 2 independent major presence permianpioneer natural resources major presence permian basin whichhas tens billions boe resource potential surprisingly competitive sub50perbarrel wti prices according statistics energy information administration oil production permian basin held steady risen even production basins eagle ford bakken declined exxonmobil purchase pioneer would give company 800000 gross acres spraberrywolfcamp shalein basin 664 million barrels proved oil equivalent billions potential oil equivalent roughly 224000 boe production day although 664 million barrels proven oil equivalent doesnt sound like much company exxonmobils size exxon added 1 billion barrels oil equivalent proved reserves 2015 alone pioneers proven reserves growing quickly 2015 pioneer added 210 million barrels proven oil equivalent despite sharp drop energy prices 3 dominant company bakkencontinental resources dominantproducer bakken 1045 million net acres basinalthough production bakken generally expensive production eagle ford permian wider price differentials resulting limited pipeline capacity tougher geographycontinental resources also substantially cheaper peers continental enterprise value 185 billion versus pioneers enterprise value 25 billion even though continental almost twice amount proven reserves 1226 billion boe end 2015 roughly amount production witharound 200000 barrels oil equivalent per day crude prices rise past 6070 per barrel acquisition continental resources would make great sense company would grow production healthy rate organically profitable exxonmobil benefits potentialacquisitionsalthough isnt danger running given totalproven reserves 248 billion boe exxonmobil replaced 67 production last year 115 average past 10 yearsan acquisition eog pioneer continental would help bridge exxonmobils replacement gap several years would give company lowcapitalintensity shortleadtime method increase production unparalleled scale low cost capital exxonmobil could realize return every barrel oil gas produces potential acquisition could pay substantially crude prices rebound article 3 potential takeover targets exxonmobil originally appeared foolcom tmfjay22 position stocks mentioned motley fool owns shares eog resources exxonmobil 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 | 564 |
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<p>Ramadan…meaning ‘Scorched Earth’…began on July 8th and ended on August 4th, the so-called ‘Night of Power’ (Laylet al-Qadr)…the ‘Night of Revelation’…the ‘Night of Destiny’…when the first verses of the (vile) qur’an were revealed to mohamed…or so the muslims claim.</p>
<p>And on that day, on orders initiating from Barack HUSSEIN Obama, 19 US embassies across the Middle East, North Africa, and certain parts of Asia were closed and locked down as a precautionary measure. Closed and locked down because of what government officials and ‘supposed’ intel operatives said was an ‘unspecified’ terrorist threat coming from al-Qaeda and its affiliates…as in intercepted communiques which ‘supposedly’ included an attack order from al-Qaeda leader Ayman al-Zawahri to Yemen-based al-Qaeda in the Arabian Peninsula.</p>
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<p>But of course NOTHING happened as most of us knew it wouldn’t, because Obama gave the game plan away (probably to warn his brethren) giving al-Qaeda time to change their plans…if there were ever any plans to attack our embassies to begin with. And even if this was true, the ONLY embassy that should have been closed was the one in Yemen, the new ground point zero for al-Qaeda operations.</p>
<p>And now a week later as all the embassies are reopening, except for the one in the Yemeni capital of Sanaa, the stage has been set for Barack HUSSEIN Obama to do what he does best…campaign about how wonderful he is and what a great decision he made in order to keep our embassy personnel safe. But wonderful he is NOT for whether the threat was real or NOT is quite the distraction from the fact that this miserable excuse of a president once again allowed our beloved America to seem weak in the eyes of the world…allowed America to be seen as backing down to the enemy…allowed America to be seen as a coward who high tails it and runs when threats…’unspecific’ threats at that…get too great.</p>
<p>And this ‘We the People’ can NEVER forgive him for as America caters to and backs down to NO one…to NO nation…especially to NO muslim (YES muslim) terrorist organization…at lest this was so before this man…this muslim…usurped his way into the presidency.</p>
<p>But what can we expect from a man who sides with the enemy every chance he gets…a man who welcomes the enemy into the White House…the American people’s house…to break bread. Remember, just last month Obama hosted his fifth,…YES fifth…White House ‘ iftar’ dinner in the State Dining Room to celebrate Ramadan. Joined by members of his administration, elected officials, religious leaders, and members of the diplomatic corps Obama saluted muslims (on national television NO less) who claim to be Americans (I will NOT hyphenate anyone claiming to be an American) for their, according to him, contributions in helping build the nation as business entrepreneurs, technology innovators, and pioneers in medicine (gagging BIG time on that one).</p>
<p>Remember at that dinner Obama said the holy month of Ramadan was “a time of reflection, a chance to demonstrate ones devotion to God through prayer and through fasting, but it’s also a time for family and friends to come together”…as in his family…his friends…his devotion to his God…the false pseudo-god known as allah…for NO true Christian or Jew would grovel like that before those out to kill them.</p>
<p>Remember it well for this is where Barack HUSSEIN Obama’s allegiances lie…always have and always will.</p>
<p>So knowing where Obama’s true allegiances lie why did he really close all those embassies…why would he do something so drastic, at a huge cost to we taxpayers based on what amounts to little definitive information…why when one year ago direct communications were received from Ambassador Stevens begging for back-up and help at Benghazi…why when Obama saw with his own eyes the video coverage of the attacks from the drones flying above the compound did he and his people claim they didn’t have enough information to act…why…why…why.</p>
<p>Why…could it have something to do with what I’ve said since day one…that Ambassador Stevens caught Obama and his people smuggling guns and military grade weapons to the al-Qaeda supported and financed Syrian rebels and was going to expose him…could those weapons have been the ones unaccounted for that he ILLEGALLY gave to the Libyans in violation of our Constitution’s ‘War Powers Clause’. And why last week were US Navy amphibious ships in the Red Sea moved closer to Yemen and then pulled back…</p>
<p>Or…and this is a biggie…did all these closings have to do with Edward Snowden and Obama’s fear that Snowden found out ‘certain things’ and is ‘talking’ to his nemesis Russian President Vladimir Putin. Could Obama have had to destroy all the evidence housed in our embassies to hide ‘certain’ high-level classified spying programs…to shred documents…to delete files and films…to try and wipe his fingerprints NOT only off of Benghazi with his weapons running but to wipe clean his role in spying on Russia, especially with Russia supporting Assad’s government forces and he supporting the al-Qaeda backed rebels. Could this be the real reason for the closings…what better way to stealthily operate than to do closings in plain sight while the world’s eyes were diverted away by phony terrorist threats…this way he could do his ‘dirty work’ behind closed and sealed doors while the world was fooled into thinking the doors were closed for the safety of our embassy personnel…and doing this to coincide with Ramadan is the perfect cover for it all.</p>
<p>I put NOTHING passed this most vile of men, for Obama is NOT trying to get Snowden back because of his disclosures about spying on ‘We the People’…he needs Snowden back because he might spills the beans on him. And don’t think for a minute that Eric Snowden won’t end up being in an ‘unfortunate accident’ somewhere…but above all else NEVER forget that Barack HUSSEIN Obama’s loyalties will NEVER be with America, with American interests, or with ‘We the People’ but will always be with those out to kill us.</p>
<p>http://thepatriotfactor.blogspot.com/2013/08/op-ed-crying-wolf-for-most-devious-of.html</p>
<p><a href="" type="internal" /></p> | true | 0 | ramadanmeaning scorched earthbegan july 8th ended august 4th socalled night power laylet alqadrthe night revelationthe night destinywhen first verses vile quran revealed mohamedor muslims claim day orders initiating barack hussein obama 19 us embassies across middle east north africa certain parts asia closed locked precautionary measure closed locked government officials supposed intel operatives said unspecified terrorist threat coming alqaeda affiliatesas intercepted communiques supposedly included attack order alqaeda leader ayman alzawahri yemenbased alqaeda arabian peninsula course nothing happened us knew wouldnt obama gave game plan away probably warn brethren giving alqaeda time change plansif ever plans attack embassies begin even true embassy closed one yemen new ground point zero alqaeda operations week later embassies reopening except one yemeni capital sanaa stage set barack hussein obama bestcampaign wonderful great decision made order keep embassy personnel safe wonderful whether threat real quite distraction fact miserable excuse president allowed beloved america seem weak eyes worldallowed america seen backing enemyallowed america seen coward high tails runs threatsunspecific threats thatget great people never forgive america caters backs oneto nationespecially muslim yes muslim terrorist organizationat lest manthis muslimusurped way presidency expect man sides enemy every chance getsa man welcomes enemy white housethe american peoples houseto break bread remember last month obama hosted fifthyes fifthwhite house iftar dinner state dining room celebrate ramadan joined members administration elected officials religious leaders members diplomatic corps obama saluted muslims national television less claim americans hyphenate anyone claiming american according contributions helping build nation business entrepreneurs technology innovators pioneers medicine gagging big time one remember dinner obama said holy month ramadan time reflection chance demonstrate ones devotion god prayer fasting also time family friends come togetheras familyhis friendshis devotion godthe false pseudogod known allahfor true christian jew would grovel like kill remember well barack hussein obamas allegiances liealways always knowing obamas true allegiances lie really close embassieswhy would something drastic huge cost taxpayers based amounts little definitive informationwhy one year ago direct communications received ambassador stevens begging backup help benghaziwhy obama saw eyes video coverage attacks drones flying compound people claim didnt enough information actwhywhywhy whycould something ive said since day onethat ambassador stevens caught obama people smuggling guns military grade weapons alqaeda supported financed syrian rebels going expose himcould weapons ones unaccounted illegally gave libyans violation constitutions war powers clause last week us navy amphibious ships red sea moved closer yemen pulled back orand biggiedid closings edward snowden obamas fear snowden found certain things talking nemesis russian president vladimir putin could obama destroy evidence housed embassies hide certain highlevel classified spying programsto shred documentsto delete files filmsto try wipe fingerprints benghazi weapons running wipe clean role spying russia especially russia supporting assads government forces supporting alqaeda backed rebels could real reason closingswhat better way stealthily operate closings plain sight worlds eyes diverted away phony terrorist threatsthis way could dirty work behind closed sealed doors world fooled thinking doors closed safety embassy personneland coincide ramadan perfect cover put nothing passed vile men obama trying get snowden back disclosures spying peoplehe needs snowden back might spills beans dont think minute eric snowden wont end unfortunate accident somewherebut else never forget barack hussein obamas loyalties never america american interests people always kill us httpthepatriotfactorblogspotcom201308opedcryingwolfformostdeviousofhtml | 530 |
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<p>With Intel's revenue and profit stagnating in recent years, driven by weak demand for PCs, the company's dividend has languished. The first dividend increase in more than two years came at the beginning of 2015, but the 6.7% boost was nothing to write home about. A slightly larger 8.3% dividend hike came at the beginning of this year, but with the PC market still struggling, Intel's ability to continue to raise the dividend may be limited going forward.</p>
<p>Continue Reading Below</p>
<p>Intel stock currently yields 3.25%, but with dividend growth likely to be slow, there are better options for dividend investors. Qualcomm is one such option, despite the challenges the company is facing. Qualcomm stock currently yields an impressive 4.2%, and a dividend increase may be coming this month, if history is any indication. Cisco Systems is another good bet, with a dividend yield of 3.75% following a recent 24% dividend hike.</p>
<p>Qualcomm</p>
<p>Image source: Qualcomm.</p>
<p>Like Intel, Qualcomm is facing some pretty major challenges. The smartphone market is slowing, with IDC expecting single-digit unit growth this year, and fierce competition in the mobile processor market has crimped Qualcomm's profitability. During Qualcomm's first quarter, revenue slumped 19% year over year, with net income falling by 24%. The segment responsible for designing and selling chips suffered a 22% decline in revenue and a 49% decline in pre-tax earnings.</p>
<p>Thankfully, Qualcomm derives the majority of its profits from its licensing business, and while that segment suffered as well, the decline wasn't nearly as severe. Qualcomm owns critical patents related to mobile networking technology, and about 75% of its pre-tax income was derived from licensing during the first quarter.</p>
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<p>Qualcomm's earnings and free cash flow slumped in fiscal 2015, and fiscal 2016 may bring more of the same. The payout ratio has crept higher, with the current dividend payment eating up 59.6% and 64.6% of net income and free cash flow, respectively. What this means is that further dividend increases may be unlikely, at least until Qualcomm returns to growth. Qualcomm has generally announced dividend increases in April, and while a dividend hike is still possible this year, the company's streak may come to an end.</p>
<p>What makes Qualcomm a superior dividend stock compared to Intel is its yield. Neither company looks able to grow their respective dividends very quickly, at least over the next few years, but Qualcomm's 4.2% dividend yield is nearly a percentage point higher than that of Intel. With Intel still heavily dependent on the PC market, and with much of Qualcomm's profits derived from licensing, Qualcomm looks like the better bet for dividend investors.</p>
<p>Cisco Systems</p>
<p>Image source: Cisco.</p>
<p>Networking giant Cisco is the leader in the enterprise switching and routing markets. The company is not dependent on PCs like Intel, but the rise of cloud computing has raised some questions about the long-term sustainability of Cisco's cash cow businesses. Big cloud computing companies like Alphabet'sGoogle tend to design and build their own data center hardware, including switches in some cases, leaving traditional OEMs out of the process.</p>
<p>The good news is that, at least so far, the threat of cheap commodity networking hardware hasn't really negatively affected Cisco's business. The company is slowly transforming itself into a provider of solutions, as opposed to simply a seller of hardware, and former CEO John Chambers once said that Cisco aims to become the No. 1 IT company in the world.</p>
<p>Cisco's data center business, which includes its fast-growing line of servers, is expected to grow at a 20% to 25% annual rate over the next three to five years, according to the company. Software, which accounted for about $9 billion of sales in fiscal 2015, is expected to grow by 10% to 15% annually, and services, an $11 billion business for Cisco, is expected to post 4% to 7% annual growth. Cisco's not waiting around to see if its core markets become commoditized. Instead, the company is going after growth opportunities, diversifying and broadening its business.</p>
<p>Cisco's dividend currently yields about 3.75% following a substantial increase earlier this year. The company's payout ratio is getting up there, with dividends accounting for 42% of TTM free cash flow, based on the latest quarterly dividend. There's still some room for payout ratio expansion, meaning that dividend growth going forward will likely be a bit faster than earnings growth. With a high yield and room for continued dividend growth, Cisco is a great choice for dividend investors.</p>
<p>The article <a href="http://www.fool.com/investing/general/2016/04/07/forget-intel-corporation-here-are-2-better-dividen.aspx" type="external">Forget Intel Corporation: Here Are 2 Better Dividend Stocks Opens a New Window.</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/TMFBargainBin/info.aspx?source=eptfxblnk0000004" type="external">Timothy Green Opens a New Window.</a> owns shares of Cisco Systems. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), and Qualcomm. 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=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 | intels revenue profit stagnating recent years driven weak demand pcs companys dividend languished first dividend increase two years came beginning 2015 67 boost nothing write home slightly larger 83 dividend hike came beginning year pc market still struggling intels ability continue raise dividend may limited going forward continue reading intel stock currently yields 325 dividend growth likely slow better options dividend investors qualcomm one option despite challenges company facing qualcomm stock currently yields impressive 42 dividend increase may coming month history indication cisco systems another good bet dividend yield 375 following recent 24 dividend hike qualcomm image source qualcomm like intel qualcomm facing pretty major challenges smartphone market slowing idc expecting singledigit unit growth year fierce competition mobile processor market crimped qualcomms profitability qualcomms first quarter revenue slumped 19 year year net income falling 24 segment responsible designing selling chips suffered 22 decline revenue 49 decline pretax earnings thankfully qualcomm derives majority profits licensing business segment suffered well decline wasnt nearly severe qualcomm owns critical patents related mobile networking technology 75 pretax income derived licensing first quarter advertisement qualcomms earnings free cash flow slumped fiscal 2015 fiscal 2016 may bring payout ratio crept higher current dividend payment eating 596 646 net income free cash flow respectively means dividend increases may unlikely least qualcomm returns growth qualcomm generally announced dividend increases april dividend hike still possible year companys streak may come end makes qualcomm superior dividend stock compared intel yield neither company looks able grow respective dividends quickly least next years qualcomms 42 dividend yield nearly percentage point higher intel intel still heavily dependent pc market much qualcomms profits derived licensing qualcomm looks like better bet dividend investors cisco systems image source cisco networking giant cisco leader enterprise switching routing markets company dependent pcs like intel rise cloud computing raised questions longterm sustainability ciscos cash cow businesses big cloud computing companies like alphabetsgoogle tend design build data center hardware including switches cases leaving traditional oems process good news least far threat cheap commodity networking hardware hasnt really negatively affected ciscos business company slowly transforming provider solutions opposed simply seller hardware former ceo john chambers said cisco aims become 1 company world ciscos data center business includes fastgrowing line servers expected grow 20 25 annual rate next three five years according company software accounted 9 billion sales fiscal 2015 expected grow 10 15 annually services 11 billion business cisco expected post 4 7 annual growth ciscos waiting around see core markets become commoditized instead company going growth opportunities diversifying broadening business ciscos dividend currently yields 375 following substantial increase earlier year companys payout ratio getting dividends accounting 42 ttm free cash flow based latest quarterly dividend theres still room payout ratio expansion meaning dividend growth going forward likely bit faster earnings growth high yield room continued dividend growth cisco great choice dividend investors article forget intel corporation 2 better dividend stocks opens new window originally appeared foolcom suzanne frey executive alphabet member motley fools board directors timothy green opens new window owns shares cisco systems motley fool owns shares recommends alphabet shares alphabet c shares qualcomm 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 copyright 1995 2016 motley fool llc rights reserved motley fool disclosure policy opens new window | 568 |
<p>Shares of Momo (NASDAQ: MOMO) have fallen nearly 30% over the past three months, mainly due to a third-quarter earnings report in August that indicated that the company's breakneck growth was slowing down. Nonetheless, shares of the Chinese social networking company remain up 70% for the year.</p>
<p>But looking ahead, I believe that Momo's stock could fall further, since four clear signs indicate that its high-growth days are over.</p>
<p>Continue Reading Below</p>
<p>Momo's revenue surged 215% annually to&#160;$312 million last quarter. That figure seems impressive, until we notice that it's actually Momo's slowest growth rate in five quarters. It also marks a 15% decline from the first quarter.</p>
<p>Analysts expect Momo's slowdown to continue with 116% annual growth in the third quarter and 55% growth in the fourth quarter. They also expect its revenue to grow 135% this year (compared to 313% growth in 2016), and rise just 35% in 2018.</p>
<p>The problem for Momo is that most of its triple-digit gains came from its introduction of a live video streaming platform to complement its core <a href="https://www.fool.com/investing/2017/11/06/5-common-misconceptions-about-momo-inc.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=3e465436-cc2c-11e7-be1c-0050569d32b9&amp;utm_source=foxbusiness" type="external">social networking app Opens a New Window.</a>, which allows users to find and chat with each other based on their locations.</p>
<p>The live streaming business started generating lots of revenue through sales of ads, virtual gifts (which viewers purchase for their favorite broadcasters), or premium subscriptions. Momo splits that revenue, which accounted for 91% of its top line last quarter, with its broadcasters.</p>
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<p>The remainder of Momo's revenue comes from mobile games and sales of other mobile ads. Those units are both generating double-digit sales growth, but they're not growing quickly enough to offset the weight of its live streaming business.</p>
<p>For Momo to keep growing its live streaming business, it must convert more free viewers to paid ones. Momo's total monthly active users (MAUs) rose 7% sequentially to 91.3 million last quarter, but its number of paying users stayed flat at 4.1 million.</p>
<p>Momo reported that its average revenues per user rose 20% sequentially, which the company attributed to the introduction of more value-added services. That's a positive sign, but it's unclear how much more revenue it can milk from its existing users to offset its slowing growth in paid users.</p>
<p>Momo isn't the only company that is targeting China's red-hot live streaming market, which&#160;grew a whopping 180% to about $3 billion last year, according to iResearch. YY (NASDAQ: YY)&#160;-- which established a first-mover's advantage in the space several years ago --- has more paying users (6.3 million last quarter), and it's&#160;still growing that figure sequentially at a double-digit rate. That's why YY rallied 50% over the past three months and over 170% for the year.</p>
<p>Other challengers include Weibo, which lets its 376 million MAUs watch live video streams, and hundreds of other streaming apps like Yingke and Xiandanjia.</p>
<p>Earlier this year, Tencent (NASDAQOTH: TCEHY), which owns&#160;the country's top messaging app WeChat, pledged to invest nearly $300 million in its Now Live platform. These bigger competitors, along with increased <a href="https://www.fool.com/investing/2017/06/27/china-cracks-down-on-weibo-time-to-sell.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=3e465436-cc2c-11e7-be1c-0050569d32b9&amp;utm_source=foxbusiness" type="external">regulatory scrutiny Opens a New Window.</a> of live streaming apps, could make it tough for smaller players like Momo to keep growing.</p>
<p>Lastly, Momo's operating expenses soared 189% annually to $246 million, or 79% of its revenues, last quarter. It attributed those rising costs to higher broadcaster revenue shares on its live video platform, payment channel fees, marketing, and infrastructure expenses.</p>
<p>If Momo wants to stay competitive and retain its broadcasters and viewers, it will likely need to spend even more money over the next few quarters. Momo bulls might think that's fine, since Momo's non-GAAP net income surged 218% to $73.8 million last quarter. But on a sequential basis, Momo's net income still fell 19% -- so it needs to pull off a tough balancing act to protect its bottom line.</p>
<p>Momo might initially seem like an undervalued growth stock, since it trades at just 14 times next year's earnings. But the stock is cheap because investors think that YY's growth has peaked and that it will likely need to spend much more money to stay competitive.</p>
<p>Therefore, Momo might still be a good speculative play on China's booming live streaming market, but investors looking for safer returns should stick with <a href="https://www.fool.com/investing/2017/06/17/forget-fang-buy-bat-baidu-alibaba-and-tencent.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=3e465436-cc2c-11e7-be1c-0050569d32b9&amp;utm_source=foxbusiness" type="external">bigger and better-diversified Opens a New Window.</a> plays instead.</p>
<p>10 stocks we like better than YYWhen 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=26d55f7f-48eb-46d4-bf96-203df98ceeea&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=3e465436-cc2c-11e7-be1c-0050569d32b9&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now... and YY 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 November 6, 2017</p>
<p><a href="http://my.fool.com/profile/TMFSunLion/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=3e465436-cc2c-11e7-be1c-0050569d32b9&amp;utm_source=foxbusiness" type="external">Leo Sun Opens a New Window.</a>&#160;owns shares of Tencent Holdings. The Motley Fool recommends Momo and Weibo. 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;referring_guid=3e465436-cc2c-11e7-be1c-0050569d32b9&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | shares momo nasdaq momo fallen nearly 30 past three months mainly due thirdquarter earnings report august indicated companys breakneck growth slowing nonetheless shares chinese social networking company remain 70 year looking ahead believe momos stock could fall since four clear signs indicate highgrowth days continue reading momos revenue surged 215 annually to160312 million last quarter figure seems impressive notice actually momos slowest growth rate five quarters also marks 15 decline first quarter analysts expect momos slowdown continue 116 annual growth third quarter 55 growth fourth quarter also expect revenue grow 135 year compared 313 growth 2016 rise 35 2018 problem momo tripledigit gains came introduction live video streaming platform complement core social networking app opens new window allows users find chat based locations live streaming business started generating lots revenue sales ads virtual gifts viewers purchase favorite broadcasters premium subscriptions momo splits revenue accounted 91 top line last quarter broadcasters advertisement remainder momos revenue comes mobile games sales mobile ads units generating doubledigit sales growth theyre growing quickly enough offset weight live streaming business momo keep growing live streaming business must convert free viewers paid ones momos total monthly active users maus rose 7 sequentially 913 million last quarter number paying users stayed flat 41 million momo reported average revenues per user rose 20 sequentially company attributed introduction valueadded services thats positive sign unclear much revenue milk existing users offset slowing growth paid users momo isnt company targeting chinas redhot live streaming market which160grew whopping 180 3 billion last year according iresearch yy nasdaq yy160 established firstmovers advantage space several years ago paying users 63 million last quarter its160still growing figure sequentially doubledigit rate thats yy rallied 50 past three months 170 year challengers include weibo lets 376 million maus watch live video streams hundreds streaming apps like yingke xiandanjia earlier year tencent nasdaqoth tcehy owns160the countrys top messaging app wechat pledged invest nearly 300 million live platform bigger competitors along increased regulatory scrutiny opens new window live streaming apps could make tough smaller players like momo keep growing lastly momos operating expenses soared 189 annually 246 million 79 revenues last quarter attributed rising costs higher broadcaster revenue shares live video platform payment channel fees marketing infrastructure expenses momo wants stay competitive retain broadcasters viewers likely need spend even money next quarters momo bulls might think thats fine since momos nongaap net income surged 218 738 million last quarter sequential basis momos net income still fell 19 needs pull tough balancing act protect bottom line momo might initially seem like undervalued growth stock since trades 14 times next years earnings stock cheap investors think yys growth peaked likely need spend much money stay competitive therefore momo might still good speculative play chinas booming live streaming market investors looking safer returns stick bigger betterdiversified opens new window plays instead 10 stocks like better yywhen 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 yy wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns november 6 2017 leo sun opens new window160owns shares tencent holdings motley fool recommends momo weibo motley fool disclosure policy opens new window | 547 |
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<p>Looking for juicy dividends? You'll definitely want to check out real estate investment trusts (REITs) that specialize in the healthcare sector. Here's why Medical Properties Trust (NYSE: MPW), Ventas (NYSE: VTR), and Welltower (NYSE: HCN) are three healthcare REITs that should be good buys for 2017.</p>
<p>Continue Reading Below</p>
<p>Image source: Getty Images.</p>
<p>Unlike most other healthcare REITs, Medical Properties Trust focuses exclusively on investing in and owning hospitals. Its dividend yield of 7.62% stands among the highest of any healthcare REIT on the market.</p>
<p>At the end of the third quarter, Medical Properties Trust's portfolio included 209 properties, 11 of which were under development. Over 60% of its revenue stems from general acute care hospitals, with just under 30% coming from rehabilitation hospitals and roughly 9% from long-term acute care hospitals. Four out of five of the company's properties are located in the U.S., with the rest primarily in Germany.</p>
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<p>The good thing about hospitals is that they typically don't move. Medical Properties Trust benefits from having long-term leases on its properties. Only a relatively small number of its property leases expire prior to 2025.</p>
<p>Medical Properties Trust's debt totals $2.7 billion. The company shouldn't have problems servicing this debt. Even better, most of this amount -- $2.5 billion -- is fixed-rate debt that won't be negatively affected by interest rate hikes.</p>
<p>While Medical Properties Trust deals only with hospitals, Ventas focuses largely on seniors housing. The company's dividend yield currently stands at an attractive 5.09%.</p>
<p>As of Sept. 30, 2016, Ventas owned 1,300 properties in the U.S., Canada, and the United Kingdom. Over 60% of these were seniors housing communities. Nearly 21% were medical office buildings. Ventas also owned several life science and innovation centers, skilled nursing facilities, and hospital properties.</p>
<p>Ventas boasts a strong track record that investors should like. The company's compounded annual total shareholder return from 2000 through 2015 was an impressive 26%. Ventas has also increased its dividend by an average annual rate of 10% since 2001.</p>
<p>The company's debt totaled over $11.3 billion at the end of the third quarter of 2016. Less than 16% of that amount is variable-rate debt that could be impacted by potential interest rate increases.</p>
<p>Welltower was founded in 1970, making the company the oldest of all REITs exclusively investing in healthcare properties. This granddaddy of healthcare REITs currently sports a dividend yield of 5.25%.</p>
<p>The company owns interest in1,464 properties across the U.S., Canada, and the United Kingdom. Like Ventas, Welltower focuses primarily on seniors housing. In November, the company announced a significant portfolio repositioning to reduce its exposure to long-term and post-acute care (LTPAC) and increase itsfocus on premium private-pay healthcare real estate properties.</p>
<p>This appears to be a good move for Welltower over the long run. The increased focus on private-pay healthcare properties should increase profits. Selling some of its LTPAC properties also improves Welltower's financial shape. Just a few days after the company announced its strategic changes,Standard &amp; Poor's raised Welltower's credit rating, citing among other things the portfolio repositioning efforts.</p>
<p>What about Welltower's debt? The company reported around $13.4 billion in debt at the end of the third quarter. Roughly $2.8 billion of that amount was variable-rate debt.</p>
<p>Healthcare REITs should benefit from several positive trends in the coming years. Aging baby boomers will likely spur an increase in demand for seniors housing, which should help Ventas and Welltower. As Americans age, they will also likely incur more health problems, making hospitals more money and thereby helping Medical Properties Trust's investments pay off.</p>
<p>Also, even though interest rates are likely to go up, they're still at low levels historically. This allows healthcare REITs to continue to borrow relatively inexpensively.With these positive tailwinds, I expect Medical Properties Trust, Ventas, and Welltower will continue to richly reward dividend-seeking investors in 2017 and beyond.</p>
<p>10 stocks we like better thanWal-MartWhen investing geniuses David and TomGardner have a stock tip, it can pay to listen. After all, the newsletter theyhave run for over a decade, the Motley Fool Stock Advisor, has tripled the market.*</p>
<p>David and Tomjust revealed what they believe are the <a href="http://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;utm_source=foxbusiness" type="external">ten best stocks Opens a New Window.</a>for investors to buy right now... and Wal-Mart wasn't one of them! That's right -- theythink these 10 stocks are even better buys.</p>
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<p>*StockAdvisor returns as of December 12, 2016The author(s) may have a position in any stocks mentioned.</p>
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<p>Restaurants, big box stores, and other retail chains have struggled in the past few years, but there are still a few stocks in the sector that have managed to stand out from the competition.</p>
<p>It's Pitch a Stock week on <a href="https://www.fool.com/podcasts/industry-focus?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=849c9abe-b415-11e7-a92b-0050569d32b9&amp;utm_source=foxbusiness" type="external">Industry Focus Opens a New Window.</a>, and in this Consumer Goods&#160;segment, Fool.com contributors share their thoughts on&#160;Under Armour (NYSE: UA) (NYSE: UAA), Dave &amp; Buster's (NASDAQ: PLAY), and Tractor Supply Company (NASDAQ: TSCO). Listen in to find out how they're handling intense retail competition, major opportunities, and more.</p>
<p>Continue Reading Below</p>
<p>A full transcript follows the video.</p>
<p>10 stocks we like better than Under Armour (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-static%3Faid%3D8867%26source%3Disaeditxt0010449%26ftm_cam%3Dsa-bbn-evergreen%26ftm_pit%3D6312%26ftm_veh%3Dbbn_article_pitch&amp;impression=d2fbb176-c777-44c0-86d7-0791040f039e&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=849c9abe-b415-11e7-a92b-0050569d32b9&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now… and Under Armour (A Shares) 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 October 9, 2017</p>
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<p>This video was recorded on Oct. 17, 2017.</p>
<p>Vincent Shen: Welcome to Industry Focus, the podcast that dives into a different sector of the stock market every day. It's Tuesday, Oct. 17, and I'm your host, Vincent Shen. I'm excited to welcome a special guest to the show today, fellow Fool and Financials host, Michael Douglass. Michael, great to have you with us!</p>
<p>Michael Douglass:&#160;Thanks, Vince! It's great to be here! This is actually the only Industry Focus show I've never been on until today. So this is a big day for me!</p>
<p>Shen:&#160;Well, I'm glad to welcome you to this segment. Michael, you and I are in the Fool HQ studio today to continue with our Pitch A Stock theme week for Industry Focus. We pulled from our brain trust of writers and editors who were recently at Fool HQ for the annual writer's conference. That was just last week. We have three stock pitches from some of our Fool.com&#160;contributors to share with listeners today, and three more for each of the other segments of Industry Focus this week. I'll give you a chance for a quick shout-out. Who did you guys talk about yesterday in Financials?</p>
<p>Douglass:&#160;We talked about&#160;Square, MasterCard,&#160;and Berkshire Hathaway.</p>
<p>Shen:&#160;We've gotten a lot of emails from listeners wanting more information on those companies. We hope the stocks we cover in Consumer Goods&#160;today are just as exciting. In the world of consumer and retail, we'll hear first from Steve Symington, with his take on&#160;Under Armour, tickers UA and UAA. Then we have Jeremy Bowman pitching Dave &amp; Buster's, ticker PLAY. Love that. Last but not least, we have Simon Erickson, who will be covering an unconventional retailer with Tractor Supply Company, ticker TSCO. Ready to do this?</p>
<p>Steve Symington: Hi!&#160;I'm Steve Symington, and I cover tech and consumer goods, and I'm pitching Under Armour today. Thanks to a slowdown in its corner of the American market and the bankruptcies of some of its largest retail partners,&#160;Under Armour has delivered two straight quarters of single-digit revenue growth. That might not sound so bad,&#160;but it came after over six years of at least 20% growth. As a result, Under Armour shares were down more than 50% over the past year. But I think the market is ignoring several catalysts that play in Under Armour's favor over the long term.&#160;</p>
<p>First, in response to those near-term headwinds, Under Armour has implemented a restructuring last quarter to streamline its business and better align its results toward its most promising growth opportunities. Now, in the near term, that means we should see a pivot toward Under Armour's higher margin&#160;direct-to-consumer business, where revenue climbed 20% year over year last quarter. In addition, investors seem to forget that Under Armour only just launched UAS, that's Under Armour Sportswear, late last year. That's a category that represents almost a quarter of total sales for its larger competitors like Nike&#160;and Adidas. But it's still only a sliver of&#160;Under Armour's total revenue stream. I think most compelling, Under Armour's international revenue climbed 57% year over year last quarter but still represents just a little over 20% of total sales.&#160;</p>
<p>Now, that leaves Under Armour with a massive runway for global growth that I think is severely underappreciated by more shortsighted investors today. We should get our first look at the progress Under Armour's made when it reports earnings early next month. But over the longer term,&#160;I think patient investors who buy Under Armour now and let these catalysts play out will be more than happy with their decision.</p>
<p>Shen:&#160;First, we have Under Armour. Steve mentioned the restructuring for this company as being a focus on the DTC channel, or the direct-to-consumer channel, their sportswear, the international growth. And their latest quarter, their shoe sales, which previously were considered a major growth catalyst for this company, actually declined as their apparel and accessories put up positive numbers. But when it comes down to it, in 2017, profitability is pretty much non-existent so far, and the company is getting a double whammy of declining margins, rising operating expenses. In&#160;the past, this is a company that was putting up quarter after quarter of incredible growth, almost like a young tech company. They were in a very favorable position, where they could spend freely to sustain that growth without really having to worry too much. But now, competition has stepped up, they lost some of their wholesale partners. What is your take, coming from the financials side, maybe someone who doesn't look at these companies all the time,&#160;what are some things you see here that might concern you or keep you positive?</p>
<p>Douglass:&#160;I would say, I feel very mixed about Under Armour. I've actually thought about purchasing the stock several times and I've never pulled the trigger. Certainly, since I thought about purchasing originally about a year ago, that's been great because I missed out on what's been something like a 50% loss. I think, for me, one of the areas that you're still seeing really impressive growth is international. I think it's 57% year-over-year, or something like that. That's really incredible, and it's great to see that there's such potential strength there, particularly given that it's such a small market for them still, there's so much growth ramp there.</p>
<p>I also like the push toward&#160;digitization. In financials, this is banks trying to put their apps up, it's fintech companies like Square. Here, there's such an opportunity with getting people's data and their information, and then being able to tailor offers based on that. Oh, hey, we noticed that you're running a lot, here are some running shoes. It's been a certain amount of time since you last bought some, maybe this is a good time to go ahead and give you a special offer to get you in the store and purchase a new one. I think there's a lot of opportunity there. Flip side -- growth is slowing. More intense competition. And frankly, it's still really expensive as a stock.</p>
<p>Shen: Yeah,&#160;I want to get to the valuation as a bit of a sticking point for a lot of people. But what you mentioned in terms of some of the things around understanding customers better, the digitization aspect, and I feel like Under Armour is in a unique position in that regard. The company is investing in a system where they can take everything they learn from the customer orders, the direct-to-consumer channel, that includes their online stores, but also, they have their brand house stores and the factory stores, too. Then, they also take their three fitness apps and all the data they get from that and roll it all together into a single system that hopefully, long term, you will hope to see better insights into how consumers shop,&#160;what products they want. And that's the kind of thing that I think can be a catalyst, but it'll take a decent amount of time for the results for that to really start coming in and coming to fruition.</p>
<p>Douglass:&#160;Yeah. I keep coming back to Starbucks, which initially had this app, and they were beginning with one email that went out to everyone, and they had, I don't know, I'm making this up, 400 emails that they sent. And&#160;eventually, they were able to get down to an incredible level of personalization. If Under Armour is able to do something similar, it's obviously going to be hard to get people to spend every day for Under Armour like for a coffee, but it's a much higher ticket item when they're able to do that. So I think that's a really incredible opportunity, if they can crack the code and really use data powerfully to understand how they can best serve people and grow&#160;demand.</p>
<p>Shen:&#160;Absolutely. Last point, coming to that valuation. The&#160;company decreased its growth guidance for 2017. That didn't help them. In terms of the valuation, this is a stock where you have to be willing to pay something like over 40x its forward earnings if you want to establish a position. The Under Armour bulls, optimists that we've spoken to, and we've heard from Steve,&#160;for example, they focus on some of the things like the strength of the brand, its very strong momentum in key segments like international. But are you convinced that's enough to justify this kind of premium?</p>
<p>Douglass: I think, for that multiple, I just can't. I don't see enough there to make me personally a buyer. Again, that's why each time, I get interested, because there's such a brand, there's so much growth opportunity. And each time, I end up backing away and saying, I think I can better spend my money elsewhere.</p>
<p>Shen:&#160;Sure. The thing for me that I'll say is, I'm very curious to see how they perform in this upcoming holiday season. Last year was not a good one for them. But management has spoken to some new strategies and efforts, they have their tiered pricing strategy, they think they're going to have a better view&#160;in terms of making sure their inventory is not going to be affected by weather, sometimes retailers will speak to that, how especially warm weather hurts them in terms of certain accessories and things along those lines. But I like to see if some of that data and some of this restructuring and these various efforts in terms of their&#160;retail footprint basically start to show results, even a little bit with this fourth quarter.</p>
<p>Douglass:&#160;Absolutely.</p>
<p>Shen:&#160;Our next pitch&#160;comes from Jeremy Bowman, and it's for Dave &amp; Buster's. Let's hear what he has to say.</p>
<p>Jeremy Bowman:&#160;My name is Jeremy Bowman. I'm a consumer goods analyst with The Motley Fool. I cover mostly retail, restaurants, and e-commerce, and some other consumer-facing stocks. The&#160;retail and restaurants&#160;sector has certainly been tough lately as e-commerce is upending traditional traffic patterns, and malls and shopping centers and restaurants seem to be suffering from overexpansion in recent years. And a number of fast casual concepts IPO-ed. But one stock in the restaurant space that&#160;I think has the potential to be a big winner is Dave &amp; Buster's. And now looks like an excellent time to buy. Shares have pulled back recently, losing about a third of their value over the last four months.</p>
<p>Dave &amp; Buster's is unique in the restaurant industry, because in addition to offering&#160;food and beverages, the company attracts customers with amusements like arcade games, billiards, and even bowling. This not only gives the company a unique customer proposition but also a competitive advantage, as that entertainment segment provides an additional revenue stream and a more valuable one as amusements are a higher margin&#160;business than food and beverage.</p>
<p>The company had 100 locations in North America as of its most recent earnings report, and they see room in the market to double that to at least 200. Comparable sales at the chain have beaten the casual dining benchmark for 21 quarters in a row, which is another sign of its competitive advantage and the attractiveness of its business model. As mall vacancies open up, I also think landlords will look to Dave &amp; Buster's&#160;to fill empty spaces as a traffic driver, and the company should be able to get some excellent lease terms as retail dynamics shift.</p>
<p>Perhaps most importantly, Dave &amp; Buster's has beaten earnings estimates in every one of its quarterly reports since it went public in 2014. That's a sign that Wall Street continues to underestimate the stock, and that gives it a little bar to jump over,&#160;especially as its price to earnings valuation has fall into just 20x, on par with slower-growing peers like Darden, Cracker Barrel,&#160;and Buffalo Wild Wings.</p>
<p>Shares plunged after its last earnings report as investors were scared off by modest comparable sales growth of just 1.1% and a decline in food and beverage comparable sales. However,&#160;it's likely that that's just a blip, and one quarter's worth of comparable sales is not a good reason to sell, as that figure is usually volatile. Even as the broader restaurant industry struggled,&#160;I think Dave &amp; Buster's games give it a special draw that should keep customers coming through the door and profits growing.&#160;</p>
<p>The overall business looks solid. The growth path is clear, and the valuation is the lowest that it's ever been for the stock. I think now is a great time to buy.</p>
<p>Shen: I've briefly talked about Dave &amp; Buster's on the show previously, and&#160;I'll admit that I'm slightly biased here in that I have an inherent respect for this company, because they've essentially managed to create a Chuck-E-Cheese for adults. And I think there's something kind of awesome about that. Their amusement business is, I feel like, the real power engine behind this company. What are some of your initial thoughts on this one?</p>
<p>Douglass:&#160;First off,&#160;one of my great regrets is that I've never been to a Dave &amp; Buster's. Maybe we can arrange an office visit or something, purely for research purposes, of course. [laughs]</p>
<p>Shen:&#160;That would be awesome. That sounds like a good time.</p>
<p>Douglass:&#160;That sounds like a great Friday afternoon. We'll see if we can sell it on up. A couple of things that I saw. Comp sales beating benchmarks for 21 quarters in a row, when you see that sort of consistent outperformance, that's a great sign. And I think it really speaks to the fact that Dave &amp; Buster's is in, frankly, a weird niche. You have your&#160;entertainment, you have your game watching,&#160;and you have your game playing, and you have your food and your drink. And that's just such an interesting combination and experience, it's hard for me to see folks leaving that, because I think it's such an unique experience. When we talk about restaurants, often talking about TGI Fridays versus Ruby Tuesday&#160;versus a Red Robin&#160;or whoever, and it's hard to&#160;tell a huge difference between them, because they're offering fundamentally similar products in a lot of cases. Dave &amp; Buster's is just different.</p>
<p>Shen:&#160;And we see how that has an impact on their financials as well, in that the amusements side of the business,&#160;I think it has a slight majority of their top line, around 55% to 57% of their revenue. But the gross margins there are absolutely astounding. I think they're approaching, if not just 1% away or so from 90% margin in that side of the business. That's also driving a lot of their comparable sales gains. You've mentioned how, was it 21 quarters, these comps are very strong. But at the same time, we've seen a deceleration. I think that's why they've been dinged so badly over the summer. The latest quarter, I think it was 1.1% for their comparable sales growth, and investors did not like that.</p>
<p>Douglass:&#160;And I'll say, it reminded me, I'm flashing back to Whole Foods a year or two ago when they first started reporting that comp sales were seriously decelerating. And I was, at the time, an unrepentant Whole Foods bull. I said, "Sure, but the new stores are doing really well. And yeah, things are moderating, but they're still positive," and then they just kept going down and turned negative, and that's when I started seeing my thesis really fall apart. I'm not saying Dave &amp; Buster's is there. But I do want to warn people against becoming complacent with, "Well, it's still positive, they're still beating the category." Because of course, the restaurant category as a whole, it's kind of had a tough year so far. So one of the things to consider as well is, whether the&#160;overall headwinds for the industry make even what might be one of the better or even the best in class companies in it still&#160;worth an investment right now.</p>
<p>Shen:&#160;Yeah, I think that's a really good way to look at it. I think there have been some, industry research firms put, for the second quarter, comps across the restaurant industry down something like 1% to 2%. So that 1.1% looking&#160;pretty bright, relatively. And we talked a little bit about, who do you compare this company to in terms&#160;of its peers? It isn't like those quick service restaurants and&#160;traditional operations. Could they even be compared to the gaming industry? But when it comes down to it, just because it's so strong if you put it in that restaurant sector, doesn't mean that it's the best place to put your money. I will say, though, again, ending on a valuation note, when I checked it this morning, they were trading at about 17x their forward earnings estimates.</p>
<p>Douglass:&#160;Which really isn't that bad.</p>
<p>Shen:&#160;Yes, very reasonable for this sector as well.</p>
<p>Douglass:&#160;And that puts you pretty close to the S&amp;P, within a couple of points in either direction.</p>
<p>Shen:&#160;Sure. And the long-term growth estimates from analysts are not too far from that. So looking at it from that kind of perspective, I don't want to say this is one that I've really disagreed with&#160;Jeremy on the thesis. Like I said, I do think this is one&#160;of the best in class, and I love this business. But investors, you do need to consider, is the restaurant sector where you want to be putting your money right now? Any other thoughts?</p>
<p>Douglass:&#160;I think that's about it for that one.</p>
<p>Shen:&#160;Our last pitch here from Simon Erickson, awesome guy. His pitch is for&#160;Tractor Supply Company. I don't think that name has ever been uttered on Industry Focus on this show on Tuesday.</p>
<p>Douglass:&#160;Certainly not on Financials or Healthcare, either. [laughs]</p>
<p>Shen:&#160;Let's&#160;hear what he has to say, because this is a really cool company, and I'm really excited to talk about it.</p>
<p>Simon Erickson: Hi, everyone. I'm Simon Erickson, the lead advisor of Motley Fool Explorer, covering some of the market's largest tech stocks. But today,&#160;I'm going to be talking about a consumer and retail play called&#160;Tractor Supply. Ticker is TSCO. This is the largest rural lifestyle retail store in America. They sell things like supplies for pets and horses and fencing and tools and equipment. Basically, anything you might need if you're living off of the beaten path or off of the paved road. There's 1,630&#160;Tractor Supply locations across the U.S. They have 160 more that are Petsense locations for pets. But one of the big things I like about Tractor Supply is, it's&#160;shielded from larger retail competitors. I think this is important for any retail company out there. There's general bricks-and-mortar retailers like Wal-Mart, or do-it-yourself retailers like&#160;Lowe's&#160;or&#160;Home Depot&#160;that, really, it doesn't make sense for them to&#160;compete on the same turf that Tractor Supply is competing in. They're built in rural locations that are a little bit away from city centers, and it simply doesn't make economical sense for a Lowe's to put another location out there. They're already established, they have a brand with the local populace, and they've already established that power of habit with consumers. And I think that's very important for Tractor Supply, especially for those consumable recurring revenue purchases that they're always making there.</p>
<p>In terms of retail, we can't go on a retail show without talking about Amazon.com. I think that&#160;Tractor Supply is really a business that Amazon doesn't want to compete against when you're shipping 50-pound bags of deer corn and pig feed around,&#160;it just doesn't make sense for Amazon to be shipping that with the infrastructure they already have on an e-commerce business model. This is something that really works to Tractor Supply's advantage. They have those recurring consumable revenues that they're&#160;picking up from consumers that are out in rural locations that just don't make sense to be shipping around in e-commerce.</p>
<p>So in addition to being shielded from larger competitors, there's something else that I want to talk about that's very good for shareholders of Tractor Supply, and that's this company's capital allocation. Because they have this recurring revenue stream that comes in, they're converting about 6% of sales into free cash flow, which is something we love to see as investors because that can be used to our benefit. Two of the things they're actually doing with the free cash right now is paying an increasing dividend, and they're buying back shares of the company. Their dividend has more than doubled in the last five years, and it now yields 1.8%. The company has bought back more than 10% of its&#160;outstanding share count in the last five years, as well. So that gives us a bigger piece of the pie as existing shareholders for Tractor Supply.</p>
<p>Again, this is a company that has a recurring model, they're shielded from larger competitors in retail out there right now, and they have some really great capital allocation chops.&#160;I really want all of our listeners and viewers to consider Tractor Supply, TSCO, as an attractive retail purchase right now.</p>
<p>Shen: So Simon's made a pretty compelling pitch there, I think. It reminds me of a lot of different companies. One of the first things he talks about is how the location of the stores, and the target market, in terms of rural consumers in&#160;regions where it may not be as profitable for major competitors to open their own shops, offers a pretty solid moat. It reminds me a little bit of how dollar store retailers have been able to carve out a niche for themselves by&#160;often locating stores in underserved areas. I think this is an example of that. Tractor Supply's value proposition, it's a one-stop shop&#160;offering convenience and a wide enough product selection in these areas for their core customers. At the same time, these aren't huge stores. From what I can find, they're about 15,000 to 20,000 square feet. For some perspective, that's smaller than even a very&#160;modest modern grocery store. So customers, in terms of convenience, can also get in and get out with whatever they need.</p>
<p>In the 10-K, management summarizes the way they approach this selection and convenience. They just say, "We cater to the rural lifestyle, and often serve a market by being a trip consolidator for many&#160;basic needs for farm, ranch and rural customers." What are your thoughts?</p>
<p>Douglass:&#160;When I first heard Tractor Supply Company, my immediate thought was,&#160;oh god, this is a company that invests in agriculture. Frankly, agriculture as a whole is not a great business to be in. You have a commodity, and you're so beholden to other prices, and you're usually a price taker as opposed to a price maker. Farming is tough. Anyone who farms will, I think, agree that it's a tough thing. Warren Buffett and Charlie Munger got a question at Berkshire Hathaway a couple of years ago about cattle ranching and what they thought of it as a business, and Munger's response was, and I'm paraphrasing, "I can't imagine a worse business for us to be in." And Buffett softened it and said, "Well, it's not quite that bad, but most of the successful cattle ranchers owned a few banks on the side," or something like that. It's a tough business to be in.&#160;What's interesting about Tractor Supply is, first off, they're diversified -- 46% of sales are in livestock and pet, 22% hardware, they have gifts and toys, clothing and footwear, agricultural&#160;products making up the balance for their 2016.</p>
<p>Shen: A very small balance for that agriculture, too.</p>
<p>Douglass:&#160;Right, yeah, I think it's 5% for 2016 sales. And what's been crazy to me is the margins they've been able to maintain. They're at 9.9% operating margins so far in 2017, and over the last year, their gross margins have been about 34%. I do not know how they have pricing power, but it appears that they have some kind of pricing power, and that is, frankly, very attractive.</p>
<p>Shen:&#160;To put that into perspective, a Wal-Mart, for example, will claim a gross margin level of about 25%. So, this is 10 percentage points ahead of that. And management doesn't try and do a high-low pricing strategy, getting you in on staple items and&#160;charging a premium on others. They just want to offer their customers consistent, solid values across the board, feel like they're getting a good, fair deal when they make their visit to Tractor Supply stores. I think an important part of that is keeping the customer coming back. Simon spoke to this, it's the&#160;recurring revenues from the consumables that Tractor Supply customers tend to purchase, and how that offers some stability. The company refers to these products as consumable, usable, and edible,&#160;and they are key to driving traffic to stores. There are other growth initiatives in the store that you'll see on the shop floor, that are focused on, for example, introducing new products. To keep the shopping&#160;experience exciting, they're starting to offer more localized products, as that trend really grows across the retail industry. We've talked about that&#160;on the show previously. They're also offering some exclusive brands that can help foster some customer loyalty. Some of the big box stores are venturing into that, hoping that exclusive brands will give them a little bit of loyalty, too. And those brands at Tractor Supply make up 30% of revenue already.</p>
<p>I know this company comes up all the time, especially in my segment, just by the fact of how much they've influenced --</p>
<p>Douglass:&#160;Everything. [laughs]</p>
<p>Shen:&#160;-- the competition, which is Amazon. Simon brings them up&#160;specifically, basically speaking to how the company's insulated a little bit from Amazon and also e-commerce competition in general, due to the nature of their business and the products that they sell. What do you think? Do you think that's something that's sustainable? Do you think that's something as true as he pitches it as?</p>
<p>Douglass:&#160;I have to say,&#160;I think a lot of the benefit that Tractor Supply has right now appears to be the fact that they have the store in this underserved location, something like that. In a lot of ways, it's a supply chain issue that I think Amazon might struggle to overcome. Does that mean Amazon can never overcome it? I'm not sure. I would actually even say, I would think probably not, I think they ultimately could if they really put in the time and the effort. The question is, is this a market they're going to go after? I don't think it's going to be one they'll go after for a while, because there's so many other markets that Amazon is trying to disrupt right now. I think Tractor Supply has time to get its ducks in a row. And perhaps, over that time, it can build that moat to really protect itself. I mean, one of the things that really jumped out to me is,&#160;they have about 1,620 stores, something like that. They're planning to expand to 2,500. So when you look at the western region, think Colorado and points west, they have 172 out of the 424 stores that they have planned. So that speaks to me about how much opportunity they have in a lot of these states where there's a lot of ranching, there's a lot of rural agriculture, to really build more of these in these relatively underserved areas, really build up that brand and that customer loyalty, and perhaps build something that's fairly impenetrable for Amazon.</p>
<p>Shen:&#160;Yeah. I&#160;look at this in terms of the Amazon threat on two sides. I completely agree that if there's any company out there that's going to innovate away some of the logistical issues of shipping&#160;the kind of things that they do, I think Simon mentioned the 50 pound bag of livestock feed, for example. But at the same time, the nature of Tractor Supply's customers and where they're located adds a little even more of an insular effect in, last mile fulfillment and logistics is often by far the most expensive part of that journey. Your package might travel thousands of miles, hundreds or thousands of miles,&#160;but those last few miles are&#160;often the most expensive part of the process. So here, you have customers in very rural areas, that adds to that complexity there.</p>
<p>Then, I also think&#160;there's something unique in terms of the way that customers shop at Tractor Supply. Their average transaction value is just around $45, with almost half of the revenue of this company coming from that&#160;livestock and pet category. I think that also adds a complication where, that's not a very large ticket size. You're&#160;trying to ship some water container or something like that, that might not be very expensive to justify the free shipping and offers that Amazon is known for that really attracts those customers. So there's another added complexity. At the same time, I think, on the other side of that, this isn't a company that's not thinking about their omnichannel strategy,&#160;either. They've launched buy online pickup in-store recently.</p>
<p>Douglass:&#160;Which is huge.</p>
<p>Shen:&#160;Yeah. Management was very excited about that. And that makes up 55% of their online business, which is pretty incredible. And it's boosting traffic where, conveniently enough, management says that customers buy online,&#160;pickup in-store, and while they're at the store, they'll add another 15% or so to their ticket. So it's pretty powerful. The buy online pickup in-store orders&#160;and their other online orders enjoy ticket sizes that are twice as big as their average ticket. I think this is a case where customers, in a lot of these cases, in these areas, they're traveling pretty far even to get to Tractor Supply. This is an instance where, they might think to themselves, you know what? I might order extra to have just in case since I'm already going to the store and I know it's going to be there waiting for me. And there's convenience in that that I think their target market really appreciates.</p>
<p>Douglass:&#160;Yeah,&#160;and let's face it, when we look at Amazon's penetration, a lot of the opportunity there is particularly in urban areas, where you have such dense compact groups of people that&#160;it's relatively easy to get delivery. Out in rural Montana, that gets a lot tougher. And somebody like a Tractor Supply can provide a lot more to those folks a lot sooner for a lot longer. I think Amazon is in a place to disrupt a lot of things. Obviously, it's already disrupted a lot of things. But it still commands a relatively small percentage of the market. And it seems to me like it's going to be a very long time, if ever, before they will&#160;be able to actually properly go after this particular segment of the market, unless Jeff Bezos just decides, meh, we're going to go after it because I feel like it, which really hasn't been his modus. Usually, he goes after things based on size and potential opportunity. So think of it as low effort, high value opportunities. Trying to disrupt Tractor Supply does not seem to be one of those.</p>
<p>Shen:&#160;So closing out here on our discussion for this very unique retailer, in terms of big picture, we talked a little bit about what they see as their&#160;runway for store development, approximately 1,600 to 2,500 stores, they recently acquired pet-focused Petsense chain as well, and they see a lot of potential there. What do you think, is there anything that does worry you in what otherwise seems to be a really strong business model?</p>
<p>Douglass:&#160;Truly, when I look at it, there's not much. There's going to be some seasonality. That's just part of the deal. That's fine. They had a miss last year, because of some issues around that. But that's really ... welcome to retail, that's just part of the deal.</p>
<p>Shen:&#160;Absolutely.</p>
<p>Douglass:&#160;When I look at it, I think across the board, the only real concern I have is that someone big comes in and disrupts things. But again, I don't see a compelling value prop for somebody else to try and do that. These folks are driving a great gross margin, good operating margins, it's very clear that they have their ducks in a row, they have aggressive expansion planned,&#160;and it looks like they're really trying to protect themselves against potential e-commerce disruption by going ahead and building off some of those buy online and pick-up in store&#160;capabilities. Just across the board, this is a stock that I'm going to be digging deeper into, personally.</p>
<p>Shen:&#160;Same for me as well. The things I'll watch, similar to Dave &amp; Buster's, we're seeing a trend here that's not so promising in that their comparable sales growth is starting to trend downward a little bit. It was as high as 5% in 2013, and it fell to just 1.6% in 2016, and that has bumped to 2.2% in the first half of 2017. We're seeing it fluctuate a little bit there. The only other thing I think you have to think about if you're really looking out long-term is this idea that, in terms of demographics for the country, the percentage of people in the United States living in urban areas is only growing. That share is only growing. Now, during a recent conference, an analyst posed this question&#160;to management, do you see this as being a long-term threat as your target market essentially starts&#160;migrating? They say, in their core markets, they&#160;shouldn't be impacted. They're not too worried about it, they're still seeing population growth, they're still seeing promising metrics there, essentially. They don't seem too concerned. But that's something that you have to think about, as well. Otherwise, any last thoughts from you, Michael?</p>
<p>Douglass:&#160;Again, I think this is a very interesting stock, particularly since it yields a&#160;2% dividend, and it looks likely to continue repurchasing shares. There's a lot of reasons to be pretty interested in this company. And frankly, for what it's worth,&#160;I think there are a lot of interesting things about all of these companies. Dave &amp; Buster's operates in a really unique niche. Under Armour is the No. 3 sports brand in the&#160;world. And then you have Tractor Supply Company, which is its own special beast. I think all three of these are really interesting pitches. So, thanks to Vince for having me on, and to Steve and Jeremy and Simon for pitching these really fascinating companies.</p>
<p>Shen:&#160;Absolutely. Thanks for joining me, Michael! Those are just the three for today. If you haven't heard yesterday's episode, there's three more from Michael, and we have three more for each day of the week for the various sectors. So make sure you tune in as each of the hosts and the Fool.com contributors pitch their stocks this week on Industry Focus. As always, people on the program may own companies discussed on the show, and The Motley Fool may have formal recommendations for or against any stocks mentioned, so don't buy or sell anything based solely on what you hear&#160;during the program. Fool on!</p>
<p><a href="http://my.fool.com/profile/TMFEnterprise/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=849c9abe-b415-11e7-a92b-0050569d32b9&amp;utm_source=foxbusiness" type="external">Michael Douglass Opens a New Window.</a> owns shares of Amazon, Berkshire Hathaway (B shares), Mastercard, and Starbucks. <a href="http://my.fool.com/profile/TMFJourneyMan/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=849c9abe-b415-11e7-a92b-0050569d32b9&amp;utm_source=foxbusiness" type="external">Vincent Shen Opens a New Window.</a> has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Amazon, Berkshire Hathaway (B shares), Buffalo Wild Wings, Mastercard, Nike, Starbucks, Under Armour (A Shares), and Under Armour (C Shares). The Motley Fool owns shares of Square. The Motley Fool recommends Dave &amp; Buster's Entertainment, Home Depot, Lowe's, and Tractor Supply. 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=849c9abe-b415-11e7-a92b-0050569d32b9&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | restaurants big box stores retail chains struggled past years still stocks sector managed stand competition pitch stock week industry focus opens new window consumer goods160segment foolcom contributors share thoughts on160under armour nyse ua nyse uaa dave amp busters nasdaq play tractor supply company nasdaq tsco listen find theyre handling intense retail competition major opportunities continue reading full transcript follows video 10 stocks like better armour 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 armour shares wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns october 9 2017 advertisement video recorded oct 17 2017 vincent shen welcome industry focus podcast dives different sector stock market every day tuesday oct 17 im host vincent shen im excited welcome special guest show today fellow fool financials host michael douglass michael great us michael douglass160thanks vince great actually industry focus show ive never today big day shen160well im glad welcome segment michael fool hq studio today continue pitch stock theme week industry focus pulled brain trust writers editors recently fool hq annual writers conference last week three stock pitches foolcom160contributors share listeners today three segments industry focus week ill give chance quick shoutout guys talk yesterday financials douglass160we talked about160square mastercard160and berkshire hathaway shen160weve gotten lot emails listeners wanting information companies hope stocks cover consumer goods160today exciting world consumer retail well hear first steve symington take on160under armour tickers ua uaa jeremy bowman pitching dave amp busters ticker play love last least simon erickson covering unconventional retailer tractor supply company ticker tsco ready steve symington hi160im steve symington cover tech consumer goods im pitching armour today thanks slowdown corner american market bankruptcies largest retail partners160under armour delivered two straight quarters singledigit revenue growth might sound bad160but came six years least 20 growth result armour shares 50 past year think market ignoring several catalysts play armours favor long term160 first response nearterm headwinds armour implemented restructuring last quarter streamline business better align results toward promising growth opportunities near term means see pivot toward armours higher margin160directtoconsumer business revenue climbed 20 year year last quarter addition investors seem forget armour launched uas thats armour sportswear late last year thats category represents almost quarter total sales larger competitors like nike160and adidas still sliver of160under armours total revenue stream think compelling armours international revenue climbed 57 year year last quarter still represents little 20 total sales160 leaves armour massive runway global growth think severely underappreciated shortsighted investors today get first look progress armours made reports earnings early next month longer term160i think patient investors buy armour let catalysts play happy decision shen160first armour steve mentioned restructuring company focus dtc channel directtoconsumer channel sportswear international growth latest quarter shoe sales previously considered major growth catalyst company actually declined apparel accessories put positive numbers comes 2017 profitability pretty much nonexistent far company getting double whammy declining margins rising operating expenses in160the past company putting quarter quarter incredible growth almost like young tech company favorable position could spend freely sustain growth without really worry much competition stepped lost wholesale partners take coming financials side maybe someone doesnt look companies time160what things see might concern keep positive douglass160i would say feel mixed armour ive actually thought purchasing stock several times ive never pulled trigger certainly since thought purchasing originally year ago thats great missed whats something like 50 loss think one areas youre still seeing really impressive growth international think 57 yearoveryear something like thats really incredible great see theres potential strength particularly given small market still theres much growth ramp also like push toward160digitization financials banks trying put apps fintech companies like square theres opportunity getting peoples data information able tailor offers based oh hey noticed youre running lot running shoes certain amount time since last bought maybe good time go ahead give special offer get store purchase new one think theres lot opportunity flip side growth slowing intense competition frankly still really expensive stock shen yeah160i want get valuation bit sticking point lot people mentioned terms things around understanding customers better digitization aspect feel like armour unique position regard company investing system take everything learn customer orders directtoconsumer channel includes online stores also brand house stores factory stores also take three fitness apps data get roll together single system hopefully long term hope see better insights consumers shop160what products want thats kind thing think catalyst itll take decent amount time results really start coming coming fruition douglass160yeah keep coming back starbucks initially app beginning one email went everyone dont know im making 400 emails sent and160eventually able get incredible level personalization armour able something similar obviously going hard get people spend every day armour like coffee much higher ticket item theyre able think thats really incredible opportunity crack code really use data powerfully understand best serve people grow160demand shen160absolutely last point coming valuation the160company decreased growth guidance 2017 didnt help terms valuation stock willing pay something like 40x forward earnings want establish position armour bulls optimists weve spoken weve heard steve160for example focus things like strength brand strong momentum key segments like international convinced thats enough justify kind premium douglass think multiple cant dont see enough make personally buyer thats time get interested theres brand theres much growth opportunity time end backing away saying think better spend money elsewhere shen160sure thing ill say im curious see perform upcoming holiday season last year good one management spoken new strategies efforts tiered pricing strategy think theyre going better view160in terms making sure inventory going affected weather sometimes retailers speak especially warm weather hurts terms certain accessories things along lines like see data restructuring various efforts terms their160retail footprint basically start show results even little bit fourth quarter douglass160absolutely shen160our next pitch160comes jeremy bowman dave amp busters lets hear say jeremy bowman160my name jeremy bowman im consumer goods analyst motley fool cover mostly retail restaurants ecommerce consumerfacing stocks the160retail restaurants160sector certainly tough lately ecommerce upending traditional traffic patterns malls shopping centers restaurants seem suffering overexpansion recent years number fast casual concepts ipoed one stock restaurant space that160i think potential big winner dave amp busters looks like excellent time buy shares pulled back recently losing third value last four months dave amp busters unique restaurant industry addition offering160food beverages company attracts customers amusements like arcade games billiards even bowling gives company unique customer proposition also competitive advantage entertainment segment provides additional revenue stream valuable one amusements higher margin160business food beverage company 100 locations north america recent earnings report see room market double least 200 comparable sales chain beaten casual dining benchmark 21 quarters row another sign competitive advantage attractiveness business model mall vacancies open also think landlords look dave amp busters160to fill empty spaces traffic driver company able get excellent lease terms retail dynamics shift perhaps importantly dave amp busters beaten earnings estimates every one quarterly reports since went public 2014 thats sign wall street continues underestimate stock gives little bar jump over160especially price earnings valuation fall 20x par slowergrowing peers like darden cracker barrel160and buffalo wild wings shares plunged last earnings report investors scared modest comparable sales growth 11 decline food beverage comparable sales however160its likely thats blip one quarters worth comparable sales good reason sell figure usually volatile even broader restaurant industry struggled160i think dave amp busters games give special draw keep customers coming door profits growing160 overall business looks solid growth path clear valuation lowest ever stock think great time buy shen ive briefly talked dave amp busters show previously and160ill admit im slightly biased inherent respect company theyve essentially managed create chuckecheese adults think theres something kind awesome amusement business feel like real power engine behind company initial thoughts one douglass160first off160one great regrets ive never dave amp busters maybe arrange office visit something purely research purposes course laughs shen160that would awesome sounds like good time douglass160that sounds like great friday afternoon well see sell couple things saw comp sales beating benchmarks 21 quarters row see sort consistent outperformance thats great sign think really speaks fact dave amp busters frankly weird niche your160entertainment game watching160and game playing food drink thats interesting combination experience hard see folks leaving think unique experience talk restaurants often talking tgi fridays versus ruby tuesday160versus red robin160or whoever hard to160tell huge difference theyre offering fundamentally similar products lot cases dave amp busters different shen160and see impact financials well amusements side business160i think slight majority top line around 55 57 revenue gross margins absolutely astounding think theyre approaching 1 away 90 margin side business thats also driving lot comparable sales gains youve mentioned 21 quarters comps strong time weve seen deceleration think thats theyve dinged badly summer latest quarter think 11 comparable sales growth investors like douglass160and ill say reminded im flashing back whole foods year two ago first started reporting comp sales seriously decelerating time unrepentant whole foods bull said sure new stores really well yeah things moderating theyre still positive kept going turned negative thats started seeing thesis really fall apart im saying dave amp busters want warn people becoming complacent well still positive theyre still beating category course restaurant category whole kind tough year far one things consider well whether the160overall headwinds industry make even might one better even best class companies still160worth investment right shen160yeah think thats really good way look think industry research firms put second quarter comps across restaurant industry something like 1 2 11 looking160pretty bright relatively talked little bit compare company terms160of peers isnt like quick service restaurants and160traditional operations could even compared gaming industry comes strong put restaurant sector doesnt mean best place put money say though ending valuation note checked morning trading 17x forward earnings estimates douglass160which really isnt bad shen160yes reasonable sector well douglass160and puts pretty close sampp within couple points either direction shen160sure longterm growth estimates analysts far looking kind perspective dont want say one ive really disagreed with160jeremy thesis like said think one160of best class love business investors need consider restaurant sector want putting money right thoughts douglass160i think thats one shen160our last pitch simon erickson awesome guy pitch for160tractor supply company dont think name ever uttered industry focus show tuesday douglass160certainly financials healthcare either laughs shen160lets160hear say really cool company im really excited talk simon erickson hi everyone im simon erickson lead advisor motley fool explorer covering markets largest tech stocks today160im going talking consumer retail play called160tractor supply ticker tsco largest rural lifestyle retail store america sell things like supplies pets horses fencing tools equipment basically anything might need youre living beaten path paved road theres 1630160tractor supply locations across us 160 petsense locations pets one big things like tractor supply its160shielded larger retail competitors think important retail company theres general bricksandmortar retailers like walmart doityourself retailers like160lowes160or160home depot160that really doesnt make sense to160compete turf tractor supply competing theyre built rural locations little bit away city centers simply doesnt make economical sense lowes put another location theyre already established brand local populace theyve already established power habit consumers think thats important tractor supply especially consumable recurring revenue purchases theyre always making terms retail cant go retail show without talking amazoncom think that160tractor supply really business amazon doesnt want compete youre shipping 50pound bags deer corn pig feed around160it doesnt make sense amazon shipping infrastructure already ecommerce business model something really works tractor supplys advantage recurring consumable revenues theyre160picking consumers rural locations dont make sense shipping around ecommerce addition shielded larger competitors theres something else want talk thats good shareholders tractor supply thats companys capital allocation recurring revenue stream comes theyre converting 6 sales free cash flow something love see investors used benefit two things theyre actually free cash right paying increasing dividend theyre buying back shares company dividend doubled last five years yields 18 company bought back 10 its160outstanding share count last five years well gives us bigger piece pie existing shareholders tractor supply company recurring model theyre shielded larger competitors retail right really great capital allocation chops160i really want listeners viewers consider tractor supply tsco attractive retail purchase right shen simons made pretty compelling pitch think reminds lot different companies one first things talks location stores target market terms rural consumers in160regions may profitable major competitors open shops offers pretty solid moat reminds little bit dollar store retailers able carve niche by160often locating stores underserved areas think example tractor supplys value proposition onestop shop160offering convenience wide enough product selection areas core customers time arent huge stores find theyre 15000 20000 square feet perspective thats smaller even very160modest modern grocery store customers terms convenience also get get whatever need 10k management summarizes way approach selection convenience say cater rural lifestyle often serve market trip consolidator many160basic needs farm ranch rural customers thoughts douglass160when first heard tractor supply company immediate thought was160oh god company invests agriculture frankly agriculture whole great business commodity youre beholden prices youre usually price taker opposed price maker farming tough anyone farms think agree tough thing warren buffett charlie munger got question berkshire hathaway couple years ago cattle ranching thought business mungers response im paraphrasing cant imagine worse business us buffett softened said well quite bad successful cattle ranchers owned banks side something like tough business in160whats interesting tractor supply first theyre diversified 46 sales livestock pet 22 hardware gifts toys clothing footwear agricultural160products making balance 2016 shen small balance agriculture douglass160right yeah think 5 2016 sales whats crazy margins theyve able maintain theyre 99 operating margins far 2017 last year gross margins 34 know pricing power appears kind pricing power frankly attractive shen160to put perspective walmart example claim gross margin level 25 10 percentage points ahead management doesnt try highlow pricing strategy getting staple items and160charging premium others want offer customers consistent solid values across board feel like theyre getting good fair deal make visit tractor supply stores think important part keeping customer coming back simon spoke the160recurring revenues consumables tractor supply customers tend purchase offers stability company refers products consumable usable edible160and key driving traffic stores growth initiatives store youll see shop floor focused example introducing new products keep shopping160experience exciting theyre starting offer localized products trend really grows across retail industry weve talked that160on show previously theyre also offering exclusive brands help foster customer loyalty big box stores venturing hoping exclusive brands give little bit loyalty brands tractor supply make 30 revenue already know company comes time especially segment fact much theyve influenced douglass160everything laughs shen160 competition amazon simon brings up160specifically basically speaking companys insulated little bit amazon also ecommerce competition general due nature business products sell think think thats something thats sustainable think thats something true pitches douglass160i say160i think lot benefit tractor supply right appears fact store underserved location something like lot ways supply chain issue think amazon might struggle overcome mean amazon never overcome im sure would actually even say would think probably think ultimately could really put time effort question market theyre going go dont think going one theyll go theres many markets amazon trying disrupt right think tractor supply time get ducks row perhaps time build moat really protect mean one things really jumped is160they 1620 stores something like theyre planning expand 2500 look western region think colorado points west 172 424 stores planned speaks much opportunity lot states theres lot ranching theres lot rural agriculture really build relatively underserved areas really build brand customer loyalty perhaps build something thats fairly impenetrable amazon shen160yeah i160look terms amazon threat two sides completely agree theres company thats going innovate away logistical issues shipping160the kind things think simon mentioned 50 pound bag livestock feed example time nature tractor supplys customers theyre located adds little even insular effect last mile fulfillment logistics often far expensive part journey package might travel thousands miles hundreds thousands miles160but last miles are160often expensive part process customers rural areas adds complexity also think160theres something unique terms way customers shop tractor supply average transaction value around 45 almost half revenue company coming that160livestock pet category think also adds complication thats large ticket size youre160trying ship water container something like might expensive justify free shipping offers amazon known really attracts customers theres another added complexity time think side isnt company thats thinking omnichannel strategy160either theyve launched buy online pickup instore recently douglass160which huge shen160yeah management excited makes 55 online business pretty incredible boosting traffic conveniently enough management says customers buy online160pickup instore theyre store theyll add another 15 ticket pretty powerful buy online pickup instore orders160and online orders enjoy ticket sizes twice big average ticket think case customers lot cases areas theyre traveling pretty far even get tractor supply instance might think know might order extra case since im already going store know going waiting theres convenience think target market really appreciates douglass160yeah160and lets face look amazons penetration lot opportunity particularly urban areas dense compact groups people that160its relatively easy get delivery rural montana gets lot tougher somebody like tractor supply provide lot folks lot sooner lot longer think amazon place disrupt lot things obviously already disrupted lot things still commands relatively small percentage market seems like going long time ever will160be able actually properly go particular segment market unless jeff bezos decides meh going go feel like really hasnt modus usually goes things based size potential opportunity think low effort high value opportunities trying disrupt tractor supply seem one shen160so closing discussion unique retailer terms big picture talked little bit see their160runway store development approximately 1600 2500 stores recently acquired petfocused petsense chain well see lot potential think anything worry otherwise seems really strong business model douglass160truly look theres much theres going seasonality thats part deal thats fine miss last year issues around thats really welcome retail thats part deal shen160absolutely douglass160when look think across board real concern someone big comes disrupts things dont see compelling value prop somebody else try folks driving great gross margin good operating margins clear ducks row aggressive expansion planned160and looks like theyre really trying protect potential ecommerce disruption going ahead building buy online pickup store160capabilities across board stock im going digging deeper personally shen160same well things ill watch similar dave amp busters seeing trend thats promising comparable sales growth starting trend downward little bit high 5 2013 fell 16 2016 bumped 22 first half 2017 seeing fluctuate little bit thing think think youre really looking longterm idea terms demographics country percentage people united states living urban areas growing share growing recent conference analyst posed question160to management see longterm threat target market essentially starts160migrating say core markets they160shouldnt impacted theyre worried theyre still seeing population growth theyre still seeing promising metrics essentially dont seem concerned thats something think well otherwise last thoughts michael douglass160again think interesting stock particularly since yields a1602 dividend looks likely continue repurchasing shares theres lot reasons pretty interested company frankly worth160i think lot interesting things companies dave amp busters operates really unique niche armour 3 sports brand the160world tractor supply company special beast think three really interesting pitches thanks vince steve jeremy simon pitching really fascinating companies shen160absolutely thanks joining michael three today havent heard yesterdays episode theres three michael three day week various sectors make sure tune hosts foolcom contributors pitch stocks week industry focus always people program may companies discussed show motley fool may formal recommendations stocks mentioned dont buy sell anything based solely hear160during program fool michael douglass opens new window owns shares amazon berkshire hathaway b shares mastercard starbucks vincent shen opens new window position stocks mentioned motley fool owns shares recommends amazon berkshire hathaway b shares buffalo wild wings mastercard nike starbucks armour shares armour c shares motley fool owns shares square motley fool recommends dave amp busters entertainment home depot lowes tractor supply motley fool disclosure policy opens new window | 3,278 |
<p />
<p>There's a busy year ahead for <a href="" type="internal">health care reform</a> as the Patient Protection and Affordable Care Act, commonly referred to as the Affordable Care Act, continues to reshape America's health care system. It became law in 2010.</p>
<p>Continue Reading Below</p>
<p>"The broad consensus is that we need to move away from an outdated fee-for-service system that rewards volume and toward a system where doctors and hospitals are rewarded for improving quality, value and health outcomes," says Robert Zirkelbach, spokesman for America's Health Insurance Plans, or AHIP, an industry trade group.</p>
<p>While this year's five major reforms lay the groundwork for a more efficient and sustainable health care system, "from the patient perspective, a lot of this is behind the scenes," says Dr. Glen Stream, president of the American Academy of Family Physicians.</p>
<p>One change some consumers will welcome: a rebate check from those health insurers that failed to spend a sufficient portion of premiums directly on patient care last year.</p>
<p>A giant wrecking ball still hangs over this construction site, however: the <a href="" type="internal">Supreme Court</a> decision on a 26-state constitutional challenge to the health reform. The justices will take up the issue in late March and are expected to rule by late June.</p>
<p>Here's what lies ahead for health care reform in 2012.</p>
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<p>Accountable Care Organizations</p>
<p>On Jan.1, the Affordable Care Act started providing a financial incentive for physicians, hospitals and health care providers that voluntarily join together to form Accountable Care Organizations, or ACOs, and coordinate care for patients with original <a href="" type="internal">Medicare</a>. Under the law, those that demonstrate improved quality and outcomes in care, lower costs and patient priority will share the savings with the Medicare system.</p>
<p>ACOs are expected to save Medicare $960 million over three years, according to HealthCare.gov.</p>
<p>"This addresses one of the main issues, which is the excess cost that we have compared to other first-world countries," says Dr. Stream.</p>
<p>Today, more than 50 percent of Medicare patients have at least five chronic conditions, which may include diabetes, arthritis, hypertension and kidney disease, according to HealthCare.gov.</p>
<p>Zirkelbach says ACOs can both drive down the costs of working with multiple doctors and improve care.</p>
<p>"We have a readmissions crisis in this country, particularly in Medicare where 30 percent of patients that are discharged from hospitals end up back in the hospital within 30 days," he says. "A lot of that has to do with the fact that there is no incentive to ensure that they're getting the appropriate follow-up care."</p>
<p>ACOs are designed to change that.</p>
<p>Fewer disparities in health care</p>
<p>Effective: March 2012</p>
<p>Not all Americans have equal access to or similar outcomes from health care, according to HealthCare.gov. Depending on your race, ethnicity or income level, you may have a higher incidence of certain diseases, fewer treatment options and reduced access to care and insurance.</p>
<p>Countering decades of disparity is a tall order, but the Affordable Care Act aims to do so by accelerating data collection, funding community health centers, increasing racial and ethnic diversity in the health care professions and, by 2014, providing affordable health insurance for all through insurance exchanges.</p>
<p>"More and more health plans are tracking (these) data to first identify and then help address these gaps in care," says Zirkelbach.</p>
<p>"It's a huge issue," says Anna Lambertson, executive director of the Kansas Health Consumer Coalition, a statewide advocacy group in Topeka, Kan. "Health disparities include women's access to health insurance and being charged higher premiums because of gender. If we can find a way to help people navigate the health care system so they are not going to the ER to receive routine care, we can actually lower costs."</p>
<p>Insurance rebates</p>
<p>Effective: June 1, 2012</p>
<p>The biggest impact from health care reform consumers may feel in 2012 is actually the result of an initiative that began last year called the medical loss ratio, or MLR. This formula requires health insurance companies to spend at least 80 percent of their premiums on direct medical care or quality improvement or 85 percent for large group-based plans. Those that don't meet the mark must provide a rebate to policyholders.</p>
<p>"The rebates start June 1, and they have to have them issued no later than August 1," says Laurie Sobel, senior attorney for Consumers Union. "The National Association of Insurance Commissioners estimates that Americans would have received nearly $2 billion if MLR had been in effect in 2010."</p>
<p>Zirkelbach's AHIP constituents aren't delighted with the MLR. "Those so-called administrative expenses are going to the types of investments and programs that patients want, that improve care and prevent fraud and make the system work better, like ACOs," he says.</p>
<p>However, Sobel applauds the MLR.</p>
<p>"It's going to provide a lot of relief for consumers," she says. "We're seeing some movement with insurance companies actually lowering premiums or holding down increases in anticipation of this rule."</p>
<p>Electronic records</p>
<p>Effective: Oct. 1, 2012</p>
<p>Health care remains one of the few industries still tied to paper records. The new law kicks off a series of changes to usher in electronic records.</p>
<p>"We're missing some serious tools here," says Mark Savage, senior attorney at Consumers Union, who has been working on electronic records since 2009.</p>
<p>"The analogy I use is: What if the <a href="" type="internal">Federal Reserve</a> Board did not have electronic access to the economic information in the various banks during the financial crisis?" he says. "And what if all the information they requested got faxed back to them, which is what doctors are doing? It would have been a nightmare."</p>
<p>Dr. Stream says the savings from nonduplication of services alone could be staggering.</p>
<p>"Say a patient comes to me with a painful knee, and I take an X-ray. And tomorrow, their knee is worse, and they go to the emergency room. If the ER physician can't see the X-ray I did yesterday, they're going to do another X-ray. The patient is going to get double X-ray exposure and double expense," he says. "If you can make that information available, it helps both on cost and patient safety."</p>
<p>Value-based purchasing</p>
<p>Effective: Oct. 1, 2012</p>
<p>Another piece of health care reform that starts in 2012 under the law is Medicare's new Value-based Purchasing program, or VBP, which is designed to improve the quality of patient care by linking provider payments to the cost and quality of the care they provide.</p>
<p>It also requires that hospital performance statistics be made publically available for the first time.</p>
<p>"VBP is a broad category that incorporates a lot of things like bundle payments," says Zirkelbach. "For instance, in defined situations like a knee replacement, instead of paying a doctor for every service they provide to replace a knee, they get paid a lump sum to replace somebody's knee. So there's an incentive for them to do it as efficiently as possible while also providing high-quality care, as opposed to a fee-for-service arrangement where there is an incentive to do more tests and procedures because there is more money involved."</p>
<p>Dr. Stream calls VBP the payment paradigm of the future.</p>
<p>"The idea is: Pay better for quality medical groups and doctors who have low infection rates (and) high scores on quality measures for care of diabetes, asthma, heart failure, low hospital readmission rates," he says. "We should be paying for quality -- meaning value -- as opposed to just volume."</p> | true | 0 | theres busy year ahead health care reform patient protection affordable care act commonly referred affordable care act continues reshape americas health care system became law 2010 continue reading broad consensus need move away outdated feeforservice system rewards volume toward system doctors hospitals rewarded improving quality value health outcomes says robert zirkelbach spokesman americas health insurance plans ahip industry trade group years five major reforms lay groundwork efficient sustainable health care system patient perspective lot behind scenes says dr glen stream president american academy family physicians one change consumers welcome rebate check health insurers failed spend sufficient portion premiums directly patient care last year giant wrecking ball still hangs construction site however supreme court decision 26state constitutional challenge health reform justices take issue late march expected rule late june heres lies ahead health care reform 2012 advertisement accountable care organizations jan1 affordable care act started providing financial incentive physicians hospitals health care providers voluntarily join together form accountable care organizations acos coordinate care patients original medicare law demonstrate improved quality outcomes care lower costs patient priority share savings medicare system acos expected save medicare 960 million three years according healthcaregov addresses one main issues excess cost compared firstworld countries says dr stream today 50 percent medicare patients least five chronic conditions may include diabetes arthritis hypertension kidney disease according healthcaregov zirkelbach says acos drive costs working multiple doctors improve care readmissions crisis country particularly medicare 30 percent patients discharged hospitals end back hospital within 30 days says lot fact incentive ensure theyre getting appropriate followup care acos designed change fewer disparities health care effective march 2012 americans equal access similar outcomes health care according healthcaregov depending race ethnicity income level may higher incidence certain diseases fewer treatment options reduced access care insurance countering decades disparity tall order affordable care act aims accelerating data collection funding community health centers increasing racial ethnic diversity health care professions 2014 providing affordable health insurance insurance exchanges health plans tracking data first identify help address gaps care says zirkelbach huge issue says anna lambertson executive director kansas health consumer coalition statewide advocacy group topeka kan health disparities include womens access health insurance charged higher premiums gender find way help people navigate health care system going er receive routine care actually lower costs insurance rebates effective june 1 2012 biggest impact health care reform consumers may feel 2012 actually result initiative began last year called medical loss ratio mlr formula requires health insurance companies spend least 80 percent premiums direct medical care quality improvement 85 percent large groupbased plans dont meet mark must provide rebate policyholders rebates start june 1 issued later august 1 says laurie sobel senior attorney consumers union national association insurance commissioners estimates americans would received nearly 2 billion mlr effect 2010 zirkelbachs ahip constituents arent delighted mlr socalled administrative expenses going types investments programs patients want improve care prevent fraud make system work better like acos says however sobel applauds mlr going provide lot relief consumers says seeing movement insurance companies actually lowering premiums holding increases anticipation rule electronic records effective oct 1 2012 health care remains one industries still tied paper records new law kicks series changes usher electronic records missing serious tools says mark savage senior attorney consumers union working electronic records since 2009 analogy use federal reserve board electronic access economic information various banks financial crisis says information requested got faxed back doctors would nightmare dr stream says savings nonduplication services alone could staggering say patient comes painful knee take xray tomorrow knee worse go emergency room er physician cant see xray yesterday theyre going another xray patient going get double xray exposure double expense says make information available helps cost patient safety valuebased purchasing effective oct 1 2012 another piece health care reform starts 2012 law medicares new valuebased purchasing program vbp designed improve quality patient care linking provider payments cost quality care provide also requires hospital performance statistics made publically available first time vbp broad category incorporates lot things like bundle payments says zirkelbach instance defined situations like knee replacement instead paying doctor every service provide replace knee get paid lump sum replace somebodys knee theres incentive efficiently possible also providing highquality care opposed feeforservice arrangement incentive tests procedures money involved dr stream calls vbp payment paradigm future idea pay better quality medical groups doctors low infection rates high scores quality measures care diabetes asthma heart failure low hospital readmission rates says paying quality meaning value opposed volume | 740 |
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<p>Apple (NASDAQ:AAPL) recently unveiled the new iPhone 7 to mixed reviews, and many analysts are busy debating its impact on the tech giant's earnings this year. But investors should note that another major issue hangs over the company -- the 13 billion ($14.7 billion) tax bill it faces in Ireland.</p>
<p>Continue Reading Below</p>
<p>Image source: Apple.</p>
<p>In late August, the EU ruled thatIreland gave Apple illegal tax benefits which lowered its effective corporate tax rate on its profits from 1% in 2003 to 0.0005% in 2014. In other words, Apple allegedly paid just $55 in tax for every $1.12 million in profits it booked in Ireland. It also ruled that Apple avoided higher taxes in other EU countries by reporting all its European profits in Ireland. Other reports indicate thatApple might have funneled two-thirds of all its overseas profits through the country to reduce its global tax burden.</p>
<p>Apple claims to have regularly paid Ireland's 12.5% corporate tax rate on those profits. CEO Tim Cook condemned the ruling as"total political crap" and claimed that the EU commission "just picked a number." The company vowed to appeal the ruling, but the Irish Department of Finance recently admitted that it would likely need to collect the payment. If that happens, it could hurt Apple and other U.S. tech companies with Irish ties.</p>
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<p>The EU ruling won't cripple the company, since $14.7 billion amounts to just 7% of its overseas cash hoard of $215 billion. Even if Apple paid the full amount, it would likely be written off as a one-time charge and wouldn't be considered a major weight on its long-term growth. The EU also stated that the final amount could be reduced by an agreement, or if Apple agreed to pay back the taxes to individual countries.</p>
<p>However, accepting the tax bill could trap Apple between a rock and a hard place. Back in the U.S., members of Congress have called Apple a "corporate tax dodger" for itsrefusal to repatriate its overseas profits. Apple gets tax credits for overseas taxes, yet the company isn't taxed unless it brings the cash back home. Apple argues that the U.S. corporate tax rate of 35%, one of the highest in the world, is unfair and discourages it from doing so. That's also why it funds its stock buybacks with debt instead of cash.</p>
<p>Image source: Getty Images.</p>
<p>But there's a silver lining to this dilemma -- if Apple ends up paying the full amount, it canactually earn a 1-for-1 credit on those overseas payments against its U.S. taxes. This means that if Apple is forced to pay the bill, it could repatriate some cash back to the United States while reducing its U.S. tax bill by $14.7 billion.</p>
<p>Microsoft, Alphabet, and Facebookalso have major presences in Ireland. Like Apple, all three tech giants have been accused of funneling overseas profits through the country to reducetheir taxes. This means that they could be next on the chopping block.</p>
<p>All three companies already face plenty of other headaches in the EU. Three years ago, the EU fined Microsoft over $700 million for failing to respect a previous antitrust settlement. The EU is also hitting Alphabetwith various <a href="http://www.fool.com/investing/general/2015/04/18/what-the-eu-antitrust-charges-against-google-inc-m.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">antitrust charges Opens a New Window.</a>, and Facebook faces a privacy probe in Germany which might expand into anantitrust investigation.</p>
<p>Getting hit by large tax bills could force these companies, as well as many other multinationals, to reevaluate the future of their European operations. If the EU continues to scrutinize Ireland, these companies could move to other regions that are willing to exchange lower tax rates for jobs and economic growth.</p>
<p>The EU ruling against Apple is a thorny issue. Apple claims that it played by the rules, but the industry practice of funneling profits through Irish subsidiaries arguably looks like a shell game. This battle will likely drag on for years, but it could dramatically impact Ireland's relationship with the EU and major tech companies.</p>
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<p>Suzanne Frey, an executive at Alphabet, is a member of The Motley Fools 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), Apple, and Facebook. The Motley Fool owns shares of Microsoft and 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://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 | apple nasdaqaapl recently unveiled new iphone 7 mixed reviews many analysts busy debating impact tech giants earnings year investors note another major issue hangs company 13 billion 147 billion tax bill faces ireland continue reading image source apple late august eu ruled thatireland gave apple illegal tax benefits lowered effective corporate tax rate profits 1 2003 00005 2014 words apple allegedly paid 55 tax every 112 million profits booked ireland also ruled apple avoided higher taxes eu countries reporting european profits ireland reports indicate thatapple might funneled twothirds overseas profits country reduce global tax burden apple claims regularly paid irelands 125 corporate tax rate profits ceo tim cook condemned ruling astotal political crap claimed eu commission picked number company vowed appeal ruling irish department finance recently admitted would likely need collect payment happens could hurt apple us tech companies irish ties advertisement eu ruling wont cripple company since 147 billion amounts 7 overseas cash hoard 215 billion even apple paid full amount would likely written onetime charge wouldnt considered major weight longterm growth eu also stated final amount could reduced agreement apple agreed pay back taxes individual countries however accepting tax bill could trap apple rock hard place back us members congress called apple corporate tax dodger itsrefusal repatriate overseas profits apple gets tax credits overseas taxes yet company isnt taxed unless brings cash back home apple argues us corporate tax rate 35 one highest world unfair discourages thats also funds stock buybacks debt instead cash image source getty images theres silver lining dilemma apple ends paying full amount canactually earn 1for1 credit overseas payments us taxes means apple forced pay bill could repatriate cash back united states reducing us tax bill 147 billion microsoft alphabet facebookalso major presences ireland like apple three tech giants accused funneling overseas profits country reducetheir taxes means could next chopping block three companies already face plenty headaches eu three years ago eu fined microsoft 700 million failing respect previous antitrust settlement eu also hitting alphabetwith various antitrust charges opens new window facebook faces privacy probe germany might expand anantitrust investigation getting hit large tax bills could force companies well many multinationals reevaluate future european operations eu continues scrutinize ireland companies could move regions willing exchange lower tax rates jobs economic growth eu ruling apple thorny issue apple claims played rules industry practice funneling profits irish subsidiaries arguably looks like shell game battle likely drag years could dramatically impact irelands relationship eu major tech companies 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 facebook motley fool owns shares microsoft 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 | 534 |
<p />
<p>President-elect Donald Trump is stacking his trade transition team with veterans of the U.S. steel industry's battles with China, signaling a potentially more aggressive approach to U.S. complaints of unfair Chinese subsidies for its exports and barriers to imports.</p>
<p>Continue Reading Below</p>
<p>Led by Wilbur Ross, a billionaire steel investor and Trump's nominee for commerce secretary, Dan DiMicco, the former CEO of steelmaker Nucor Corp , and three veteran steel trade lawyers, the team is expected to help shift the U.S. trade focus more heavily toward enforcement actions aimed at bringing down a chronic U.S. trade deficit, Washington trade experts said. Based on their past efforts, this could include more challenges to China's trade practices through the World Trade Organization and more U.S. government-initiated anti-dumping and anti-subsidy cases against a wider range of Chinese products. The latter would be argued before the U.S. International Trade Commission - a forum where the steel industry has had considerable success.</p>
<p>Ross, DiMicco and other leaders of Big Steel have been on the front-line battles against the world's export superpower.</p>
<p>Hit by a flood of cheap imports from China and other countries, the U.S. steel industry has brought 16 new cases in the past three years, seeking punitive duties from the Commerce Department to combat below-cost dumping and unfair subsidies that slashed prices of various steel products to historic lows last year, causing layoffs at U.S. steel mills. (See graphic http://tmsnrt.rs/2gUFGAf)</p>
<p>Some of these cases have resulted in massive penalties against Chinese imports, including duties of more than 500 percent on Chinese cold-rolled steel used in autos and appliances.</p>
<p>Lawyers Robert Lighthizer and Jeffrey Gerrish have represented United States Steel and Stephen Vaughn has represented AK Steel in these cases. The three are also part of Trump's trade team.</p>
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<p>Lighthizer, Gerrish, Vaughn, Ross and DiMicco either declined to comment for this story or did not respond to Reuters' requests for interviews.</p>
<p>Trade experts familiar with their views and their history of confrontation with China, however, say they will not be afraid to push the limits of what is legal under World Trade Organization rules in defense of U.S. trade interests.</p>
<p>Lighthizer, who along with DiMicco is considered a strong candidate to be the new U.S. Trade Representative, is known for his work during the Reagan administration pressuring Japan into voluntary export restraints.</p>
<p>PUSHING WTO LIMITS</p>
<p>"Bob Lighthizer is very smart, very strategic and totally fearless," said a Washington attorney who has worked with him for three decades and asked not to be named because Trump's USTR selection process was still under way. "If he's in charge you can expect him to use every tool available to create leverage to get China and anyone else to stop the cheating. He is no fan of the WTO."</p>
<p>Lighthizer told a congressional panel in 2010 that the WTO's dispute resolution system was ineffective and that the United States "should consider aggressive interpretations of WTO provisions that might help us deal with Chinese mercantilism."</p>
<p>Such tactics could include imposing temporary import quotas and surcharges and factoring in the effect of currency manipulation into U.S. anti-dumping duties, he said.</p>
<p>Ross, who advised Trump's presidential campaign on economic issues, has signaled he will use access to the lucrative U.S. consumer market as leverage to negotiate better trade terms. The United States is China's biggest export market.</p>
<p>During his presidential campaign, Trump vowed to levy a punitive 45-percent tariff on Chinese goods and label Beijing a currency manipulator. It is not clear though whether he will follow through on those threats once he takes office.</p>
<p>Ross told CNN last week that Trump will not be "willy nilly slapping a 45 percent tariff on everything," but will maintain the threat of tariffs as part of negotiations.</p>
<p>If DiMicco is named head of USTR, his personal blog gives some indication of how he would approach China. He has accused China of waging a "mercantilist trade war" on the United States for two decades, through currency manipulation, unfair subsidies and intellectual property theft.</p>
<p>On the issue of currency manipulation, many economists disagree, saying Beijing is no longer keeping its yuan artificially undervalued to make its exports cheap, citing the hundreds of billions of dollars in reserves it has spent to prop up the yuan's value this year.</p>
<p>A key question for Trump's trade team is how far they can push China to change its trade practices without provoking a trade war that will hurt both countries.</p>
<p>"If what they plan to do is get a little scratchier with China on enforcement within the existing WTO rules, that's OK," said Scott Miller, a China trade expert at the Center for Strategic and International Studies in Washington. "But if they go outside those guardrails, it will be unpleasant because that will draw retaliation."</p>
<p>He Weiwen, vice president at the Center for China and Globalization, a government-affiliated think-tank in Beijing, said any punitive action against China by the Trump administration would invite a retaliatory response.</p>
<p>"We will certainly respond in the same way," he said, adding that Washington and Beijing "should find good solutions that are acceptable to both and not go to extremes. It will hurt both."</p>
<p>Chinese state media have warned that any new tariffs imposed by Trump would lead to retaliation against Boeing aircraft, Apple iPhones and U.S. corn and soybeans.</p>
<p>(Additional reporting by Michael Martina in Beijing; Editing by David Chance and Ross Colvin)</p> | true | 0 | presidentelect donald trump stacking trade transition team veterans us steel industrys battles china signaling potentially aggressive approach us complaints unfair chinese subsidies exports barriers imports continue reading led wilbur ross billionaire steel investor trumps nominee commerce secretary dan dimicco former ceo steelmaker nucor corp three veteran steel trade lawyers team expected help shift us trade focus heavily toward enforcement actions aimed bringing chronic us trade deficit washington trade experts said based past efforts could include challenges chinas trade practices world trade organization us governmentinitiated antidumping antisubsidy cases wider range chinese products latter would argued us international trade commission forum steel industry considerable success ross dimicco leaders big steel frontline battles worlds export superpower hit flood cheap imports china countries us steel industry brought 16 new cases past three years seeking punitive duties commerce department combat belowcost dumping unfair subsidies slashed prices various steel products historic lows last year causing layoffs us steel mills see graphic httptmsnrtrs2gufgaf cases resulted massive penalties chinese imports including duties 500 percent chinese coldrolled steel used autos appliances lawyers robert lighthizer jeffrey gerrish represented united states steel stephen vaughn represented ak steel cases three also part trumps trade team advertisement lighthizer gerrish vaughn ross dimicco either declined comment story respond reuters requests interviews trade experts familiar views history confrontation china however say afraid push limits legal world trade organization rules defense us trade interests lighthizer along dimicco considered strong candidate new us trade representative known work reagan administration pressuring japan voluntary export restraints pushing wto limits bob lighthizer smart strategic totally fearless said washington attorney worked three decades asked named trumps ustr selection process still way hes charge expect use every tool available create leverage get china anyone else stop cheating fan wto lighthizer told congressional panel 2010 wtos dispute resolution system ineffective united states consider aggressive interpretations wto provisions might help us deal chinese mercantilism tactics could include imposing temporary import quotas surcharges factoring effect currency manipulation us antidumping duties said ross advised trumps presidential campaign economic issues signaled use access lucrative us consumer market leverage negotiate better trade terms united states chinas biggest export market presidential campaign trump vowed levy punitive 45percent tariff chinese goods label beijing currency manipulator clear though whether follow threats takes office ross told cnn last week trump willy nilly slapping 45 percent tariff everything maintain threat tariffs part negotiations dimicco named head ustr personal blog gives indication would approach china accused china waging mercantilist trade war united states two decades currency manipulation unfair subsidies intellectual property theft issue currency manipulation many economists disagree saying beijing longer keeping yuan artificially undervalued make exports cheap citing hundreds billions dollars reserves spent prop yuans value year key question trumps trade team far push china change trade practices without provoking trade war hurt countries plan get little scratchier china enforcement within existing wto rules thats ok said scott miller china trade expert center strategic international studies washington go outside guardrails unpleasant draw retaliation weiwen vice president center china globalization governmentaffiliated thinktank beijing said punitive action china trump administration would invite retaliatory response certainly respond way said adding washington beijing find good solutions acceptable go extremes hurt chinese state media warned new tariffs imposed trump would lead retaliation boeing aircraft apple iphones us corn soybeans additional reporting michael martina beijing editing david chance ross colvin | 551 |
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<p>Chances are you’re like most Americans and, regardless of your age, you aren’t saving enough for retirement, if you’re actually saving anything at all.</p>
<p>Continue Reading Below</p>
<p>Nearly 40 million U.S. households (45%) have no retirement assets, according to a recent report by the National Institute on Retirement Security, and half of those households are headed by someone aged between 45 and 65. In fact, savings rates are so bad that many <a href="http://blog.credit.com/2017/03/americans-are-dying-with-an-average-of-62k-of-debt-168045/?utm_source=Fox&amp;utm_medium=content&amp;utm_term=not_fathers_401k_retirement_product&amp;utm_content=IB_1" type="external">Americans are dying with an average of $62,000 in debt Opens a New Window.</a>.</p>
<p>Even if you are saving enough for retirement, you might still wonder if that money will last your entire lifetime. Defined contribution plans like 401Ks are great at helping employees save for retirement, but they provide no guarantee of income as pensions do. On top of that, most 401Ks are self-directed, meaning those who do a poor job handling their investments could end up with significantly less money than they need in retirement.</p>
<p>But what if you could guarantee yourself income for life, just like ubiquitous company pension plans used to provide (and government pension plans still do)?</p>
<p>Well, you can. Here’s how.</p>
<p>Back in 2014, the Treasury Department started an initiative focused on “putting the pension back” into 401K retirement savings. (Need to brush up on retirement lingo? <a href="https://www.credit.com/personal-finance/retirement-planning-lingo-terms-to-know/?utm_source=Fox&amp;utm_medium=content&amp;utm_term=not_fathers_401k_retirement_product&amp;utm_content=IB_2" type="external">Here’s a handy guide Opens a New Window.</a>.) Through loosened restrictions and some tax-law changes, the Treasury made it easier to convert funds from retirement savings into plans known as longevity income annuities, or LIAs, that provide guaranteed lifetime income.</p>
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<p>Income for Life</p>
<p>LIAs are deferred annuities and, while they’ve been for a while, they’ve only recently become a part of mainstream retirement planning. The Treasury initiative could even cause them to become an integral part of <a href="http://blog.credit.com/2016/04/target-date-funds-are-you-using-them-correctly-140209/?utm_source=Fox&amp;utm_medium=content&amp;utm_term=not_fathers_401k_retirement_product&amp;utm_content=IB_3" type="external">401K target funds Opens a New Window.</a>. Here’s how they work: Say you have $100,000 in retirement savings. At age 65, you use $10,000 of that money to purchase an LIA. “Even in the current low-interest-rate environment, a deferred single-life annuity purchased at age 65 for a male costing $10,000 can generate an annual benefit flow from age 85 onward of $4,830 ($3,866 for a female) per year for life,” a recent National Bureau of Economic Research working paper concluded.</p>
<p>It’s easy to see how helpful this kind of guaranteed income could be, particularly given larger investment amounts. Of course, it’s a hedge that you’ll live long enough to take advantage of those funds, but some programs provide for reimbursement should you die before accessing all of your money. More on that in a minute.</p>
<p>According to Olivia S. Mitchell, a professor at the Wharton School of the University of Pennsylvania and a co-author of the working paper mentioned above, LIAs are available to investors&#160;but are not yet tied to defined-contribution plans.</p>
<p>“There has been discussion about including them in the target-date suite of funds, and some employers are actively looking for options,” she said in an email. “Relatively few insurers have them available as yet.”</p>
<p>“One reason annuities or lifetime income streams are not a standard feature of 401K plans is that many people don’t understand these products,” she wrote in an article for Forbes. “For instance, some older individuals tend to underestimate their chances of living a long time, so they don’t take proper precautions against outliving their assets. Others&#160;don’t understand financial concepts, and so they’re reluctant to take unfamiliar financial decisions. After all, retirement is usually a once-in-a-lifetime event!”</p>
<p>Just because they aren’t directly tied to defined-contribution plans just yet doesn’t mean LIAs aren’t easily accessed. AARP, for example, has been offering its Lifetime Income Program through New York Life since 2006. AARP’s plan has a cash refund feature so, as we mentioned earlier, if you die before your payments equal your annuity purchase price, your beneficiary will be paid the difference.</p>
<p>Is an LIA Right for Me?</p>
<p>As with most financial tools, some people will benefit from an LIA more than others. “People in poor health might not want to elect deferred annuities, particularly if they have a poor survival prognosis,” Mitchell said. “Some very wealthy people will not need the LIA as they can self-insure against outliving their assets. Retirees with a (well-funded) defined benefit pension probably don’t need additional annuitization. And people with a very small nest egg might not find it worthwhile to annuitize, say, $10,000. But much of the middle class could benefit.”</p>
<p>In considering LIA plans, Mitchell recommends asking how highly rated the insurer is who provides it. She also suggests knowing how well the state insurance guarantee fund is being run and the maximum amount you’d recover should the insurer go bankrupt. (As you’re planning your retirement, you should also make sure you have a full picture of your finances, including your credit. You can <a href="https://www.credit.com/free-credit-report-card/?utm_source=Fox&amp;utm_medium=content&amp;utm_term=not_fathers_401k_retirement_product&amp;utm_content=IB_4" type="external">get a free snapshot of your credit report Opens a New Window.</a>&#160;on Credit.com.)</p>
<p>So how much should you consider putting into an LIA? “Older individuals would optimally commit 8% to 15% of their plan balances at age 65 to a LIA, which begins payouts at age 85,” Mitchell, et al, wrote in their working paper.</p>
<p>As for timing, it doesn’t really make sense for someone who isn’t at or near retirement age to purchase an LIA. For one thing, you can’t access your retirement funds without penalty until age 60.</p>
<p>“It makes sense to decide how much to devote to the LIA in your mid-60s, since that gives 20 years over which the annuity value can build up,” so you can begin taking payments at age 85, Mitchell said.</p>
<p>Of course, there are a variety of annuity products to suit different personal needs, such as earlier payout options, so it’s a good idea to speak with a financial professional who can help you decide what product might be best for your financial situation.</p>
<p>This article originally appeared on <a href="http://blog.credit.com/2017/03/this-is-not-your-fathers-401k-the-retirement-product-you-should-know-about-168679/" type="external">Credit.com Opens a New Window.</a>.</p>
<p /> | true | 0 | chances youre like americans regardless age arent saving enough retirement youre actually saving anything continue reading nearly 40 million us households 45 retirement assets according recent report national institute retirement security half households headed someone aged 45 65 fact savings rates bad many americans dying average 62000 debt opens new window even saving enough retirement might still wonder money last entire lifetime defined contribution plans like 401ks great helping employees save retirement provide guarantee income pensions top 401ks selfdirected meaning poor job handling investments could end significantly less money need retirement could guarantee income life like ubiquitous company pension plans used provide government pension plans still well heres back 2014 treasury department started initiative focused putting pension back 401k retirement savings need brush retirement lingo heres handy guide opens new window loosened restrictions taxlaw changes treasury made easier convert funds retirement savings plans known longevity income annuities lias provide guaranteed lifetime income advertisement income life lias deferred annuities theyve theyve recently become part mainstream retirement planning treasury initiative could even cause become integral part 401k target funds opens new window heres work say 100000 retirement savings age 65 use 10000 money purchase lia even current lowinterestrate environment deferred singlelife annuity purchased age 65 male costing 10000 generate annual benefit flow age 85 onward 4830 3866 female per year life recent national bureau economic research working paper concluded easy see helpful kind guaranteed income could particularly given larger investment amounts course hedge youll live long enough take advantage funds programs provide reimbursement die accessing money minute according olivia mitchell professor wharton school university pennsylvania coauthor working paper mentioned lias available investors160but yet tied definedcontribution plans discussion including targetdate suite funds employers actively looking options said email relatively insurers available yet one reason annuities lifetime income streams standard feature 401k plans many people dont understand products wrote article forbes instance older individuals tend underestimate chances living long time dont take proper precautions outliving assets others160dont understand financial concepts theyre reluctant take unfamiliar financial decisions retirement usually onceinalifetime event arent directly tied definedcontribution plans yet doesnt mean lias arent easily accessed aarp example offering lifetime income program new york life since 2006 aarps plan cash refund feature mentioned earlier die payments equal annuity purchase price beneficiary paid difference lia right financial tools people benefit lia others people poor health might want elect deferred annuities particularly poor survival prognosis mitchell said wealthy people need lia selfinsure outliving assets retirees wellfunded defined benefit pension probably dont need additional annuitization people small nest egg might find worthwhile annuitize say 10000 much middle class could benefit considering lia plans mitchell recommends asking highly rated insurer provides also suggests knowing well state insurance guarantee fund run maximum amount youd recover insurer go bankrupt youre planning retirement also make sure full picture finances including credit get free snapshot credit report opens new window160on creditcom much consider putting lia older individuals would optimally commit 8 15 plan balances age 65 lia begins payouts age 85 mitchell et al wrote working paper timing doesnt really make sense someone isnt near retirement age purchase lia one thing cant access retirement funds without penalty age 60 makes sense decide much devote lia mid60s since gives 20 years annuity value build begin taking payments age 85 mitchell said course variety annuity products suit different personal needs earlier payout options good idea speak financial professional help decide product might best financial situation article originally appeared creditcom opens new window | 574 |
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<p>President Obama Wednesday called upon Congress to take action on the “To Do List” of small business legislation. Ahead of National Small Business week, the president also held a roundtable discussion on his proposed legislation with U.S. entrepreneurs and Small Business Administrator and president Karen Mills.</p>
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<p>Among the items in Obama’s proposal is legislation that would give&#160; companies a 20% tax credit for moving overseas operations back to the U.S., according to a White House release. The president is also asking Congress to give a 10% income tax credit to businesses that either create new jobs or increase wages in 2012, and to extend 100% expensing throughout the year for all businesses.</p>
<p>The White House said the proposal will help 2 million ‘real’ small businesses and focus on middle-class workers, because the proposed credits do not apply to wages above $110,100.</p>
<p>The National Economic Council also released a report Wednesday entitled “Moving America’s Small Businesses &amp; Entrepreneurs Forward,” highlighting initiatives put in place so far during the Obama administration.</p>
<p>“To help them expand and hire, the president has signed a total of 18 tax cuts for small businesses, from greater expensing to the president’s signature call to eliminate capital gains taxes on investments in small businesses,” the report states. “The president has also established two new small business lending funds and expanded Small Business Administration lending programs, which have hit an all-time record.”</p>
<p>The report states the president has invested more than $4 billion in 332 banks and community development loan funds through the new Small Business Lending Fund.</p>
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<p>Kevan Chapman, senior media manager for the National Federation of Independent Business, said while tax credits may give some businesses incentive to hire, for the majority it won’t be enough to make a move to add employees.</p>
<p>“When you look at the way the tax credit is structured, and then take into account how much it costs to actually hire an employee, a 10% tax credit is nowhere near the cost of adding someone to the payroll,” Chapman said.&#160; “If you are treading water, or not in the position to start hiring, it’s simply not enough to encourage that step. Phrasing this as a mechanism that will spur hiring is not an accurate&#160; thing to do,” Chapman said.</p>
<p>One piece of the legislation that the NFIB is on board with is extending bonus depreciation for small businesses, which allows them to write off 100% of investments up to $500,000 in equipment the year after the investment was made. This reduced to 50% in 2011, and without Congressional action will fall to $139,000 in 2012 and $25,000 in 2013. The NFIB focused on this heavily in 2010, but Section 179, or expensing the purchase cost, is the groups' top expensing priority today due to its popularity with the NFIB's membership</p>
<p>“One of the big problems in the tax code is instead of a long-term extension, you need to look at the big picture,” Chapman said. “We are coming up on ‘Taxmageddon’ for small businesses, and this will be a very bad environment for small business if no action is taken.”</p>
<p>The NFIB is urging for other tax credit extenders, including the self-employed health insurance deduction, which allows self-employed business owners to deduct the cost of insurance for themselves and their families, as well as reducing the holding period for businesses converting from C-corporations to S-corporations. Businesses that do this are required to hold their appreciated assets for up to 20 years or face double taxation.</p>
<p>Finally, the NFIB is advocating for start-up deductions for new small businesses, which allows small businesses to deduct up to $10,000 for start-up costs.</p>
<p>House Speaker John Boehner (R-Ohio) said he will be holding a vote on these extenders before Congress in the near future.</p>
<p>House Small Business Committee Chairman Sam Graves (R-MO) said that despite the push for legislation Wednesday, Obama’s policies have done more to hurt small business than help in the past four years.</p>
<p>“Even though the administration may tout their programs intended to help small firms, the majority of the president's&#160;policies have burdened them, including the health care law, the rate of over-regulation, the deficit-spending, and the constant threats of tax increases. In order to help&#160;small businesses, we must provide more stability and relief on issues like taxes, regulations, energy costs, and government spending. Over the last 18 months, the House has addressed these problems by passing more than two dozen jobs bills that are still awaiting Senate action,” Graves said in a statement.&#160;“On the eve of National Small Business Week, I hope the president will call on the Senate to vote on those jobs bills and work with House Republicans on providing more certainty for America’s small business job creators.”</p>
<p>Chapman said advocacy for small businesses is important and necessary,&#160; however without tangible benefits, it is meaningless.</p>
<p>“The president doesn’t do a great deal to help [lessen uncertainty] with what he is advocating for today,” he said. “It doesn’t get to helping these businesses that are struggling. We’d like to see a&#160; greater focus on this from the president and Congress.”</p>
<p>The NEC report, however, has a different take.</p>
<p>“In the last 26 months we have created 4.25 million private sector jobs – many of them at small and new businesses – and triple the number of jobs added during the last economic recovery in 2002-2004. We know there is still a great deal of work to be done, but the actions we’ve taken – and the partnerships we’ve built – are creating a more inclusive economy, a more resilient economy, and an economy that is driven by a strong and growing middle class,” the report stated.</p> | true | 0 | president obama wednesday called upon congress take action list small business legislation ahead national small business week president also held roundtable discussion proposed legislation us entrepreneurs small business administrator president karen mills continue reading among items obamas proposal legislation would give160 companies 20 tax credit moving overseas operations back us according white house release president also asking congress give 10 income tax credit businesses either create new jobs increase wages 2012 extend 100 expensing throughout year businesses white house said proposal help 2 million real small businesses focus middleclass workers proposed credits apply wages 110100 national economic council also released report wednesday entitled moving americas small businesses amp entrepreneurs forward highlighting initiatives put place far obama administration help expand hire president signed total 18 tax cuts small businesses greater expensing presidents signature call eliminate capital gains taxes investments small businesses report states president also established two new small business lending funds expanded small business administration lending programs hit alltime record report states president invested 4 billion 332 banks community development loan funds new small business lending fund advertisement kevan chapman senior media manager national federation independent business said tax credits may give businesses incentive hire majority wont enough make move add employees look way tax credit structured take account much costs actually hire employee 10 tax credit nowhere near cost adding someone payroll chapman said160 treading water position start hiring simply enough encourage step phrasing mechanism spur hiring accurate160 thing chapman said one piece legislation nfib board extending bonus depreciation small businesses allows write 100 investments 500000 equipment year investment made reduced 50 2011 without congressional action fall 139000 2012 25000 2013 nfib focused heavily 2010 section 179 expensing purchase cost groups top expensing priority today due popularity nfibs membership one big problems tax code instead longterm extension need look big picture chapman said coming taxmageddon small businesses bad environment small business action taken nfib urging tax credit extenders including selfemployed health insurance deduction allows selfemployed business owners deduct cost insurance families well reducing holding period businesses converting ccorporations scorporations businesses required hold appreciated assets 20 years face double taxation finally nfib advocating startup deductions new small businesses allows small businesses deduct 10000 startup costs house speaker john boehner rohio said holding vote extenders congress near future house small business committee chairman sam graves rmo said despite push legislation wednesday obamas policies done hurt small business help past four years even though administration may tout programs intended help small firms majority presidents160policies burdened including health care law rate overregulation deficitspending constant threats tax increases order help160small businesses must provide stability relief issues like taxes regulations energy costs government spending last 18 months house addressed problems passing two dozen jobs bills still awaiting senate action graves said statement160on eve national small business week hope president call senate vote jobs bills work house republicans providing certainty americas small business job creators chapman said advocacy small businesses important necessary160 however without tangible benefits meaningless president doesnt great deal help lessen uncertainty advocating today said doesnt get helping businesses struggling wed like see a160 greater focus president congress nec report however different take last 26 months created 425 million private sector jobs many small new businesses triple number jobs added last economic recovery 20022004 know still great deal work done actions weve taken partnerships weve built creating inclusive economy resilient economy economy driven strong growing middle class report stated | 565 |
<p>Newly declassified documents from Operation SOLO, an FBI program to infiltrate the Communist Party of the United States, reveal that a journal called Freedomways, which was influential in the black community for decades, was subsidized by the Soviet and Chinese Communist Parties.</p>
<p>Freedomways has been <a href="http://www.tandfonline.com/doi/abs/10.1080/14743890802580081" type="external">called</a> “one of the most influential African-American literary and political journals of the 1960s and 1970s.” It began in 1961 and ceased publication in 1986.</p>
<p>During the 25 years it served as a propaganda organ for the CPUSA and Soviet front organizations such as the World Peace Council, Freedomways published articles by such figures as:</p>
<p>Freedomways grew out of a Soviet campaign, launched after the Russian revolution, to exploit the “Negro question” in the U.S. and manipulate blacks and members of other minority groups for Communist purposes. The goal was a “Soviet America.”</p>
<p>In 1981, a communist-inspired Black Liberation Army, with the help of the Weather Underground, waged a campaign of terrorism and murder that resulted in the deaths of two police officers and a Brinks guard.</p>
<p>The SOLO <a href="http://vault.fbi.gov/solo" type="external">documents</a> demonstrate that the Soviet Union illegally provided funding, reportedly more than $28 million, to the CPUSA. The documents are based on FBI informants, Morris and Jack Childs, who had infiltrated the highest levels of the CPUSA and had participated in meetings with foreign communist parties.</p>
<p>President Ronald Reagan <a href="http://www.fbi.gov/news/stories/2011/august/communist_080211" type="external">awarded</a> Morris Childs (and posthumously, Jack) with the Presidential Medal of Freedom for their work for the U.S.</p>
<p>An FBI memo dated March 3, 1959, which summarized a meeting between CPUSA officials and the Soviet Communist Party, reveals that CPUSA official James Jackson had asked Soviet officials about “the possibility of a Negro magazine dealing with theoretical questions.” Jackson was the party secretary in charge of “Negro and southern affairs.”</p>
<p>Freedomways came into being two years later.</p>
<p>An FBI memorandum, dated July 6,1961, refers to funding for the CPUSA from the Communist Parties of the Soviet Union and China, including $5,000 to CPUSA chairman Gus Hall “for Negro publication ‘Freedomways Associates, Inc.,’” the publisher of Freedomways.</p>
<p>A June 8, 1962, FBI memorandum refers to $3,000 “To Isodore Wofsy for transmittal to Esther Jackson, CP functionary for use of Negro magazine ‘Freedomways.’” Wofsy was another important CPUSA member.</p>
<p>Esther Jackson, wife of James Jackson, was a CPUSA member who served as managing editor of Freedomways.</p>
<p>Freedomways was so extreme that it ran a notice hailing Angela Davis as a “courageous Black woman leader” when she went on trial for murder. Davis, who beat the murder rap, became a prominent CPUSA official and <a href="http://feministstudies.ucsc.edu/faculty/singleton.php?&amp;singleton=true&amp;cruz_id=aydavis" type="external">college professor</a> at the University of California at Santa Cruz. She later started an anti-prison project, Critical Resistance, funded by the Open Society Institute of billionaire George Soros.</p>
<p>Despite his reputation as a moderate, Martin Luther King, Jr. paid tribute to W.E.B. Du Bois, who himself <a href="http://www.cpusa.org/application-to-join-the-cpusa-by-w-e-b-du-bois-1961/" type="external">joined the CPUSA</a> in 1961, at an event sponsored by Freedomways in New York City.</p>
<p>Du Bois had said, in joining the party: “Capitalism cannot reform itself; it is doomed to self-destruction. No universal selfishness can bring social good to all. Communism—the effort to give all men what they need and to ask of each the best they can contribute—this is the only way of human life. It is a difficult and hard end to reach, it has and will make mistakes, but today it marches triumphantly on in education and science, in home and food, with increased freedom of thought and deliverance from dogma. In the end communism will triumph. I want to help bring that day.”</p>
<p>“It is time to cease muting the fact that Dr. Du Bois was a genius and chose to be a Communist,” King said, in remarks published in Freedomways magazine. “Our irrational obsessive anti-communism has led us into too many quagmires to be retained as if it were a mode of scientific thinking.”</p>
<p>One of King’s closest advisers was Freedomways editor J.H. O’Dell, also known as Hunter Pitts O’Dell, a secret member of the CPUSA who would later join Jesse Jackson’s Operation PUSH. Another King adviser was New York attorney Stanley Levison, who had been involved in Communist Party financial affairs and was helping to arrange funding of the party by Moscow. He had recommended O’Dell to King.</p>
<p>The Kennedy brothers, President John F. Kennedy and Attorney General Robert F. Kennedy, had <a href="" type="internal">warned</a> Martin Luther King, Jr. against associating with communists. He ignored their warnings.</p>
<p>Jesse Jackson, one of King’s aides and considered by some to be King’s successor as the nation’s premier civil rights activist, was hailed by Freedomways as a “nationally known Freedom Fighter” when it ran his 1972 article on “Three Challenges to Organized Labor.”</p>
<p>Rep. Lewis, regarded by many as a civil rights icon like Martin Luther King, Jr., wrote a 1965 Freedomways article, “Paul Robeson: Inspirer of Youth,” about the famous actor and singer who had been a member of the CPUSA and admirer of Soviet dictator Joseph Stalin.</p>
<p>“He [Robeson] talked and listened to the representatives of the Communist Party,” wrote Lewis, then national chairman of the Student Non-Violent Coordinating Committee (SNCC). “In many ways,” he wrote, “we of SNCC are Paul Robeson’s spiritual children.”</p>
<p>In fact, former CPUSA official Manning Johnson testified in 1949 that that he saw Robeson “a number of times in the headquarters” of the CPUSA and that Robeson was, in fact, a party member. Johnson said Robeson wanted to be “the Black Stalin among Negroes.”</p>
<p>“Paul’s assignment was to work among the intellectuals, the professionals, and artists that the party was seeking to penetrate and influence along Communist lines,” Johnson testified.</p>
<p>In one of his more controversial statements, Robeson said that “American Negroes would never go to war against Russia,” because blacks loved Russia so much.</p>
<p>Although he invoked the Fifth Amendment when asked by a congressional committee about his party membership, the CPUSA admitted his party membership after his death.</p>
<p>Freedomways called Robeson a “Freedom fighter of the first magnitude” and ran an article headlined, “Paul Robeson: Great Friend of the Soviet People,” written by a Soviet journalist.</p>
<p>Rep. Lewis become famous in his own right, since his days with SNCC, when he and his Congressional Black Caucus colleagues claimed in 2010 the N-word was “shouted” at him by Tea Party members, when no camera recorded anything of the sort. Andrew Breitbart had promised $100,000 to anyone who could prove the epithets had been used.</p>
<p>For many years, black groups such as the NAACP were bitter foes of the CPUSA, knowing that its politics were divisive and not designed to foster racial harmony. NAACP official Herbert Hill wrote a famous article, “The Communist Party—Enemy of Negro Equality.”</p>
<p>When Communist Party member Frank Marshall Davis tried to stage a takeover of the Hawaii NAACP in 1949, the organization fought back, saying it did not want “unity” with the communists. Davis, who had moved from Chicago to Hawaii at the suggestion of Paul Robeson, was Barack Obama’s mentor for eight years in Hawaii before Obama went off to college.</p>
<p>In 1949, Jackie Robinson, the first black player in baseball, testified before the House Committee on Un-American Activities in opposition to communist manipulation of blacks. He said Robeson’s statement about blacks loving the Soviet Union was “silly” and added, “We can win our fight without the Communists and we don’t want their help.”</p>
<p>But Freedomways, the communists and their fellow-travelers continued to make inroads in the black community.</p>
<p>Other writers for Freedomways included:</p>
<p>The FBI says that Operation SOLO was launched because “America’s growing realization of the penetration of the U.S. government by the Soviets and the subsequent political debate over the role of communism in society became the focus of the day.”</p>
<p>It would appear that some of the documents, viewed in light of current events, demonstrate a lasting impact by the Communists on many black leaders, including Obama himself.</p> | true | 0 | newly declassified documents operation solo fbi program infiltrate communist party united states reveal journal called freedomways influential black community decades subsidized soviet chinese communist parties freedomways called one influential africanamerican literary political journals 1960s 1970s began 1961 ceased publication 1986 25 years served propaganda organ cpusa soviet front organizations world peace council freedomways published articles figures freedomways grew soviet campaign launched russian revolution exploit negro question us manipulate blacks members minority groups communist purposes goal soviet america 1981 communistinspired black liberation army help weather underground waged campaign terrorism murder resulted deaths two police officers brinks guard solo documents demonstrate soviet union illegally provided funding reportedly 28 million cpusa documents based fbi informants morris jack childs infiltrated highest levels cpusa participated meetings foreign communist parties president ronald reagan awarded morris childs posthumously jack presidential medal freedom work us fbi memo dated march 3 1959 summarized meeting cpusa officials soviet communist party reveals cpusa official james jackson asked soviet officials possibility negro magazine dealing theoretical questions jackson party secretary charge negro southern affairs freedomways came two years later fbi memorandum dated july 61961 refers funding cpusa communist parties soviet union china including 5000 cpusa chairman gus hall negro publication freedomways associates inc publisher freedomways june 8 1962 fbi memorandum refers 3000 isodore wofsy transmittal esther jackson cp functionary use negro magazine freedomways wofsy another important cpusa member esther jackson wife james jackson cpusa member served managing editor freedomways freedomways extreme ran notice hailing angela davis courageous black woman leader went trial murder davis beat murder rap became prominent cpusa official college professor university california santa cruz later started antiprison project critical resistance funded open society institute billionaire george soros despite reputation moderate martin luther king jr paid tribute web du bois joined cpusa 1961 event sponsored freedomways new york city du bois said joining party capitalism reform doomed selfdestruction universal selfishness bring social good communismthe effort give men need ask best contributethis way human life difficult hard end reach make mistakes today marches triumphantly education science home food increased freedom thought deliverance dogma end communism triumph want help bring day time cease muting fact dr du bois genius chose communist king said remarks published freedomways magazine irrational obsessive anticommunism led us many quagmires retained mode scientific thinking one kings closest advisers freedomways editor jh odell also known hunter pitts odell secret member cpusa would later join jesse jacksons operation push another king adviser new york attorney stanley levison involved communist party financial affairs helping arrange funding party moscow recommended odell king kennedy brothers president john f kennedy attorney general robert f kennedy warned martin luther king jr associating communists ignored warnings jesse jackson one kings aides considered kings successor nations premier civil rights activist hailed freedomways nationally known freedom fighter ran 1972 article three challenges organized labor rep lewis regarded many civil rights icon like martin luther king jr wrote 1965 freedomways article paul robeson inspirer youth famous actor singer member cpusa admirer soviet dictator joseph stalin robeson talked listened representatives communist party wrote lewis national chairman student nonviolent coordinating committee sncc many ways wrote sncc paul robesons spiritual children fact former cpusa official manning johnson testified 1949 saw robeson number times headquarters cpusa robeson fact party member johnson said robeson wanted black stalin among negroes pauls assignment work among intellectuals professionals artists party seeking penetrate influence along communist lines johnson testified one controversial statements robeson said american negroes would never go war russia blacks loved russia much although invoked fifth amendment asked congressional committee party membership cpusa admitted party membership death freedomways called robeson freedom fighter first magnitude ran article headlined paul robeson great friend soviet people written soviet journalist rep lewis become famous right since days sncc congressional black caucus colleagues claimed 2010 nword shouted tea party members camera recorded anything sort andrew breitbart promised 100000 anyone could prove epithets used many years black groups naacp bitter foes cpusa knowing politics divisive designed foster racial harmony naacp official herbert hill wrote famous article communist partyenemy negro equality communist party member frank marshall davis tried stage takeover hawaii naacp 1949 organization fought back saying want unity communists davis moved chicago hawaii suggestion paul robeson barack obamas mentor eight years hawaii obama went college 1949 jackie robinson first black player baseball testified house committee unamerican activities opposition communist manipulation blacks said robesons statement blacks loving soviet union silly added win fight without communists dont want help freedomways communists fellowtravelers continued make inroads black community writers freedomways included fbi says operation solo launched americas growing realization penetration us government soviets subsequent political debate role communism society became focus day would appear documents viewed light current events demonstrate lasting impact communists many black leaders including obama | 782 |
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<p>Shares of Oclaro (NASDAQ: OCLR) recently surged after the optical components manufacturer released its preliminary second quarter results. Revenue is expected to rise 63%-64% annually, compared to its prior forecast for 55%-64% growth. It expects its non-GAAP gross margin to hit 40%, boosting its non-GAAP operating income from $5.3 million a year ago to $36 million -- which tops its prior guidance of $22-$26 million. On a GAAP basis, Oclaro expects gross margin of 39.5% and operating income of $33 million.</p>
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<p>Image source: Getty Images.</p>
<p>Oclaro CEO Greg Dougherty attributed that growth to the company's "strong execution, a richer product mix, and favorable exchange rates." Analysts expect Oclaro's revenue and non-GAAP earnings to respectively rise 62% and 500% for the quarter when it reports its full results on Jan. 31. For the full year, Oclaro's revenue and earnings are expected to respectively grow 45% and 253%.</p>
<p>Those impressive growth figures explain why Oclaro rallied 160% over the past 12 months. But some analysts believe that rally hasn't ended -- Needham analyst Alex Henderson sees the stock rising more than 50% to $14 asthe company remains "an optical super cycle darling," while Stifel Nicolaus analyst Patrick Newton sees about 30% upside potential for similar reasons. Let's take a closer look at Oclaro's business to see why those estimates might be right.</p>
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<p>Oclaro makes optical components, modules, and subsystems for the service provider, enterprise, and data center markets. These customers are now facing bandwidth bottlenecks due to the increased usage of streaming video, cloud-based apps, application virtualization, and other data-intensive tasks. That growing demand has boosted demand for Oclaro's "100G and beyond" portfolio of high-speed optical products.</p>
<p>That demand has also lifted sales at bigger rivals like Finisar (NASDAQ: FNSR) and Lumentum (NASDAQ: LITE). Analysts expect both companies' revenues to rise about 18% this year, and are calling this industrywide growth a "super cycle" that won't peak anytime soon.</p>
<p>Research firm Markets and Markets estimates that the optical networking and communications market will morethan double from $12.6 billion in 2013 to nearly $26 billion by 2020. Last year, IDC predicted that spending on IT infrastructure for cloud environments will grow at a 5-year compound annual growth rateof 12.5% to $57.8 billion in 2020 -- which is great news for optical hardware suppliers.</p>
<p>Oclaro is expected to grow much faster than Finisar and Lumentum because it's much smaller. That's why Oclaro outperformed Finisar and Lumentum's respective rallies of 130% and 75% over the past 12 months. But Oclaro also has a lofty trailing P/E of 119, which is much higher than its industry average of 26. Finisar trades at 56 times earnings, and Lumentum has a negative P/E due to its losses last year.</p>
<p>But looking ahead, Oclaro's valuations look more reasonable. It trades at just 13 times next year's earnings, compared to Finisar's forward P/E of 11 and Lumentum's forward P/E of 15. Analysts expect Oclaro's earnings to grow at an average rate of 15% per year over the next five years, giving it a 5-year PEG ratio of 1.03. Since a PEG ratio under 1 is considered "cheap", Oclaro looks attractively priced relative to its earnings growth potential.</p>
<p>Oclaro and Lumentum could also benefit from Finisar's recent misstep in China. Finisar's 100G CFP2 product was recently found to beincompatible with Huawei's systems due to a firmware issue, and Rosenblatt analyst Jun Zhang estimates the blunder could turn Oclaro and Lumentum's comparable products into attractive alternatives.</p>
<p>The bullish thesis for Oclaro is simple and straightforward. The rising use of mobile devices, Internet of Things gadgets, cloud apps, and streaming media will boost workloads tremendously across multiple industries over the next few years.IT infrastructure providers must upgrade their optical hardware to meet those demands, benefiting top players in the market like Oclaro.</p>
<p>Oclaro's rising margins indicate that it has solid pricing power in the market, and that its earnings will continue improving. The stock might initially seem pricey, but it's cheap relative to its future earnings. Therefore, I believe that Oclaro could quietly outperform the market this year, although the stock doesn't enjoy as much coverage as some better-known tech plays.</p>
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<p>*Stock Advisor returns as of January 4, 2017</p>
<p><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 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 | shares oclaro nasdaq oclr recently surged optical components manufacturer released preliminary second quarter results revenue expected rise 6364 annually compared prior forecast 5564 growth expects nongaap gross margin hit 40 boosting nongaap operating income 53 million year ago 36 million tops prior guidance 2226 million gaap basis oclaro expects gross margin 395 operating income 33 million continue reading image source getty images oclaro ceo greg dougherty attributed growth companys strong execution richer product mix favorable exchange rates analysts expect oclaros revenue nongaap earnings respectively rise 62 500 quarter reports full results jan 31 full year oclaros revenue earnings expected respectively grow 45 253 impressive growth figures explain oclaro rallied 160 past 12 months analysts believe rally hasnt ended needham analyst alex henderson sees stock rising 50 14 asthe company remains optical super cycle darling stifel nicolaus analyst patrick newton sees 30 upside potential similar reasons lets take closer look oclaros business see estimates might right advertisement oclaro makes optical components modules subsystems service provider enterprise data center markets customers facing bandwidth bottlenecks due increased usage streaming video cloudbased apps application virtualization dataintensive tasks growing demand boosted demand oclaros 100g beyond portfolio highspeed optical products demand also lifted sales bigger rivals like finisar nasdaq fnsr lumentum nasdaq lite analysts expect companies revenues rise 18 year calling industrywide growth super cycle wont peak anytime soon research firm markets markets estimates optical networking communications market morethan double 126 billion 2013 nearly 26 billion 2020 last year idc predicted spending infrastructure cloud environments grow 5year compound annual growth rateof 125 578 billion 2020 great news optical hardware suppliers oclaro expected grow much faster finisar lumentum much smaller thats oclaro outperformed finisar lumentums respective rallies 130 75 past 12 months oclaro also lofty trailing pe 119 much higher industry average 26 finisar trades 56 times earnings lumentum negative pe due losses last year looking ahead oclaros valuations look reasonable trades 13 times next years earnings compared finisars forward pe 11 lumentums forward pe 15 analysts expect oclaros earnings grow average rate 15 per year next five years giving 5year peg ratio 103 since peg ratio 1 considered cheap oclaro looks attractively priced relative earnings growth potential oclaro lumentum could also benefit finisars recent misstep china finisars 100g cfp2 product recently found beincompatible huaweis systems due firmware issue rosenblatt analyst jun zhang estimates blunder could turn oclaro lumentums comparable products attractive alternatives bullish thesis oclaro simple straightforward rising use mobile devices internet things gadgets cloud apps streaming media boost workloads tremendously across multiple industries next yearsit infrastructure providers must upgrade optical hardware meet demands benefiting top players market like oclaro oclaros rising margins indicate solid pricing power market earnings continue improving stock might initially seem pricey cheap relative future earnings therefore believe oclaro could quietly outperform market year although stock doesnt enjoy much coverage betterknown tech plays 10 stocks like better oclaro 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 oclaro wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns january 4 2017 leo sun opens new window position stocks mentioned motley fool position stocks mentioned motley fool disclosure policy opens new window | 550 |
<p>If you think prescription drug costs are high now, imagine what costs would be without generic drugs. Roughly 25% of total prescription drug sales in 2016 were generics. But it's a different story altogether for biologics -- drugs made from living organisms or components of living organisms. Until 2010, <a href="https://www.fool.com/knowledge-center/what-is-a-biosimilar.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=4487468e-882a-11e7-a5fb-0050569d4be0&amp;utm_source=foxbusiness" type="external">biosimilars Opens a New Window.</a> to biologics weren't even legally allowed in the U.S.</p>
<p>Seven years later, biosimilars still haven't made a huge dent in helping control soaring drug costs in therapeutic categories like autoimmune diseases, where biologics dominate. Could it be that the system is rigged against biosimilars?</p>
<p>Continue Reading Below</p>
<p>One prime example of the challenges that biosimilars face is Amgen's (NASDAQ: AMGN) Amjevita. The big biotech won FDA approval last year for Amjevita, the first biosimilar to autoimmune disease drug Humira to obtain U.S. approval. Humira is the top-selling drug in the world, generating $16 billion for AbbVie (NYSE: ABBV) in 2016.</p>
<p>AbbVie is on track to make even more money from Humira this year, despite the approval for Amjevita. Why? Amgen still hasn't launched its biosimilar. AbbVie is fighting Amgen in court, alleging patent infringement. The trial doesn't even start until November 2019.</p>
<p>Humira technically lost patent exclusivity at the end of last year. However, that was only for the composition of matter patent for Humira. AbbVie has another 61 patents for the drug and intends to try to use every one of them to keep biosimilar competition off the market in the U.S. through 2022.</p>
<p>AbbVie's strategy makes sense. It's understandable that companies want to go on milking their cash cows for as long as possible. However, the situation with Humira and Amjevita highlights a key reason why biosimilars haven't had a huge impact so far on reigning in overall prescription drug spending. The U.S. legal system is so slow-moving that money-saving biosimilars don't get to market as quickly as they otherwise could.</p>
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<p>It can be tough for biosimilars even after they're launched commercially. Pfizer (NYSE: PFE) introduced its Remicade biosimilar, branded as Inflectra, in October 2016. Like Humira, Remicade treats various autoimmune diseases. In the first half of this year, Pfizer reported sales of Inflectra totaling $172 million, including revenue generated in the U.S. and Europe. Johnson &amp; Johnson (NYSE: JNJ) made $3.2 billion in the same period from Remicade.</p>
<p>Why hasn't Inflectra taken more market share away from Remicade? One reason is that Pfizer priced its biosimilar only 15% below Remicade. Even though that's a significant discount, there's little incentive for physicians to switch patients to the biosimilar.</p>
<p>A more important reason, though, behind Remicade's continued dominance is the strategy used by Johnson &amp; Johnson. The healthcare giant has established exclusive contracts for Remicade with payers representing nearly half of the market. Pfizer can't get Inflectra into those networks at all -- at least not yet.</p>
<p>J&amp;J has also used its other lines of business to its advantage. The company has bundled its drugs and medical devices in deals with hospitals. That makes Remicade just one part of a much larger contract. Ironically, Johnson &amp; Johnson's strategy has even allowed it to increase the price for Remicade, despite having new competition.</p>
<p>Novartis (NYSE: NVS) won FDA approval in 2015 for Zarxio, a biosimilar to Amgen's Neupogen. The Swiss drugmaker priced Zarxio 15% below the price of Neupogen. Over time, sales for Neupogen have declined significantly.</p>
<p>The same scenario is likely to unfold for Remicade. In fact, sales for J&amp;J's top-selling product slipped 10% year over year in the first half of 2017. In the end, payers want to save money. Either J&amp;J will have to match prices for its biosimilar rivals (either through discounts or rebates), or it will lose market share. Either way, prices will come down.</p>
<p>Humira will face a similar future. Even if AbbVie manages to fend off Amgen in court, it's just a matter of time before biosimilars begin chipping away at Humira's market share. When that time comes, AbbVie will have the same options that Johnson &amp; Johnson will have with Remicade.</p>
<p>It's probably an overstatement to say that the system is rigged against biosimilars. However, there are definitely plenty of aspects of the current system that favor incumbents with established products. Still, though, biosimilars will eventually bring down prices of biologics. Time is on their side.</p>
<p>10 stocks we like better than PfizerWhen 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=51cf01c4-0916-44f4-b881-e9d34b8bbd3e&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=4487468e-882a-11e7-a5fb-0050569d4be0&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now... and Pfizer 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 August 1, 2017</p>
<p><a href="http://my.fool.com/profile/TMFFishBiz/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=4487468e-882a-11e7-a5fb-0050569d4be0&amp;utm_source=foxbusiness" type="external">Keith Speights Opens a New Window.</a> owns shares of AbbVie and Pfizer. 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;uuid=4487468e-882a-11e7-a5fb-0050569d4be0&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | think prescription drug costs high imagine costs would without generic drugs roughly 25 total prescription drug sales 2016 generics different story altogether biologics drugs made living organisms components living organisms 2010 biosimilars opens new window biologics werent even legally allowed us seven years later biosimilars still havent made huge dent helping control soaring drug costs therapeutic categories like autoimmune diseases biologics dominate could system rigged biosimilars continue reading one prime example challenges biosimilars face amgens nasdaq amgn amjevita big biotech fda approval last year amjevita first biosimilar autoimmune disease drug humira obtain us approval humira topselling drug world generating 16 billion abbvie nyse abbv 2016 abbvie track make even money humira year despite approval amjevita amgen still hasnt launched biosimilar abbvie fighting amgen court alleging patent infringement trial doesnt even start november 2019 humira technically lost patent exclusivity end last year however composition matter patent humira abbvie another 61 patents drug intends try use every one keep biosimilar competition market us 2022 abbvies strategy makes sense understandable companies want go milking cash cows long possible however situation humira amjevita highlights key reason biosimilars havent huge impact far reigning overall prescription drug spending us legal system slowmoving moneysaving biosimilars dont get market quickly otherwise could advertisement tough biosimilars even theyre launched commercially pfizer nyse pfe introduced remicade biosimilar branded inflectra october 2016 like humira remicade treats various autoimmune diseases first half year pfizer reported sales inflectra totaling 172 million including revenue generated us europe johnson amp johnson nyse jnj made 32 billion period remicade hasnt inflectra taken market share away remicade one reason pfizer priced biosimilar 15 remicade even though thats significant discount theres little incentive physicians switch patients biosimilar important reason though behind remicades continued dominance strategy used johnson amp johnson healthcare giant established exclusive contracts remicade payers representing nearly half market pfizer cant get inflectra networks least yet jampj also used lines business advantage company bundled drugs medical devices deals hospitals makes remicade one part much larger contract ironically johnson amp johnsons strategy even allowed increase price remicade despite new competition novartis nyse nvs fda approval 2015 zarxio biosimilar amgens neupogen swiss drugmaker priced zarxio 15 price neupogen time sales neupogen declined significantly scenario likely unfold remicade fact sales jampjs topselling product slipped 10 year year first half 2017 end payers want save money either jampj match prices biosimilar rivals either discounts rebates lose market share either way prices come humira face similar future even abbvie manages fend amgen court matter time biosimilars begin chipping away humiras market share time comes abbvie options johnson amp johnson remicade probably overstatement say system rigged biosimilars however definitely plenty aspects current system favor incumbents established products still though biosimilars eventually bring prices biologics time side 10 stocks like better pfizerwhen 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 pfizer wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns august 1 2017 keith speights opens new window owns shares abbvie pfizer motley fool owns shares recommends johnson amp johnson motley fool disclosure policy opens new window | 536 |
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<p>Image source: Getty Images.</p>
<p>Continue Reading Below</p>
<p>With the stock market in nearly nonstop rally mode over the past six years, investors haven't needed to look far to uncover an abundance of growth stocks. But not all growth stocks are created equal: While some could still deliver extraordinary gains, others appear considerably overvalued, and might instead burden investors with hefty losses.</p>
<p>What exactlyisa growth stock? Though it's arbitrary, I'll define a growth stock as any company forecast to grow profits by 10% or more annually during the next five years. To decide what's "cheap," I'll use the PEG ratio, which compares a company's price-to-earnings ratio to its future growth rate. Any figure around or below one could signal a cheap stock.</p>
<p>Here are three companies that fit the bill.</p>
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<p>Generally, automakers aren't viewed as "growth stocks," but most investors probably haven't taken a good look at Fiat Chrysler Automobiles (NYSE: FCAU), which offers incredible growth potential in 2017 and beyond.</p>
<p>Like most automakers, Fiat Chrysler has been plagued by industry analyst predictions that U.S. auto sales are peaking. With China's recent slowdown in GDP growth and Europe's ongoing growth concerns, the U.S. has been propping up some of the world's largest automakers. If growth in the U.S. were to slow, Fiat Chrysler would certainly feel it. And, as the company's third-quarter earnings results showed, vehicle sales have been a bit light in Latin America, with revenue down $24 million on a year-over-year basis in Q3.</p>
<p>2017 Jeep Renegade. Image source: FCA Group.</p>
<p>Despite these concerns, it's mostly pedal to the metal for Fiat Chrysler. The company's Jeep brand is still leading the charge, with sales rising by 6% in fiscal 2016. Aside from redesigning some of the mainstays within the Jeep lineup, two aspects of the Jeep line have been hitting on all cylinders. First, Fiat Chrysler now has production facilities in China and Brazil that are helping reduce its production and transportation costs to the desired end market. Secondly, Fiat Chrysler's focus on smaller SUVs (e.g,, the Jeep Renegade) is hitting home with cost-conscious consumers around the globe.</p>
<p>Beyond Jeep, we're seeing a noticeable uptick in sales of SUVs, trucks, and yes, minivans. The Ram brand witnessed an 11% uptick in units sold in 2016, likely a reaction to an improving U.S. economy, as well as lower global crude prices, which lead to lower prices at the pump. Stable pump prices can entice consumers to buy trucks, SUVs, and minivans, which is great news for Fiat Chrysler since these vehicles have juicier margins.</p>
<p>Sporting a PEG ratio that's well below one and a forward P/E of just five, Fiat Chrysler looks to be a growth stock to consider buying.</p>
<p>Another cheap growth stock that could be worth a proverbial roll of the dice is gaming entertainment property owner Boyd Gaming (NYSE: BYD).</p>
<p>As you might have rightly surmised, the biggest constraint to Boyd Gaming's growth in the U.S. is consumer spending. Gaming is a cyclical industry, and it relies on strong GDP growth to entice consumers to open their wallets and head to the casino. Weaker-than-expected GDP growth in 2015 and much of 2016, compounded with the uncertainties of the transition to the Trump presidency, are all reasons why consumers may be a bit shy about their discretional spending.</p>
<p>Image source: Getty Images.</p>
<p>While I wouldn't deny these challenges, there are reasons to believe that Boyd's fortunes are going to keep improving. One of the prime pathways to growth for Boyd Gaming involves acquisitions. An ongoing low-rate environment has been conducive to borrowing, which has allowed Boyd to be aggressive with M&amp;A. In April, Boyd purchased Cannery Cassino Resorts' Las Vegas operations for $230 million, and also gobbled up the Aliante Casino Hotel and Spa for $380 million. All three properties are located in fast-growing North Las Vegas and position Boyd for superior growth in the years that lie ahead.</p>
<p>When applicable, Boyd has also been working to meld technology and innovation to drive customer experience and profitability higher. A 2014 deal with Bally Technologies allowed Boyd the opportunity to introduce new slot machine monitoring, marketing, player tracking, and accounting to a good number of its slot machines. Bally's technology also allows Boyd to offer players downloadable promotional slot machine credits, which could keep them engaged longer and boost brand loyalty. This isn't a technology that's implemented overnight, so it should generate continually improved returns throughout the remainder of the decade.</p>
<p>Looking ahead, Boyd Gaming's EPS is expected to grow from $0.79 in 2016 to an estimated $1.75 by 2019. With a PEG that's also below one, Boyd Gaming is certainly worth a look.</p>
<p>A final cheap growth stock worthy of investors' attention is specialty biopharmaceutical company Emergent BioSolutions (NYSE: EBS).</p>
<p>The biggest concern right now for specialty drugmakers is what might happen with pricing in the intermediate term. Donald Trump has, on multiple occasions, suggested that he would lower drug prices during his presidency, and even went so far as to suggest that drugmakers are "getting away with murder" in regard to their pricing power. More specifically, Emergent BioSolutions was recently hit after announcing its preliminary 2016 full-year sales, which assume a $20 million year-over-year decline at the midpoint as a result of lower BioThrax sales.</p>
<p>Image source: Getty Images.</p>
<p>But as with the other candidates above, Emergent BioSolutions remains intriguing despite its challenges. Whereas specialty drugmakers could find their pricing power handicapped given Trump's comments, Emergent is in a prime position as a biodefense company for the military. The aforementioned BioThrax vaccine is the only Food and Drug Administration-approved vaccine for pre-exposure protection against Anthrax. It currently makes up around half of the company's annual sales. Given its niche position, I would contend that pricing power won't be a concern for Emergent.</p>
<p>Even more so, Trump could wind up being an ally to Emergent. During his campaign, Trump suggested spending more on defense, which included boosting the manpower of all branches of the military. More military members probably means a higher number of vaccines needed.</p>
<p>There's also a really good chance that Emergent makes some serious administrative cost cuts in 2017. In its preliminary results press release, the company cautions that restructuring charges are likely. While that could provide a short-term drag on earnings, the result should be improved margins by as soon as 2018.</p>
<p>Emergent BioSolution's PEG of 1.3 isn't as low as Fiat Chrysler's or Boyd Gaming's, but the expected growth from $1.05 in full-year EPS in 2016 to an estimated $2.44 by 2019 can't be overlooked. Investors targeting cheap growth stocks should know the name Emergent BioSolutions.</p>
<p>10 stocks we like better than Fiat Chrysler Automobiles 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=1f9637bb-dfc4-4369-9c6e-33a7a3b5d1fa&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 Fiat Chrysler Automobiles 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 January 4, 2017</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>.The Motley Fool recommends Emergent BioSolutions. 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 stock market nearly nonstop rally mode past six years investors havent needed look far uncover abundance growth stocks growth stocks created equal could still deliver extraordinary gains others appear considerably overvalued might instead burden investors hefty losses exactlyisa growth stock though arbitrary ill define growth stock company forecast grow profits 10 annually next five years decide whats cheap ill use peg ratio compares companys pricetoearnings ratio future growth rate figure around one could signal cheap stock three companies fit bill advertisement generally automakers arent viewed growth stocks investors probably havent taken good look fiat chrysler automobiles nyse fcau offers incredible growth potential 2017 beyond like automakers fiat chrysler plagued industry analyst predictions us auto sales peaking chinas recent slowdown gdp growth europes ongoing growth concerns us propping worlds largest automakers growth us slow fiat chrysler would certainly feel companys thirdquarter earnings results showed vehicle sales bit light latin america revenue 24 million yearoveryear basis q3 2017 jeep renegade image source fca group despite concerns mostly pedal metal fiat chrysler companys jeep brand still leading charge sales rising 6 fiscal 2016 aside redesigning mainstays within jeep lineup two aspects jeep line hitting cylinders first fiat chrysler production facilities china brazil helping reduce production transportation costs desired end market secondly fiat chryslers focus smaller suvs eg jeep renegade hitting home costconscious consumers around globe beyond jeep seeing noticeable uptick sales suvs trucks yes minivans ram brand witnessed 11 uptick units sold 2016 likely reaction improving us economy well lower global crude prices lead lower prices pump stable pump prices entice consumers buy trucks suvs minivans great news fiat chrysler since vehicles juicier margins sporting peg ratio thats well one forward pe five fiat chrysler looks growth stock consider buying another cheap growth stock could worth proverbial roll dice gaming entertainment property owner boyd gaming nyse byd might rightly surmised biggest constraint boyd gamings growth us consumer spending gaming cyclical industry relies strong gdp growth entice consumers open wallets head casino weakerthanexpected gdp growth 2015 much 2016 compounded uncertainties transition trump presidency reasons consumers may bit shy discretional spending image source getty images wouldnt deny challenges reasons believe boyds fortunes going keep improving one prime pathways growth boyd gaming involves acquisitions ongoing lowrate environment conducive borrowing allowed boyd aggressive mampa april boyd purchased cannery cassino resorts las vegas operations 230 million also gobbled aliante casino hotel spa 380 million three properties located fastgrowing north las vegas position boyd superior growth years lie ahead applicable boyd also working meld technology innovation drive customer experience profitability higher 2014 deal bally technologies allowed boyd opportunity introduce new slot machine monitoring marketing player tracking accounting good number slot machines ballys technology also allows boyd offer players downloadable promotional slot machine credits could keep engaged longer boost brand loyalty isnt technology thats implemented overnight generate continually improved returns throughout remainder decade looking ahead boyd gamings eps expected grow 079 2016 estimated 175 2019 peg thats also one boyd gaming certainly worth look final cheap growth stock worthy investors attention specialty biopharmaceutical company emergent biosolutions nyse ebs biggest concern right specialty drugmakers might happen pricing intermediate term donald trump multiple occasions suggested would lower drug prices presidency even went far suggest drugmakers getting away murder regard pricing power specifically emergent biosolutions recently hit announcing preliminary 2016 fullyear sales assume 20 million yearoveryear decline midpoint result lower biothrax sales image source getty images candidates emergent biosolutions remains intriguing despite challenges whereas specialty drugmakers could find pricing power handicapped given trumps comments emergent prime position biodefense company military aforementioned biothrax vaccine food drug administrationapproved vaccine preexposure protection anthrax currently makes around half companys annual sales given niche position would contend pricing power wont concern emergent even trump could wind ally emergent campaign trump suggested spending defense included boosting manpower branches military military members probably means higher number vaccines needed theres also really good chance emergent makes serious administrative cost cuts 2017 preliminary results press release company cautions restructuring charges likely could provide shortterm drag earnings result improved margins soon 2018 emergent biosolutions peg 13 isnt low fiat chryslers boyd gamings expected growth 105 fullyear eps 2016 estimated 244 2019 cant overlooked investors targeting cheap growth stocks know name emergent biosolutions 10 stocks like better fiat chrysler automobiles 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 fiat chrysler automobiles wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns january 4 2017 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 windowthe motley fool recommends emergent biosolutions motley fool disclosure policy opens new window | 806 |
<p>The Republican establishment despises conservatives.</p>
<p>There’s no other way to read the <a href="https://www.nytimes.com/2015/10/13/opinion/the-republicans-incompetence-caucus.html?smid=tw-share" type="external">sneering rip</a> against conservatives by the New York Times’ resident faux-conservative David Brooks, who launched into a tirade against Rush Limbaugh, Ben Carson, Ted Cruz, and Newt Gingrich on Tuesday. Writing in the Times, Brooks attempted to sum up why the Republican caucus has become, in his words, “ungovernable.” He wrote:</p>
<p>The Republican Party’s capacity for effective self-governance degraded slowly, over the course of a long chain of rhetorical excesses, mental corruptions and philosophical betrayals. Basically, the party abandoned traditional conservatism for right-wing radicalism. Republicans came to see themselves as insurgents and revolutionaries, and every revolution tends toward anarchy and ends up devouring its own.</p>
<p>Right-wing radicalism? Modern conservatives see the damage the left has wrought: an ever expanding government, an ever left-shifting social structure, the destruction of the foundations of Western civilizations. More importantly, they see what conservatives like Brooks have done in the face of such groundshifting change: virtually nothing. Here is Brooks’ deeply arrogant description of his own brand of conservatism:</p>
<p>By traditional definitions, conservatism stands for intellectual humility, a belief in steady, incremental change, a preference for reform rather than revolution, a respect for hierarchy, precedence, balance and order, and a tone of voice that is prudent, measured and responsible. Conservatives of this disposition can be dull, but they know how to nurture and run institutions. They also see the nation as one organic whole. Citizens may fall into different classes and political factions, but they are still joined by chains of affection that command ultimate loyalty and love.</p>
<p>There’s only one problem: this is absolute horseshit. Traditional conservatism stands for principles, not just tactics. Conservatism prefers intellectual humility not because conservatives should politely demur in the face of civilization-destroying leftism, but because lack of intellectual humility leads to tyranny. Conservatism believes in incremental change only when the status quo is decent. It does not prefer incrementalism in rolling back the evils of radical leftism. The idiotic notion that establishment Republicans have done a wonderful job “nurturing and running institutions” has been disproved by years of useless establishment Republican governance. And as to the notion that the nation is “one organic whole…joined by chains of affection,” Brooks is living in a nation that no longer exists. He ought to listen to Barack Obama or Hillary Clinton talk once in a while.</p>
<p>Brooks seems convinced that everything will be okay, if we just speak nicely. Conservatives wonder what he’s smoking.</p>
<p>But to Brooks – a man who recently said that Obamacare had achieved “ <a href="http://www.breitbart.com/video/2014/03/29/david-brooks-obamacare-has-achieved-credibility/" type="external">credibility</a>” -- the real danger to the republic lies with “dangerous parts of the Republican Party.” Here’s Brooks rhetorically urinating on many of the most prominent proponents of conservatism in the last two decades:</p>
<p>Over the past 30 years, or at least since Rush Limbaugh came on the scene, the Republican rhetorical tone has grown ever more bombastic, hyperbolic and imbalanced. Public figures are prisoners of their own prose styles, and Republicans from Newt Gingrich through Ben Carson have become addicted to a crisis mentality.</p>
<p>One wonders whether Brooks has ever listened to five minutes of Rush Limbaugh, or whether Limbaugh is too gauche for his chichi sensibilities. Blaming Rush Limbaugh for conservative radicalism while ignoring Rush’s role in returning Congress to Republican control in 1994 seems odd; blasting Newt Gingrich, the architect of that victory, seems equally odd, when you’re talking about successful Republican movements.</p>
<p>But Brooks continues:</p>
<p>Civilization was always on the brink of collapse. Every setback, like the passage of Obamacare, became the ruination of the republic. Comparisons to Nazi Germany became a staple. This produced a radical mind-set.</p>
<p>Herein lies the problem with Brooks and his buddies: they never see crisis. Perhaps conservatives fall into the trap of worrying about crisis too often. But conservatives should be on war footing given the radicalism and tyranny of Barack Obama and his ever-ascendant left. Brooks seems convinced that everything will be okay, if we just speak nicely. Conservatives wonder what he’s smoking. Brooks and his friends find comparisons to Nazi Germany uncouth, and believe it could never happen here, ever, under any circumstances. Most Germans thought the same thing.</p>
<p>Brooks then says that his contempt for conservatives springs from their contempt for politics:</p>
<p>Politics is the process of making decisions amid diverse opinions. It involves conversation, calm deliberation, self-discipline, the capacity to listen to other points of view and balance valid but competing ideas and interests. But this new Republican faction regards the messy business of politics as soiled and impure. Compromise is corruption. Inconvenient facts are ignored. Countrymen with different views are regarded as aliens. Political identity became a sort of ethnic identity, and any compromise was regarded as a blood betrayal.</p>
<p>Brooks was dismissive and arrogant before; now he becomes vile. Conservatives don’t have contempt for politics. They have contempt for the left, and don’t see how useful idiots like Brooks believe that conservatives can compromise with a president who has determined that if he doesn’t get what he wants, he’ll just do it himself. The question for conservatives isn’t compromise: it’s trust. We don’t trust the left, and we don’t trust Brooks and those who ally with him to protect us from them. Compromise is a strategy, not a principle.</p>
<p>And why should conservatives trust “conservatives” like Brooks when he calls them racist for disagreeing with him? He says it’s nasty to view “countrymen with different views” as “alien” – even if their values are alien to the United States traditionally – but then “others” all conservatives as bigots.</p>
<p>Finally, Brooks says that conservatives are just plain incompetent:</p>
<p>This anti-political political ethos produced elected leaders of jaw-dropping incompetence. Running a government is a craft, like carpentry. But the new Republican officials did not believe in government and so did not respect its traditions, its disciplines and its craftsmanship. They do not accept the hierarchical structures of authority inherent in political activity…Really, have we ever seen bumbling on this scale, people at once so cynical and so naïve, so willfully ignorant in using levers of power to produce some tangible if incremental good? These insurgents can’t even acknowledge democracy’s legitimacy — if you can’t persuade a majority of your colleagues, maybe you should accept their position. You might be wrong!</p>
<p>Or, perhaps conservatives realize that Brooks’ traditional way of governing leads to epic failure. Running a government may have been a craft back when the Democrats weren’t taking a sledgehammer to the machinery. But how exactly does Brooks expect craftsmen to work when Harry Reid is shoving iron rods into the gears of government?</p>
<p>And most of all, does Brooks truly believe that conservatives have an obligation to give way all of America’s central tenets in the name of the majority? That’s the most anti-conservative position imaginable; the founders would have laughed at him openly for such foolishness. Edmund Burke, the founder of modern conservatism, would have scoffed at that populist notion.</p>
<p>Brooks concludes:</p>
<p>People who don’t accept democracy will be bad at conversation. They won’t respect tradition, institutions or precedent. These figures are masters at destruction but incompetent at construction. These insurgents are incompetent at governing and unwilling to be governed. But they are not a spontaneous growth. It took a thousand small betrayals of conservatism to get to the dysfunction we see all around.</p>
<p>It is worth noting that screaming about your humility and the arrogance of your opponents in the pages of The New York Times does not constitute being good at conversation.</p>
<p>More importantly, conservatives accept democracy. But more importantly, we accept the principles that undergird democracy: principles of individual liberty and limited government that are rejected wholesale by the left. There can be no compromise on those principles. Compromise of those principles is betrayal. That’s why we’re at an impasse in the Republican Party: not because conservatives stand up for conservatism, but because non-conservatives insist that compromise and political nicety, rather than principle, lie at conservatism’s heart.</p> | true | 0 | republican establishment despises conservatives theres way read sneering rip conservatives new york times resident fauxconservative david brooks launched tirade rush limbaugh ben carson ted cruz newt gingrich tuesday writing times brooks attempted sum republican caucus become words ungovernable wrote republican partys capacity effective selfgovernance degraded slowly course long chain rhetorical excesses mental corruptions philosophical betrayals basically party abandoned traditional conservatism rightwing radicalism republicans came see insurgents revolutionaries every revolution tends toward anarchy ends devouring rightwing radicalism modern conservatives see damage left wrought ever expanding government ever leftshifting social structure destruction foundations western civilizations importantly see conservatives like brooks done face groundshifting change virtually nothing brooks deeply arrogant description brand conservatism traditional definitions conservatism stands intellectual humility belief steady incremental change preference reform rather revolution respect hierarchy precedence balance order tone voice prudent measured responsible conservatives disposition dull know nurture run institutions also see nation one organic whole citizens may fall different classes political factions still joined chains affection command ultimate loyalty love theres one problem absolute horseshit traditional conservatism stands principles tactics conservatism prefers intellectual humility conservatives politely demur face civilizationdestroying leftism lack intellectual humility leads tyranny conservatism believes incremental change status quo decent prefer incrementalism rolling back evils radical leftism idiotic notion establishment republicans done wonderful job nurturing running institutions disproved years useless establishment republican governance notion nation one organic wholejoined chains affection brooks living nation longer exists ought listen barack obama hillary clinton talk brooks seems convinced everything okay speak nicely conservatives wonder hes smoking brooks man recently said obamacare achieved credibility real danger republic lies dangerous parts republican party heres brooks rhetorically urinating many prominent proponents conservatism last two decades past 30 years least since rush limbaugh came scene republican rhetorical tone grown ever bombastic hyperbolic imbalanced public figures prisoners prose styles republicans newt gingrich ben carson become addicted crisis mentality one wonders whether brooks ever listened five minutes rush limbaugh whether limbaugh gauche chichi sensibilities blaming rush limbaugh conservative radicalism ignoring rushs role returning congress republican control 1994 seems odd blasting newt gingrich architect victory seems equally odd youre talking successful republican movements brooks continues civilization always brink collapse every setback like passage obamacare became ruination republic comparisons nazi germany became staple produced radical mindset herein lies problem brooks buddies never see crisis perhaps conservatives fall trap worrying crisis often conservatives war footing given radicalism tyranny barack obama everascendant left brooks seems convinced everything okay speak nicely conservatives wonder hes smoking brooks friends find comparisons nazi germany uncouth believe could never happen ever circumstances germans thought thing brooks says contempt conservatives springs contempt politics politics process making decisions amid diverse opinions involves conversation calm deliberation selfdiscipline capacity listen points view balance valid competing ideas interests new republican faction regards messy business politics soiled impure compromise corruption inconvenient facts ignored countrymen different views regarded aliens political identity became sort ethnic identity compromise regarded blood betrayal brooks dismissive arrogant becomes vile conservatives dont contempt politics contempt left dont see useful idiots like brooks believe conservatives compromise president determined doesnt get wants hell question conservatives isnt compromise trust dont trust left dont trust brooks ally protect us compromise strategy principle conservatives trust conservatives like brooks calls racist disagreeing says nasty view countrymen different views alien even values alien united states traditionally others conservatives bigots finally brooks says conservatives plain incompetent antipolitical political ethos produced elected leaders jawdropping incompetence running government craft like carpentry new republican officials believe government respect traditions disciplines craftsmanship accept hierarchical structures authority inherent political activityreally ever seen bumbling scale people cynical naïve willfully ignorant using levers power produce tangible incremental good insurgents cant even acknowledge democracys legitimacy cant persuade majority colleagues maybe accept position might wrong perhaps conservatives realize brooks traditional way governing leads epic failure running government may craft back democrats werent taking sledgehammer machinery exactly brooks expect craftsmen work harry reid shoving iron rods gears government brooks truly believe conservatives obligation give way americas central tenets name majority thats anticonservative position imaginable founders would laughed openly foolishness edmund burke founder modern conservatism would scoffed populist notion brooks concludes people dont accept democracy bad conversation wont respect tradition institutions precedent figures masters destruction incompetent construction insurgents incompetent governing unwilling governed spontaneous growth took thousand small betrayals conservatism get dysfunction see around worth noting screaming humility arrogance opponents pages new york times constitute good conversation importantly conservatives accept democracy importantly accept principles undergird democracy principles individual liberty limited government rejected wholesale left compromise principles compromise principles betrayal thats impasse republican party conservatives stand conservatism nonconservatives insist compromise political nicety rather principle lie conservatisms heart | 759 |
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<p>As if they didn’t have enough on their plate worrying about funding their pending retirement, baby boomers are increasingly finding themselves sandwiched between generations and picking up the tab for their adult children and aging parents.</p>
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<p>According to Ameriprise, 93% of boomers are financially supporting their children while 58% are supporting their parents, making it hard to pad a nest egg.</p>
<p>“The majority of people helping family members don’t realize the impact on their ability to save,” says Suzanna de Baca, vice president of wealth strategies at Ameriprise Financial.</p>
<p>While it can be hard to turn away family, boomers need to prioritize their retirement savings. “It’s most important to plan for yourself and your retirement first before you plan for other people,” says Sandy Vaughn, financial solutions advisor and assistant vice president at Merrill Edge. “You can’t borrow for your retirement.”</p>
<p>For boomers financially supporting the older and younger generations, experts offer the following tips to lessen the financial blow.</p>
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<p>Budget</p>
<p>Before you provide financial support to your family, calculate the impact on your budget and retirement plans.</p>
<p>“If you find out that helping a parent or child will delay your retirement for 10 years, you may want to look at choices,” says de Baca. Consider how much, who you’re helping and the long-term repercussions before offering support.</p>
<p>Communicate</p>
<p>“It all starts with a conversation and communication,” says Joseph Montanaro, certified financial planner at USAA. Talking to your kids may be easier than to your parents since that turns the tables on the traditional relationship. “It’s the first step in making sure you’re covering your bases on both ends of the spectrum.”</p>
<p>No matter how uncomfortable these discussions may be, they are vital to establish needs and make sure decisions are right for everyone, says de Baca.</p>
<p>Encourage Your Child’s Independence</p>
<p>Adult children might be forced to move back home because of a divorce, job loss or financial difficulties, and how to best support them will vary. <a type="external" href="">&#160;</a></p>
<p>De Baca cautions against providing help for too long to avoid enabling a child. Set timelines for your child to get back on his or her feet to avoid compromising your own retirement. “If your child is able bodied and employable, continue to encourage that kid to go find a job.”</p>
<p>Make a contract with your child before supply any monetary support, recommends Ted Sarenski, certified public accountant financial planner and CEO of Blue Ocean Strategic Capital. “They need to do what they need to do to become financially independent and move out.” Entering into a rental agreement may encourage your child to be independent and help with household expenses.</p>
<p>“Parents have to learn to say ‘no’ and to teach their children to be independent. They have to be okay watching their children struggle,” says Sarenski.</p>
<p>Encourage your child to move away if there aren’t any job opportunities where you live or discuss education opportunities that could help spur job opportunities, suggests Montanaro.</p>
<p>Manage Your Parents’ Finances</p>
<p>Before providing money to parents, you need to have a clear picture of their financial situation. “Understand what your parents have—income, assets and liabilities,” says Montanaro. That basic snapshot will identify any spending or income red flags.</p>
<p>Depending on your parents’ age, it may be difficult for them to find a new source of income, says de Baca. You may have to pay their fixed expenses, like housing, food or utilities, and make sure their basic needs are met.</p>
<p>How to Help Your Parents:</p>
<p>Consider a reverse mortgage. This may make sense if your parents have equity in their home but no other resources, says Montanaro. On the flip side, it might make more financial sense for parents to sell their home.</p>
<p>If your parents don’t want to move, a reverse mortgage can help them stay independent, says Sarenski. Keep in mind that reverse mortgages don’t account for inflation in the long term. “If someone’s in their late 70s or early 80s, they’ll get a much bigger payment. They won’t live long enough where inflation becomes a problem.”</p>
<p>Collect government benefits. Montanaro suggests making sure your parents are collecting all the government benefits they’re entitled to, like those offered by the Department of&#160;Veterans Affairs and Social Security benefits.</p>
<p>If your parent needs custodial care, understand how Medicare and Medicaid work, especially if you can’t afford to pay for their medical expenses, he adds. “You’ve the Medicaid safety net but if you get to that point, you’ve exhausted resources and given up choice in type and place of care.”</p>
<p>Have your parents’ paperwork in order. “Make sure there’s a decision-making framework in place for powers of attorney and a living will,” says Montanaro. If something unfortunate happens to your parents, you won’t have to figure out who has the authority in the middle of a crisis.</p>
<p>Move parents in. “One of the main things that puts strain is everyone has to live separately in their own homes,” says Sarenski. Living together can be a way to pool resources and save money. An “in-law apartment” can be a great way for your parents to have separate space while living with you.</p>
<p>“If someone moves in, look at the math to see how much you save doing that,” says de Baca. There’s an emotional and financial concern and this may be a temporary situation if a child moves back home. “Sometimes a child needs time to get on their feet,” says de Baca.</p> | true | 0 | didnt enough plate worrying funding pending retirement baby boomers increasingly finding sandwiched generations picking tab adult children aging parents continue reading according ameriprise 93 boomers financially supporting children 58 supporting parents making hard pad nest egg majority people helping family members dont realize impact ability save says suzanna de baca vice president wealth strategies ameriprise financial hard turn away family boomers need prioritize retirement savings important plan retirement first plan people says sandy vaughn financial solutions advisor assistant vice president merrill edge cant borrow retirement boomers financially supporting older younger generations experts offer following tips lessen financial blow advertisement budget provide financial support family calculate impact budget retirement plans find helping parent child delay retirement 10 years may want look choices says de baca consider much youre helping longterm repercussions offering support communicate starts conversation communication says joseph montanaro certified financial planner usaa talking kids may easier parents since turns tables traditional relationship first step making sure youre covering bases ends spectrum matter uncomfortable discussions may vital establish needs make sure decisions right everyone says de baca encourage childs independence adult children might forced move back home divorce job loss financial difficulties best support vary 160 de baca cautions providing help long avoid enabling child set timelines child get back feet avoid compromising retirement child able bodied employable continue encourage kid go find job make contract child supply monetary support recommends ted sarenski certified public accountant financial planner ceo blue ocean strategic capital need need become financially independent move entering rental agreement may encourage child independent help household expenses parents learn say teach children independent okay watching children struggle says sarenski encourage child move away arent job opportunities live discuss education opportunities could help spur job opportunities suggests montanaro manage parents finances providing money parents need clear picture financial situation understand parents haveincome assets liabilities says montanaro basic snapshot identify spending income red flags depending parents age may difficult find new source income says de baca may pay fixed expenses like housing food utilities make sure basic needs met help parents consider reverse mortgage may make sense parents equity home resources says montanaro flip side might make financial sense parents sell home parents dont want move reverse mortgage help stay independent says sarenski keep mind reverse mortgages dont account inflation long term someones late 70s early 80s theyll get much bigger payment wont live long enough inflation becomes problem collect government benefits montanaro suggests making sure parents collecting government benefits theyre entitled like offered department of160veterans affairs social security benefits parent needs custodial care understand medicare medicaid work especially cant afford pay medical expenses adds youve medicaid safety net get point youve exhausted resources given choice type place care parents paperwork order make sure theres decisionmaking framework place powers attorney living says montanaro something unfortunate happens parents wont figure authority middle crisis move parents one main things puts strain everyone live separately homes says sarenski living together way pool resources save money inlaw apartment great way parents separate space living someone moves look math see much save says de baca theres emotional financial concern may temporary situation child moves back home sometimes child needs time get feet says de baca | 530 |
<p>Canadian insurer Manulife Financial Corp. is exploring a possible initial public offering or spinoff of its John Hancock Financial Services Inc. unit, according to people familiar with the plans.</p>
<p>If it proceeds with a breakup of the Toronto-based company, Manulife would be the latest life insurer to hive off a large part of its business. Industry executives have often cited the impact of low interest rates and the damage they do to some of the insurers' basic products. A move by Manulife would follow rival insurers MetLife Inc., and AXA SA in shedding large U.S. operations built around sales of life insurance, retirement-income annuities and other savings products to American families.</p>
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<p>Manulife has been under pressure from some of its shareholders to sell John Hancock after years of disappointing returns from the U.S. unit, according to two people familiar with the company.</p>
<p>Manulife initially jumped into the U.S. life-insurance market with the purchase of John Hancock in 2004. The Boston-based insurer, which was founded in 1862, was bought for roughly $10.3 billion. The purchase was announced with great fanfare as the keystone for the Canadian insurer's global strategy to expand in the U.S. But after years of disappointing returns from the business, which recently accounted for nearly 60% of Manulife's assets under management and administration, the Canadian insurer is instead focusing on expanding in Asia.</p>
<p>As recently as two years ago, Manulife reviewed plans that included a possible spinoff of the U.S. business. That proposal was dropped at the time.</p>
<p>Manulife's potential IPO or spinoff follows some months of work by investment bank Morgan Stanley to sell pieces or all of the John Hancock unit, one person said.</p>
<p>In recent analyst and investor events, Manulife executives have discussed divesting some weak parts of John Hancock. These included at least some blocks of long-term-care insurance and lifetime-income guarantees, according to a company presentation. Those are among the products harmed the most by low interest rates. Long-term-care policies typically pay for in-home aides or nursing homes. John Hancock quit selling long-term-care policies to individuals last year.</p>
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<p>Roy Gori, who will become chief executive in October after current CEO Don Guloien retires, said during a session with investors in Hong Kong last month that he was "impatient" to shed the businesses.</p>
<p>At issue for most life-insurance firms is simple economics around policies. Most consumers buy long-term-care policies when they are in their 60s but don't file claims until they are in their 80s. This means insurers are exposed to decades of interest-rate risk.</p>
<p>Given global interest rates have been near zero for almost an entire decade, insurers have earned far less in investment income on older versions of the policies than anticipated when sold, and some have taken repeated charges against earnings to reflect the policies' poor financial results.</p>
<p>In addition to a potential move from Manulife, MetLife is nearing the final stages of divesting much of its U.S. retail-life insurance business -- the historic core of the company. Analysts estimate that MetLife's spinoff, named Brighthouse Financial, will have about $11 billion of adjusted book value, which is its assets minus liabilities.</p>
<p>Meanwhile, Paris-based insurance conglomerate AXA is planning to take its U.S. life-insurance operations public with a book value of about $14 billion to $15 billion, according to people familiar with the matter.</p>
<p>Over the past several years, some life insurers have sought to sell blocks of out-of-favor product lines to eliminate the earnings drag.</p>
<p>But buyers have been scarce for large deals, and striking a pact can involve booking a large loss for the parent.</p>
<p>As a result, a spinoff to existing shareholders of parts of a company's U.S. life-insurance operations -- not just the most-troubled product lines -- can become the preferred route for a divestiture, industry investment bankers, analysts and consultants say.</p>
<p>John Hancock contributed almost half of Manulife's closely watched "core" earnings of 1.1 billion Canadian dollars ($846.4 million) during the first quarter. The unit also accounted for almost 60% of Manulife's C$1.004 trillion assets under management and administration at the end of the first quarter, according to filings.</p>
<p>John Hancock's businesses include selling life insurance, mutual funds and other investment products to individuals and running 401(k) retirement-savings programs for employers. Outside the U.S., Manulife offers investment management, retirement funds, real-estate and wealth-management services in Canada and throughout Asia.</p>
<p>Manulife's "legacy businesses" include its U.S. long-term-care policies and certain other contracts with long-term guarantees. It has a book value of C$12.5 billion, according to an estimate by RBC Capital Markets analyst Darko Mihelic.</p>
<p>Divesting John Hancock would allow Manulife to free up regulatory capital and could add $5 a share to Manulife's stock price of roughly C$24 on the Toronto Stock Exchange, said Mr. Mihelic in a research report.</p>
<p>Manulife's shares recently traded at $19.52 on the New York Stock Exchange.</p>
<p>Write to Leslie Scism at [email protected], Vipal Monga at [email protected] and Jacquie McNish at [email protected]</p>
<p>(END) Dow Jones Newswires</p>
<p>July 13, 2017 12:53 ET (16:53 GMT)</p> | true | 0 | canadian insurer manulife financial corp exploring possible initial public offering spinoff john hancock financial services inc unit according people familiar plans proceeds breakup torontobased company manulife would latest life insurer hive large part business industry executives often cited impact low interest rates damage insurers basic products move manulife would follow rival insurers metlife inc axa sa shedding large us operations built around sales life insurance retirementincome annuities savings products american families continue reading manulife pressure shareholders sell john hancock years disappointing returns us unit according two people familiar company manulife initially jumped us lifeinsurance market purchase john hancock 2004 bostonbased insurer founded 1862 bought roughly 103 billion purchase announced great fanfare keystone canadian insurers global strategy expand us years disappointing returns business recently accounted nearly 60 manulifes assets management administration canadian insurer instead focusing expanding asia recently two years ago manulife reviewed plans included possible spinoff us business proposal dropped time manulifes potential ipo spinoff follows months work investment bank morgan stanley sell pieces john hancock unit one person said recent analyst investor events manulife executives discussed divesting weak parts john hancock included least blocks longtermcare insurance lifetimeincome guarantees according company presentation among products harmed low interest rates longtermcare policies typically pay inhome aides nursing homes john hancock quit selling longtermcare policies individuals last year advertisement roy gori become chief executive october current ceo guloien retires said session investors hong kong last month impatient shed businesses issue lifeinsurance firms simple economics around policies consumers buy longtermcare policies 60s dont file claims 80s means insurers exposed decades interestrate risk given global interest rates near zero almost entire decade insurers earned far less investment income older versions policies anticipated sold taken repeated charges earnings reflect policies poor financial results addition potential move manulife metlife nearing final stages divesting much us retaillife insurance business historic core company analysts estimate metlifes spinoff named brighthouse financial 11 billion adjusted book value assets minus liabilities meanwhile parisbased insurance conglomerate axa planning take us lifeinsurance operations public book value 14 billion 15 billion according people familiar matter past several years life insurers sought sell blocks outoffavor product lines eliminate earnings drag buyers scarce large deals striking pact involve booking large loss parent result spinoff existing shareholders parts companys us lifeinsurance operations mosttroubled product lines become preferred route divestiture industry investment bankers analysts consultants say john hancock contributed almost half manulifes closely watched core earnings 11 billion canadian dollars 8464 million first quarter unit also accounted almost 60 manulifes c1004 trillion assets management administration end first quarter according filings john hancocks businesses include selling life insurance mutual funds investment products individuals running 401k retirementsavings programs employers outside us manulife offers investment management retirement funds realestate wealthmanagement services canada throughout asia manulifes legacy businesses include us longtermcare policies certain contracts longterm guarantees book value c125 billion according estimate rbc capital markets analyst darko mihelic divesting john hancock would allow manulife free regulatory capital could add 5 share manulifes stock price roughly c24 toronto stock exchange said mr mihelic research report manulifes shares recently traded 1952 new york stock exchange write leslie scism lesliescismwsjcom vipal monga vipalmongawsjcom jacquie mcnish jacquiemcnishwsjcom end dow jones newswires july 13 2017 1253 et 1653 gmt | 531 |
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<p>Yum! Brands' (NYSE: YUM) KFC fast-food restaurants have been a sore spot for the company over the past few years. The chain's sales in China, once considered a pillar of growth, faded due to avian flu outbreaks and a brand-tarnishing scandal involving expired meat. That decline, along with pressure from activist investors, convinced Yum! to plan a <a href="http://www.fool.com/investing/general/2015/12/15/3-things-to-know-about-yum-brands-incs-big-split.aspx?source=eptfxblnk0000004" type="external">future spin-off Opens a New Window.</a> for its Chinese business.</p>
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<p>Image source: KFC.com.</p>
<p>Unfortunately, things aren't looking much better for Colonel Sanders back at home. A report from QSR Magazine last August revealed that KFC had fallen out of the top ten fast food chains in America for 2014.It also generated 27% less domestic revenue than Chick-fil-A, which ranked 8th overall and became the most popular fried chicken chain in the country.</p>
<p>To make matters worse, privately held Chick-fil-A generated more than triple the average sales of KFC per restaurant, with less than half as many franchised and company-owned locations. Chick-fil-A also closes every Sunday, while most KFC locations are open seven days a week.</p>
<p>Chick-fil-A constantly receives high marks in terms of its food and customer service. Consumer Reports repeatedly ranked Chick-fil-A as one of the top chains in terms of "solicitous, prompt, and accurate service" while KFC and fellow Yum! chains Taco Bell and Pizza Hut failedto make the cut.</p>
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<p>The American Customer Satisfaction Index's Annual Restaurant Survey from last year alsoranked Chick-fil-A as America's favorite restaurant in terms of food, restaurant layout, cleanliness, and overall satisfaction. Chick-fil-A reportedly only accepts 0.4% of all franchise applications it receives each year to ensure that franchisees provide customers with a consistent dining experience.</p>
<p>Chick-fil-A's new Manhattan location. Image source: Chick-fil-A.</p>
<p>By comparison, KFC frequently resorted to marketing gimmicks and outrageous menu items to generate attention. After founder Harland Sanders passed away in 1980, KFC stopped using his likeness and the brand's red-and-white stripes in its marketing campaigns, and made new ads targeting younger customers.</p>
<p>In the 1990s, KFC introduced a cartoon Colonel and renamed the chain from Kentucky Fried Chicken to "KFC" to highlight its other menu items. KFC then launched new menu items like popcorn chicken and the disastrous Double Down "meat sandwich." Meanwhile, rumors of KFC using genetically modified "Franken-chickens" persisted, resulting in poor public comparisons to Chick-fil-A -- which was notably the first U.S restaurant to start serving antibiotic-free chicken in 2014.</p>
<p>Nearly a quarter of KFC's revenue (excluding China) came from the U.S. market in 2015. During the year, systemwide sales in the U.S. rose just 2%, underperforming KFC's global (excluding China) constant currency sales growth of 7%. KFC's sales in the U.S. and Canada were also notably lower than any other geographic region.</p>
<p>KFC is fighting back against Chick-fil-A and other rivals with a new marketing and reinvention campaign, dubbed the "Re-Colonelization," which includes bringing back Colonel Harland Sanders as the company's mascot, remodeling stores, and retraining employees to ensure higher customer satisfaction.</p>
<p>It's similar to what Starbucks founder Howard Schultz did when hereturned as CEO in 2008. Schultz dumped the company'smisguided attempts to sell stuffed animals, CDs, and other gifts, its book, music, andmovie promotion deals, and temporarily closed stores to retrain employees to make better coffee. More importantly, Schultz focused on expanding Starbucks' presence in new markets like China.Schultz's new strategies worked wonders, and Starbucks stock has soared 500% since his return.</p>
<p>Bringing back the Colonel and retraining employees might be a step in the right direction, but QSR's numbers indicate that KFC has a long way to go before it can win over Chick-fil-A customers.</p>
<p>Yum investors should also note that Chick-fil-A isn't KFC's only problem. Americans' love for fast food is fading, and healthier, bistro-like quick serve chains like Panera Bread are gaining market share. According to QSR, Panera generates about 2.6 times more sales per location than KFC. New chicken wing challengers like Wingstop (NASDAQ: WING) -- which posted 16% sales growth and 4.6% comps growth last quarter -- could also cause more headaches for KFC.</p>
<p>KFC is only one of Yum!'s three core brands, and the U.S. only represents about a fourth of its overall sales. Therefore, investors shouldn't panic about the rising popularity of Chick-fil-A yet. But if KFC's new marketing and reinvention push falls flat, Chick-fil-A could shatter the Colonel's chances of becoming an American fast food icon again.</p>
<p>The article <a href="http://www.fool.com/investing/2016/05/31/should-yum-brands-worry-about-the-rise-of-chick-fi.aspx" type="external">Should Yum! Brands Worry About The Rise of Chick-fil-A? Opens a New Window.</a> originally appeared on Fool.com.</p>
<p><a href="http://my.fool.com/profile/TMFSunLion/info.aspx?source=eptfxblnk0000004" type="external">Leo Sun Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Panera Bread and Starbucks. 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 | yum brands nyse yum kfc fastfood restaurants sore spot company past years chains sales china considered pillar growth faded due avian flu outbreaks brandtarnishing scandal involving expired meat decline along pressure activist investors convinced yum plan future spinoff opens new window chinese business continue reading image source kfccom unfortunately things arent looking much better colonel sanders back home report qsr magazine last august revealed kfc fallen top ten fast food chains america 2014it also generated 27 less domestic revenue chickfila ranked 8th overall became popular fried chicken chain country make matters worse privately held chickfila generated triple average sales kfc per restaurant less half many franchised companyowned locations chickfila also closes every sunday kfc locations open seven days week chickfila constantly receives high marks terms food customer service consumer reports repeatedly ranked chickfila one top chains terms solicitous prompt accurate service kfc fellow yum chains taco bell pizza hut failedto make cut advertisement american customer satisfaction indexs annual restaurant survey last year alsoranked chickfila americas favorite restaurant terms food restaurant layout cleanliness overall satisfaction chickfila reportedly accepts 04 franchise applications receives year ensure franchisees provide customers consistent dining experience chickfilas new manhattan location image source chickfila comparison kfc frequently resorted marketing gimmicks outrageous menu items generate attention founder harland sanders passed away 1980 kfc stopped using likeness brands redandwhite stripes marketing campaigns made new ads targeting younger customers 1990s kfc introduced cartoon colonel renamed chain kentucky fried chicken kfc highlight menu items kfc launched new menu items like popcorn chicken disastrous double meat sandwich meanwhile rumors kfc using genetically modified frankenchickens persisted resulting poor public comparisons chickfila notably first us restaurant start serving antibioticfree chicken 2014 nearly quarter kfcs revenue excluding china came us market 2015 year systemwide sales us rose 2 underperforming kfcs global excluding china constant currency sales growth 7 kfcs sales us canada also notably lower geographic region kfc fighting back chickfila rivals new marketing reinvention campaign dubbed recolonelization includes bringing back colonel harland sanders companys mascot remodeling stores retraining employees ensure higher customer satisfaction similar starbucks founder howard schultz hereturned ceo 2008 schultz dumped companysmisguided attempts sell stuffed animals cds gifts book music andmovie promotion deals temporarily closed stores retrain employees make better coffee importantly schultz focused expanding starbucks presence new markets like chinaschultzs new strategies worked wonders starbucks stock soared 500 since return bringing back colonel retraining employees might step right direction qsrs numbers indicate kfc long way go win chickfila customers yum investors also note chickfila isnt kfcs problem americans love fast food fading healthier bistrolike quick serve chains like panera bread gaining market share according qsr panera generates 26 times sales per location kfc new chicken wing challengers like wingstop nasdaq wing posted 16 sales growth 46 comps growth last quarter could also cause headaches kfc kfc one yums three core brands us represents fourth overall sales therefore investors shouldnt panic rising popularity chickfila yet kfcs new marketing reinvention push falls flat chickfila could shatter colonels chances becoming american fast food icon article yum brands worry rise chickfila opens new window originally appeared foolcom leo sun opens new window position stocks mentioned motley fool owns shares recommends panera bread starbucks 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 | 575 |
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<p>In China's factories, the robots are rising.</p>
<p>Continue Reading Below</p>
<p>For decades, manufacturers employed waves of young migrant workers from China's countryside to work at countless factories in coastal provinces, churning out cheap toys, clothing and electronics that helped power the country's economic ascent.</p>
<p>Now, factories are rapidly replacing those workers with automation, a pivot that's encouraged by rising wages and new official directives aimed at helping the country move away from low-cost manufacturing as the supply of young, pliant workers shrinks.</p>
<p>It's part of a broader overhaul of the economy as China seeks to vault into the ranks of wealthy nations. But it comes as the country's growth slows amid tepid global demand that's adding pressure on tens of thousands of manufacturers.</p>
<p>With costs rising and profits shrinking, Chinese manufacturers "will all need to face the fact that only by successfully transitioning from the current labor-oriented mode to more automated manufacturing will they be able to survive in the next few years," said Jan Zhang, an automation expert at IHS Technology in Shanghai.</p>
<p>Shenzhen Rapoo Technology Co. is among the companies at ground zero of this transformation. At its factory in the southern Chinese industrial boomtown of Shenzhen, orange robot arms work alongside human operators assembling computer mice and keyboards.</p>
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<p>"What we are doing here is a revolution" in Chinese manufacturing, said Pboll Deng, Rapoo's deputy general manager.</p>
<p>The company began its push into automation five years ago. Rapoo installed 80 robots made by Sweden's ABB Ltd. to assemble mice, keyboards and their sub-components. The robots allowed the company to save $1.6 million each year and trim its workforce to less than 1,000 from a peak of more than 3,000 in 2010.</p>
<p>Such upgrading underscores the grand plans China's communist leaders have for industrial robotics. President Xi Jinping called in a speech last year for a "robot revolution" in a nod to automation's vital role in raising productivity.</p>
<p>Authorities have announced measures such as subsidies and tax incentives over the past three years to encourage industrial automation as well as development of a homegrown robotics industry.</p>
<p>Some provinces have set up their own "Man for Machine" programs aimed at replacing workers with robots.</p>
<p>Guangdong, a manufacturing heartland in southern China, said in March it would invest 943 billion yuan ($148 billion) to encourage nearly 2,000 large manufacturers to buy robots, the official Xinhua news agency reported. Guangzhou, the provincial capital, aims to have 80 percent of manufacturing automated by 2020.</p>
<p>A relentless surge in wages is adding impetus to the automation revolution. China relied on a seemingly endless supply of cheap labor for decades to power its economic expansion. That equation is changing as the country's working age population stops growing and more Chinese graduate from university, resulting in a dwindling supply of unskilled workers, annual double-digit percentage increases in the minimum wage and rising labor unrest.</p>
<p>Deng said Rapoo's wage bill rising 15-20 percent a year was one big factor driving its use of robots.</p>
<p>"Frontline workers, their turnover rate is really high. More and people are unwilling to do repetitive jobs. So these two issues put the manufacturing industry in China under huge pressure," he said.</p>
<p>China's auto industry was the trailblazer for automation, but other industries are rapidly adopting the technology as robots become smaller, cheaper and easier to use. It now only takes on average 1.3 years for an industrial robot in China to pay back its investment, down from 11.8 years in 2008, according to Goldman Sachs.</p>
<p>Companies such as electronics maker TCL Corp. are using robots to produce higher-value goods. At one factory in Shenzhen, TCL uses 978 machines to produce flat screen TV panels. At another TCL plant in Hefei, near Shanghai, steel refrigerator frames are bent into shape before being plucked by a blue Yasakawa robot arm that stacks them in neat rows for further assembly.</p>
<p>Fridges and big washing machines have heavy internal components, so "if you use automated robots to make them, they also let you cut your labor intensity by a lot," said TCL Chairman Tomson Li.</p>
<p>China held the title of world's biggest market for industrial robots for the second straight year in 2014, with sales rising by more than half to 56,000, out of a total of 224,000 sold globally, according to the International Federation of Robotics.</p>
<p>There's plenty more room for explosive sales growth. China has about 30 robots for every 10,000 factory workers compared with 437 in South Korea and 152 in the United States. The global average is 62. Beijing wants China's number to rise to 100 by 2020.</p>
<p>The switch to robots has raised fears that it will contribute to slowing job though there are few signs that's happening yet.</p>
<p>Deng said Rapoo hasn't had to resort to layoffs. Rather, the company is just not replacing workers who quit.</p>
<p>"It's not simply replacing the operation of workers by robot. We do more than that. We are making a robot platform" in which humans and machines work together to make production more flexible, he said.</p>
<p>On a recent tour of Rapoo's factory, Deng pointed out the efficiencies.</p>
<p>As a conveyor belt carried circuit boards out of an industrial soldering machine, a robot arm removed them from metal jigs and placed them on another belt. Human workers typically do this job in other factories, Deng said, but turnover is high because of the heat and repetitiveness.</p>
<p>In a glass-walled room, robots assembled receivers for wireless mice, tasks that were previously done by 26 people, Deng said. Now, one or two humans supervise as a laser automatically fuses shut metal USB plug housings, four at a time, while steps away, robot arms slide the plugs into plastic sleeves.</p>
<p>Automation means "accuracy can still remain very high and there are seldom failures for the robots," said Deng.</p>
<p>Boosting quality also helps China's companies achieve another national goal of shedding their reputation as shoddy, low cost producers to compete with global rivals.</p>
<p>Automation will allow Chinese factories to grab a bigger share of industries where accuracy and precision are crucial, such as aerospace, medical devices and optical components, said Derick Louie, of the Hong Kong Productivity Council.</p>
<p>Makers of toys and other low-profit consumer goods, however, "probably will have to move outside of China due to rising labor costs and environmental taxation," he said.</p> | true | 0 | chinas factories robots rising continue reading decades manufacturers employed waves young migrant workers chinas countryside work countless factories coastal provinces churning cheap toys clothing electronics helped power countrys economic ascent factories rapidly replacing workers automation pivot thats encouraged rising wages new official directives aimed helping country move away lowcost manufacturing supply young pliant workers shrinks part broader overhaul economy china seeks vault ranks wealthy nations comes countrys growth slows amid tepid global demand thats adding pressure tens thousands manufacturers costs rising profits shrinking chinese manufacturers need face fact successfully transitioning current labororiented mode automated manufacturing able survive next years said jan zhang automation expert ihs technology shanghai shenzhen rapoo technology co among companies ground zero transformation factory southern chinese industrial boomtown shenzhen orange robot arms work alongside human operators assembling computer mice keyboards advertisement revolution chinese manufacturing said pboll deng rapoos deputy general manager company began push automation five years ago rapoo installed 80 robots made swedens abb ltd assemble mice keyboards subcomponents robots allowed company save 16 million year trim workforce less 1000 peak 3000 2010 upgrading underscores grand plans chinas communist leaders industrial robotics president xi jinping called speech last year robot revolution nod automations vital role raising productivity authorities announced measures subsidies tax incentives past three years encourage industrial automation well development homegrown robotics industry provinces set man machine programs aimed replacing workers robots guangdong manufacturing heartland southern china said march would invest 943 billion yuan 148 billion encourage nearly 2000 large manufacturers buy robots official xinhua news agency reported guangzhou provincial capital aims 80 percent manufacturing automated 2020 relentless surge wages adding impetus automation revolution china relied seemingly endless supply cheap labor decades power economic expansion equation changing countrys working age population stops growing chinese graduate university resulting dwindling supply unskilled workers annual doubledigit percentage increases minimum wage rising labor unrest deng said rapoos wage bill rising 1520 percent year one big factor driving use robots frontline workers turnover rate really high people unwilling repetitive jobs two issues put manufacturing industry china huge pressure said chinas auto industry trailblazer automation industries rapidly adopting technology robots become smaller cheaper easier use takes average 13 years industrial robot china pay back investment 118 years 2008 according goldman sachs companies electronics maker tcl corp using robots produce highervalue goods one factory shenzhen tcl uses 978 machines produce flat screen tv panels another tcl plant hefei near shanghai steel refrigerator frames bent shape plucked blue yasakawa robot arm stacks neat rows assembly fridges big washing machines heavy internal components use automated robots make also let cut labor intensity lot said tcl chairman tomson li china held title worlds biggest market industrial robots second straight year 2014 sales rising half 56000 total 224000 sold globally according international federation robotics theres plenty room explosive sales growth china 30 robots every 10000 factory workers compared 437 south korea 152 united states global average 62 beijing wants chinas number rise 100 2020 switch robots raised fears contribute slowing job though signs thats happening yet deng said rapoo hasnt resort layoffs rather company replacing workers quit simply replacing operation workers robot making robot platform humans machines work together make production flexible said recent tour rapoos factory deng pointed efficiencies conveyor belt carried circuit boards industrial soldering machine robot arm removed metal jigs placed another belt human workers typically job factories deng said turnover high heat repetitiveness glasswalled room robots assembled receivers wireless mice tasks previously done 26 people deng said one two humans supervise laser automatically fuses shut metal usb plug housings four time steps away robot arms slide plugs plastic sleeves automation means accuracy still remain high seldom failures robots said deng boosting quality also helps chinas companies achieve another national goal shedding reputation shoddy low cost producers compete global rivals automation allow chinese factories grab bigger share industries accuracy precision crucial aerospace medical devices optical components said derick louie hong kong productivity council makers toys lowprofit consumer goods however probably move outside china due rising labor costs environmental taxation said | 667 |
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<p>Image source: Getty Images.</p>
<p>Continue Reading Below</p>
<p>Most of us will be receiving Social Security benefits in our retirement, and for many of us, it will be rather important and much-needed income. Thus, it's critical to understand Social Security, and how you might make the most of it, instead of acting on misconceptions. Here are 10 Social Security myths, debunked.</p>
<p>Fear not -- things are not quite as bad as you may have thought. Between incoming taxes and the interest it earns, minus benefit checks written, the Social Security trust funds have been running a surplus in every year since 1984. Surpluses are likely to stop in 2020, though, at which point the Social Security system can rely on incoming interest payments to make up the deficit -- for a while.</p>
<p>According to several government estimates, Social Security funds are likely to become insolvent between 2033 and 2037, if no changes are made. If that happens, payment checks won't disappear, but they'll likely shrink by about 25%. That's not great, but it's far from shrinking by 100% -- and there's a good chance that the system will be shored up, one way or another.</p>
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<p>There are many ways to shore up Social Security, though politicians don't always agree on them. For example, fully 77% of the trust funds' shortfall could be eliminated by increasing the Social Security tax rate for employers and employees from its current 6.2% to 7.2% in 2022, and 8.2% in 2052.</p>
<p>Image source: Getty Images.</p>
<p>Many people assume that the money taken out of your paycheck for Social Security is kept on your behalf, growing with interest, until it's paid out to you in retirement benefits. Not so. The system pays current benefit recipients with taxes collected from people currently working.</p>
<p>This has worked well for a long time, but now people are living longer and collecting benefits for more years. Back in 1960, the contributing-workers-to-beneficiaries ratio was 5.1, with about 73 million workers supporting close to 14 million beneficiaries. As of 2013, it was just 2.8, with 163 million workers supporting 57 million beneficiaries -- and it's expected to hit 2.1 by 2035. This is stressing the system, and making eventual changes to it probable.</p>
<p>Everyone's income faces the same tax rate for Social Security -- up to a certain capped annual earnings amount. (As of 2016, the cap was $118,500.) Thus, someone earning $118,500 in 2016, and someone earning $5 million, will pay the same Social Security tax -- a fact that many see as unfair. (By the way, taxing all of each worker's income instead of just the first $118,500 of it would also wipe out much of the Social Security trust-fund shortfall; specifically, it's been estimated that 71% could be wiped out by eliminating the earnings cap over a 10-year period.</p>
<p>Nope. The calculations determining your benefits are based on the income you earned in your 35 highest-earning working years. The Social Security rules do require you to accumulate 40 work credits, which is typically achieved in 10 years, in order to qualify to receive benefits.</p>
<p>If you've only worked 30 years, then the formula will be including five years' worth of zeroes. So it's best to have 35 years' worth of earnings -- and the higher, the better. (if you work 38 years, your three lowest-earnings years will be tossed out, replaced by higher-earning ones.)</p>
<p>Social Security delivers meaningful sums to many. Image source: Getty Images</p>
<p>The average monthly retirement benefit was recently $1,347. That amounts to $16,164 per year, and probably doesn't seem like that much. Note, though, that if your earnings have been above average, you'll collect more than that -- up to the maximum monthly Social Security benefit for those retiring at their full retirement age, which was recently $2,639 -- or about $32,000 for the whole year.</p>
<p>Even the smaller benefits are meaningful to most people. According to the Social Security Administration, the majority of elderly beneficiaries get 50% or more of their income from Social Security, while 22% of married elderly beneficiaries, and 47% of unmarried ones, get fully 90% or more of their income from Social Security.</p>
<p>If you've worked for yourself and have filed tax returns as a self-employed person, you will have paid into the system and can expect benefits. Self-employed workers actually pay twice as much into Social Security as employees do.</p>
<p>Employee income is taxed at 6.2% for Social Security, with employers contributing an additional 6.2%. Those who are self-employed pay both the employer and employee portions, forking over a whopping 12.4%.</p>
<p>Meanwhile, even if you've never worked outside the home -- if you are or have been married -- you can still collect benefits based on the earnings record of your current, ex-, or late spouse -- generally between 50% to 100% of the spouse's benefit. (Divorcees will need to have been married for at least 10 years and not have remarried.)</p>
<p>We often think of 65 as the normal retirement age, but in order to strengthen the Social Security system, the normal (or "full") retirement age was increased. For those born in 1937 or earlier, it's 65, and for those born in 1960 or later, it's 67. For those born between 1937 and 1960, it's somewhere in between.</p>
<p>Coordinate when to start collecting benefits with your spouse, and you might come out ahead. Image source: Getty Images.</p>
<p>This is wrong, too. You can start receiving benefits as early as age 62 and as late as age 70. For every year beyond your full retirement age that you delay starting to receive benefits, you'll increase their value by about 8% -- until age 70. So delaying from age 67 to 70 can leave you with checks about 24% fatter.</p>
<p>Retire early, and your benefits may be up to about 30% smaller. Note, though, that the system is designed so that total benefits received are about the same no matter when you start collecting, for those with average life spans. Checks that start arriving at age 62 will be considerably smaller, but you'll receive many more of them. You can also increase your benefits by working longer, earning more, and/or coordinating strategies with your spouse.</p>
<p>They are often not taxed, but they could be taxed. If you're working, or have other significant income while collecting Social Security benefits, up to 85% of your benefits might be taxed.</p>
<p>There's more to learn about Social Security -- especially about strategies you might employ in order to increase your benefits.</p>
<p>The article <a href="http://www.fool.com/retirement/2016/06/12/10-social-security-myths-debunked.aspx" type="external">10 Social Security Myths -- Debunked! Opens a New Window.</a> originally appeared on Fool.com.</p>
<p>Longtime Fool specialist <a href="http://my.fool.com/profile/TMFSelena/info.aspx?source=eptfxblnk0000004" type="external">Selena Maranjian Opens a New Window.</a>, whom you can <a href="http://twitter.com/SelenaMaranjian" type="external">follow on Twitter Opens a New Window.</a>, owns no shares of any company mentioned in this article.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 us receiving social security benefits retirement many us rather important muchneeded income thus critical understand social security might make instead acting misconceptions 10 social security myths debunked fear things quite bad may thought incoming taxes interest earns minus benefit checks written social security trust funds running surplus every year since 1984 surpluses likely stop 2020 though point social security system rely incoming interest payments make deficit according several government estimates social security funds likely become insolvent 2033 2037 changes made happens payment checks wont disappear theyll likely shrink 25 thats great far shrinking 100 theres good chance system shored one way another advertisement many ways shore social security though politicians dont always agree example fully 77 trust funds shortfall could eliminated increasing social security tax rate employers employees current 62 72 2022 82 2052 image source getty images many people assume money taken paycheck social security kept behalf growing interest paid retirement benefits system pays current benefit recipients taxes collected people currently working worked well long time people living longer collecting benefits years back 1960 contributingworkerstobeneficiaries ratio 51 73 million workers supporting close 14 million beneficiaries 2013 28 163 million workers supporting 57 million beneficiaries expected hit 21 2035 stressing system making eventual changes probable everyones income faces tax rate social security certain capped annual earnings amount 2016 cap 118500 thus someone earning 118500 2016 someone earning 5 million pay social security tax fact many see unfair way taxing workers income instead first 118500 would also wipe much social security trustfund shortfall specifically estimated 71 could wiped eliminating earnings cap 10year period nope calculations determining benefits based income earned 35 highestearning working years social security rules require accumulate 40 work credits typically achieved 10 years order qualify receive benefits youve worked 30 years formula including five years worth zeroes best 35 years worth earnings higher better work 38 years three lowestearnings years tossed replaced higherearning ones social security delivers meaningful sums many image source getty images average monthly retirement benefit recently 1347 amounts 16164 per year probably doesnt seem like much note though earnings average youll collect maximum monthly social security benefit retiring full retirement age recently 2639 32000 whole year even smaller benefits meaningful people according social security administration majority elderly beneficiaries get 50 income social security 22 married elderly beneficiaries 47 unmarried ones get fully 90 income social security youve worked filed tax returns selfemployed person paid system expect benefits selfemployed workers actually pay twice much social security employees employee income taxed 62 social security employers contributing additional 62 selfemployed pay employer employee portions forking whopping 124 meanwhile even youve never worked outside home married still collect benefits based earnings record current ex late spouse generally 50 100 spouses benefit divorcees need married least 10 years remarried often think 65 normal retirement age order strengthen social security system normal full retirement age increased born 1937 earlier 65 born 1960 later 67 born 1937 1960 somewhere coordinate start collecting benefits spouse might come ahead image source getty images wrong start receiving benefits early age 62 late age 70 every year beyond full retirement age delay starting receive benefits youll increase value 8 age 70 delaying age 67 70 leave checks 24 fatter retire early benefits may 30 smaller note though system designed total benefits received matter start collecting average life spans checks start arriving age 62 considerably smaller youll receive many also increase benefits working longer earning andor coordinating strategies spouse often taxed could taxed youre working significant income collecting social security benefits 85 benefits might taxed theres learn social security especially strategies might employ order increase benefits article 10 social security myths debunked opens new window originally appeared foolcom longtime fool specialist selena maranjian opens new window follow twitter opens new window owns shares company mentioned articletry 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 | 682 |
<p>By now, Jimmy Kimmel's <a href="" type="internal">tearful monologue</a> about his newborn baby son needing surgery to fix a heart defect has gone viral. Kimmel used his son's situation to plead for Obamacare to stay in place.</p>
<p>The Daily Wire's Michael Knowles summed up the situation perfectly:</p>
<p>Indeed, everyone wishes Kimmel's baby all the best but it is not a case for Obamacare. Here are five reasons why.</p>
<p>1. The hospital that treated Kimmel's baby is a private charity hospital.</p>
<p>Indeed, the Children Hospital Los Angeles' <a href="http://www.chla.org/about-us" type="external">website</a> states:</p>
<p>Children's Hospital Los Angeles (CHLA) is a 501(c)(3) nonprofit institution that provides pediatric health care and helps our patients more than 528,000 times each year in a setting designed just for their needs. Our history began in 1901 in a small house on the corner of Alpine and Castelar Streets (now Hill St. in Chinatown) and today our medical experts offer more than 350 pediatric specialty programs and services to meet the needs of our patients.</p>
<p>CHLA is a provider of more than $232.6 million in community benefits annually to children and families. As the first and largest pediatric hospital in Southern California, CHLA relies on the generosity of philanthropists in the community to support compassionate patient care, leading-edge education of the caregivers of tomorrow and innovative research efforts that impact children at our hospital and around the world.</p>
<p>The hospital has also received mostly stellar reviews on <a href="https://www.google.com/search?q=children%27s+hospital+los+angeles&amp;rlz=1C5CHFA_enUS578US578&amp;oq=children%27s+hospital+los+angeles&amp;aqs=chrome..69i57j69i61.5726j0j9&amp;sourceid=chrome&amp;ie=UTF-8#safe=off&amp;q=children's+hospital+los+angeles&amp;lrd=0x80c2c0ad2da8fe49:0x459c35b259dba3b3,1," type="external">Google</a> and <a href="https://www.facebook.com/ChildrensLA/" type="external">Facebook</a>.</p>
<p>2. What that means is that private charity is a valid solution to help those who are in need, which is the point that Shapiro makes in his <a href="" type="internal">response</a> to Kimmel's monologue. "None of this means we shouldn’t have social support for those who fall through the cracks — who lose their jobs during a pregnancy, for example. That’s what communities and churches and hospital charities are for, as a start," wrote Shapiro. "Obamacare doesn’t solve these problems, in any case — insurance companies have been opting out of the Obamacare scheme precisely because it bankrupts them, and Medicaid coverage has been shown to have little or no impact on life expectancy. That's why more options in health care decreases cost and makes health care more affordable to those who are poorer."</p>
<p>In other words, private charities like CHLA have proven to be more effective at providing healthcare to the needy than government-run schemes like Obamacare. What happened with Kimmel's baby is illustrative of that rather than a case in favor of Obamacare.</p>
<p>3. Prior to Obamacare, people were not dying in the streets as the result of being denied coverage for pre-existing conditions. Health care policy wonk Avik Roy pointed out in <a href="https://www.forbes.com/sites/theapothecary/2017/04/23/thanks-to-democrats-pre-existing-conditions-outweigh-the-uninsured-in-the-gop-replacement-deal/#d739f6561aa3" type="external">Forbes</a> that employer-sponsored and government-run health insurance plans were already required to cover pre-existing conditions prior to Obamacare, which accounted for "90% of Americans with health insurance." The only place where such denials of coverage could occur was through the individual market, but even then it was a small number of people. Roy pointed to the Pre-Existing Condition Insurance Plan (PCIP), a program established under Obamacare to provide "heavily subsidized coverage under PCIP if they had documented proof that they had been denied coverage by an insurance company and had a pre-existing condition" from 2010 to 2014. The highest number of people who signed up for the program was 114,959 — suggesting that it was indeed only a small percentage of the population who could have been denied coverage on the individual market due to a pre-existing condition.</p>
<p>"For those 114,959 people, the PCIP program was no doubt important," wrote Roy. "But Democrats could have passed a 5-page bill allocating a few billion dollars a year to covering 114,969 people without upending the entire U.S. health care system. They, of course, chose a different path."</p>
<p>4. The <a href="http://www.nationalreview.com/article/442190/obamacare-pre-existing-conditions-provisions-repeal-health-care-laws-worst-component" type="external">pre-existing conditions mandate</a> is one of the key factors in driving up healthcare costs. That's because a pre-existing conditions mandate creates an incentive for people to wait until they're sick to purchase insurance, the equivalent of waiting until your home burns down to purchase fire insurance. Naturally, this creates a pool of older, unhealthier enrollees, which in turn increases costs. The purpose of the individual mandate was to offset these costs by encouraging younger, healthier enrollees to enter the risk pool. But instead, many have opted to take the fine, therefore creating the <a href="" type="internal">death spiral</a> of <a href="" type="internal">higher deductibles and premiums</a> and <a href="" type="internal">insurers fleeing the Obamacare exchanges altogether</a>.</p>
<p>5. Kimmel did not provide an example of a baby getting denied care due to a pre-existing condition. Kimmel's monologue, while moving and passionate, made an illogical leap from what happened to his baby to the need for Obamacare. He made vague claims about people getting denied coverage prior to Obamacare because of a pre-existing condition and jumped to the conclusion that the same thing could have happened to someone else's baby. His argument may have carried more weight had he provided a concrete example but he did not, which suggests that Kimmel was thinking with his heart rather than his mind. It's hard to fault him for that after what he's been through, but thinking with one's heart does not usually translate to good policy.</p>
<p>There are better <a href="https://www.conservativereview.com/articles/20-ideas-to-crush-obamacare-and-cure-americas-health-care-crisis" type="external">solutions</a> to help those with pre-existing conditions than a blanket mandate, but in the meantime Kimmel and all other Americans should unite behind helping private charity hospitals like CHLA to ensure that those in need are able to receive to good quality care. That should truly be something that people can agree upon regardless of partisan differences.</p>
<p><a href="https://twitter.com/bandlersbanter" type="external">Follow Aaron Bandler on Twitter.</a></p> | true | 0 | jimmy kimmels tearful monologue newborn baby son needing surgery fix heart defect gone viral kimmel used sons situation plead obamacare stay place daily wires michael knowles summed situation perfectly indeed everyone wishes kimmels baby best case obamacare five reasons 1 hospital treated kimmels baby private charity hospital indeed children hospital los angeles website states childrens hospital los angeles chla 501c3 nonprofit institution provides pediatric health care helps patients 528000 times year setting designed needs history began 1901 small house corner alpine castelar streets hill st chinatown today medical experts offer 350 pediatric specialty programs services meet needs patients chla provider 2326 million community benefits annually children families first largest pediatric hospital southern california chla relies generosity philanthropists community support compassionate patient care leadingedge education caregivers tomorrow innovative research efforts impact children hospital around world hospital also received mostly stellar reviews google facebook 2 means private charity valid solution help need point shapiro makes response kimmels monologue none means shouldnt social support fall cracks lose jobs pregnancy example thats communities churches hospital charities start wrote shapiro obamacare doesnt solve problems case insurance companies opting obamacare scheme precisely bankrupts medicaid coverage shown little impact life expectancy thats options health care decreases cost makes health care affordable poorer words private charities like chla proven effective providing healthcare needy governmentrun schemes like obamacare happened kimmels baby illustrative rather case favor obamacare 3 prior obamacare people dying streets result denied coverage preexisting conditions health care policy wonk avik roy pointed forbes employersponsored governmentrun health insurance plans already required cover preexisting conditions prior obamacare accounted 90 americans health insurance place denials coverage could occur individual market even small number people roy pointed preexisting condition insurance plan pcip program established obamacare provide heavily subsidized coverage pcip documented proof denied coverage insurance company preexisting condition 2010 2014 highest number people signed program 114959 suggesting indeed small percentage population could denied coverage individual market due preexisting condition 114959 people pcip program doubt important wrote roy democrats could passed 5page bill allocating billion dollars year covering 114969 people without upending entire us health care system course chose different path 4 preexisting conditions mandate one key factors driving healthcare costs thats preexisting conditions mandate creates incentive people wait theyre sick purchase insurance equivalent waiting home burns purchase fire insurance naturally creates pool older unhealthier enrollees turn increases costs purpose individual mandate offset costs encouraging younger healthier enrollees enter risk pool instead many opted take fine therefore creating death spiral higher deductibles premiums insurers fleeing obamacare exchanges altogether 5 kimmel provide example baby getting denied care due preexisting condition kimmels monologue moving passionate made illogical leap happened baby need obamacare made vague claims people getting denied coverage prior obamacare preexisting condition jumped conclusion thing could happened someone elses baby argument may carried weight provided concrete example suggests kimmel thinking heart rather mind hard fault hes thinking ones heart usually translate good policy better solutions help preexisting conditions blanket mandate meantime kimmel americans unite behind helping private charity hospitals like chla ensure need able receive good quality care truly something people agree upon regardless partisan differences follow aaron bandler twitter | 517 |
<p>The Latest on Spain's political crisis over the Catalonia region's push for independence (all times local):</p>
<p>11:20 p.m.</p>
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<p>Carles Puigdemont, the deposed leader of Catalonia's secession movement, will repeat as his party's top candidate in a regional election next month while fighting extradition to Spain from Belgium.</p>
<p>Puigdemont has told El Punt-Avui television that he "is finishing" a slate of candidates for the parliamentary election called by Spain's prime minister.</p>
<p>He says it will include both members from his Democratic Party of Catalonia and independents without a background in politics. He says the slate will run under the name "Together For Catalonia."</p>
<p>The absconded Catalan separatist says that he will lead the campaign from Brussels, where he and four former Cabinet members are fighting extradition proceedings that could send them back to Spain to face charges of rebellion and sedition.</p>
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<p>4:25 p.m.</p>
<p>Russia's foreign minister is criticizing the claim by Spain's defense minister that a misinformation campaign about the Catalonia region's push for independence is being spread from Russia.</p>
<p>Speaking during a visit to Belarus on Wednesday, Russian Foreign Minister Sergey Lavrov rejected the idea that efforts to undermine other countries' elections are originating in Russia.</p>
<p>Lavrov said officials in other countries "probably engage in such sensational hysteria in order to deflect voters' attention from the inability to solve (their) domestic problems."</p>
<p>Spanish Defense Minister Maria Dolores de Cospedal said Monday that "many actions" to mount a misinformation campaign to destabilize Catalonia had "come from Russian territory" and elsewhere in recent months.</p>
<p>However, Cospedal said Spain had no indication the Russian government was involved.</p>
<p>Russian President Vladimir Putin's spokesman, Dmitry Peskov, also dismissed insinuations of Russian meddling in Catalonia as unsubstantiated.</p>
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<p>2:55 p.m.</p>
<p>Spanish Prime Minister Mariano Rajoy says he is confident his government can handle any possible foreign tampering of upcoming elections in Catalonia amid a secession bid by the prosperous region.</p>
<p>On Monday, Spain's Defense Minister Maria Dolores de Cospedal said in recent months, "many actions" to mount a misinformation campaign to destabilize Catalonia had "come from Russian territory." She said that Spain had no indication that Russia's government was involved.</p>
<p>Responding to a question in Parliament Wednesday on Spain's preparedness, Rajoy said "people will vote with complete liberty."</p>
<p>Rajoy used extraordinary powers to call early elections in Catalonia for Dec. 21 as part of an effort to derail a push by separatists to create a new Catalan state.</p>
<p>Spain's prime minister said Wednesday he is confident his government could handle any outside attempts to tamper with the election he called in Catalonia to put down an independence push led by separatist politicians.</p>
<p>Prime Minister Mariano Rajoy declined to give details on what security measures Spain would take to prevent or counter electronic interference with next month's regional election, but said "people will vote with complete liberty."</p>
<p>Spanish Defense Minister Maria Dolores de Cospedal said Monday that "many actions" to mount a misinformation campaign to destabilize Catalonia had "come from Russian territory" and elsewhere in recent months. However, both Cospedal and Rajoy said Spain had no indication the Russian government was involved.</p>
<p>Russian President Vladimir Putin's spokesman, Dmitry Peskov, dismissed insinuations of Russian meddling in Catalonia as unsubstantiated.</p>
<p>"We consider these accusations unfounded," Peskov said Wednesday, adding that Spain's concerns sounded like a "continuation of the hysteria in the U.S. and some other countries."</p>
<p>Speaking during a visit to Belarus, Russian Foreign Minister Sergey Lavrov also rejected the idea that efforts to undermine other countries' elections were originating in Russia.</p>
<p>"A possible explanation is that in capitals where such accusations come from, be it Madrid or London, there are plenty of unresolved domestic problems," Lavrov said. "They probably engage in such sensational hysteria in order to deflect voters' attention from the inability to solve those domestic problems."</p>
<p>The European Union's strategic communications unit — the East StratCom Task Force — recently reported several instances of disinformation coming from Russian news outlets linked to the Kremlin.</p>
<p>Spain's government hasn't provided evidence to back the interference claim. Cospedal declined Monday to say what impact the misinformation might have on the Dec. 21 regional elections in Catalonia, or how big the alleged fake news campaign was.</p>
<p>Spanish Foreign Minister Alfonso Dastis last week referred to a recent London meeting between WikiLeaks founder Julian Assange and a prominent Catalan pro-independence figure, saying there were signs that Assange and others "are trying to interfere and manipulate" amid the Catalonia crisis.</p>
<p>Rajoy used extraordinary powers to call early elections in Catalonia as part of an effort to derail a push by separatists to create an independent Catalan state.</p>
<p>____</p>
<p>Associated Press writer Vladimir Isachenkov in Moscow contributed to this report; Wilson contributed from Barcelona, Spain.</p> | true | 0 | latest spains political crisis catalonia regions push independence times local 1120 pm continue reading carles puigdemont deposed leader catalonias secession movement repeat partys top candidate regional election next month fighting extradition spain belgium puigdemont told el puntavui television finishing slate candidates parliamentary election called spains prime minister says include members democratic party catalonia independents without background politics says slate run name together catalonia absconded catalan separatist says lead campaign brussels four former cabinet members fighting extradition proceedings could send back spain face charges rebellion sedition ___ advertisement 425 pm russias foreign minister criticizing claim spains defense minister misinformation campaign catalonia regions push independence spread russia speaking visit belarus wednesday russian foreign minister sergey lavrov rejected idea efforts undermine countries elections originating russia lavrov said officials countries probably engage sensational hysteria order deflect voters attention inability solve domestic problems spanish defense minister maria dolores de cospedal said monday many actions mount misinformation campaign destabilize catalonia come russian territory elsewhere recent months however cospedal said spain indication russian government involved russian president vladimir putins spokesman dmitry peskov also dismissed insinuations russian meddling catalonia unsubstantiated ___ 255 pm spanish prime minister mariano rajoy says confident government handle possible foreign tampering upcoming elections catalonia amid secession bid prosperous region monday spains defense minister maria dolores de cospedal said recent months many actions mount misinformation campaign destabilize catalonia come russian territory said spain indication russias government involved responding question parliament wednesday spains preparedness rajoy said people vote complete liberty rajoy used extraordinary powers call early elections catalonia dec 21 part effort derail push separatists create new catalan state spains prime minister said wednesday confident government could handle outside attempts tamper election called catalonia put independence push led separatist politicians prime minister mariano rajoy declined give details security measures spain would take prevent counter electronic interference next months regional election said people vote complete liberty spanish defense minister maria dolores de cospedal said monday many actions mount misinformation campaign destabilize catalonia come russian territory elsewhere recent months however cospedal rajoy said spain indication russian government involved russian president vladimir putins spokesman dmitry peskov dismissed insinuations russian meddling catalonia unsubstantiated consider accusations unfounded peskov said wednesday adding spains concerns sounded like continuation hysteria us countries speaking visit belarus russian foreign minister sergey lavrov also rejected idea efforts undermine countries elections originating russia possible explanation capitals accusations come madrid london plenty unresolved domestic problems lavrov said probably engage sensational hysteria order deflect voters attention inability solve domestic problems european unions strategic communications unit east stratcom task force recently reported several instances disinformation coming russian news outlets linked kremlin spains government hasnt provided evidence back interference claim cospedal declined monday say impact misinformation might dec 21 regional elections catalonia big alleged fake news campaign spanish foreign minister alfonso dastis last week referred recent london meeting wikileaks founder julian assange prominent catalan proindependence figure saying signs assange others trying interfere manipulate amid catalonia crisis rajoy used extraordinary powers call early elections catalonia part effort derail push separatists create independent catalan state ____ associated press writer vladimir isachenkov moscow contributed report wilson contributed barcelona spain | 514 |
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<p>Image source: Getty Images.</p>
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<p>If you want to have the best retirement possible, it's important to take steps to prepare for the things that could affect you the most. Here's a closer look at five retirement facts that could have a huge impact on your retirement plans, and there's a good chance you may not even know about them.</p>
<p>Whether you're a few years or still a few decades from retirement, these five facts are important. Let's take a closer look at how they could affect you.</p>
<p>Image source: U.S. Department of Health and Human Services.</p>
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<p>According to the U.S. Department of Health and Human Services, 70% of people who live past 65 will need long-term care. If you're married, there's a 90% likelihood either you or your spouse will need long-term care.In other words, if you live to retirement age, the odds are good that you'll end up needing some sort of long-term care.</p>
<p>And since long-term care is not always covered by health insurance or Medicare, retirees need to have a plan to provide for it. Here is how the majority of non-medical long-term care -- what Medicare doesn't pay for -- is provided for:</p>
<p>Full Retirement Age -- that is, the age you qualify to receive 100% of your Social Security retirement benefit -- is 66 for retirees in 2016, and is set to remain age 66 through 2020. But for a six-year period starting in 2021, Full Retirement Age will be pushed by two months -- meaning 66 and 2 months for those born in 1955, 66 and 4 months for those born in 1956, etc., until the full retirement age reaches 67 in 2027.</p>
<p>In other words, anyone born after 1954 will either have to delay retiring a little longer to get their full benefit, or elect to get a smaller check each month if they retire at 66 or sooner. If you're planning to retire anytime between now and 2027, it's a good idea to make sure you know when your Full Retirement Age is, since the amount of your monthly benefit is predicated on that number.</p>
<p>According to Vanguard, which manages millions of retirement savings accounts, the median balance in defined contribution plans (think 401(k) plans) it manages for people 55 and over was less than $72,000 in 2015. For context, that would only generate about $240 per month in retirement income. This only covers a small selection of total retirement savings, but even as a small sample size it's concerning.</p>
<p>The numbers below explain why many retirees end up back at work. Image source: Getty Images.</p>
<p>The U.S. Government Accountability Office offers up a bigger picture look, but it's still concerning. According to the GAO, the median age 55-64 household has $104,000 in retirement savings, while the median age 65-74 household has $148,000 saved. Sure, that's a lot more than Vanguard's data, but in terms of dependable retirement income, it's only worth $347 to $493 per month in retirement income. Paired with an average Social Security benefit of less than $1,500 per month, that's not a lot of money to live on in retirement.</p>
<p>For millions of older Americans, there's an even bigger concern. The GAO found that 29% of households age 55 and over don't haveanydefined benefit (such as a pension) or retirement savings at all.</p>
<p>Whether it's Social Security, distributions from a 401(k) or IRA, or a pension you'll almost certainly pay federal income tax. Since these kinds of retirement income sources are generally considered regular income, you'll pay federal income tax on your total earnings based on your adjusted gross income (after deductions) at your marginal tax rate.</p>
<p>There are some exceptions to this, including distributions from a Roth IRA or Roth 401(k), which are not taxed, but by and large, retirement doesn't mean the end of federal income tax.</p>
<p>However, many states don't have income taxes at all, while others give income tax breaks to retirees. Since the laws vary from state to state, it's good to learn about income tax in your state (or the state you plan to retire to). Furthermore, if a state doesn't have an income tax, it's important to understand how it makes up that revenue, whether in higher sales tax, property tax, or some other way, and how that could impact you in retirement.</p>
<p>Over the past decade, the percentage of older Americans who own their home has fallen. According to a Harvard University study in 2014, the percentage of Americans aged 50-79 who owned a home fell between 2005 and 2013. The biggest percentage decline was in the younger group, with those 50-64 owning home falling from over 80% in 2005 to below 76% in 2013.</p>
<p>Homeownership rates are trending the wrong way for retirees. Image source: Getty Images.</p>
<p>At the same time, more homeowners are carrying mortgages later in life. According to the same Harvard study, the percentage of homeowners 65 and over with a mortgage doubled from below 20% to 40% from 1992 to 2010, while the 50-64 age group saw the rate increase from more than 60% to more than 70% over the same period.</p>
<p>The rising number of retirees who don't own a home will likely face higher housing costs over time compared to homeowners. At the same time, older homeowners still paying a mortgage may be forced to delay retirement longer than expected to cover their expenses.For both groups, the burden of expensive housing costs leads to less spending on food, healthcare, and other areas that are important to higher quality of life for retirees.</p>
<p>Furthermore, home equity often provides a critical safety net for many older retirees, and can be tapped to pay for care later in life. Carrying a mortgage into retirement diminishes this shield, while not owning a home eliminates it entirely.</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>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 want best retirement possible important take steps prepare things could affect heres closer look five retirement facts could huge impact retirement plans theres good chance may even know whether youre years still decades retirement five facts important lets take closer look could affect image source us department health human services advertisement according us department health human services 70 people live past 65 need longterm care youre married theres 90 likelihood either spouse need longterm carein words live retirement age odds good youll end needing sort longterm care since longterm care always covered health insurance medicare retirees need plan provide majority nonmedical longterm care medicare doesnt pay provided full retirement age age qualify receive 100 social security retirement benefit 66 retirees 2016 set remain age 66 2020 sixyear period starting 2021 full retirement age pushed two months meaning 66 2 months born 1955 66 4 months born 1956 etc full retirement age reaches 67 2027 words anyone born 1954 either delay retiring little longer get full benefit elect get smaller check month retire 66 sooner youre planning retire anytime 2027 good idea make sure know full retirement age since amount monthly benefit predicated number according vanguard manages millions retirement savings accounts median balance defined contribution plans think 401k plans manages people 55 less 72000 2015 context would generate 240 per month retirement income covers small selection total retirement savings even small sample size concerning numbers explain many retirees end back work image source getty images us government accountability office offers bigger picture look still concerning according gao median age 5564 household 104000 retirement savings median age 6574 household 148000 saved sure thats lot vanguards data terms dependable retirement income worth 347 493 per month retirement income paired average social security benefit less 1500 per month thats lot money live retirement millions older americans theres even bigger concern gao found 29 households age 55 dont haveanydefined benefit pension retirement savings whether social security distributions 401k ira pension youll almost certainly pay federal income tax since kinds retirement income sources generally considered regular income youll pay federal income tax total earnings based adjusted gross income deductions marginal tax rate exceptions including distributions roth ira roth 401k taxed large retirement doesnt mean end federal income tax however many states dont income taxes others give income tax breaks retirees since laws vary state state good learn income tax state state plan retire furthermore state doesnt income tax important understand makes revenue whether higher sales tax property tax way could impact retirement past decade percentage older americans home fallen according harvard university study 2014 percentage americans aged 5079 owned home fell 2005 2013 biggest percentage decline younger group 5064 owning home falling 80 2005 76 2013 homeownership rates trending wrong way retirees image source getty images time homeowners carrying mortgages later life according harvard study percentage homeowners 65 mortgage doubled 20 40 1992 2010 5064 age group saw rate increase 60 70 period rising number retirees dont home likely face higher housing costs time compared homeowners time older homeowners still paying mortgage may forced delay retirement longer expected cover expensesfor groups burden expensive housing costs leads less spending food healthcare areas important higher quality life retirees furthermore home equity often provides critical safety net many older retirees tapped pay care later life carrying mortgage retirement diminishes shield owning home eliminates entirely 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 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 | 648 |
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<p>RELATED STORY: <a href="" type="internal">Faith, Works and the Judgment Seat of Christ</a></p>
<p>"My sheep hear my voice, and I know them, and they follow me: And I give unto them eternal life; and they shall never perish, neither shall any man pluck them out of my hand. My Father, which gave them me, is greater than all; and no man is able to pluck them out of my Father's hand. I and my Father are one. " <a href="http://www.blueletterbible.org/Bible.cfm?b=Col" type="external">John 10:27-30</a> We are kept by the power of His blood, and not by our own works, good deeds, or our own righteousness. "Now the just shall live by faith: but if any man draw back, my soul shall have no pleasure in him. But we are not of them who draw back unto perdition; but of them that believe to the saving of the soul." <a href="http://www.blueletterbible.org/Bible.cfm?t=KJV&amp;b=Hbr&amp;c=10&amp;v=1&amp;x=0&amp;y=0" type="external">Hebrews 10:38,39</a></p>
<p>In Christian circles, the topic of eternal security is a hotly-debated subject. But we are not so much interested in man's opinion as we are in what the bible has to say about Eternal Security. So any sincere treatise on eternal security must first start with a look at salvation, and how it is accomplished. <a href="javascript:;" type="external" /></p>
<p>Believe on the Lord Jesus Christ, and you shall be saved</p>
<p>The Lord is gracious, and good to us, much better than we deserve. He is so good to us, that He made sure to make the process by which one is saved unbelievably simple to understand, and simple to do. As I read my bible, I see that there is one thing and one thing only that one must do to be saved, as shown here in Acts 16:</p>
<p>"And brought them out, and said, Sirs, what must I do to be saved? And they said, Believe on the Lord Jesus Christ, and thou shalt be saved, and thy house." <a href="http://www.blueletterbible.org/Bible.cfm?t=KJV&amp;b=Act&amp;c=16&amp;v=1&amp;x=0&amp;y=0" type="external">Acts 16:30,31</a></p>
<p>That's truly all there is to it - an honest and sincere belief within yourself that Jesus is who He said He is, that He is THE Way, THE Truth and THE Life. It's not complicated, and God purposely set it up that way to make it easy for us. All the work of salvation was done by Jesus Himself. He took upon Himself the punishment for our sins as well as the sins themselves, and went to ther cross and paid for every sin that would ever be committed throughout history. And when you, by faith, BELIEVE that sincerely in your heart, then the price He paid is applied to YOUR sin debt, and your salvation is secured forever. In fact, the bible says that you are not simply secure, but also "sealed" until the Day of redemption.</p>
<p>You are eternally secure because you have beem sealed at salvation</p>
<p>"That we should be to the praise of his glory, who first trusted in Christ. In whom ye also [trusted], after that ye heard the word of truth, the gospel of your salvation: in whom also after that ye believed, ye were sealed with that holy Spirit of promise, Which is the earnest of our inheritance until the redemption of the purchased possession, unto the praise of his glory." <a href="http://www.blueletterbible.org/Bible.cfm?t=KJV&amp;b=Eph&amp;c=1&amp;v=1&amp;x=0&amp;y=0" type="external">Ephesians 1:12-14</a> Dear one, you are not kept saved because of your good works, or because you read your bible, or because you're nice to people, or anything else. You are saved and sealed by the works of Jesus on the cross and His resurrection, and by the power of the Holy Spirit. This makes sense as you did nothing to earn your salvation, so why would you think you could do anything to keep it? Jesus is the Good Shepard, and as such the responsibilty to keep all the sheep safe are His, not the sheep's. The whole reason why sheep need a Shepard is because they cannot do it themselves.</p>
<p>Forever Safe in the Master's Hands One of the strongest passages for eternal security is found in the gospel of John, chapter 10, where we read this -</p>
<p>"I am the good shepherd, and know my [sheep], and am known of mine. As the Father knoweth me, even so know I the Father: and I lay down my life for the sheep. My sheep hear my voice, and I know them, and they follow me: And I give unto them eternal life; and they shall never perish, neither shall any [man] pluck them out of my hand. My Father, which gave [them] me, is greater than all; and no [man] is able to pluck [them] out of my Father's hand. I and [my] Father are one." <a href="http://www.blueletterbible.org/Bible.cfm?t=KJV&amp;b=Jhn&amp;c=10&amp;v=1&amp;x=0&amp;y=0" type="external">John 10</a></p>
<p>Please go back and reread that passage selection, and let His words and promise to keep to safe eternally sink down deep into your ears, and into your hearts. Jesus promises here that once you are in His Hand, nothing, nothing, nothing anyone can do can put you out of it. He says that "neither shall ANY" take you out. Thats everyone. That includes all external forces like the world, the flesh and the Devil, and internal forces like ourselves. Now if your church teaches something different, don't get mad at us. We are just going by what the bible says. And not only are we safe in the hands of God eternally, we are more than just "in his hand", we are also part of His body.</p>
<p>"For we are members of his body, of his flesh, and of his bones. For this cause shall a man leave his father and mother, and shall be joined unto his wife, and they two shall be one flesh. This is a great mystery: but I speak concerning Christ and the church." <a href="http://www.blueletterbible.org/Bible.cfm?t=KJV&amp;b=Eph&amp;c=5&amp;v=1&amp;x=0&amp;y=0" type="external">Ephesians 5:30-32</a></p>
<p>That is the state of the true believer in Jesus Christ, that we are part of His flesh, a part of His bones. He is not only holding us in His hands, we are grafted into His very body. Nothing exists in this universe or any other that is capable of undoing that. You think you can sin your way out? How? ALL your sins are already paid for at Calvary. All of them. But there is one thing that you can lose, and that is fellowship with our Lord.</p>
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<p>Sealed Until The Day Of Redemption When we become saved, there is also another action that takes place that many Christians who do not study their bible may not be aware of. The sealing of the believer so that they can never fall away. Please note the following verses that discuss the sealing of the believer:</p>
<p>"In whom ye also trusted, after that ye heard the word of truth, the gospel of your salvation: in whom also after that ye believed, ye were sealed with that holy Spirit of promise, Which is the earnest of our inheritance until the redemption of the purchased possession, unto the praise of his glory." Ephesians 1:13,14</p>
<p>"And grieve not the holy Spirit of God, whereby ye are sealed unto the day of redemption." Ephesians 4:30</p>
<p>"For all the promises of God in him are yea, and in him Amen, unto the glory of God by us. Now he which stablisheth us with you in Christ, and hath anointed us, is God; Who hath also sealed us, and given the earnest of the Spirit in our hearts." 2 Corinthians 1:20-22</p>
<p>Read those verse very carefully, can you see that you are sealed? Remember when Noah and his family got into the ark, what did God do? He sealed them in so they couldn't change their mind once the journey got rough. And it got very rough.</p>
<p>Thats how much God loves us, He has given us a complete salvation. Not a salvation that is part His works and part your works. Thats not biblical salvation by a long shot.</p>
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<p>Fellowship and the Judgement Seat of Christ</p>
<p>Scoffers who disallow the eternal security that the bible clearly teaches mockingly say that the doctrine of eternal security is a license to sin, and that is completely untrue. Eternal security is a promise from God to keep those that are His, and as such it is a great comfort to all true believers. But a license to sin? God forbid. If the Christian backslides and becomes a prodigal son, there is something that they absolutely lose for a time, and that is felllowship with the Lord. Note the following onthe prodigal son -</p>
<p>"And not many days after the younger son gathered all together, and took his journey into a far country, and there wasted his substance with riotous living." <a href="http://www.blueletterbible.org/Bible.cfm?t=KJV&amp;b=Luk&amp;c=15&amp;v=1&amp;x=0&amp;y=0" type="external">Luke 15:13</a></p>
<p>When the prodigal son took his inheritance and went out to revel in sin, the first thing he had to do was to leave his father's house. The father would not keep him there against his will, that's not love. If you, as a believer in Jesus, backslide and go out into the world, you are free to do so. The son wanted to go join the world, the father whom we can imagine with tears in his eyes, let him go have at it. And Luke goes on to describe the sins that the son fell into. But all the while that the son was engaged in sin, he lost the sweet, intimate fellowship he had with his father. But when did he stop being his father's son? Never.</p>
<p>We all know the story...he spends all his money on booze, whores, nightclubs, dancing and whatever else he could find, until he has nothing. His new-found friends turn on him, he's broke, hungry, and winds up feeding the pigs when all of a sudden he has an idea -</p>
<p>"And when he came to himself, he said, How many hired servants of my father's have bread enough and to spare, and I perish with hunger! I will arise and go to my father, and will say unto him, Father, I have sinned against heaven, and before thee, And am no more worthy to be called thy son: make me as one of thy hired servants." <a href="http://www.blueletterbible.org/Bible.cfm?t=KJV&amp;b=Luk&amp;c=15&amp;v=1&amp;x=0&amp;y=0" type="external">Luke 15:17-19</a></p>
<p>What's his great idea? To return to where is is truly and eternally loved...in his father's house. So he shakes the dust off and returns at full speed to find his father. And what does he find when he gets back to his father's house? He finds this -</p>
<p>"And he arose, and came to his father. But when he was yet a great way off, his father saw him, and had compassion, and ran, and fell on his neck, and kissed him." <a href="http://www.blueletterbible.org/Bible.cfm?t=KJV&amp;b=Luk&amp;c=15&amp;v=1&amp;x=0&amp;y=0" type="external">Luke 15:20</a> He ran back to find his father only to discover that the father was already looking for him to return, and when he did come back it was a joyous reunion with a full restoration of fellowship. But he lost a few things along the way. He took his inheritance and wasted it. He lost his testimony. And he lost all that time that he could have been with his father. But he did not lose his position as his father's son, that is eternally secure. Another reason that the true believer in Jesus Christ knows that eternal security is not a license to sin is the Judgment Seat of Christ.</p>
<p>"For we must all appear before the judgment seat of Christ; that every one may receive the things [done] in [his] body, according to that he hath done, whether [it be] good or bad. Knowing therefore the terror of the Lord, we persuade men; but we are made manifest unto God; and I trust also are made manifest in your consciences." <a href="http://www.blueletterbible.org/Bible.cfm?t=KJV&amp;b=2Cr&amp;c=5&amp;v=1&amp;x=0&amp;y=0" type="external">2 Corinthians 5:10,11</a></p>
<p>When we stand before the Lord, we will be judged on how we lived our lives, the things we said and the things we did, as it says in Matthew -</p>
<p>"But I say unto you, That every idle word that men shall speak, they shall give account thereof in the day of judgment." <a href="http://www.blueletterbible.org/Bible.cfm?t=KJV&amp;b=Mat&amp;c=12&amp;v=1&amp;x=0&amp;y=0" type="external">Matthew 12:36</a></p>
<p>The bible says that even as saved Christians, we will sin again. But the Christian who falls into a sin is sealed, and while they may lose fellowship with the Lord, like the prodigal they remain sons and daughters of the Father. Charles Spurgeon said it like this -</p>
<p>"When he was yet a great way off, his father saw him." It was not with icy eyes that the father looked on his returning son. Love leaped into them, and as he beheld him, he "had compassion on him"; that is, he felt for him. There was no anger in his heart toward his son; he had nothing but pity for his poor boy, who had got into such a pitiable condition. It was true that it was all his own fault, but that did not come before his father's mind. It was the state that he was in, his poverty, his degradation, that pale face of his so wan with hunger, that touched his father to the quick. And God has compassion on the woes and miseries of men.</p>
<p>They may have brought their troubles on themselves, and they have indeed done so; but nevertheless God has compassion upon them. "It is of the Lord's mercies that we are not consumed, because His compassions fail not." We read that the father "ran." The compassion of God is followed by swift movements. He is slow to anger, but He is quick to bless. He does not take any time to consider how He shall show His love to penitent prodigals; that was all done long ago in the eternal covenant. He has no need to prepare for their return to Him; that was done on Calvary. God comes flying in the greatness of His compassion to help every poor penitent soul." <a href="http://www.spurgeon.org/sermons/2236.htm" type="external">Spurgeon Archive</a></p>
<p>It is the heart's desire of every blood-bought believer in Jesus Christ to live right, think right, do right and be right. But when we fall short, as we all will do to varying degrees, the bible assures and reassures us that our loving, Heavenly Father is waiting for us with kisses, and full restoration to fellowship with Him, if we will only repent of the sin that dragged us down, and run with all abandon back to the Father's house.</p>
<p>There is so much more to teach on this topic, but for now grasp by faith the simple and amazing promise of God towards us to never, ever let us go.</p> RELATED STORY: | true | 0 | 160 related story faith works judgment seat christ sheep hear voice know follow give unto eternal life shall never perish neither shall man pluck hand father gave greater man able pluck fathers hand father one john 102730 kept power blood works good deeds righteousness shall live faith man draw back soul shall pleasure draw back unto perdition believe saving soul hebrews 103839 christian circles topic eternal security hotlydebated subject much interested mans opinion bible say eternal security sincere treatise eternal security must first start look salvation accomplished believe lord jesus christ shall saved lord gracious good us much better deserve good us made sure make process one saved unbelievably simple understand simple read bible see one thing one thing one must saved shown acts 16 brought said sirs must saved said believe lord jesus christ thou shalt saved thy house acts 163031 thats truly honest sincere belief within jesus said way truth life complicated god purposely set way make easy us work salvation done jesus took upon punishment sins well sins went ther cross paid every sin would ever committed throughout history faith believe sincerely heart price paid applied sin debt salvation secured forever fact bible says simply secure also sealed day redemption eternally secure beem sealed salvation praise glory first trusted christ ye also trusted ye heard word truth gospel salvation also ye believed ye sealed holy spirit promise earnest inheritance redemption purchased possession unto praise glory ephesians 11214 dear one kept saved good works read bible youre nice people anything else saved sealed works jesus cross resurrection power holy spirit makes sense nothing earn salvation would think could anything keep jesus good shepard responsibilty keep sheep safe sheeps whole reason sheep need shepard forever safe masters hands one strongest passages eternal security found gospel john chapter 10 read good shepherd know sheep known mine father knoweth even know father lay life sheep sheep hear voice know follow give unto eternal life shall never perish neither shall man pluck hand father gave greater man able pluck fathers hand father one john 10 please go back reread passage selection let words promise keep safe eternally sink deep ears hearts jesus promises hand nothing nothing nothing anyone put says neither shall take thats everyone includes external forces like world flesh devil internal forces like church teaches something different dont get mad us going bible says safe hands god eternally hand also part body members body flesh bones cause shall man leave father mother shall joined unto wife two shall one flesh great mystery speak concerning christ church ephesians 53032 state true believer jesus christ part flesh part bones holding us hands grafted body nothing exists universe capable undoing think sin way sins already paid calvary one thing lose fellowship lord sealed day redemption become saved also another action takes place many christians study bible may aware sealing believer never fall away please note following verses discuss sealing believer ye also trusted ye heard word truth gospel salvation also ye believed ye sealed holy spirit promise earnest inheritance redemption purchased possession unto praise glory ephesians 11314 grieve holy spirit god whereby ye sealed unto day redemption ephesians 430 promises god yea amen unto glory god us stablisheth us christ hath anointed us god hath also sealed us given earnest spirit hearts 2 corinthians 12022 read verse carefully see sealed remember noah family got ark god sealed couldnt change mind journey got rough got rough thats much god loves us given us complete salvation salvation part works part works thats biblical salvation long shot 160 fellowship judgement seat christ scoffers disallow eternal security bible clearly teaches mockingly say doctrine eternal security license sin completely untrue eternal security promise god keep great comfort true believers license sin god forbid christian backslides becomes prodigal son something absolutely lose time felllowship lord note following onthe prodigal son many days younger son gathered together took journey far country wasted substance riotous living luke 1513 prodigal son took inheritance went revel sin first thing leave fathers house father would keep thats love believer jesus backslide go world free son wanted go join world father imagine tears eyes let go luke goes describe sins son fell son engaged sin lost sweet intimate fellowship father stop fathers son never know storyhe spends money booze whores nightclubs dancing whatever else could find nothing newfound friends turn hes broke hungry winds feeding pigs sudden idea came said many hired servants fathers bread enough spare perish hunger arise go father say unto father sinned heaven thee worthy called thy son make one thy hired servants luke 151719 whats great idea return truly eternally lovedin fathers house shakes dust returns full speed find father find gets back fathers house finds arose came father yet great way father saw compassion ran fell neck kissed luke 1520 ran back find father discover father already looking return come back joyous reunion full restoration fellowship lost things along way took inheritance wasted lost testimony lost time could father lose position fathers son eternally secure another reason true believer jesus christ knows eternal security license sin judgment seat christ must appear judgment seat christ every one may receive things done body according hath done whether good bad knowing therefore terror lord persuade men made manifest unto god trust also made manifest consciences 2 corinthians 51011 stand lord judged lived lives things said things says matthew say unto every idle word men shall speak shall give account thereof day judgment matthew 1236 bible says even saved christians sin christian falls sin sealed may lose fellowship lord like prodigal remain sons daughters father charles spurgeon said like yet great way father saw icy eyes father looked returning son love leaped beheld compassion felt anger heart toward son nothing pity poor boy got pitiable condition true fault come fathers mind state poverty degradation pale face wan hunger touched father quick god compassion woes miseries men may brought troubles indeed done nevertheless god compassion upon lords mercies consumed compassions fail read father ran compassion god followed swift movements slow anger quick bless take time consider shall show love penitent prodigals done long ago eternal covenant need prepare return done calvary god comes flying greatness compassion help every poor penitent soul spurgeon archive hearts desire every bloodbought believer jesus christ live right think right right right fall short varying degrees bible assures reassures us loving heavenly father waiting us kisses full restoration fellowship repent sin dragged us run abandon back fathers house much teach topic grasp faith simple amazing promise god towards us never ever let us go related story | 1,096 |
<p />
<p>FCA's Jeep Cherokee continues to help drive company profits. Image source: Fiat Chrysler Automobiles.</p>
<p>Continue Reading Below</p>
<p>You can argue that the <a href="http://www.fool.com/investing/general/2016/03/05/winners-and-losers-in-jd-powers-2016-vehicle-depen.aspx?source=eptfxblnk0000004" type="external">latest quality survey Opens a New Window.</a>frowns upon Fiat Chrysler Automobiles' brands, including Jeep, but you can't argue that consumers aren't still driving the automaker's SUVs off dealership lots in droves. Thanks in large part to its hot-selling Jeep brand, as well as sales of its Ram truck, FCA posted a much improved first-quarter net profit compared to a year ago. Let's take a look at some of the financial figures and three takeaways for investors.</p>
<p>FCA's adjusted-EBIT nearly doubled in the first quarter to 1.38 billion euros, which was ahead of consensus estimates calling for 1.23 billion euros. In terms of becoming more profitable, albeit still far behind Detroit's larger automakers, it was a strong quarter; however, one of the major takeaways was the rise in FCA's debt.</p>
<p>Going the wrong way The automaker's net industrial debt jumped to 6.59 billion euros from 5.05 billion euros at the end of 2015. FCA noted the jump was partially due to seasonal and currency headwinds.</p>
<p>However, the automaker's debt pile is worse than it appears if you're simply looking at its net industrial debt figure. FCA's total debt is a much higher 26.55 billion euros, but then the company's net industrial debt figure takes its cash and cash equivalents, among other items, in consideration to offset part of that total debt figure. General Motors, for example, has a total automotive debt of $10.8 billion, and that figure doesn't take into account the company's $18.5 billion pile of cash and current marketable securities. So investors need to be sure to compare apples-to-apples debt figures between automakers. To be fair, FCA's total debt actually declined from 27.78 billion euros at the end of 2015.</p>
<p>Beyond just the vast total debt figure, it's also troubling that the figure continues to move in the wrong direction. That's because CEO Sergio Marchionne set a goal to wipe out the company's net industrial debt by 2018, but that goal appears increasingly difficult to attain, especially if the U.S. encounters a slowdown in sales of SUVs and large trucks -- North America generated nearly 90% of FCA's first-quarter profit.</p>
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<p>"The higher debt seems to be the main negative ... and the question remains whether the profits can be replicated in future," a Milan-based trader said, according to Fortune.</p>
<p>Comparative advantage FCA is essentially pushing all-in on production of bigger and more profitable vehicles. Marchionne dished out details of the goal to exit the small and midsize passenger car business in the U.S. and transition more plants to producing faster-selling SUVs and trucks.</p>
<p>"It has gotten a lot stickier on the passenger car side," Marchionne told the Associated Press. "I think the call that we made to exit those businesses as producer in the United States in hindsight was probably one of the best calls we made."</p>
<p>More specifically, FCA plans to retool a factory in Sterling Heights, Michigan, from producing the less-than-popular Chrysler 200 midsize car, and will instead produce the new Ram pickup truck, due out in early 2018. Next, a factory in Warren, Michigan, that currently produces the Ram pickup will transition to producing the Jeep Wagoneer or Grand Wagoneer. Currently, the futures of FCA's small and midsize cars, which automaker will help produce them and where they will be manufactured, are up in the air.</p>
<p>On the bright side While massive recalls have become more the norm in recent years, investors received a bit of good news concerning FCA's recent global recall of 1.1 million cars and SUVs. The recalled vehicles have electronic gear shifters that move forward or backward to select the gear, rather than moving along a track. Due to some drivers not pushing the gear forward three positions, some consumers exited the vehicle without the vehicle being in park, causing roll-away crashes.</p>
<p>FCA noted it was aware of at least 41 injuries potentially related to the problem, which covers the 2012-2014 Dodge Charger and Chrysler 300 sedans, as well as the 2014-2015 Jeep Grand Cherokee SUV. Fortunately, during the first-quarter conference call, Marchionne explained that the issue would be fixed with a software update and no physical changes would be required, and that the recall would have little impact on FCA's future earnings.</p>
<p>Ultimately, it was a more profitable first quarter for the automaker, but investors remain uneasy as the company moves all-in on SUVs and trucks by transitioning factory production in the U.S., all while trying to expand its Maserati and Alfa Romeo sales and wipe out industrial debt by 2018.</p>
<p>The article <a href="http://www.fool.com/investing/general/2016/04/28/3-key-takeaways-from-fiat-chrysler-automobiles-q1.aspx" type="external">3 Key Takeaways From Fiat Chrysler Automobiles' Improved First Quarter Opens a New Window.</a> originally appeared on Fool.com.</p>
<p><a href="http://my.fool.com/profile/TMFTwoCoins/info.aspx?source=eptfxblnk0000004" type="external">Daniel Miller Opens a New Window.</a> owns shares of General Motors. 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> | true | 0 | fcas jeep cherokee continues help drive company profits image source fiat chrysler automobiles continue reading argue latest quality survey opens new windowfrowns upon fiat chrysler automobiles brands including jeep cant argue consumers arent still driving automakers suvs dealership lots droves thanks large part hotselling jeep brand well sales ram truck fca posted much improved firstquarter net profit compared year ago lets take look financial figures three takeaways investors fcas adjustedebit nearly doubled first quarter 138 billion euros ahead consensus estimates calling 123 billion euros terms becoming profitable albeit still far behind detroits larger automakers strong quarter however one major takeaways rise fcas debt going wrong way automakers net industrial debt jumped 659 billion euros 505 billion euros end 2015 fca noted jump partially due seasonal currency headwinds however automakers debt pile worse appears youre simply looking net industrial debt figure fcas total debt much higher 2655 billion euros companys net industrial debt figure takes cash cash equivalents among items consideration offset part total debt figure general motors example total automotive debt 108 billion figure doesnt take account companys 185 billion pile cash current marketable securities investors need sure compare applestoapples debt figures automakers fair fcas total debt actually declined 2778 billion euros end 2015 beyond vast total debt figure also troubling figure continues move wrong direction thats ceo sergio marchionne set goal wipe companys net industrial debt 2018 goal appears increasingly difficult attain especially us encounters slowdown sales suvs large trucks north america generated nearly 90 fcas firstquarter profit advertisement higher debt seems main negative question remains whether profits replicated future milanbased trader said according fortune comparative advantage fca essentially pushing allin production bigger profitable vehicles marchionne dished details goal exit small midsize passenger car business us transition plants producing fasterselling suvs trucks gotten lot stickier passenger car side marchionne told associated press think call made exit businesses producer united states hindsight probably one best calls made specifically fca plans retool factory sterling heights michigan producing lessthanpopular chrysler 200 midsize car instead produce new ram pickup truck due early 2018 next factory warren michigan currently produces ram pickup transition producing jeep wagoneer grand wagoneer currently futures fcas small midsize cars automaker help produce manufactured air bright side massive recalls become norm recent years investors received bit good news concerning fcas recent global recall 11 million cars suvs recalled vehicles electronic gear shifters move forward backward select gear rather moving along track due drivers pushing gear forward three positions consumers exited vehicle without vehicle park causing rollaway crashes fca noted aware least 41 injuries potentially related problem covers 20122014 dodge charger chrysler 300 sedans well 20142015 jeep grand cherokee suv fortunately firstquarter conference call marchionne explained issue would fixed software update physical changes would required recall would little impact fcas future earnings ultimately profitable first quarter automaker investors remain uneasy company moves allin suvs trucks transitioning factory production us trying expand maserati alfa romeo sales wipe industrial debt 2018 article 3 key takeaways fiat chrysler automobiles improved first quarter opens new window originally appeared foolcom daniel miller opens new window owns shares general motors 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 | 566 |
<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>
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<p>NMI(R) at 53.9%; July Non-Manufacturing ISM(R) Report On Business(R); Business Activity Index at 55.9%; New Orders Index at 55.1%; Employment Index at 53.6%</p>
<p>PR Newswire</p>
<p>Continue Reading Below</p>
<p>TEMPE, Ariz., Aug. 3, 2017</p>
<p>TEMPE, Ariz., Aug. 3, 2017 /PRNewswire/ -- Economic activity in the non-manufacturing sector grew in July for the 91st consecutive month, say the nation's purchasing and supply executives in the latest Non-Manufacturing ISM(R) Report On Business(R) .</p>
<p>The report was issued today by Anthony Nieves, CPSM, C.P.M., A.P.P., CFPM, Chair of the Institute for Supply Management(R) (ISM(R) ) Non-Manufacturing Business Survey Committee: "The NMI(R) registered 53.9 percent, which is 3.5 percentage points lower than the June reading of 57.4 percent. This represents continued growth in the non-manufacturing sector at a slower rate. The Non-Manufacturing Business Activity Index decreased to 55.9 percent, 4.9 percentage points lower than the June reading of 60.8 percent, reflecting growth for the 96th consecutive month, at a slower rate in July. The New Orders Index registered 55.1 percent, 5.4 percentage points lower than the reading of 60.5 percent in June. The Employment Index decreased 2.2 percentage points in July to 53.6 percent from the June reading of 55.8 percent. The Prices Index increased 3.6 percentage points from the June reading of 52.1 percent to 55.7 percent, indicating prices increased in July for the second consecutive month. According to the NMI(R) , 15 non-manufacturing industries reported growth. The non-manufacturing sector did not sustain the previous rate of growth and cooled-off in July. The majority of respondents' comments were mostly positive about business conditions and the state of the economy."</p>
<p>INDUSTRY PERFORMANCE</p>
<p>The 15 non-manufacturing industries reporting growth in July -- listed in order -- are: Accommodation &amp; Food Services; Information; Educational Services; Other Services; Utilities; Public Administration; Wholesale Trade; Retail Trade; Mining; Real Estate, Rental &amp; Leasing; Construction; Transportation &amp; Warehousing; Health Care &amp; Social Assistance; Professional, Scientific &amp; Technical Services; and Finance &amp; Insurance. The two industries reporting contraction in July are: Management of Companies &amp; Support Services; and Agriculture, Forestry, Fishing &amp; Hunting.</p>
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<p>WHAT RESPONDENTS ARE SAYING ...</p>
<p>-- "A typical and expected midsummer slowdown in hiring activity by</p>
<p>employers is causing a normal slowdown in business for this time of year.</p>
<p>We expect a sharp ramp-up of business activity over the next three</p>
<p>months." (Management of Companies &amp; Support Services)</p>
<p>-- "Quiet time of year for us, with focus on busy August through December</p>
<p>peak season to come." (Information)</p>
<p>-- "Through the first half of 2017, revenue and profits are ahead of</p>
<p>projections and holding steady. Minimal expansion expected through year</p>
<p>end 2017." (Finance &amp; Insurance)</p>
<p>-- "Business volume slowed some in June." (Health Care &amp; Social Assistance)</p>
<p>-- "We are still experiencing an increased activity level over last month,</p>
<p>though the rate of growth seems to be flattening somewhat." (Mining)</p>
<p>-- "Pork bellies trending higher in price. Beef, specifically grilling meats,</p>
<p>still remain a bit high, even after the Fourth of July holiday. Some</p>
<p>Asian vegetables are in short supply due to local grower issues."</p>
<p>(Accommodation &amp; Food Services)</p>
<p>-- "Business in third quarter is looking up, but it may be delayed from</p>
<p>slower than expected second quarter. The next couple of months will</p>
<p>determine the outcome." (Professional, Scientific &amp; Technical Services)</p>
<p>-- "Overall business conditions remained stable and flat from the previous</p>
<p>month." (Retail Trade)</p>
<p>-- "In general, a very stable sales month; flat to very slight increases in</p>
<p>activity. Some slight price declines for products." (Wholesale Trade)</p>
<p>ISM(R) NON-MANUFACTURING SURVEY RESULTS AT A GLANCE</p>
<p>COMPARISON OF ISM(R) NON-MANUFACTURING AND ISM(R) MANUFACTURING SURVEYS*</p>
<p>JULY 2017</p>
<p>Index Non-Manufacturing Manufacturing</p>
<p>Series Series Percent Rate Series Series</p>
<p>Index Index Point of Trend** Index Index Percent Point</p>
<p>Jul Jun Change Direction Change (Months) Jul Jun Change</p>
<p>NMI(R)</p>
<p>/PMI(R) 53.9 57.4 -3.5 Growing Slower 91 56.3 57.8 -1.5</p>
<p>Business</p>
<p>Activity/</p>
<p>Production 55.9 60.8 -4.9 Growing Slower 96 60.6 62.4 -1.8</p>
<p>New Orders 55.1 60.5 -5.4 Growing Slower 96 60.4 63.5 -3.1</p>
<p>Employment 53.6 55.8 -2.2 Growing Slower 41 55.2 57.2 -2.0</p>
<p>Supplier</p>
<p>Deliveries 51.0 52.5 -1.5 Slowing Slower 19 55.4 57.0 -1.6</p>
<p>Inventories 56.5 57.5 -1.0 Growing Slower 4 50.0 49.0 +1.0</p>
<p>Prices 55.7 52.1 +3.6 Increasing Faster 2 62.0 55.0 +7.0</p>
<p>Backlog of</p>
<p>Orders 52.0 52.5 -0.5 Growing Slower 6 55.0 57.0 -2.0</p>
<p>New Export</p>
<p>Orders 53.0 55.0 -2.0 Growing Slower 6 57.5 59.5 -2.0</p>
<p>Imports 51.5 51.0 +0.5 Growing Faster 2 56.0 54.0 +2.0</p>
<p>Inventory</p>
<p>Sentiment 67.5 62.0 +5.5 Too High Faster 242 N/A N/A N/A</p>
<p>Customers'</p>
<p>Inventories N/A N/A N/A N/A N/A N/A 49.0 50.5 -1.5</p>
<p>Overall Economy Slower 96</p>
<p>Non-Manufacturing Sector Growing Slower</p>
<p>91</p>
<p>Growing</p>
<p>*Non-Manufacturing ISM(R) Report On Business(R) data is seasonally adjusted for the Business Activity, New Orders, Prices and Employment Indexes. Manufacturing ISM(R) Report On Business(R) data is seasonally adjusted for New Orders, Production, Employment and Supplier Deliveries.</p>
<p>**Number of months moving in current direction.</p>
<p>COMMODITIES REPORTED UP/DOWN IN PRICE, AND IN SHORT SUPPLY</p>
<p>Commodities Up in Price</p>
<p>Aircraft Parts; Bacon (2); Beef (5); Beef Products (2); Cheese; Copper Wire; Corrugated Boxes (3); Dairy* (2); #1 Diesel Fuel (2); Fuel; Labor (4); Labor -- Construction (5); Lumber Products -- Plywood and Spruce; Medical Gases; Medical/Surgical Supplies; Medical Equipment; Passenger Vans; Paper (2); Paper Products; Pork Products; Seafood Products; Steel Products (8); and #10 Window Envelopes.</p>
<p>Commodities Down in Price</p>
<p>Dairy*; Gasoline; and Lumber -- Pine.</p>
<p>Commodities in Short Supply</p>
<p>Chemical Products; Labor -- Construction (16); Labor -- Services (3); Labor -- Temporary (2); Laboratory Supplies (2); and Medical Supplies (2).</p>
<p>Note: The number of consecutive months the commodity is listed is indicated after each item.</p>
<p>*Reported as both up and down in price.</p>
<p>JULY 2017 NON-MANUFACTURING INDEX SUMMARIES</p>
<p>NMI(R) In July, the NMI(R) registered 53.9 percent, 3.5 percentage points lower than the 57.4 percent registered in June, indicating continued growth in the non-manufacturing sector for the 91st consecutive month. A reading above 50 percent indicates the non-manufacturing sector economy is generally expanding; below 50 percent indicates the non-manufacturing sector is generally contracting.</p>
<p>An NMI(R) above 48.9 percent, over a period of time, generally indicates an expansion of the overall economy. Therefore, the July NMI(R) indicates growth for the 96th consecutive month in the overall economy, and indicates expansion in the non-manufacturing sector for the 91st consecutive month. Nieves says, "The past relationship between the NMI(R) and the overall economy indicates that the NMI(R) for July (53.9 percent) corresponds to a 1.9 percent increase in real gross domestic product (GDP) on an annualized basis."</p>
<p>NMI(R) HISTORY</p>
<p>Month NMI(R) Month NMI(R)</p>
<p>Jul 2017 53.9 Jan 2017 56.5</p>
<p>Jun 2017 57.4 Dec 2016 56.6</p>
<p>May 2017 56.9 Nov 2016 56.2</p>
<p>Apr 2017 57.5 Oct 2016 54.6</p>
<p>Mar 2017 55.2 Sep 2016 56.6</p>
<p>Feb 2017 57.6 Aug 2016 51.7</p>
<p>Average for 12 months -- 55.9</p>
<p>High -- 57.6</p>
<p>Low -- 51.7</p>
<p>Business Activity</p>
<p>ISM(R) 's Business Activity Index registered 55.9 percent in July, a decrease of 4.9 percentage points from the June reading of 60.8 percent. This represents growth in business activity for the 96th consecutive month. Fourteen industries reported increased business activity and three industries reported decreased activity for the month of July. Comments from respondents include: "Notable drop-off in business activity; possibly summer related" and "Increased store traffic."</p>
<p>The 14 industries reporting growth of business activity in July -- listed in order -- are: Accommodation &amp; Food Services; Utilities; Other Services; Educational Services; Information; Retail Trade; Public Administration; Transportation &amp; Warehousing; Real Estate, Rental &amp; Leasing; Mining; Construction; Finance &amp; Insurance; Wholesale Trade; and Professional, Scientific &amp; Technical Services. The three industries reporting a decrease in business activity in July are: Agriculture, Forestry, Fishing &amp; Hunting; Management of Companies &amp; Support Services; and Health Care &amp; Social Assistance.</p>
<p>Business Activity %Higher %Same %Lower Index</p>
<p>Jul 2017 29 58 13 55.9</p>
<p>Jun 2017 32 58 10 60.8</p>
<p>May 2017 37 50 13 60.7</p>
<p>Apr 2017 42 50 8 62.4</p>
<p>New Orders</p>
<p>ISM(R) 's Non-Manufacturing New Orders Index registered 55.1 percent, a decrease of 5.4 percentage points from the June reading of 60.5 percent. July represents growth in new orders for the 96th consecutive month, at a slower rate compared with June. Comments from respondents include: "New customer business added this month" and "Invigorated economy."</p>
<p>The 13 industries reporting growth of new orders in July -- listed in order -- are: Utilities; Educational Services; Other Services; Information; Accommodation &amp; Food Services; Public Administration; Transportation &amp; Warehousing; Professional, Scientific &amp; Technical Services; Retail Trade; Mining; Wholesale Trade; Finance &amp; Insurance; and Construction. The only industry reporting a decrease in business activity in July is Management of Companies &amp; Support Services.</p>
<p>New Orders %Higher %Same %Lower Index</p>
<p>Jul 2017 27 61 12 55.1</p>
<p>Jun 2017 33 58 9 60.5</p>
<p>May 2017 34 52 14 57.7</p>
<p>Apr 2017 41 51 8 63.2</p>
<p>Employment</p>
<p>Employment activity in the non-manufacturing sector grew in July for the 41st consecutive month. ISM(R) 's Non-Manufacturing Employment Index registered 53.6 percent, which reflects a decrease of 2.2 percentage points when compared to the June reading of 55.8 percent. Nine industries reported increased employment, and four industries reported decreased employment. Comments from respondents include: "Continue to refine workforce through efficiencies" and "Filling more open positions."</p>
<p>The nine industries reporting an increase in employment in July -- listed in order -- are: Wholesale Trade; Real Estate, Rental &amp; Leasing; Mining; Information; Health Care &amp; Social Assistance; Retail Trade; Accommodation &amp; Food Services; Construction; and Public Administration. The four industries reporting a reduction in employment in July are: Educational Services; Agriculture, Forestry, Fishing &amp; Hunting; Utilities; and Finance &amp; Insurance.</p>
<p>Employment %Higher %Same %Lower Index</p>
<p>Jul 2017 26 60 14 53.6</p>
<p>Jun 2017 32 56 12 55.8</p>
<p>May 2017 30 58 12 57.8</p>
<p>Apr 2017 23 62 15 51.4</p>
<p>Supplier Deliveries</p>
<p>Supplier deliveries were slower in July for the 19th consecutive month. The index registered 51 percent, which is 1.5 percentage points lower than the 52.5 percent that was registered in June. A reading above 50 percent indicates slower deliveries, while a reading below 50 percent indicates faster deliveries. Comments from respondents include: "Slightly better rail delivery" and "Over-promising."</p>
<p>The seven industries reporting slower deliveries in July -- listed in order -- are: Educational Services; Wholesale Trade; Construction; Information; Accommodation &amp; Food Services; Public Administration; and Other Services. The five industries reporting faster deliveries in July are: Agriculture, Forestry, Fishing &amp; Hunting; Management of Companies &amp; Support Services; Retail Trade; Professional, Scientific &amp; Technical Services; and Finance &amp; Insurance. Six industries reported no change in supplier deliveries in July compared to June.</p>
<p>Supplier Deliveries %Slower %Same %Faster Index</p>
<p>Jul 2017 7 88 5 51.0</p>
<p>Jun 2017 8 89 3 52.5</p>
<p>May 2017 8 87 5 51.5</p>
<p>Apr 2017 8 90 2 53.0</p>
<p>Inventories</p>
<p>ISM(R) 's Non-Manufacturing Inventories Index grew in July for the fourth consecutive month and registered 56.5 percent, 1 percentage point lower than the 57.5 percent that was reported in June. Of the total respondents in July, 32 percent indicated they do not have inventories or do not measure them. Comments from respondents include: "Reduced consumer demand" and "Summer inventory floats up as expected, promotions."</p>
<p>The nine industries reporting an increase in inventories in July -- listed in order -- are: Retail Trade; Other Services; Mining; Wholesale Trade; Utilities; Health Care &amp; Social Assistance; Accommodation &amp; Food Services; Public Administration; and Professional, Scientific &amp; Technical Services. The four industries reporting decreases in inventories in July are: Agriculture, Forestry, Fishing &amp; Hunting; Transportation &amp; Warehousing; Construction; and Finance &amp; Insurance.</p>
<p>Inventories %Higher %Same %Lower Index</p>
<p>Jul 2017 26 61 13 56.5</p>
<p>Jun 2017 29 57 14 57.5</p>
<p>May 2017 17 74 9 54.0</p>
<p>Apr 2017 21 63 16 52.5</p>
<p>Prices</p>
<p>Prices paid by non-manufacturing organizations for purchased materials and services increased in July for the second consecutive month. ISM(R) 's Non-Manufacturing Prices Index for July registered 55.7 percent, 3.6 percentage points higher than the 52.1 percent reported in June. Nineteen percent of respondents reported higher prices, 77 percent indicated no change in prices paid, and 4 percent of respondents reported lower prices.</p>
<p>The 15 non-manufacturing industries reporting an increase in prices paid during the month of July -- listed in order -- are: Agriculture, Forestry, Fishing &amp; Hunting; Accommodation &amp; Food Services; Arts, Entertainment &amp; Recreation; Real Estate, Rental &amp; Leasing; Management of Companies &amp; Support Services; Wholesale Trade; Information; Mining; Other Services; Transportation &amp; Warehousing; Construction; Public Administration; Retail Trade; Professional, Scientific &amp; Technical Services; and Health Care &amp; Social Assistance. The only industry reporting a decrease in prices paid during the month of July is Finance &amp; Insurance.</p>
<p>Prices %Higher %Same %Lower Index</p>
<p>Jul 2017 19 77 4 55.7</p>
<p>Jun 2017 19 72 9 52.1</p>
<p>May 2017 17 72 11 49.2</p>
<p>Apr 2017 26 69 5 57.6</p>
<p>NOTE: Commodities reported as up in price and down in price are listed in the commodities section of this report.</p>
<p>Backlog of Orders</p>
<p>ISM(R) 's Non-Manufacturing Backlog of Orders Index indicates that order backlogs grew in July. The index registered 52 percent, which is 0.5 percentage point lower than the 52.5 percent reported in June. Of the total respondents in July, 36 percent indicated they do not measure backlog of orders.</p>
<p>The eight industries reporting an increase in order backlogs in July -- listed in order -- are: Transportation &amp; Warehousing; Finance &amp; Insurance; Real Estate, Rental &amp; Leasing; Accommodation &amp; Food Services; Public Administration; Health Care &amp; Social Assistance; Wholesale Trade; and Professional, Scientific &amp; Technical Services. The five industries reporting a decrease in order backlogs in July are: Management of Companies &amp; Support Services; Information; Mining; Construction; and Utilities.</p>
<p>Backlog of Orders %Higher %Same %Lower Index</p>
<p>Jul 2017 15 74 11 52.0</p>
<p>Jun 2017 15 75 10 52.5</p>
<p>May 2017 19 76 5 57.0</p>
<p>Apr 2017 15 77 8 53.5</p>
<p>New Export Orders</p>
<p>Orders and requests for services and other non-manufacturing activities to be provided outside of the U.S. by domestically based personnel grew in July for the sixth consecutive month at a slower rate. The New Export Orders Index for July registered 53 percent, which is 2 percentage points lower than the 55 percent reported in June. Of the total respondents in July, 61 percent indicated they either do not perform, or do not separately measure, orders for work outside of the U.S.</p>
<p>The seven industries reporting an increase in new export orders in July -- listed in order -- are: Other Services; Retail Trade; Transportation &amp; Warehousing; Construction; Information; Accommodation &amp; Food Services; and Health Care &amp; Social Assistance. The four industries reporting a decrease in export orders in July are: Management of Companies &amp; Support Services; Real Estate, Rental &amp; Leasing; Wholesale Trade; and Mining.</p>
<p>New Export Orders %Higher %Same %Lower Index</p>
<p>Jul 2017 15 76 9 53.0</p>
<p>Jun 2017 13 84 3 55.0</p>
<p>May 2017 14 81 5 54.5</p>
<p>Apr 2017 31 69 0 65.5</p>
<p>Imports</p>
<p>Imports grew in July for the second consecutive month. This month's reading at 51.5 percent is 0.5 percentage point higher than the reading of 51 percent reported in June. Fifty-one percent of respondents reported that they do not use, or do not track the use of, imported materials.</p>
<p>The four industries reporting an increase in imports for the month of July are: Mining; Retail Trade; Accommodation &amp; Food Services; and Wholesale Trade. The three industries reporting a decrease in imports in the month of July are: Agriculture, Forestry, Fishing &amp; Hunting; Health Care &amp; Social Assistance; and Professional, Scientific &amp; Technical Services. Nine industries reported no change in imports in July compared to June.</p>
<p>Imports %Higher %Same %Lower Index</p>
<p>Jul 2017 9 85 6 51.5</p>
<p>Jun 2017 9 84 7 51.0</p>
<p>May 2017 6 85 9 48.5</p>
<p>Apr 2017 13 80 7 53.0</p>
<p>Inventory Sentiment</p>
<p>The ISM(R) Non-Manufacturing Inventory Sentiment Index in July registered 67.5 percent, which is 5.5 percentage points higher than the reading of 62 percent reported in June. This indicates that respondents believe their inventories are still too high at this time. In July, 35 percent of respondents said their inventories were too high, 0 percent of the respondents said their inventories were too low, and 65 percent said their inventories were about right.</p>
<p>The 12 industries reporting a feeling that their inventories are too high in July -- listed in order -- are: Mining; Wholesale Trade; Utilities; Information; Finance &amp; Insurance; Real Estate, Rental &amp; Leasing; Health Care &amp; Social Assistance; Construction; Other Services; Professional, Scientific &amp; Technical Services; Accommodation &amp; Food Services; and Public Administration. No industry reported a feeling that its inventory is too low in July compared with June.</p>
<p>%Too %About %Too</p>
<p>Inventory Sentiment High Right Low Index</p>
<p>Jul 2017 35 65 0 67.5</p>
<p>Jun 2017 29 66 5 62.0</p>
<p>May 2017 28 70 2 63.0</p>
<p>Apr 2017 26 68 6 60.0</p>
<p>About This Report</p>
<p>DO NOT CONFUSE THIS NATIONAL REPORT with the various regional purchasing reports released across the country. The national report's information reflects the entire U.S., while the regional reports contain primarily regional data from their local vicinities. Also, the information in the regional reports is not used in calculating the results of the national report. The information compiled in this report is for the month of July 2017.</p>
<p>The data presented herein is obtained from a survey of non-manufacturing supply executives based on information they have collected within their respective organizations. ISM(R) makes no representation, other than that stated within this release, regarding the individual company data collection procedures. The data should be compared to all other economic data sources when used in decision-making.</p>
<p>Data and Method of Presentation</p>
<p>The Non-Manufacturing ISM(R) Report On Business(R) is based on data compiled from purchasing and supply executives nationwide. Membership of the Non-Manufacturing Business Survey Committee is diversified by NAICS, based on each industry's contribution to gross domestic product (GDP). The Non-Manufacturing Business Survey Committee responses are divided into the following NAICS code categories: Agriculture, Forestry, Fishing &amp; Hunting; Mining; Utilities; Construction; Wholesale Trade; Retail Trade; Transportation &amp; Warehousing; Information; Finance &amp; Insurance; Real Estate, Rental &amp; Leasing; Professional, Scientific &amp; Technical Services; Management of Companies &amp; Support Services; Educational Services; Health Care &amp; Social Assistance; Arts, Entertainment &amp; Recreation; Accommodation &amp; Food Services; Public Administration; and Other Services (services such as Equipment &amp; Machinery Repairing; Promoting or Administering Religious Activities; Grantmaking; Advocacy; and Providing Dry-Cleaning &amp; Laundry Services, Personal Care Services, Death Care Services, Pet Care Services, Photofinishing Services, Temporary Parking Services, and Dating Services).</p>
<p>Survey responses reflect the change, if any, in the current month compared to the previous month. For each of the indicators measured (Business Activity, New Orders, Backlog of Orders, New Export Orders, Inventory Change, Inventory Sentiment, Imports, Prices, Employment and Supplier Deliveries), this report shows the percentage reporting each response, and the diffusion index. Responses represent raw data and are never changed. Data is seasonally adjusted for Business Activity, New Orders, Prices and Employment. All seasonal adjustment factors are subject annually to relatively minor changes when conditions warrant them. The remaining indexes have not indicated significant seasonality.</p>
<p>The NMI(R) (Non-Manufacturing Index) is a composite index based on the diffusion indexes for four of the indicators with equal weights: Business Activity (seasonally adjusted), New Orders (seasonally adjusted), Employment (seasonally adjusted) and Supplier Deliveries. Diffusion indexes have the properties of leading indicators and are convenient summary measures showing the prevailing direction of change and the scope of change. An index reading above 50 percent indicates that the non-manufacturing economy is generally expanding; below 50 percent indicates that it is generally declining. Supplier Deliveries is an exception. A Supplier Deliveries Index above 50 percent indicates slower deliveries and below 50 percent indicates faster deliveries.</p>
<p>An NMI(R) above 48.9 percent, over a period of time, indicates that the overall economy, or gross domestic product (GDP), is generally expanding; below 48.9 percent, it is generally declining. The distance from 50 percent or 48.9 percent is indicative of the strength of the expansion or decline.</p>
<p>The Non-Manufacturing ISM(R) Report On Business(R) survey is sent out to Non-Manufacturing Business Survey Committee respondents the first part of each month. Respondents are asked to ONLY report on information for the current month. ISM(R) receives survey responses throughout most of any given month, with the majority of respondents generally waiting until late in the month to submit responses in order to give the most accurate picture of current business activity. ISM(R) then compiles the report for release on the third business day of the following month.</p>
<p>The industries reporting growth, as indicated in the Non-Manufacturing ISM(R) Report On Business(R) monthly report, are listed in the order of most growth to least growth. For the industries reporting contraction or decreases, those are listed in the order of the highest level of contraction/decrease to the least level of contraction/decrease.</p>
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<p>About Institute for Supply Management(R) Institute for Supply Management(R) (ISM(R) ) serves supply management professionals in more than 90 countries. Its 50,000 members around the world manage about US$1 trillion in corporate and government supply chain procurement annually. Founded in 1915 as the first supply management institute in the world, ISM is committed to advancing the practice of supply management to drive value and competitive advantage for its members, contributing to a prosperous and sustainable world. ISM leads the profession through the ISM Report On Business(R) , its highly regarded certification programs and the newly launched ISM Mastery Model(R) . This report has been issued by the association since 1931, except for a four-year interruption during World War II.</p>
<p>The full text version of the Non-Manufacturing ISM(R) Report On Business(R) is posted on ISM(R) 's website at www.ismrob.org on the third business day* of every month after 10:00 a.m. ET.</p>
<p>The next Non-Manufacturing ISM(R) Report On Business(R) featuring the August 2017 data will be released at 10:00 a.m. ET on Wednesday, September 6, 2017.</p>
<p>*Unless the NYSE is closed.</p>
<p>Contact: Kristina Cahill</p>
<p>Report On Business(R) Analyst</p>
<p>ISM(R) , ROB/Research Manager</p>
<p>Tempe, Arizona</p>
<p>+1 480.455.5910</p>
<p>Email: [email protected]</p>
<p>View original content with multimedia:http://www.prnewswire.com/news-releases/nmi-at-539-july-non-manufacturing-ism-report-on-business-business-activity-index-at-559-new-orders-index-at-551-employment-index-at-536-300498801.html</p>
<p>SOURCE Institute for Supply Management</p>
<p>(END) Dow Jones Newswires</p>
<p>August 03, 2017 10:15 ET (14:15 GMT)</p> | true | 0 | nmir 539 july nonmanufacturing ismr report businessr business activity index 559 new orders index 551 employment index 536 pr newswire continue reading tempe ariz aug 3 2017 tempe ariz aug 3 2017 prnewswire economic activity nonmanufacturing sector grew july 91st consecutive month say nations purchasing supply executives latest nonmanufacturing ismr report businessr report issued today anthony nieves cpsm cpm app cfpm chair institute supply managementr ismr nonmanufacturing business survey committee nmir registered 539 percent 35 percentage points lower june reading 574 percent represents continued growth nonmanufacturing sector slower rate nonmanufacturing business activity index decreased 559 percent 49 percentage points lower june reading 608 percent reflecting growth 96th consecutive month slower rate july new orders index registered 551 percent 54 percentage points lower reading 605 percent june employment index decreased 22 percentage points july 536 percent june reading 558 percent prices index increased 36 percentage points june reading 521 percent 557 percent indicating prices increased july second consecutive month according nmir 15 nonmanufacturing industries reported growth nonmanufacturing sector sustain previous rate growth cooledoff july majority respondents comments mostly positive business conditions state economy industry performance 15 nonmanufacturing industries reporting growth july listed order accommodation amp food services information educational services services utilities public administration wholesale trade retail trade mining real estate rental amp leasing construction transportation amp warehousing health care amp social assistance professional scientific amp technical services finance amp insurance two industries reporting contraction july management companies amp support services agriculture forestry fishing amp hunting advertisement respondents saying typical expected midsummer slowdown hiring activity employers causing normal slowdown business time year expect sharp rampup business activity next three months management companies amp support services quiet time year us focus busy august december peak season come information first half 2017 revenue profits ahead projections holding steady minimal expansion expected year end 2017 finance amp insurance business volume slowed june health care amp social assistance still experiencing increased activity level last month though rate growth seems flattening somewhat mining pork bellies trending higher price beef specifically grilling meats still remain bit high even fourth july holiday asian vegetables short supply due local grower issues accommodation amp food services business third quarter looking may delayed slower expected second quarter next couple months determine outcome professional scientific amp technical services overall business conditions remained stable flat previous month retail trade general stable sales month flat slight increases activity slight price declines products wholesale trade ismr nonmanufacturing survey results glance comparison ismr nonmanufacturing ismr manufacturing surveys july 2017 index nonmanufacturing manufacturing series series percent rate series series index index point trend index index percent point jul jun change direction change months jul jun change nmir pmir 539 574 35 growing slower 91 563 578 15 business activity production 559 608 49 growing slower 96 606 624 18 new orders 551 605 54 growing slower 96 604 635 31 employment 536 558 22 growing slower 41 552 572 20 supplier deliveries 510 525 15 slowing slower 19 554 570 16 inventories 565 575 10 growing slower 4 500 490 10 prices 557 521 36 increasing faster 2 620 550 70 backlog orders 520 525 05 growing slower 6 550 570 20 new export orders 530 550 20 growing slower 6 575 595 20 imports 515 510 05 growing faster 2 560 540 20 inventory sentiment 675 620 55 high faster 242 na na na customers inventories na na na na na na 490 505 15 overall economy slower 96 nonmanufacturing sector growing slower 91 growing nonmanufacturing ismr report businessr data seasonally adjusted business activity new orders prices employment indexes manufacturing ismr report businessr data seasonally adjusted new orders production employment supplier deliveries number months moving current direction commodities reported updown price short supply commodities price aircraft parts bacon 2 beef 5 beef products 2 cheese copper wire corrugated boxes 3 dairy 2 1 diesel fuel 2 fuel labor 4 labor construction 5 lumber products plywood spruce medical gases medicalsurgical supplies medical equipment passenger vans paper 2 paper products pork products seafood products steel products 8 10 window envelopes commodities price dairy gasoline lumber pine commodities short supply chemical products labor construction 16 labor services 3 labor temporary 2 laboratory supplies 2 medical supplies 2 note number consecutive months commodity listed indicated item reported price july 2017 nonmanufacturing index summaries nmir july nmir registered 539 percent 35 percentage points lower 574 percent registered june indicating continued growth nonmanufacturing sector 91st consecutive month reading 50 percent indicates nonmanufacturing sector economy generally expanding 50 percent indicates nonmanufacturing sector generally contracting nmir 489 percent period time generally indicates expansion overall economy therefore july nmir indicates growth 96th consecutive month overall economy indicates expansion nonmanufacturing sector 91st consecutive month nieves says past relationship nmir overall economy indicates nmir july 539 percent corresponds 19 percent increase real gross domestic product gdp annualized basis nmir history month nmir month nmir jul 2017 539 jan 2017 565 jun 2017 574 dec 2016 566 may 2017 569 nov 2016 562 apr 2017 575 oct 2016 546 mar 2017 552 sep 2016 566 feb 2017 576 aug 2016 517 average 12 months 559 high 576 low 517 business activity ismr business activity index registered 559 percent july decrease 49 percentage points june reading 608 percent represents growth business activity 96th consecutive month fourteen industries reported increased business activity three industries reported decreased activity month july comments respondents include notable dropoff business activity possibly summer related increased store traffic 14 industries reporting growth business activity july listed order accommodation amp food services utilities services educational services information retail trade public administration transportation amp warehousing real estate rental amp leasing mining construction finance amp insurance wholesale trade professional scientific amp technical services three industries reporting decrease business activity july agriculture forestry fishing amp hunting management companies amp support services health care amp social assistance business activity higher lower index jul 2017 29 58 13 559 jun 2017 32 58 10 608 may 2017 37 50 13 607 apr 2017 42 50 8 624 new orders ismr nonmanufacturing new orders index registered 551 percent decrease 54 percentage points june reading 605 percent july represents growth new orders 96th consecutive month slower rate compared june comments respondents include new customer business added month invigorated economy 13 industries reporting growth new orders july listed order utilities educational services services information accommodation amp food services public administration transportation amp warehousing professional scientific amp technical services retail trade mining wholesale trade finance amp insurance construction industry reporting decrease business activity july management companies amp support services new orders higher lower index jul 2017 27 61 12 551 jun 2017 33 58 9 605 may 2017 34 52 14 577 apr 2017 41 51 8 632 employment employment activity nonmanufacturing sector grew july 41st consecutive month ismr nonmanufacturing employment index registered 536 percent reflects decrease 22 percentage points compared june reading 558 percent nine industries reported increased employment four industries reported decreased employment comments respondents include continue refine workforce efficiencies filling open positions nine industries reporting increase employment july listed order wholesale trade real estate rental amp leasing mining information health care amp social assistance retail trade accommodation amp food services construction public administration four industries reporting reduction employment july educational services agriculture forestry fishing amp hunting utilities finance amp insurance employment higher lower index jul 2017 26 60 14 536 jun 2017 32 56 12 558 may 2017 30 58 12 578 apr 2017 23 62 15 514 supplier deliveries supplier deliveries slower july 19th consecutive month index registered 51 percent 15 percentage points lower 525 percent registered june reading 50 percent indicates slower deliveries reading 50 percent indicates faster deliveries comments respondents include slightly better rail delivery overpromising seven industries reporting slower deliveries july listed order educational services wholesale trade construction information accommodation amp food services public administration services five industries reporting faster deliveries july agriculture forestry fishing amp hunting management companies amp support services retail trade professional scientific amp technical services finance amp insurance six industries reported change supplier deliveries july compared june supplier deliveries slower faster index jul 2017 7 88 5 510 jun 2017 8 89 3 525 may 2017 8 87 5 515 apr 2017 8 90 2 530 inventories ismr nonmanufacturing inventories index grew july fourth consecutive month registered 565 percent 1 percentage point lower 575 percent reported june total respondents july 32 percent indicated inventories measure comments respondents include reduced consumer demand summer inventory floats expected promotions nine industries reporting increase inventories july listed order retail trade services mining wholesale trade utilities health care amp social assistance accommodation amp food services public administration professional scientific amp technical services four industries reporting decreases inventories july agriculture forestry fishing amp hunting transportation amp warehousing construction finance amp insurance inventories higher lower index jul 2017 26 61 13 565 jun 2017 29 57 14 575 may 2017 17 74 9 540 apr 2017 21 63 16 525 prices prices paid nonmanufacturing organizations purchased materials services increased july second consecutive month ismr nonmanufacturing prices index july registered 557 percent 36 percentage points higher 521 percent reported june nineteen percent respondents reported higher prices 77 percent indicated change prices paid 4 percent respondents reported lower prices 15 nonmanufacturing industries reporting increase prices paid month july listed order agriculture forestry fishing amp hunting accommodation amp food services arts entertainment amp recreation real estate rental amp leasing management companies amp support services wholesale trade information mining services transportation amp warehousing construction public administration retail trade professional scientific amp technical services health care amp social assistance industry reporting decrease prices paid month july finance amp insurance prices higher lower index jul 2017 19 77 4 557 jun 2017 19 72 9 521 may 2017 17 72 11 492 apr 2017 26 69 5 576 note commodities reported price price listed commodities section report backlog orders ismr nonmanufacturing backlog orders index indicates order backlogs grew july index registered 52 percent 05 percentage point lower 525 percent reported june total respondents july 36 percent indicated measure backlog orders eight industries reporting increase order backlogs july listed order transportation amp warehousing finance amp insurance real estate rental amp leasing accommodation amp food services public administration health care amp social assistance wholesale trade professional scientific amp technical services five industries reporting decrease order backlogs july management companies amp support services information mining construction utilities backlog orders higher lower index jul 2017 15 74 11 520 jun 2017 15 75 10 525 may 2017 19 76 5 570 apr 2017 15 77 8 535 new export orders orders requests services nonmanufacturing activities provided outside us domestically based personnel grew july sixth consecutive month slower rate new export orders index july registered 53 percent 2 percentage points lower 55 percent reported june total respondents july 61 percent indicated either perform separately measure orders work outside us seven industries reporting increase new export orders july listed order services retail trade transportation amp warehousing construction information accommodation amp food services health care amp social assistance four industries reporting decrease export orders july management companies amp support services real estate rental amp leasing wholesale trade mining new export orders higher lower index jul 2017 15 76 9 530 jun 2017 13 84 3 550 may 2017 14 81 5 545 apr 2017 31 69 0 655 imports imports grew july second consecutive month months reading 515 percent 05 percentage point higher reading 51 percent reported june fiftyone percent respondents reported use track use imported materials four industries reporting increase imports month july mining retail trade accommodation amp food services wholesale trade three industries reporting decrease imports month july agriculture forestry fishing amp hunting health care amp social assistance professional scientific amp technical services nine industries reported change imports july compared june imports higher lower index jul 2017 9 85 6 515 jun 2017 9 84 7 510 may 2017 6 85 9 485 apr 2017 13 80 7 530 inventory sentiment ismr nonmanufacturing inventory sentiment index july registered 675 percent 55 percentage points higher reading 62 percent reported june indicates respondents believe inventories still high time july 35 percent respondents said inventories high 0 percent respondents said inventories low 65 percent said inventories right 12 industries reporting feeling inventories high july listed order mining wholesale trade utilities information finance amp insurance real estate rental amp leasing health care amp social assistance construction services professional scientific amp technical services accommodation amp food services public administration industry reported feeling inventory low july compared june inventory sentiment high right low index jul 2017 35 65 0 675 jun 2017 29 66 5 620 may 2017 28 70 2 630 apr 2017 26 68 6 600 report confuse national report various regional purchasing reports released across country national reports information reflects entire us regional reports contain primarily regional data local vicinities also information regional reports used calculating results national report information compiled report month july 2017 data presented herein obtained survey nonmanufacturing supply executives based information collected within respective organizations ismr makes representation stated within release regarding individual company data collection procedures data compared economic data sources used decisionmaking data method presentation nonmanufacturing ismr report businessr based data compiled purchasing supply executives nationwide membership nonmanufacturing business survey committee diversified naics based industrys contribution gross domestic product gdp nonmanufacturing business survey committee responses divided following naics code categories agriculture forestry fishing amp hunting mining utilities construction wholesale trade retail trade transportation amp warehousing information finance amp insurance real estate rental amp leasing professional scientific amp technical services management companies amp support services educational services health care amp social assistance arts entertainment amp recreation accommodation amp food services public administration services services equipment amp machinery repairing promoting administering religious activities grantmaking advocacy providing drycleaning amp laundry services personal care services death care services pet care services photofinishing services temporary parking services dating services survey responses reflect change current month compared previous month indicators measured business activity new orders backlog orders new export orders inventory change inventory sentiment imports prices employment supplier deliveries report shows percentage reporting response diffusion index responses represent raw data never changed data seasonally adjusted business activity new orders prices employment seasonal adjustment factors subject annually relatively minor changes conditions warrant remaining indexes indicated significant seasonality nmir nonmanufacturing index composite index based diffusion indexes four indicators equal weights business activity seasonally adjusted new orders seasonally adjusted employment seasonally adjusted supplier deliveries diffusion indexes properties leading indicators convenient summary measures showing prevailing direction change scope change index reading 50 percent indicates nonmanufacturing economy generally expanding 50 percent indicates generally declining supplier deliveries exception supplier deliveries index 50 percent indicates slower deliveries 50 percent indicates faster deliveries nmir 489 percent period time indicates overall economy gross domestic product gdp generally expanding 489 percent generally declining distance 50 percent 489 percent indicative strength expansion decline nonmanufacturing ismr report businessr survey sent nonmanufacturing business survey committee respondents first part month respondents asked report information current month ismr receives survey responses throughout given month majority respondents generally waiting late month submit responses order give accurate picture current business activity ismr compiles report release third business day following month industries reporting growth indicated nonmanufacturing ismr report businessr monthly report listed order growth least growth industries reporting contraction decreases listed order highest level contractiondecrease least level contractiondecrease ism rob content institute supply managementr ism report businessr manufacturing nonmanufacturing ism rob contains information text files images video sounds musical works works authorship applications materials content collectively content ism ism rob content ism rob content protected copyright trademark trade secret laws ism ism owns retains rights ism rob content ism hereby grants 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institute supply managementr ismr registered trademarks institute supply management inc institute supply managementr institute supply managementr ismr serves supply management professionals 90 countries 50000 members around world manage us1 trillion corporate government supply chain procurement annually founded 1915 first supply management institute world ism committed advancing practice supply management drive value competitive advantage members contributing prosperous sustainable world ism leads profession ism report businessr highly regarded certification programs newly launched ism mastery modelr report issued association since 1931 except fouryear interruption world war ii full text version nonmanufacturing ismr report businessr posted ismr website wwwismroborg third business day every month 1000 et next nonmanufacturing ismr report businessr featuring august 2017 data released 1000 et wednesday september 6 2017 unless nyse closed contact kristina cahill report businessr analyst ismr robresearch manager tempe arizona 1 4804555910 email kcahillinstituteforsupplymanagementorg view original content multimediahttpwwwprnewswirecomnewsreleasesnmiat539julynonmanufacturingismreportonbusinessbusinessactivityindexat559newordersindexat551employmentindexat536300498801html source institute supply management end dow jones newswires august 03 2017 1015 et 1415 gmt | 2,991 |
<p>While I've invested a decent portion of my portfolio into growth stocks, a significant part of my holdings consists of dividend-paying stocks. That's because I like generating passive income (which I currently reinvest into growth stocks) and <a href="https://www.fool.com/investing/2018/02/04/these-2-dividend-growth-stocks-could-crush-the-mar.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=a3a28846-8a4c-4dc9-80be-371d230a9424&amp;utm_source=foxbusiness" type="external">dividend payers have historically outperformed non-payers by a wide margin Opens a New Window.</a>. Because of those two factors, I'm always adding money to my portfolio so I can buy more dividend paying stocks.</p>
<p>The three currently at the top of my buy list are Kinder Morgan (NYSE: KMI), Enbridge Energy Partners (NYSE: EEP), and Weyerhaeuser (NYSE: WY). While I already own all three, I plan to add to my position in each one over the next month. Here's why.</p>
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<p>In addition to collecting income by holding dividend stocks for the long haul, I also like writing <a href="https://www.fool.com/investing/options/options-the-basics.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=a3a28846-8a4c-4dc9-80be-371d230a9424&amp;utm_source=foxbusiness" type="external">options Opens a New Window.</a> to generate some extra cash in exchange for being willing to either buy or sell a stock at a certain price. In one of those trades, I wrote puts on natural gas pipeline giant Kinder Morgan to potentially buy it at a lower price or at least get paid to try. Those options expire this month, and given where shares are right now, I could potentially buy another helping of Kinder Morgan this month.</p>
<p>I'd love it if the stock remains below my option price so that I can pick up more shares. That's because, at my potential $17 purchase price, I'd pay less than 8.5 times cash flow, which is <a href="https://www.fool.com/investing/2018/01/19/kinder-morgan-incs-low-stock-price-continues-to-co.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=a3a28846-8a4c-4dc9-80be-371d230a9424&amp;utm_source=foxbusiness" type="external">dirt cheap for such a quality company Opens a New Window.</a> (most peers fetch around 12 times cash flow). On top of that, Kinder Morgan is just about to raise its dividend 60%, which means I could collect an attractive 4.7% yield on this purchase. That said, if shares rally past my option price and I don't get them this month, I'll likely write more and try again.</p>
<p>I've already made it known that Enbridge Energy Partners is the <a href="https://www.fool.com/investing/2018/03/03/why-im-buying-more-of-this-top-income-stock-in-mar.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=a3a28846-8a4c-4dc9-80be-371d230a9424&amp;utm_source=foxbusiness" type="external">top income stock I plan to buy this month Opens a New Window.</a>. However, like Kinder Morgan, what I find most attractive about Enbridge Energy Partners isn't the current yield but its <a href="https://www.fool.com/investing/2018/01/17/this-high-yield-stock-was-just-too-cheap-not-to-bu.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=a3a28846-8a4c-4dc9-80be-371d230a9424&amp;utm_source=foxbusiness" type="external">deeply discounted valuation Opens a New Window.</a>. At the moment, units of the oil pipeline <a href="https://www.fool.com/knowledge-center/what-is-a-master-limited-partnership.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=a3a28846-8a4c-4dc9-80be-371d230a9424&amp;utm_source=foxbusiness" type="external">MLP Opens a New Window.</a> sell for just eight times cash flow. For comparison's sake, most other MLPs trade at more than 10 times cash flow.</p>
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<p>That said, I also love Enbridge Energy Partners' current yield of more than 10%, not only for the size but its <a href="https://www.fool.com/investing/2018/02/16/this-105-yielding-dividend-stock-is-now-as-low-ris.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=a3a28846-8a4c-4dc9-80be-371d230a9424&amp;utm_source=foxbusiness" type="external">safety Opens a New Window.</a>. After completing several transformational transactions last year, the company now has "one of the lowest business risk profiles in the sector," according to President Mark Maki. I would love to add another helping of the company's low-risk income stream to my portfolio, which is something I plan on doing shortly after the next scheduled cash deposit into my brokerage account later this month.</p>
<p>The third dividend stock I'd buy right now is Weyerhaeuser. The forestry company generates steady income from selling lumber, wood products, and non-core land holdings, which it uses to support a 3.6%-yielding dividend. It's a payout the company has increased six times since 2011, including by 3.2% at the end of last year.</p>
<p>While that's an attractive income stream, what appeals most to me about Weyerhaeuser is its upside as the U.S. housing market continues improving. According to several forecasts, single-family housing starts should increase 10% this year, driven by rising employment and wages. That outlook bodes well for wood product demand since single-family homes use three times more wood than new multifamily structures. Add in several other tailwinds, and Weyerhaeuser has the potential to build upon the 31% earnings growth it delivered last year, which could pave the way for additional dividend increases as well as continued share buybacks in the coming years. I hope to capture a larger share of that upside potential by adding to my Weyerhaeuser position in the very near future.</p>
<p>While I already own all three of these dividend payers, I'd gladly boost my position in each one right now. In fact, if everything goes according to plan, I will do just that over the next month. That's because I believe all three dividends are just as attractive, if not more so, then when I initially added them to my portfolio.</p>
<p>10 stocks we like better than Kinder MorganWhen 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=fc79913a-482e-43e9-b9c2-f7f3d60da4b4&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=a3a28846-8a4c-4dc9-80be-371d230a9424&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now... and Kinder Morgan 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=fc79913a-482e-43e9-b9c2-f7f3d60da4b4&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=a3a28846-8a4c-4dc9-80be-371d230a9424&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 March 5, 2018</p>
<p><a href="http://my.fool.com/profile/TMFmd19/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=a3a28846-8a4c-4dc9-80be-371d230a9424&amp;utm_source=foxbusiness" type="external">Matthew DiLallo Opens a New Window.</a> owns shares of Enbridge Energy Partners, Kinder Morgan, and Weyerhaeuser and has the following options: short March 2018 $17 puts on Kinder Morgan. The Motley Fool owns shares of and recommends Kinder Morgan. 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;referring_guid=a3a28846-8a4c-4dc9-80be-371d230a9424&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | ive invested decent portion portfolio growth stocks significant part holdings consists dividendpaying stocks thats like generating passive income currently reinvest growth stocks dividend payers historically outperformed nonpayers wide margin opens new window two factors im always adding money portfolio buy dividend paying stocks three currently top buy list kinder morgan nyse kmi enbridge energy partners nyse eep weyerhaeuser nyse wy already three plan add position one next month heres continue reading addition collecting income holding dividend stocks long haul also like writing options opens new window generate extra cash exchange willing either buy sell stock certain price one trades wrote puts natural gas pipeline giant kinder morgan potentially buy lower price least get paid try options expire month given shares right could potentially buy another helping kinder morgan month id love stock remains option price pick shares thats potential 17 purchase price id pay less 85 times cash flow dirt cheap quality company opens new window peers fetch around 12 times cash flow top kinder morgan raise dividend 60 means could collect attractive 47 yield purchase said shares rally past option price dont get month ill likely write try ive already made known enbridge energy partners top income stock plan buy month opens new window however like kinder morgan find attractive enbridge energy partners isnt current yield deeply discounted valuation opens new window moment units oil pipeline mlp opens new window sell eight times cash flow comparisons sake mlps trade 10 times cash flow advertisement said also love enbridge energy partners current yield 10 size safety opens new window completing several transformational transactions last year company one lowest business risk profiles sector according president mark maki would love add another helping companys lowrisk income stream portfolio something plan shortly next scheduled cash deposit brokerage account later month third dividend stock id buy right weyerhaeuser forestry company generates steady income selling lumber wood products noncore land holdings uses support 36yielding dividend payout company increased six times since 2011 including 32 end last year thats attractive income stream appeals weyerhaeuser upside us housing market continues improving according several forecasts singlefamily housing starts increase 10 year driven rising employment wages outlook bodes well wood product demand since singlefamily homes use three times wood new multifamily structures add several tailwinds weyerhaeuser potential build upon 31 earnings growth delivered last year could pave way additional dividend increases well continued share buybacks coming years hope capture larger share upside potential adding weyerhaeuser position near future already three dividend payers id gladly boost position one right fact everything goes according plan next month thats believe three dividends attractive initially added portfolio 10 stocks like better kinder morganwhen 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 kinder morgan wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns march 5 2018 matthew dilallo opens new window owns shares enbridge energy partners kinder morgan weyerhaeuser following options short march 2018 17 puts kinder morgan motley fool owns shares recommends kinder morgan motley fool disclosure policy opens new window | 531 |
<p>Sen. Bernie Sanders is the love-child of Karl Marx and Eugene Debs. The self-described “Democratic-Socialist” inhales his anti-capitalist paranoia like an epicurean at an opium den. Wobbling between biblical-era populism and pre-lapsarian economic policy, Sage Sanders is an anachronism. It’s almost uncanny watching his blistering sermons about post-industrial global markets on color television.</p>
<p>With the zealotry of Jonathan Edwards, the leftist darling has emerged as a dark horse, electrifying throngs of devout votaries with fiscally impossible proposals. The false prophet of Change —an ominous echo of Election 2008, still deafening the American electorate—promises a utopia of manna falling from the sky: free everything.</p>
<p>In an <a href="http://www.nbcnews.com/meet-the-press/bernie-sanders-voters-will-contrast-my-consistency-hillary-clinton-n442411" type="external">interview</a> with NBC’s Meet the Press on Sunday scoffed at the very idea of capitalism. When asked by host Chuck Todd about his economic philosophy, Sanders reflexively rattled, I’m no “capitalist,” as if this angelic revelation against the 21st-century financial system made him somehow revolutionary. While the bumbling buffoon initially side-stepped Todd’s questions he eventually elucidated his regressive economic ideology, reveling in the supposed triumph of northern European socialism.</p>
<p>After demonizing the country and economic system that gave the world telephones, airplanes, steel, rubber, GPS navigation systems, and social media, Sanders slithered his way to self-flattery. “People will have to contrast my consistency and my willingness to stand up to Wall Street corporations, big corporations with [Hillary Clinton],” <a href="http://www.nbcnews.com/meet-the-press/meet-press-transcript-october-11-2015-n442476" type="external">murmured</a> Sanders, “But what I mean is, I've been elected as an Independent throughout my political career. I am running now in the Democratic nomination process.”</p>
<p>The Democratic (?) insurgent slammed Clinton for her inconsistency on President Obama’s trade deal, TPP, and President Bill Clinton’s NAFTA, her husband’s major economic achievement. Todd <a href="file:///C:/Users/joshu/Desktop/Clinton%20pushed%20and%20praised%20the%20TPP%20trade%20deal%20on%20at%20least%2045%20separate%20occasions.%20In%20fact,%20in%20her%20book,%20%22Hard%20Choices,%22%20just%20published%20last%20year,%20she%20said%20this,%20%22The%20TPP%20became%20the%20signature%20economic%20pillar%20of%20our%20strategy%20in%20Asia.%22" type="external">noted</a> that “Clinton pushed and praised the TPP trade deal on at least 45 separate occasions. In fact, in her book, "Hard Choices," just published last year, she said this, "The TPP became the signature economic pillar of our strategy in Asia." Sanders took advantage of this low-bearing fruit while touting his own economic “plan,” if one can even call it that.</p>
<p>The political theater is over-crowded with charlatans hooting and hollering anything that will get them elected. From Donald Trump to Hillary Clinton, presidential hopefuls are hoping for an economically illiterate public. Bernie Sanders is perhaps the most egregious fraudster in the field. "Feel the Bern" is apparently a neologism for burning money.</p>
<p>Sanders is a televangelist preaching the <a href="https://en.wikipedia.org/wiki/Prosperity_theology" type="external">prosperity gospel</a>. He urges his flock to follow his <a href="https://en.wikipedia.org/wiki/Prosperity_theology" type="external">seed faith</a> and give money to the state, in the form of back-breaking taxes on middle-class families, so that somehow supernatural forces can bestow wealth on the nation. Sanders doesn’t have an economic platform, he has a messianic message.</p>
<p>"His proposals would increase that to about 30% in their first year. As a share of the economy, that would represent a bigger increase in government spending than the New Deal or Great Society and is surpassed in modern history only by the World War II military buildup."</p>
<p>The Wall Street Journal</p>
<p>According to a comprehensive <a href="http://www.wsj.com/articles/price-tag-of-bernie-sanders-proposals-18-trillion-1442271511" type="external">report</a> by The Wall Street Journal, Bernie Sanders’ proposals carry a price-tag of over $18 trillion. “To pay for it,” the Journal <a href="http://www.wsj.com/articles/price-tag-of-bernie-sanders-proposals-18-trillion-1442271511" type="external">added</a>, “Mr. Sanders, a Vermont independent running for the Democratic nomination, has so far detailed tax increases that could bring in as much as $6.5 trillion over 10 years, according to his staff.” Compounding an already bloated federal deficit, “the Sanders program amounts to increasing total federal spending by about one-third—to a projected $68 trillion or so over 10 years.” The utter scale of this socialist overhaul would be historically unparalleled:</p>
<p>His proposals would increase that to about 30% in their first year. As a share of the economy, that would represent a bigger increase in government spending than the New Deal or Great Society and is surpassed in modern history only by the World War II military buildup.</p>
<p>The Sander’s campaign has failed to account for where the additional trillions would come from to fund the entire plan. $18 trillion is an astronomical amount, a number straight out of an Austin Powers movie. It’s like when Dr. Evil chortled and asked for a ridiculous sum of money in exchange for not blowing up the moon. Short of seizing private assets, perhaps possible under a socialist Sanders administration, $18 trillion is just about impossible to allocate toward welfare expenditures. Aside from the fiscally implausibility of it all, the <a href="file:///C:/Users/joshu/Desktop/Enacting%20his%20program%20would%20be%20difficult,%20if%20not%20impossible,%20given%20that%20Republican%20control%20of%20the%20House%20appears%20secure%20for%20the%20foreseeable%20future.%20Some%20of%20his%20program%20would%20be%20too%20liberal%20for%20even%20some%20centrist%20Democrats.%20Still,%20his%20agenda%20articulates%20the%20goals%20of%20many%20liberals%20and%20is%20exerting%20a%20leftward%20pressure%20on%20the%20party%E2%80%99s%202016%20field." type="external">proposal</a> is also logistically untenable, <a href="file:///C:/Users/joshu/Desktop/Enacting%20his%20program%20would%20be%20difficult,%20if%20not%20impossible,%20given%20that%20Republican%20control%20of%20the%20House%20appears%20secure%20for%20the%20foreseeable%20future.%20Some%20of%20his%20program%20would%20be%20too%20liberal%20for%20even%20some%20centrist%20Democrats.%20Still,%20his%20agenda%20articulates%20the%20goals%20of%20many%20liberals%20and%20is%20exerting%20a%20leftward%20pressure%20on%20the%20party%E2%80%99s%202016%20field." type="external">according</a> to The Wall Street Journal analysis:</p>
<p>Enacting his program would be difficult, if not impossible, given that Republican control of the House appears secure for the foreseeable future. Some of his program would be too liberal for even some centrist Democrats. Still, his agenda articulates the goals of many liberals and is exerting a leftward pressure on the party’s 2016 field.</p>
<p>Sanders is taking his party far to the left, a move that will surely backfire. At the expense of American economic ingenuity, Sanders extols the virtues of northern European socialism. He fails to recognize that a swollen welfare state stymies growth and blinds visionaries. The cost of government-ensured security is dramatically decreased dynamism. According to <a href="http://www.economist.com/blogs/charlemagne/2010/01/do_europeans_want_dynamic_economy" type="external">The Economist</a>, the “EU as a whole is 1.84%, way behind America or Japan.” Americans, quite simply, are not Europeans. The “European way of life” diverges from the American emphasis on perpetual innovation. The Economist <a href="http://www.economist.com/blogs/charlemagne/2010/01/do_europeans_want_dynamic_economy" type="external">concluded</a> that:</p>
<p>Lots of Europeans, in short, prefer security to dynamism. And their political leaders know that. Just look at how they sell the idea of economic growth. In his <a href="http://www.ft.com/cms/s/0/ff4f4c78-e59e-11de-b5d7-00144feab49a.html" type="external">first big speech</a> after being appointed president of the European Council, Herman Van Rompuy said Europe needed to double its economic growth rates: "not only so that we can play our part in the world but above all to safeguard the achievements of our European way of life.</p>
<p>It’s not a coincidence that the United States is home to Silicon Valley, Hollywood and Wall Street. Outside of embassies and consulates all across the world, thousands of people wait in the sweltering heat and freezing cold to step foot on American soil, the economic hub of the global marketplace. Ironically, the socialist Sanders has <a href="https://finance.yahoo.com/news/bernie-sanders-is-raising-more-money-than-every-republican-candidate-155430566.html" type="external">raised</a> more money for his campaign war chest than every other single Republican presidential candidate. Thanks to capitalism, Sanders has amassed a tithing of <a href="https://finance.yahoo.com/news/bernie-sanders-is-raising-more-money-than-every-republican-candidate-155430566.html" type="external">$26 million</a>.</p> | true | 0 | sen bernie sanders lovechild karl marx eugene debs selfdescribed democraticsocialist inhales anticapitalist paranoia like epicurean opium den wobbling biblicalera populism prelapsarian economic policy sage sanders anachronism almost uncanny watching blistering sermons postindustrial global markets color television zealotry jonathan edwards leftist darling emerged dark horse electrifying throngs devout votaries fiscally impossible proposals false prophet change ominous echo election 2008 still deafening american electoratepromises utopia manna falling sky free everything interview nbcs meet press sunday scoffed idea capitalism asked host chuck todd economic philosophy sanders reflexively rattled im capitalist angelic revelation 21stcentury financial system made somehow revolutionary bumbling buffoon initially sidestepped todds questions eventually elucidated regressive economic ideology reveling supposed triumph northern european socialism demonizing country economic system gave world telephones airplanes steel rubber gps navigation systems social media sanders slithered way selfflattery people contrast consistency willingness stand wall street corporations big corporations hillary clinton murmured sanders mean ive elected independent throughout political career running democratic nomination process democratic insurgent slammed clinton inconsistency president obamas trade deal tpp president bill clintons nafta husbands major economic achievement todd noted clinton pushed praised tpp trade deal least 45 separate occasions fact book hard choices published last year said tpp became signature economic pillar strategy asia sanders took advantage lowbearing fruit touting economic plan one even call political theater overcrowded charlatans hooting hollering anything get elected donald trump hillary clinton presidential hopefuls hoping economically illiterate public bernie sanders perhaps egregious fraudster field feel bern apparently neologism burning money sanders televangelist preaching prosperity gospel urges flock follow seed faith give money state form backbreaking taxes middleclass families somehow supernatural forces bestow wealth nation sanders doesnt economic platform messianic message proposals would increase 30 first year share economy would represent bigger increase government spending new deal great society surpassed modern history world war ii military buildup wall street journal according comprehensive report wall street journal bernie sanders proposals carry pricetag 18 trillion pay journal added mr sanders vermont independent running democratic nomination far detailed tax increases could bring much 65 trillion 10 years according staff compounding already bloated federal deficit sanders program amounts increasing total federal spending onethirdto projected 68 trillion 10 years utter scale socialist overhaul would historically unparalleled proposals would increase 30 first year share economy would represent bigger increase government spending new deal great society surpassed modern history world war ii military buildup sanders campaign failed account additional trillions would come fund entire plan 18 trillion astronomical amount number straight austin powers movie like dr evil chortled asked ridiculous sum money exchange blowing moon short seizing private assets perhaps possible socialist sanders administration 18 trillion impossible allocate toward welfare expenditures aside fiscally implausibility proposal also logistically untenable according wall street journal analysis enacting program would difficult impossible given republican control house appears secure foreseeable future program would liberal even centrist democrats still agenda articulates goals many liberals exerting leftward pressure partys 2016 field sanders taking party far left move surely backfire expense american economic ingenuity sanders extols virtues northern european socialism fails recognize swollen welfare state stymies growth blinds visionaries cost governmentensured security dramatically decreased dynamism according economist eu whole 184 way behind america japan americans quite simply europeans european way life diverges american emphasis perpetual innovation economist concluded lots europeans short prefer security dynamism political leaders know look sell idea economic growth first big speech appointed president european council herman van rompuy said europe needed double economic growth rates play part world safeguard achievements european way life coincidence united states home silicon valley hollywood wall street outside embassies consulates across world thousands people wait sweltering heat freezing cold step foot american soil economic hub global marketplace ironically socialist sanders raised money campaign war chest every single republican presidential candidate thanks capitalism sanders amassed tithing 26 million | 623 |
<p />
<p>With over 130 years of experience,Aqua America (NYSE: WTR), knows a thing or two about providing water to customers. Of course, that doesn't mean that it's unsinkable. Let's wade through the company's recent 10-K to examine some of the challenges management recognizes as threats to the company's success.</p>
<p>Continue Reading Below</p>
<p>Image source: Getty Images.</p>
<p>From the 10-K "Our business requires significant capital expenditures that are partially dependent on our ability to secureappropriate funding."</p>
<p>Unlike some companies whose Byzantine corporate structures can confuse even the most savvy of investors, Aqua America's business is extraordinarily simple: providing water services to customers. With a transmission and distribution network of more than 12,500 miles of pipe, the company must maintain a massive infrastructure to provide water service to its more than three million customers. And it's not just pipes; the company also maintains 183 wastewater treatment plants, more than 3,000 wells, and more than 860 water storage tanks.</p>
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<p>In order to keep the water flowing through the pipes and plants -- among other things -- the company's capex spending totaled $365 million in FY 2015 -- a hefty 44.8% of the company's operating revenue. According to management, the capex spending was primarily due to both the maintenance of existing and expansion of new water distribution systems, plus the modernization and replacement of existing water treatment plants and water meters. Management expects capex spending to total more than $350 million in FY 2016; however, the company hasn't reported its fourth quarter earnings yet, so it's unclear what this means as a percentage of operating revenue. In the coming year, management expects capex spending to rise to more than $450 million.</p>
<p>If the company's ability to secure funding for capex is compromised it would significant impact the company's profitability. In order to obtain every drop of value out of its enterprise, the company -- like any other -- must keep expenses low. In order to assess this, management relies on the management expense ratio -- the ratio of operations and maintenance expense compared to operating revenues. The company has averaged a ratio of 37.4% over the past three years. If the company is unable to fund its capex projects, this figure would surely increase while profits would surely decrease.</p>
<p>Again from the 10-K: "If we are unable to obtain government approval of our requests for rate increases or if approved rate increases are untimely or inadequate to recover and earn a return on our capital investments, to recover expenses or taxes, or to take into account changes in water usage, our profitability may suffer."</p>
<p>Image source: Aqua America.</p>
<p>Unlike some water companies that have more exposure to the unregulated water market, Aqua America's regulated utilities are the ones that primarily account for the company's consolidated revenue -- 96% in FY 2015. Through its eight subsidiaries, the company provides water and wastewater services whose rates are subject to approval from utility commissions. In other words, the company can't just unilaterally raise rates because it wants to replace some old pipes.</p>
<p>In order to raise its rates -- "to recover investments in utility plants and expenses" -- the company must file a request with the utility commission. And there's no guarantee that the requests will be granted in a timely manner -- if at all.In fact, the company specifies that "the amount or frequency ofrate increases increasesmaybedecreased or lengthened as a result ofmanyfactors." Characterized as "regulatory lag," thedelay between when the operating expenses are incurred and when the rate adjustments are realized can factor in significantly to the company's operating expense ratio; moreover, it can adversely affect the company's cash flow and liquidity.</p>
<p>Once more from the 10-K: "One of the important elements of our growth strategy is the acquisition of water and wastewater utilitysystems. Any future acquisitions we decide to undertake may involve risks."</p>
<p>Although Aqua America attributes some of the increase in its operating revenue to organic growth in its customer base, the company's predominant means of growth is through acquisitions. Illustrating this strategy, the company completed 19 acquisitions, totaling $22 million, in FY 2016, growing its customer base by 1.6%. Management expects customer growth to total between 1.5% and 2% in FY 2017; it anticipates closing on four acquisitions for $113.7 million.</p>
<p>Recognizing both government-owned and privately owned water and wastewater utilities as potential acquisitions, Aqua America is amenable to acquisitions of utilities both near its current service areas and in new service areas. But management also recognizes that it's not the only game in town: "We compete with governmental entities, other regulated utilities, and strategic and financial buyers, for acquisitionopportunities."</p>
<p>Although the company seems to have been successful in acquiring water and wastewater utilities, there is no guarantee that it will be successful in the future; however, Aqua America doesn't have much choice. Sure, it can file requests for rate increases, but that's not something upon which the company can consistently rely -- utility commissions will not grant repeated requests over short periods of time. As a result, successfully executing its acquisition strategy is paramount for the company's growth.</p>
<p>Although utilities are often considered some of the safer investments available to investors, there's always risk. And Aqua America is no exception. Should the company fail to effectively deploy capex dollars, receive approvals for rate increases, and successfully execute its growth through acquisition strategy, it could sink investors' hopes of financial gains.</p>
<p>10 stocks we like better than Aqua America 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=bd1a8e21-e926-4036-a64b-5cf265b38ea8&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 Aqua America 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 January 4, 2017</p>
<p><a href="http://my.fool.com/profile/scott81236/info.aspx" type="external">Scott Levine Opens a New Window.</a>enjoys a cool glass of water from time to time, but he 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 | 130 years experienceaqua america nyse wtr knows thing two providing water customers course doesnt mean unsinkable lets wade companys recent 10k examine challenges management recognizes threats companys success continue reading image source getty images 10k business requires significant capital expenditures partially dependent ability secureappropriate funding unlike companies whose byzantine corporate structures confuse even savvy investors aqua americas business extraordinarily simple providing water services customers transmission distribution network 12500 miles pipe company must maintain massive infrastructure provide water service three million customers pipes company also maintains 183 wastewater treatment plants 3000 wells 860 water storage tanks advertisement order keep water flowing pipes plants among things companys capex spending totaled 365 million fy 2015 hefty 448 companys operating revenue according management capex spending primarily due maintenance existing expansion new water distribution systems plus modernization replacement existing water treatment plants water meters management expects capex spending total 350 million fy 2016 however company hasnt reported fourth quarter earnings yet unclear means percentage operating revenue coming year management expects capex spending rise 450 million companys ability secure funding capex compromised would significant impact companys profitability order obtain every drop value enterprise company like must keep expenses low order assess management relies management expense ratio ratio operations maintenance expense compared operating revenues company averaged ratio 374 past three years company unable fund capex projects figure would surely increase profits would surely decrease 10k unable obtain government approval requests rate increases approved rate increases untimely inadequate recover earn return capital investments recover expenses taxes take account changes water usage profitability may suffer image source aqua america unlike water companies exposure unregulated water market aqua americas regulated utilities ones primarily account companys consolidated revenue 96 fy 2015 eight subsidiaries company provides water wastewater services whose rates subject approval utility commissions words company cant unilaterally raise rates wants replace old pipes order raise rates recover investments utility plants expenses company must file request utility commission theres guarantee requests granted timely manner allin fact company specifies amount frequency ofrate increases increasesmaybedecreased lengthened result ofmanyfactors characterized regulatory lag thedelay operating expenses incurred rate adjustments realized factor significantly companys operating expense ratio moreover adversely affect companys cash flow liquidity 10k one important elements growth strategy acquisition water wastewater utilitysystems future acquisitions decide undertake may involve risks although aqua america attributes increase operating revenue organic growth customer base companys predominant means growth acquisitions illustrating strategy company completed 19 acquisitions totaling 22 million fy 2016 growing customer base 16 management expects customer growth total 15 2 fy 2017 anticipates closing four acquisitions 1137 million recognizing governmentowned privately owned water wastewater utilities potential acquisitions aqua america amenable acquisitions utilities near current service areas new service areas management also recognizes game town compete governmental entities regulated utilities strategic financial buyers acquisitionopportunities although company seems successful acquiring water wastewater utilities guarantee successful future however aqua america doesnt much choice sure file requests rate increases thats something upon company consistently rely utility commissions grant repeated requests short periods time result successfully executing acquisition strategy paramount companys growth although utilities often considered safer investments available investors theres always risk aqua america exception company fail effectively deploy capex dollars receive approvals rate increases successfully execute growth acquisition strategy could sink investors hopes financial gains 10 stocks like better aqua america 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 aqua america wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns january 4 2017 scott levine opens new windowenjoys cool glass water time time position stocks mentioned motley fool position stocks mentioned motley fool disclosure policy opens new window | 621 |
<p>Dividend stocks have been shown to be one of the surest ways to generate wealth over time, while also creating a recurring income stream. Investors seeking to achieve this goal, however, may end up chasing stocks with higher yields, which can sometimes be a mistake. A larger payout can be caused by a plummeting stock price, which could reveal difficulties in the underlying business. This can lead to a company cutting or suspending unsustainable payouts.</p>
<p>That doesn't mean that all high-yield stocks are risky. With that in mind, we asked three Motley Fool investors to choose top companies with high payouts that still offer a measure of safety. They offered up convincing arguments for Ford Motor Company (NYSE: F), Energy Transfer Partners, L.P. (NYSE: ETP), and National Retail Properties, Inc. (NYSE: NNN).</p>
<p>Continue Reading Below</p>
<p><a href="http://my.fool.com/profile/TMFTwoCoins/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=bad1a899-0dd3-4a92-87ba-dae71c7425ff&amp;utm_source=foxbusiness" type="external">Daniel Miller Opens a New Window.</a> (Ford Motor Company): When investors see a dividend yield approaching 6%, it often sends a red flag. A common reason for such a high dividend yield is that the stock price has been pummeled by Wall Street pessimism, which inflated the dividend yield. That's true for Ford Motor Company, which sports a 5.6% dividend yield thanks to its slowing sales in North America and China, coupled with increasing investments for autonomous and electrified vehicles.</p>
<p>Those headwinds are certainly real and part of the reason CEO Jim Hackett took over in 2017. But what investors need to better understand is that while many higher dividend yields are risky, Ford has always planned for its dividend to be sustainable so management wouldn't have to cut the dividend, even during down cycles.</p>
<p>One major factor that makes Ford's dividend sustainable is its decision to pay an annual supplemental dividend rather than a permanent dividend raise. In 2015 Ford, paid a one-time supplemental dividend of $0.25 per share -- for context, Ford's current annual dividend is $0.60 -- followed by a $0.05 and $0.13 payout in 2016 and 2017, respectively. Those supplemental payments will depend on the profitability of Ford in the given year, enabling management to reward shareholders during the good times and save cash during the bad.</p>
<p>As my colleague John Rosevear points out, today's Ford is in a <a href="https://www.fool.com/investing/2017/12/27/how-safe-is-fords-dividend.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=bad1a899-0dd3-4a92-87ba-dae71c7425ff&amp;utm_source=foxbusiness" type="external">much better position to sail through a deep recession Opens a New Window.</a> and still pay the dividend. And while Ford's near 6% dividend yield looks risky -- and sounds risky considering the industry cycle is peaking -- management has always planned for this dividend to stay where it is. Right now, that makes Ford's 5.6% dividend yield worth buying as an income play.</p>
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<p><a href="http://my.fool.com/profile/TMFTruth2Power/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=bad1a899-0dd3-4a92-87ba-dae71c7425ff&amp;utm_source=foxbusiness" type="external">John Bromels Opens a New Window.</a> (Energy Transfer Partners) If high yields are indicators of high risk, then Energy Transfer Partners' 12.4% yield ought to be an indicator of astronomical risk! But for this energy infrastructure <a href="https://www.fool.com/knowledge-center/what-is-a-master-limited-partnership.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=bad1a899-0dd3-4a92-87ba-dae71c7425ff&amp;utm_source=foxbusiness" type="external">MLP</a>, the risk appears substantially lower than it did a few months ago, which may make this the time to buy in before the market catches on.</p>
<p>Energy Transfer Partners, which operates more than 71,000 miles of pipelines across the U.S. -- including the controversial Dakota Access Pipeline -- has a well-established yield and a history of increasing it regularly. In fact, the company has never cut its quarterly distribution, increasing it instead almost every quarter since the company went public in 2002. That's one heck of a record of commitment to increasing value for unitholders.</p>
<p>The market, though, has been concerned about the partnership's balance sheet, which is is <a href="https://www.fool.com/investing/2017/11/29/this-high-risk-high-yield-stock-could-fuel-big-tim.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=bad1a899-0dd3-4a92-87ba-dae71c7425ff&amp;utm_source=foxbusiness" type="external">awash in debt Opens a New Window.</a>, and its distribution coverage, which was very thin for much of last year. However, in its most recent Q4 2017 earnings report, the company posted a distribution coverage ratio of 1.3 times, which is a very comfortable margin.</p>
<p>The company also has taken some <a href="https://www.fool.com/investing/2018/02/22/energy-transfer-partners-lps-q4-results-put-its-mo.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=bad1a899-0dd3-4a92-87ba-dae71c7425ff&amp;utm_source=foxbusiness" type="external">concrete steps Opens a New Window.</a> to pay down more expensive debt through asset sales and take on less expensive debt in return, which has cleaned up its balance sheet somewhat -- so the risks seem much more remote. Even if the worst happened and the company's yield were, say, halved, Energy Transfer Partners would still yield more than many of its peers.</p>
<p>Investors should be aware that there are some additional tax reporting requirements for MLP unitholders, which can make them a poor choice for some portfolios. But if that doesn't bother you, you'd be hard-pressed to find this high a yield for this moderate a risk.</p>
<p><a href="https://my.fool.com/profile/TMFLifeIsGood/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=bad1a899-0dd3-4a92-87ba-dae71c7425ff&amp;utm_source=foxbusiness" type="external">Danny Vena Opens a New Window.</a> (National Retail Properties): The changing landscape brought on by the advent of e-commerce has made investors leery of brick-and-mortar retail, and sent them fleeing from anything having to do with shopping malls. This has resulted in plunging stock prices for a number of <a href="https://www.fool.com/knowledge-center/reit.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=bad1a899-0dd3-4a92-87ba-dae71c7425ff&amp;utm_source=foxbusiness" type="external">real estate investment trusts Opens a New Window.</a> (REIT) involved in the space. Companies with this special tax structure are required to pay out 90% of the income in the form of dividends.</p>
<p>Investors have been known, however, to "throw out the baby with the bathwater," and National Retail Properties is a classic case of that. The company has seen its stock price plunge over e-commerce fears, falling nearly 28% from highs reached in mid-2016. These concerns are unfounded and belie the actual nature of the company's business.</p>
<p>National Retail Properties has a diverse group of retail locations that aren't likely candidates for disruption by e-commerce. The properties in its portfolio include gas stations, convenience stores, restaurants, automotive service locations, fitness centers, car washes, and movie theaters. These businesses can't be replicated with online purchases, making them largely immune to the effects that are being experienced by many retailers.</p>
<p>The company invests in single-tenant retail buildings -- not malls -- that have automatic rent increases built into the contracts, which typically run between 15 and 20 years. Tenants are also required to pay the recurring costs of property ownership, like taxes, utilities, and insurance.</p>
<p>A diverse portfolio of 2,764 properties in 48 states helps diversify any risk, and the company has an occupancy rate of 99.1%, and hasn't fallen below 96.4% since 2003.</p>
<p>National Retail Properties boasts a current yield of 4.9%, nearly three times that of the S&amp;P 500. The company also is a <a href="https://www.fool.com/knowledge-center/what-is-a-dividend-aristocrat.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=bad1a899-0dd3-4a92-87ba-dae71c7425ff&amp;utm_source=foxbusiness" type="external">Dividend Aristocrat Opens a New Window.</a>, having increased its payout for 28 years running.</p>
<p>The combination of high-yield, built-in income increases and a long history of payouts make this company the perfect high-yield stock.</p>
<p>10 stocks we like better than FordWhen 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=9253489d-7447-4072-b0c8-241474031aa7&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=bad1a899-0dd3-4a92-87ba-dae71c7425ff&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now... and Ford 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=9253489d-7447-4072-b0c8-241474031aa7&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=bad1a899-0dd3-4a92-87ba-dae71c7425ff&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 March 5, 2018</p>
<p><a href="http://my.fool.com/profile/TMFTwoCoins/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=bad1a899-0dd3-4a92-87ba-dae71c7425ff&amp;utm_source=foxbusiness" type="external">Daniel Miller Opens a New Window.</a> owns shares of Ford. <a href="http://my.fool.com/profile/TMFLifeIsGood/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=bad1a899-0dd3-4a92-87ba-dae71c7425ff&amp;utm_source=foxbusiness" type="external">Danny Vena Opens a New Window.</a> has no position in any of the stocks mentioned. <a href="http://my.fool.com/profile/TMFTruth2Power/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=bad1a899-0dd3-4a92-87ba-dae71c7425ff&amp;utm_source=foxbusiness" type="external">John Bromels Opens a New Window.</a> owns shares of Ford. The Motley Fool owns shares of and recommends Ford. 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;referring_guid=bad1a899-0dd3-4a92-87ba-dae71c7425ff&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | dividend stocks shown one surest ways generate wealth time also creating recurring income stream investors seeking achieve goal however may end chasing stocks higher yields sometimes mistake larger payout caused plummeting stock price could reveal difficulties underlying business lead company cutting suspending unsustainable payouts doesnt mean highyield stocks risky mind asked three motley fool investors choose top companies high payouts still offer measure safety offered convincing arguments ford motor company nyse f energy transfer partners lp nyse etp national retail properties inc nyse nnn continue reading daniel miller opens new window ford motor company investors see dividend yield approaching 6 often sends red flag common reason high dividend yield stock price pummeled wall street pessimism inflated dividend yield thats true ford motor company sports 56 dividend yield thanks slowing sales north america china coupled increasing investments autonomous electrified vehicles headwinds certainly real part reason ceo jim hackett took 2017 investors need better understand many higher dividend yields risky ford always planned dividend sustainable management wouldnt cut dividend even cycles one major factor makes fords dividend sustainable decision pay annual supplemental dividend rather permanent dividend raise 2015 ford paid onetime supplemental dividend 025 per share context fords current annual dividend 060 followed 005 013 payout 2016 2017 respectively supplemental payments depend profitability ford given year enabling management reward shareholders good times save cash bad colleague john rosevear points todays ford much better position sail deep recession opens new window still pay dividend fords near 6 dividend yield looks risky sounds risky considering industry cycle peaking management always planned dividend stay right makes fords 56 dividend yield worth buying income play advertisement john bromels opens new window energy transfer partners high yields indicators high risk energy transfer partners 124 yield ought indicator astronomical risk energy infrastructure mlp risk appears substantially lower months ago may make time buy market catches energy transfer partners operates 71000 miles pipelines across us including controversial dakota access pipeline wellestablished yield history increasing regularly fact company never cut quarterly distribution increasing instead almost every quarter since company went public 2002 thats one heck record commitment increasing value unitholders market though concerned partnerships balance sheet awash debt opens new window distribution coverage thin much last year however recent q4 2017 earnings report company posted distribution coverage ratio 13 times comfortable margin company also taken concrete steps opens new window pay expensive debt asset sales take less expensive debt return cleaned balance sheet somewhat risks seem much remote even worst happened companys yield say halved energy transfer partners would still yield many peers investors aware additional tax reporting requirements mlp unitholders make poor choice portfolios doesnt bother youd hardpressed find high yield moderate risk danny vena opens new window national retail properties changing landscape brought advent ecommerce made investors leery brickandmortar retail sent fleeing anything shopping malls resulted plunging stock prices number real estate investment trusts opens new window reit involved space companies special tax structure required pay 90 income form dividends investors known however throw baby bathwater national retail properties classic case company seen stock price plunge ecommerce fears falling nearly 28 highs reached mid2016 concerns unfounded belie actual nature companys business national retail properties diverse group retail locations arent likely candidates disruption ecommerce properties portfolio include gas stations convenience stores restaurants automotive service locations fitness centers car washes movie theaters businesses cant replicated online purchases making largely immune effects experienced many retailers company invests singletenant retail buildings malls automatic rent increases built contracts typically run 15 20 years tenants also required pay recurring costs property ownership like taxes utilities insurance diverse portfolio 2764 properties 48 states helps diversify risk company occupancy rate 991 hasnt fallen 964 since 2003 national retail properties boasts current yield 49 nearly three times sampp 500 company also dividend aristocrat opens new window increased payout 28 years running combination highyield builtin income increases long history payouts make company perfect highyield stock 10 stocks like better fordwhen 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 ford wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns march 5 2018 daniel miller opens new window owns shares ford danny vena opens new window position stocks mentioned john bromels opens new window owns shares ford motley fool owns shares recommends ford motley fool disclosure policy opens new window | 743 |
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<p>Image source: United States Steel.</p>
<p>Continue Reading Below</p>
<p>Most investors spend a great deal of time looking for stocks to buy. We easily get sucked in by good stories and often overlook the risks hidden within the stories -- or simply ignore obvious risks because the story seems so good. That's why there are times when saying "no" to investments is so important, even if the upside could be huge. On that score, United States Steel and Kinder Morgan are two stocks I'd hate to buy.</p>
<p>U.S. Steel has a storied history and still holds a prominent place in the global steel industry. That said, the industry has been on the outs since the 2007 to 2009 recession, facing falling steel prices and a global oversupply that's led to a surge in low-cost imports into the U.S. market. It's been tough going for U.S. Steel, whose shares are off some 90% since hitting a peak in 2008. But that's part of the reason to consider buying the stock -- it has turnaround potential.</p>
<p>The company has been busy streamlining its business to better position itself for today's steel market. While that's led to some big one-time charges and red ink in six of the last seven years, the company is slowly improving its industry and financial position.</p>
<p>For example, in addition to shutting down high-cost mills, U.S. Steel's net debt has moved lower in each of the last four years and ended 2015 about 20% lower than in 2012. Liquidity, meanwhile, has held fairly constant; notably, cash on the balance sheet is roughly at the same level as it was in 2012. While its blast furnace-heavy business has higher costs than some of its rivals that use more nimble electric arc furnaces, its mills could quickly turn profitable with higher steel prices.</p>
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<p>But here's the wrinkle. U.S. Steel is still a struggling company, and all the restructuring and red ink prove that out. Moreover, it still has a lot of long-term debt, which makes up around 60% of the capital structure. To give a quick comparison, electric arc furnace-focused Nucor has only posted a full-year loss in one year out of the last seven (it's been in the black in each of the last six years), and long-term debt is at about 36% of the capital structure. The company has shown much more resilience in the face of adversity than U.S. Steel.</p>
<p>Nucor's stock doesn't have the same turnaround appeal as beaten-down U.S. Steel; however, if the steel industry remains troubled -- a very real possibility -- which company would you rather own? I'd rather own Nucor, the more resilient steel maker.</p>
<p>I owned Kinder Morgan at one point in time, selling my shares well before the company cut its dividend because I felt valuations had become stretched. That was a lucky call, since the shares have been cut in half since the start of 2015. A big reason for that was the dividend cut.</p>
<p>Kinder Morgan is one of the country's largest oil and natural gas midstream companies, owning the pipes, terminals, and storage facilities that help get these fuels from where they are found to where they are used. It's largely a toll-taker model in which Kinder gets paid a fee for the use of its assets. With the oil downturn, investors have become increasingly concerned about the sector. For the most part, though, it's a reliable cash generator. As long as we use oil and natural gas, Kinder's assets retain a huge amount of value.</p>
<p><a href="http://ycharts.com/companies/KMI" type="external">KMI</a> data by <a href="http://ycharts.com" type="external">YCharts</a></p>
<p>The problem for Kinder revolves around growth. It costs a lot of money and takes a lot of time to build midstream assets, with big upfront costs showing up well before assets start producing income. Acquisitions, meanwhile, can bring in revenues right away, but they still cost a lot to get done. At one point, Kinder was pushing a huge amount of its cash flow out to investors in the form of dividends, leaving little around for growth, so Kinder used debt and equity sales pretty much exclusively to fund expansion efforts.</p>
<p>To put some perspective on the issue, Moody's downgraded the company's outlook to negative after it agreed to up its stake in Natural Gas Pipeline Company of America LLC for approximately $136 million in late 2015, taking its ownership from 20% to 50%. According to the credit rating agency, "The negative outlook reflects Kinder Morgan's increased business risk profile and additional pressure on its already high leverage that will result from its agreement to increase ownership in NGPL, a distressed company." The big fear was that Kinder Morgan would have to make good on some of Natural Gas Pipeline's debts as well as take on more to its already rather high debt load.</p>
<p>With a huge pipeline worth of growth projects and a languishing stock price, equity sales weren't a great option anymore, and only so much debt can be added to a balance sheet (long-term debt stands at about half the capital structure) before industry watchers like Moody's start to get nervous. The answer was to cut the dividend It was the right call for the company to make since it freed up capital to spend on growth.Moody's announcement, to add additional context, came out just a few daysbeforethe dividend cut.</p>
<p>But I'm an investor and I have to trust that management will do the right thing for the company and, equally important, the right thing for me. It's a balancing act to be sure. My problem with Kinder is that it was talking about the importance of the dividend and even the potential for dividend growth until just a few weeks before the dividend took a nearly 75% haircut. Kinder's assets are great, and it really is a well-run company, but any income investor who took management's word on the dividend got burned. There's definitely recovery potential at Kinder -- and even growth potential -- but I'll let someone else make the money here. I'm just not as trusting as I used to be.</p>
<p>Investing is a hard business, made extra difficult by the nature of the human mind. That's why you have to step back and question every story and feel that you can trust management to come through on its word. U.S. Steel and Kinder Morgan are both interesting investment ideas, but I would hate to buy either because they just don't hold up to my increasingly stringent standards.</p>
<p>The article <a href="http://www.fool.com/investing/2016/07/02/2-stocks-id-hate-to-buy.aspx" type="external">2 Stocks I'd Hate to Buy 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> owns shares of Nucor. The Motley Fool owns shares of and recommends Kinder Morgan. The Motley Fool recommends Nucor. 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 united states steel continue reading investors spend great deal time looking stocks buy easily get sucked good stories often overlook risks hidden within stories simply ignore obvious risks story seems good thats times saying investments important even upside could huge score united states steel kinder morgan two stocks id hate buy us steel storied history still holds prominent place global steel industry said industry outs since 2007 2009 recession facing falling steel prices global oversupply thats led surge lowcost imports us market tough going us steel whose shares 90 since hitting peak 2008 thats part reason consider buying stock turnaround potential company busy streamlining business better position todays steel market thats led big onetime charges red ink six last seven years company slowly improving industry financial position example addition shutting highcost mills us steels net debt moved lower last four years ended 2015 20 lower 2012 liquidity meanwhile held fairly constant notably cash balance sheet roughly level 2012 blast furnaceheavy business higher costs rivals use nimble electric arc furnaces mills could quickly turn profitable higher steel prices advertisement x data ycharts opens new window heres wrinkle us steel still struggling company restructuring red ink prove moreover still lot longterm debt makes around 60 capital structure give quick comparison electric arc furnacefocused nucor posted fullyear loss one year last seven black last six years longterm debt 36 capital structure company shown much resilience face adversity us steel nucors stock doesnt turnaround appeal beatendown us steel however steel industry remains troubled real possibility company would rather id rather nucor resilient steel maker owned kinder morgan one point time selling shares well company cut dividend felt valuations become stretched lucky call since shares cut half since start 2015 big reason dividend cut kinder morgan one countrys largest oil natural gas midstream companies owning pipes terminals storage facilities help get fuels found used largely tolltaker model kinder gets paid fee use assets oil downturn investors become increasingly concerned sector part though reliable cash generator long use oil natural gas kinders assets retain huge amount value kmi data ycharts problem kinder revolves around growth costs lot money takes lot time build midstream assets big upfront costs showing well assets start producing income acquisitions meanwhile bring revenues right away still cost lot get done one point kinder pushing huge amount cash flow investors form dividends leaving little around growth kinder used debt equity sales pretty much exclusively fund expansion efforts put perspective issue moodys downgraded companys outlook negative agreed stake natural gas pipeline company america llc approximately 136 million late 2015 taking ownership 20 50 according credit rating agency negative outlook reflects kinder morgans increased business risk profile additional pressure already high leverage result agreement increase ownership ngpl distressed company big fear kinder morgan would make good natural gas pipelines debts well take already rather high debt load huge pipeline worth growth projects languishing stock price equity sales werent great option anymore much debt added balance sheet longterm debt stands half capital structure industry watchers like moodys start get nervous answer cut dividend right call company make since freed capital spend growthmoodys announcement add additional context came daysbeforethe dividend cut im investor trust management right thing company equally important right thing balancing act sure problem kinder talking importance dividend even potential dividend growth weeks dividend took nearly 75 haircut kinders assets great really wellrun company income investor took managements word dividend got burned theres definitely recovery potential kinder even growth potential ill let someone else make money im trusting used investing hard business made extra difficult nature human mind thats step back question every story feel trust management come word us steel kinder morgan interesting investment ideas would hate buy either dont hold increasingly stringent standards article 2 stocks id hate buy opens new window originally appeared foolcom reuben brewer opens new window owns shares nucor motley fool owns shares recommends kinder morgan motley fool recommends nucor 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 | 701 |
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<p>You might like Gilead Sciences (NASDAQ: GILD). So do I. In particular, I like the big biotech's dirt-cheap valuation. I like its dividend. And I really like its cash stockpile. But if those are the reasons you like Gilead, I have news: There are better stocks in each category.</p>
<p>Continue Reading Below</p>
<p>Here's why you might want to forget Gilead Sciences and instead buy Baxter International (NYSE: BAX), AbbVie (NYSE: ABBV), and Amgen (NASDAQ: AMGN).</p>
<p>Image source: Getty Images.</p>
<p>Gilead Sciences is undeniably cheap right now, trading at only seven times trailing 12-month earnings. Baxter, however, is even cheaper: Shares of the big medical instruments and supplies company currently trade at five times earnings.</p>
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<p>While Gilead's stock is cheap because its revenue is falling, Baxter actually made more money in the first nine months of 2016 than it did in the year-ago period. Granted, sales were up only 2% -- but that's a lot better than Gilead's 4.4% decline during the same period.</p>
<p>Although Baxter's renal and hospital products and services aren't as glamorous as curing hepatitis C, the company enjoys strong gross margins that are driving cash flow higher. The consensus among Wall Street analysts is that Baxter's stock could rise 18% over the next 12 months, with earnings growing 12%.</p>
<p>Gilead Sciences is one of only a handful of biotechs to pay a dividend, and its yield of 2.49% looks good. By comparison, though, AbbVie's dividend yield of 4.13% looks great.</p>
<p>There's a strong case to be made that AbbVie is more committed to its dividend than Gilead is. The company has increased its dividend by a whopping 60% in just four years. AbbVie inherited a rich tradition of prioritizing dividends from its parent Abbott Laboratories, which ranks among the Dividend Aristocrats -- companies that have increased their dividends for at least 25 consecutive years.</p>
<p>AbbVie's dividend doesn't appear to be in any jeopardy. The company is currently returning only 60% of its earnings to shareholders in the form of dividend payments. Those earnings should be increasing, with continued growth for blockbuster autoimmune-disease drug Humira and cancer drug Imbruvica, plus a solid pipeline.</p>
<p>Perhaps the most important number for Gilead Sciences' future is its cash stockpile of $31.6 billion (including cash, cash equivalents and marketable securities). But if you want cash, you can do even better than Gilead: Amgen reported $38 billion in cash, cash equivalents and marketable securities at the end of the third quarter.</p>
<p>Like Gilead, Amgen uses some of its cash to pay dividends. Amgen rewards its shareholders a little more than Gilead does, though; its yield currently stands at 2.66%. Also like Gilead, Amgen hasn't been very active this year in making strategic acquisitions. That will probably change in the near future for both biotechs.</p>
<p>It is important to note, however, that Gilead could leap ahead of Amgen with respect to its cash position in 2017. Gilead's cash from operating activities during the first nine months of this year totaled $13.18 billion; Amgen generated $7.25 billion in cash during the same period. Even with sales for Gilead's hepatitis C drugs Harvoni and Sovaldi falling, the company appears likely to top Amgen's operating cash flow in the year ahead.</p>
<p>Also, keep in mind that Gilead used $10 billion in the first three quarters of 2016 to repurchase shares. Amgen also bought back stock, but spent only $2 billion. Were it not for the disparity between the biotechs' share buybacks, Gilead would have more cash than Amgen.</p>
<p>Baxter, AbbVie, and Amgen each appear to have better near-term earnings growth prospects than Gilead. All three stocks should be solid picks for long-term investors. But should you really forget Gilead Sciences? I don't think so.</p>
<p>Even if Gilead doesn't make a major deal anytime soon, the company appears highly likely to continue buying back shares and increasing its dividend payments. One smart acquisition could change the dynamics entirely for the big biotech. There are better stocks to buy right now, but the current scenario won't be the scenario that exists at the end of 2017. I like Baxter, AbbVie, and Amgen -- but I still like Gilead over the long run, too.</p>
<p>10 stocks we like better than Gilead Sciences 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=ddb741a7-6909-4272-bea2-7c501e851717&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 Gilead Sciences 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 Nov. 7, 2016</p>
<p><a href="http://my.fool.com/profile/TMFFishBiz/info.aspx" type="external">Keith Speights Opens a New Window.</a> owns shares of Gilead Sciences. The Motley Fool owns shares of and recommends Gilead Sciences. The Motley Fool recommends Baxter. 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 | might like gilead sciences nasdaq gild particular like big biotechs dirtcheap valuation like dividend really like cash stockpile reasons like gilead news better stocks category continue reading heres might want forget gilead sciences instead buy baxter international nyse bax abbvie nyse abbv amgen nasdaq amgn image source getty images gilead sciences undeniably cheap right trading seven times trailing 12month earnings baxter however even cheaper shares big medical instruments supplies company currently trade five times earnings advertisement gileads stock cheap revenue falling baxter actually made money first nine months 2016 yearago period granted sales 2 thats lot better gileads 44 decline period although baxters renal hospital products services arent glamorous curing hepatitis c company enjoys strong gross margins driving cash flow higher consensus among wall street analysts baxters stock could rise 18 next 12 months earnings growing 12 gilead sciences one handful biotechs pay dividend yield 249 looks good comparison though abbvies dividend yield 413 looks great theres strong case made abbvie committed dividend gilead company increased dividend whopping 60 four years abbvie inherited rich tradition prioritizing dividends parent abbott laboratories ranks among dividend aristocrats companies increased dividends least 25 consecutive years abbvies dividend doesnt appear jeopardy company currently returning 60 earnings shareholders form dividend payments earnings increasing continued growth blockbuster autoimmunedisease drug humira cancer drug imbruvica plus solid pipeline perhaps important number gilead sciences future cash stockpile 316 billion including cash cash equivalents marketable securities want cash even better gilead amgen reported 38 billion cash cash equivalents marketable securities end third quarter like gilead amgen uses cash pay dividends amgen rewards shareholders little gilead though yield currently stands 266 also like gilead amgen hasnt active year making strategic acquisitions probably change near future biotechs important note however gilead could leap ahead amgen respect cash position 2017 gileads cash operating activities first nine months year totaled 1318 billion amgen generated 725 billion cash period even sales gileads hepatitis c drugs harvoni sovaldi falling company appears likely top amgens operating cash flow year ahead also keep mind gilead used 10 billion first three quarters 2016 repurchase shares amgen also bought back stock spent 2 billion disparity biotechs share buybacks gilead would cash amgen baxter abbvie amgen appear better nearterm earnings growth prospects gilead three stocks solid picks longterm investors really forget gilead sciences dont think even gilead doesnt make major deal anytime soon company appears highly likely continue buying back shares increasing dividend payments one smart acquisition could change dynamics entirely big biotech better stocks buy right current scenario wont scenario exists end 2017 like baxter abbvie amgen still like gilead long run 10 stocks like better gilead sciences 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 gilead sciences wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns nov 7 2016 keith speights opens new window owns shares gilead sciences motley fool owns shares recommends gilead sciences motley fool recommends baxter 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 | 545 |
<p>FBN's Rich Edson breaks down new mortgage rules</p>
<p>New mortgage regulations go into effect Friday that aim to keep buyers from getting into loans they can’t afford.</p>
<p>Continue Reading Below</p>
<p>This new class of loans, called Qualified Mortgages (QM), prohibit interest-only and negatively amortizing loans and limits the amount of points -- fees or prepaid interest on a mortgage -- to 3% of a loan’s value.</p>
<p>“These new regulations are designed to prevent what happened in the housing bubble from happening again,” says Jed Kolko, chief economist at Trulia. “Those toxic mortgages that we saw in the last decade fall outside these rules.”</p>
<p>Lenders will also be required to verify that borrowers have the ability to repay their loan. The ability-to-repay rule says lenders must assess and document a potential home buyer’s income and assets, employment status, credit score and other outstanding debt levels before issuing a loan.</p>
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<p>• Cannot have excessive upfront points and fees;</p>
<p>• Cannot be longer than 30 years;</p>
<p>• Cannot have certain risky features, such as paying only interest and not principal, or paying less than</p>
<p>the full amount of interest so that the total debt grows each month;</p>
<p>And</p>
<p>• Must be in one of three categories:</p>
<p>1. The monthly loan payment, plus the borrower’s other debt payments, does not exceed 43% of the borrower’s monthly income; or</p>
<p>2. The loan qualifies for purchase or guarantee by a government sponsored enterprise (Fannie</p>
<p>Mae or Freddie Mac), or is insured or guaranteed by a federal housing agency; or</p>
<p>3. The loan is made by a small lender that keeps the loan in portfolio.</p>
<p>*Source: CFPB</p>
<p>To be considered a qualified mortgage, the loan amount cannot exceed a total debt-to-income ratio of 43%.</p>
<p>“The test here is that you have to be able to show the client’s ability to repay the loan and that your analysis was sufficient enough [to show] the client has the ability to repay the loan today and going forward to the best of their ability,” says Mike McPartland, head of investment finance at Citi Private Bank.</p>
<p>The rules were created by the Consumer Financial Protection Bureau and were mandated under the Dodd-Frank Act to ban many of the practices that led to the housing bubble burst in 2008.</p>
<p>“If these laws were in place in the years leading up to 2007, I don’t think the collapse, to the extent that we saw, would have happened,” says Kolko.</p>
<p>Mortgages that could qualify to be bought by mortgage giants Fannie Mae or Freddie Mac or other government agencies must also meet qualified mortgage standards. Lenders are not restricted to just offering these loans, but when issued, QMs can help protect lenders from lawsuits claiming unfair or deceptive lending practices.</p>
<p>“There is an implied safety here and my sense is that it would be useful in a default defense,” says McPartland. “Lenders will now be able to say that they met the standards. Although there has been no indication from regulators that those loans will be guaranteed --it’s probably a sound defense.”</p>
<p>The housing market has been championed as the backbone to the economic recovery, but low inventory and tight lending standards have remained a drag on the sector. Some experts worry the new standards could negatively impact an already-nervous mortgage market.</p>
<p>Polyana da Costa, senior mortgage analyst at Bankrate.com, says the majority of home buyers won’t be impacted by the rules, and the CFPB estimates that at least 95% of mortgages meet these new standards.</p>
<p>“Underwriting standards have already been tightened a lot in recent years. I don’t think you are going to see a major change in the lending standards and a pullback in loans issued,” says da Costa.</p>
<p>That said, she does expect some market disruption in the weeks following Friday’s rollout.</p>
<p>“Lenders might be more conservative for the first few weeks with their underwriting process, but that’s because it’s new to everyone and no one wants to get caught doing something wrong. They are going to be anxious at first, but then it will be business as usual.”</p>
<p>In fact, Kolko says the new rules could spur more lending and ease the credit freeze.</p>
<p>“In the past, lenders have suggested the lack of clarity around their legal risks have prevented them from lending more. These rules provide the standards.&#160; And with mortgage rates on the rise and refinancing activity slowing, we could be seeing banks being ready to issue more loans.”</p>
<p>The fact that nearly all mortgages issued today meet the QM standards doesn’t sit particularly well with &#160;Chris Polychron, president-elect of the National Association of Realtors. “The 90% number sounds real good, but when the average credit score of the borrowers being 757, that is real tight, there are a lot of people sitting around that don’t have that number and are being excluded from getting into the market.”</p>
<p>He says private capital needs to get re-established as part of the competitive mortgage market to help generate more lending.</p>
<p>Buyers seeking jumbo mortgages, which are loans that exceed the conforming loan limit -- which is $417,000 in most areas of the country -- could feel the brunt of the new rules. “It depends on where the borrower lands relative to the rules with the debt-to-income ratio,” says Kolko. “People with a lot of debt relative to income might find it harder or more expensive to get that mortgage.”</p>
<p>Smaller financial institutions could also end up being squeezed by the 3% cap rule, according to Polychron. He explains that big banks can generate 3% in total fees on the mortgage and then send the client to an outside title company which will also be able to add on fees without "unqualifying" the mortgage. However, a smaller real estate company that also includes a mortgage and title division has to keep all their fees under that 3% cap. “They won’t be able to write the title because they can’t make that charge and they won’t be able to stay in business,” Polychron says.</p>
<p>Cameron Findlay, chief economist at Discover Home Loans, says the 3% cap could also hurt lower- to moderate-income homebuyers with poor credit quality to qualify for a QM. He expects 10-12% of potential buyers not to qualify under the new rules.&#160; &#160;&#160; “The pricing grids mandated by the government are driving disqualifications for these buyers. The 3% points and fees limit mandates certain loan pricing adjustments be applied to specific FICO scores and loan to value that can make qualification unattainable.”</p> | true | 0 | fbns rich edson breaks new mortgage rules new mortgage regulations go effect friday aim keep buyers getting loans cant afford continue reading new class loans called qualified mortgages qm prohibit interestonly negatively amortizing loans limits amount points fees prepaid interest mortgage 3 loans value new regulations designed prevent happened housing bubble happening says jed kolko chief economist trulia toxic mortgages saw last decade fall outside rules lenders also required verify borrowers ability repay loan abilitytorepay rule says lenders must assess document potential home buyers income assets employment status credit score outstanding debt levels issuing loan advertisement excessive upfront points fees longer 30 years certain risky features paying interest principal paying less full amount interest total debt grows month must one three categories 1 monthly loan payment plus borrowers debt payments exceed 43 borrowers monthly income 2 loan qualifies purchase guarantee government sponsored enterprise fannie mae freddie mac insured guaranteed federal housing agency 3 loan made small lender keeps loan portfolio source cfpb considered qualified mortgage loan amount exceed total debttoincome ratio 43 test able show clients ability repay loan analysis sufficient enough show client ability repay loan today going forward best ability says mike mcpartland head investment finance citi private bank rules created consumer financial protection bureau mandated doddfrank act ban many practices led housing bubble burst 2008 laws place years leading 2007 dont think collapse extent saw would happened says kolko mortgages could qualify bought mortgage giants fannie mae freddie mac government agencies must also meet qualified mortgage standards lenders restricted offering loans issued qms help protect lenders lawsuits claiming unfair deceptive lending practices implied safety sense would useful default defense says mcpartland lenders able say met standards although indication regulators loans guaranteed probably sound defense housing market championed backbone economic recovery low inventory tight lending standards remained drag sector experts worry new standards could negatively impact alreadynervous mortgage market polyana da costa senior mortgage analyst bankratecom says majority home buyers wont impacted rules cfpb estimates least 95 mortgages meet new standards underwriting standards already tightened lot recent years dont think going see major change lending standards pullback loans issued says da costa said expect market disruption weeks following fridays rollout lenders might conservative first weeks underwriting process thats new everyone one wants get caught something wrong going anxious first business usual fact kolko says new rules could spur lending ease credit freeze past lenders suggested lack clarity around legal risks prevented lending rules provide standards160 mortgage rates rise refinancing activity slowing could seeing banks ready issue loans fact nearly mortgages issued today meet qm standards doesnt sit particularly well 160chris polychron presidentelect national association realtors 90 number sounds real good average credit score borrowers 757 real tight lot people sitting around dont number excluded getting market says private capital needs get reestablished part competitive mortgage market help generate lending buyers seeking jumbo mortgages loans exceed conforming loan limit 417000 areas country could feel brunt new rules depends borrower lands relative rules debttoincome ratio says kolko people lot debt relative income might find harder expensive get mortgage smaller financial institutions could also end squeezed 3 cap rule according polychron explains big banks generate 3 total fees mortgage send client outside title company also able add fees without unqualifying mortgage however smaller real estate company also includes mortgage title division keep fees 3 cap wont able write title cant make charge wont able stay business polychron says cameron findlay chief economist discover home loans says 3 cap could also hurt lower moderateincome homebuyers poor credit quality qualify qm expects 1012 potential buyers qualify new rules160 160160 pricing grids mandated government driving disqualifications buyers 3 points fees limit mandates certain loan pricing adjustments applied specific fico scores loan value make qualification unattainable | 621 |
<p />
<p>Memory chipmaker Micron Technology (NASDAQ: MU) and mobile chipmaker Qualcomm (NASDAQ: QCOM) have respectively rallied 19% and 31% this year, easily outperforming the Nasdaq's 4% gain.</p>
<p>Continue Reading Below</p>
<p>Those gains were surprising, since both chipmakers faced major headwinds last year -- Micron was hit by plummeting memory prices, and Qualcomm was losing market share in mobile chips. Let's discuss why both chipmakers bounced back, and whether or not either chipmaker is a worthy buy at current prices.</p>
<p>Image source: Pixabay.</p>
<p>Micron ranks fourth in the global NAND market after Samsung, Toshiba, and Western Digital's SanDisk -- inthat order. It ranks third inthe mobile DRAM market after Samsung and SK Hynix. This ongoing competition from larger rivals has traditionally been tough on Micron's margins. Meanwhile, anoversupply of flash memory has reduced average selling prices, and the integration costs of its manufacturing processes at its combined Elpida and Micron fabs has further weighed on itsbottom line.</p>
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<p>Qualcomm is the world's largest maker of mobile system on chips (SoCs), which bundle application processors, baseband modems, GPUs, and other features onto a single chip. Qualcomm generates most of its revenue from this business, but cheaper rivals like MediaTek and first-party chipmakers like Samsung and Huawei have reduced its market share.</p>
<p>Qualcomm generates most of its earnings from its higher-margin patent licensing business, which takes a 3% to5% cut of the wholesale price of every smartphone sold worldwide. However, that business has been under pressure due to original equipment manufacturers (OEMs) and regulators demanding lower fees to compensate for the plunging margins on mobile device sales.</p>
<p>Image source: Qualcomm.</p>
<p>Micron is trying to widen its competitive moat by developing faster memory technologies, like 3D NAND and 3DXPoint, with its longtime partner Intel. Intel, which abandoned its own DRAM efforts in1985 amid tough competition, is frequently cited asa potential suitor for Micron, which has an enterprise value of $23 billion.</p>
<p>The main near-term catalyst for Micron would be the tightening of DRAM and NAND supplies across the market, which would boost average selling prices. Recent comments fromHP CEO Dion Weisler about component shortages andaDigiTimes article -- which claimed that DRAM spot prices had hit a seven-month high in September -- support that bullish thesis. As a result, analysts expect Micron's revenue to rise 21% thisyear and another 6% next year.</p>
<p>Qualcomm is diversifying its chipmaking business into adjacent markets like connected cars, drones, wearables, smart home appliances and other Internet of Things (IoT) gadgets. To achieve that, it acquired IoT chipmaker CSR for $2.4 billion last year, launched custom SoCs for specific devices like wearables and drones, and <a href="http://www.fool.com/investing/2016/10/04/should-qualcomm-inc-pay-30-billion-for-nxp-semicon.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">might even buy Opens a New Window.</a>NXP Semiconductors-- thebiggest automotive chipmaker in the world -- for over $30 billion.</p>
<p>As for the licensing business, Qualcomm has been securing new licensing contracts with deadbeat OEMs (mainly in China), which underreported shipments to pay lower fees. The acquisition of CSR, potential purchase of NXP, and its own research and development should also expand its patent portfolio to cover adjacent markets, thus reducing the segment's overall dependence on smartphones. These moves are encouraging, butanalysts still believe that Qualcomm's revenue willfall 8% this year before rebounding 2% next year.</p>
<p>Micron has posted negative earnings for three consecutive quarters, but rising memory prices are expected to lift it back to profitability, with earnings of $0.19 per share this quarter. Micron's annual earnings are expected to rise from $0.06 in 2015 to $1.17 in 2016, and rise another 50% in 2017. Those growth estimates make Micron's forward price-to-earnings ratio of 15 look fairly cheap.</p>
<p>Qualcomm remains highly profitable, but the pricing pressures at its chipmaking business and its licensing woes could cause its earnings to fall 8% this year. However, Qualcomm's new flagship chipsets, its expansion into adjacent markets, broadening patent portfolio, and resolved licensing conflicts are expected to boost earnings by 10% in 2017. That rebound is encouraging, but the growth rate remains lower than its forward P/E of 14 -- indicating that the stock isn't that cheap. But if Qualcomm buys NXP, its chipmaking margins could improve as it scales up.</p>
<p>Micron doesn't pay a dividend, but Qualcomm pays a forward yield of 3.2%, which is easily supported by its trailing-12-month payout ratio of 57%. That dividend, which has been hiked for 13 consecutive years, should limit the stock's downside during market downturns.</p>
<p>I own shares of Qualcomm and believe that it's a solid long-term investment, but Micron looks better at current prices. Its top and bottom lines could grow much faster, thanks to tightening NAND and DRAM supplies and rising prices, and its valuation indicates its potential growth hasn't been fully priced in yet. Qualcomm is a reliable income play, but it could take a much longer time for its expansion into adjacent markets to pay off.</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 Qualcomm. The Motley Fool owns shares of and recommends NXP Semiconductors and Qualcomm. The Motley Fool owns shares of Western Digital. The Motley Fool recommends 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 | memory chipmaker micron technology nasdaq mu mobile chipmaker qualcomm nasdaq qcom respectively rallied 19 31 year easily outperforming nasdaqs 4 gain continue reading gains surprising since chipmakers faced major headwinds last year micron hit plummeting memory prices qualcomm losing market share mobile chips lets discuss chipmakers bounced back whether either chipmaker worthy buy current prices image source pixabay micron ranks fourth global nand market samsung toshiba western digitals sandisk inthat order ranks third inthe mobile dram market samsung sk hynix ongoing competition larger rivals traditionally tough microns margins meanwhile anoversupply flash memory reduced average selling prices integration costs manufacturing processes combined elpida micron fabs weighed itsbottom line advertisement qualcomm worlds largest maker mobile system chips socs bundle application processors baseband modems gpus features onto single chip qualcomm generates revenue business cheaper rivals like mediatek firstparty chipmakers like samsung huawei reduced market share qualcomm generates earnings highermargin patent licensing business takes 3 to5 cut wholesale price every smartphone sold worldwide however business pressure due original equipment manufacturers oems regulators demanding lower fees compensate plunging margins mobile device sales image source qualcomm micron trying widen competitive moat developing faster memory technologies like 3d nand 3dxpoint longtime partner intel intel abandoned dram efforts in1985 amid tough competition frequently cited asa potential suitor micron enterprise value 23 billion main nearterm catalyst micron would tightening dram nand supplies across market would boost average selling prices recent comments fromhp ceo dion weisler component shortages andadigitimes article claimed dram spot prices hit sevenmonth high september support bullish thesis result analysts expect microns revenue rise 21 thisyear another 6 next year qualcomm diversifying chipmaking business adjacent markets like connected cars drones wearables smart home appliances internet things iot gadgets achieve acquired iot chipmaker csr 24 billion last year launched custom socs specific devices like wearables drones might even buy opens new windownxp semiconductors thebiggest automotive chipmaker world 30 billion licensing business qualcomm securing new licensing contracts deadbeat oems mainly china underreported shipments pay lower fees acquisition csr potential purchase nxp research development also expand patent portfolio cover adjacent markets thus reducing segments overall dependence smartphones moves encouraging butanalysts still believe qualcomms revenue willfall 8 year rebounding 2 next year micron posted negative earnings three consecutive quarters rising memory prices expected lift back profitability earnings 019 per share quarter microns annual earnings expected rise 006 2015 117 2016 rise another 50 2017 growth estimates make microns forward pricetoearnings ratio 15 look fairly cheap qualcomm remains highly profitable pricing pressures chipmaking business licensing woes could cause earnings fall 8 year however qualcomms new flagship chipsets expansion adjacent markets broadening patent portfolio resolved licensing conflicts expected boost earnings 10 2017 rebound encouraging growth rate remains lower forward pe 14 indicating stock isnt cheap qualcomm buys nxp chipmaking margins could improve scales micron doesnt pay dividend qualcomm pays forward yield 32 easily supported trailing12month payout ratio 57 dividend hiked 13 consecutive years limit stocks downside market downturns shares qualcomm believe solid longterm investment micron looks better current prices top bottom lines could grow much faster thanks tightening nand dram supplies rising prices valuation indicates potential growth hasnt fully priced yet qualcomm reliable income play could take much longer time expansion adjacent markets pay 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 qualcomm motley fool owns shares recommends nxp semiconductors qualcomm motley fool owns shares western digital motley fool recommends 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 | 633 |
<p>Call the first third of the year the off-season for the <a href="https://www.fool.com/investing/2017/06/30/top-stocks-in-the-red-hot-video-game-industry.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=b53aa5f2-b3f8-11e7-83dc-0050569d4be0&amp;utm_source=foxbusiness" type="external">video game industry Opens a New Window.</a>. Publishers still put out new titles, but they save most of their biggest releases for the holiday season.</p>
<p>The best-selling video games of 2017 so far include a mix of holiday holdovers and new titles which may not end up making the full-year best-seller list. This ranking also shows us that the Nintendo (NASDAQOTH: NTDOY) comeback is real, as it hit the charts with a title released toward the end of the sales period.</p>
<p>Continue Reading Below</p>
<p>These results come from NPD Group, as first reported by <a href="https://www.cnbc.com/2017/06/12/2017s-best-selling-video-games--so-far-nintendo-microsoft-sony.html" type="external">CNBC Opens a New Window.</a>. They cover January 2017 through the end of April -- the first third of the year. NPD does not provide how many copies of each game have been sold due to its agreements with publishers, but it does share the top-10 best-selling video games of 2017 so far.</p>
<p>Publisher: Sony (NYSE: SNE)</p>
<p>The last annual baseball title left since Electronic Arts (NASDAQ: EA) exited the space by ending production on its MVP Baseball in 2005, MLB The Show 2017 shows that America's pastime still has some life in the gaming world. This certainly isn't&#160;Madden 2018, which will almost certainly hit the top 10 for the year, but it's still a nice win for Sony.</p>
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<p>Publisher: Activision Blizzard (NASDAQ: ATVI)</p>
<p>A slow-seller by Call of Duty standards, Infinite Warfare comes in toward the bottom of this list when traditionally it would be near the top. Activision Blizzard hopes to revive the franchise, which has been a perennial best-seller, with the upcoming&#160;Call of Duty: WWII.</p>
<p>Publisher: Take-Two Interactive Software (NASDAQ: TTWO)</p>
<p>Take-Two joins Sony in showing that EA no longer dominates the sports game world as its once did. This game may even prove more popular than other recent installments because the publisher has partnered with the NBA on an esports league, according to CNBC.</p>
<p>Publisher: Take-Two Interactive Software</p>
<p>While most games on this list are either new or from Q4 2016, Grand Theft Auto V came out in September 2013. One of the top-selling titles of all time, the game actually holds a number of <a href="http://www.guinnessworldrecords.com/news/2013/10/confirmed-grand-theft-auto-breaks-six-sales-world-records-51900" type="external">Guinness Book World Records Opens a New Window.</a> for video game sales.</p>
<p>Publisher: Capcom (NASDAQOTH: CCOEF)</p>
<p>Aided by being one of the few titles that can be played in virtual reality (VR) using Sony's PlayStation 4 VR headset, Resident Evil 7: Biohazzard showed the horror series still has some life. The title may also have been helped by the January 2017 release of the latest (and supposedly last) film in the Resident Evil series Resident Evil: Retribution.</p>
<p>Publisher: Sony</p>
<p>An exclusive for Sony's PS4, this role-playing/action game had one of the strongest debuts in company history according to IGN. The game has sold 3.4 million copies as of June, and a sequel has been announced, though no release date has been set.</p>
<p>Publisher: Nintendo</p>
<p>The latest title in the Legend of Zelda series not only showed that the long-running title remains relevant, it also helped Nintendo regain a place in the console market. The game was one of the launch titles for the Switch, and it helped drive demand for that console. Perhaps even more impressive, both Switch and Breath of the Wild came out in March, a little more than halfway through the four-month sales period covered here.</p>
<p>Publisher: Ubisoft</p>
<p>Ubisoft actually claimed the top two spots on the charts for 2017 video game sales through April. This title, a fighting game that sets Vikings against samurais against knights, is even more impressive because it's not a sequel, nor is it based on a movie or other intellectual property.</p>
<p>Publisher: Ubisoft</p>
<p>Clancy may no longer be with us, but the author's creations continue to draw huge audiences. This game, which Ubisoft has called "the biggest open-world game it has ever made," continues that pattern. Like Legend of Zelda, this game deserves extra credit because it was released later in the sales period (March 7).</p>
<p>The most obvious takeaway may be that video games remain a <a href="https://www.fool.com/investing/2017/05/05/the-7-top-selling-video-game-franchises-in-history.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=b53aa5f2-b3f8-11e7-83dc-0050569d4be0&amp;utm_source=foxbusiness" type="external">franchise Opens a New Window.</a> business. Six of the games on this list are sequels, while two others are sports titles -- essentially franchises. As Grand Theft Auto V shows, a strong franchise doesn't just spawn new winners -- older entrees can have staying power, driven partly by online, collaborative play.</p>
<p>This list also shows that while Nintendo has shown new life, Sony remains the winner in the console wars. In fact, as of April, Sony had shipped nearly twice as many PS4 units as Microsoft had sold of its rival Xbox One. <a href="https://www.fool.com/investing/2017/04/24/a-foolish-take-which-company-is-winning-the-video.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=b53aa5f2-b3f8-11e7-83dc-0050569d4be0&amp;utm_source=foxbusiness" type="external">Console sales Opens a New Window.</a> are partly driven by game titles, and Sony extends its edge over Microsoft when it creates top-selling exclusives, as it has done in the early part of 2017.</p>
<p>10 stocks we like better than SonyWhen 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=99cd8963-5cda-4b99-8f17-e9a68e101df8&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=b53aa5f2-b3f8-11e7-83dc-0050569d4be0&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now... and Sony wasn't one of them! That's right -- they think these 10 stocks are even better buys.</p>
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<p>Teresa Kersten is an employee of LinkedIn and is a member of The Motley Fool's board of directors. LinkedIn is owned by Microsoft. <a href="http://my.fool.com/profile/TMFDankline/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;uuid=b53aa5f2-b3f8-11e7-83dc-0050569d4be0&amp;utm_source=foxbusiness" type="external">Daniel B. Kline Opens a New Window.</a> owns shares of Microsoft. The Motley Fool owns shares of and recommends Activision Blizzard and Take-Two Interactive. The Motley Fool recommends Electronic Arts. 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=b53aa5f2-b3f8-11e7-83dc-0050569d4be0&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | call first third year offseason video game industry opens new window publishers still put new titles save biggest releases holiday season bestselling video games 2017 far include mix holiday holdovers new titles may end making fullyear bestseller list ranking also shows us nintendo nasdaqoth ntdoy comeback real hit charts title released toward end sales period continue reading results come npd group first reported cnbc opens new window cover january 2017 end april first third year npd provide many copies game sold due agreements publishers share top10 bestselling video games 2017 far publisher sony nyse sne last annual baseball title left since electronic arts nasdaq ea exited space ending production mvp baseball 2005 mlb show 2017 shows americas pastime still life gaming world certainly isnt160madden 2018 almost certainly hit top 10 year still nice win sony advertisement publisher activision blizzard nasdaq atvi slowseller call duty standards infinite warfare comes toward bottom list traditionally would near top activision blizzard hopes revive franchise perennial bestseller upcoming160call duty wwii publisher taketwo interactive software nasdaq ttwo taketwo joins sony showing ea longer dominates sports game world game may even prove popular recent installments publisher partnered nba esports league according cnbc publisher taketwo interactive software games list either new q4 2016 grand theft auto v came september 2013 one topselling titles time game actually holds number guinness book world records opens new window video game sales publisher capcom nasdaqoth ccoef aided one titles played virtual reality vr using sonys playstation 4 vr headset resident evil 7 biohazzard showed horror series still life title may also helped january 2017 release latest supposedly last film resident evil series resident evil retribution publisher sony exclusive sonys ps4 roleplayingaction game one strongest debuts company history according ign game sold 34 million copies june sequel announced though release date set publisher nintendo latest title legend zelda series showed longrunning title remains relevant also helped nintendo regain place console market game one launch titles switch helped drive demand console perhaps even impressive switch breath wild came march little halfway fourmonth sales period covered publisher ubisoft ubisoft actually claimed top two spots charts 2017 video game sales april title fighting game sets vikings samurais knights even impressive sequel based movie intellectual property publisher ubisoft clancy may longer us authors creations continue draw huge audiences game ubisoft called biggest openworld game ever made continues pattern like legend zelda game deserves extra credit released later sales period march 7 obvious takeaway may video games remain franchise opens new window business six games list sequels two others sports titles essentially franchises grand theft auto v shows strong franchise doesnt spawn new winners older entrees staying power driven partly online collaborative play list also shows nintendo shown new life sony remains winner console wars fact april sony shipped nearly twice many ps4 units microsoft sold rival xbox one console sales opens new window partly driven game titles sony extends edge microsoft creates topselling exclusives done early part 2017 10 stocks like better sonywhen 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 sony wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns october 9 2017 teresa kersten employee linkedin member motley fools board directors linkedin owned microsoft daniel b kline opens new window owns shares microsoft motley fool owns shares recommends activision blizzard taketwo interactive motley fool recommends electronic arts motley fool disclosure policy opens new window | 592 |
<p />
<p>Lower leasing costs, more efficient office space and the hope of projecting an image more appealing to millennials are leading hedge funds and large corporations to leave Manhattan's most-coveted business district for a rejuvenated Downtown and the trendy far West Side.</p>
<p>Continue Reading Below</p>
<p>The construction of gigantic new office buildings that allow tenants to use 20 percent less space is pressuring prices and driving firms like consultants BCG and law firm WilmerHale out of the tony Plaza District in Midtown Manhattan.</p>
<p>In the latest potential blow to the area surrounding the elegant Plaza Hotel - the city's most coveted business address for decades - asset manager BlackRock Inc is poised to lease 850,000 square feet at a planned 58-story tower at the new Hudson Yards development on the far West Side.</p>
<p>Also spurring the slow exodus is the notion that the area just southeast of Central Park, which includes the Trump Tower on Fifth Avenue, is showing its age and fails to satisfy the city's burgeoning millennial workforce.</p>
<p>Buildings along Park Avenue in the half-square-mile Plaza section of Midtown on average were built in 1960. The area roughly runs from 50th to 59th streets and is bounded by Lexington and Sixth Avenues.</p>
<p>"For large, dynamic companies, these older buildings don't work as well, they just don't," said Bill Montana, senior managing director at New York-based Savills Studley, a unit of global real estate firm Savills Plc .</p>
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<p>The new buildings are significantly more efficient and large companies use the space to compete for top talent, Montana said.</p>
<p>Four towers with an average height of 69 stories that are under construction by Related Cos, Brookfield Properties and the Moinian Group at Hudson Yards already are pressuring prices. Five other behemoths have been proposed for the far West Side.</p>
<p>Average leasing rates for 62 "trophy" buildings in Midtown have slid a touch more than 1 percent in October from a post-recession peak last year of $99.43 a square foot, which capped a 33 percent increase since 2009, real estate specialist Jones Lang LaSalle said.</p>
<p>Asking rents for the Plaza District averaged $95.47 a square foot for Class A buildings in the third quarter, compared to $66.05 a square foot for space in the World Trade Center in Lower Manhattan, real estate firm Colliers International said.</p>
<p>BlackRock would like to add a cafeteria and auditorium, amenities that are missing at its two offices across the street from each other on 52nd Street, said a source with knowledge of the real estate search.</p>
<p>The move, which would involve about 2,800 staff, but has not been finalized, is as good or better financially than to stay, the source said. Projected rents for anchor tenants in the Plaza District when BlackRock's leases are up in 2023 are much higher.</p>
<p>A BlackRock spokesman declined to comment.</p>
<p>There is no new, large-scale construction underway in the Plaza District, though landlords have ordered major renovations such as a $325 million makeover at the old Time-Life Building on Sixth Avenue that has been rebranded 1271 Avenue of the Americas.</p>
<p>LEASING RATES FOR 'TROPHY' BUILDINGS SLIP</p>
<p>To be sure, no one is writing the area off. The Plaza still has cachet for many.</p>
<p>"Midtown will always prosper," said Cynthia Wasserberger, a managing director at JLL in New York. "Those landlords have to react a little differently to how they're going to fill the hole left behind."</p>
<p>Earlier this year JLL said almost half the world's 428 hedge funds with at least $1 billion in assets had New York offices.</p>
<p>Of those 208 sites, 94 percent were in Midtown Manhattan, with almost two-thirds located in the Plaza District, JLL said. One marquee hedge fund, Citadel LLC, in February agreed to pay a record $300 a square foot for part of the penthouse at 425 Park Avenue, according to media reports.</p>
<p>Citadel's average rent will be $175 a square foot on average after its other floors are included. Citadel declined to comment.</p>
<p>Still, high-profile names have left or will soon, such as private equity firm KKR's planned move from the Solow Building on West 57th Street, often called the city's most prestigious building, to Hudson Yards. The move is seen as highly symbolic.</p>
<p>The Plaza District has been losing ground for a while. It has been the third-lowest recipient of corporate cross-market relocations in Manhattan since 2011, when leases of more than 50,000 square feet are examined, according to Colliers.</p>
<p>But the Plaza, the city's biggest sub-market, has seen the largest departure of companies that have moved from Midtown, Midtown South or the downtown business centers in the almost six-year period up to mid-September, a Colliers report said.</p>
<p>During that time Midtown lost 30 tenants, a dozen of those from the Plaza, including five that moved to new construction, Colliers said in its "Manhattan Without Borders" report.</p>
<p>A drop-off in leasing demand is particularly apparent in the Plaza District, where the increase in available space surged by almost 4 percentage points in the third quarter to 12.9 percent from a year-ago, according to a recent Savills Studley report.</p>
<p>"There is a very strong base of people who still want to be in the Plaza District, myself included," Montana said. "For a lot of younger people, that's not what they aspire to. So the demand is less for the Plaza District because of building stock and because of change in taste."</p>
<p>(Reporting by Herbert Lash; Additional reporting by Lawrence Delevingne; Editing by Bill Rigby)</p> | true | 0 | lower leasing costs efficient office space hope projecting image appealing millennials leading hedge funds large corporations leave manhattans mostcoveted business district rejuvenated downtown trendy far west side continue reading construction gigantic new office buildings allow tenants use 20 percent less space pressuring prices driving firms like consultants bcg law firm wilmerhale tony plaza district midtown manhattan latest potential blow area surrounding elegant plaza hotel citys coveted business address decades asset manager blackrock inc poised lease 850000 square feet planned 58story tower new hudson yards development far west side also spurring slow exodus notion area southeast central park includes trump tower fifth avenue showing age fails satisfy citys burgeoning millennial workforce buildings along park avenue halfsquaremile plaza section midtown average built 1960 area roughly runs 50th 59th streets bounded lexington sixth avenues large dynamic companies older buildings dont work well dont said bill montana senior managing director new yorkbased savills studley unit global real estate firm savills plc advertisement new buildings significantly efficient large companies use space compete top talent montana said four towers average height 69 stories construction related cos brookfield properties moinian group hudson yards already pressuring prices five behemoths proposed far west side average leasing rates 62 trophy buildings midtown slid touch 1 percent october postrecession peak last year 9943 square foot capped 33 percent increase since 2009 real estate specialist jones lang lasalle said asking rents plaza district averaged 9547 square foot class buildings third quarter compared 6605 square foot space world trade center lower manhattan real estate firm colliers international said blackrock would like add cafeteria auditorium amenities missing two offices across street 52nd street said source knowledge real estate search move would involve 2800 staff finalized good better financially stay source said projected rents anchor tenants plaza district blackrocks leases 2023 much higher blackrock spokesman declined comment new largescale construction underway plaza district though landlords ordered major renovations 325 million makeover old timelife building sixth avenue rebranded 1271 avenue americas leasing rates trophy buildings slip sure one writing area plaza still cachet many midtown always prosper said cynthia wasserberger managing director jll new york landlords react little differently theyre going fill hole left behind earlier year jll said almost half worlds 428 hedge funds least 1 billion assets new york offices 208 sites 94 percent midtown manhattan almost twothirds located plaza district jll said one marquee hedge fund citadel llc february agreed pay record 300 square foot part penthouse 425 park avenue according media reports citadels average rent 175 square foot average floors included citadel declined comment still highprofile names left soon private equity firm kkrs planned move solow building west 57th street often called citys prestigious building hudson yards move seen highly symbolic plaza district losing ground thirdlowest recipient corporate crossmarket relocations manhattan since 2011 leases 50000 square feet examined according colliers plaza citys biggest submarket seen largest departure companies moved midtown midtown south downtown business centers almost sixyear period midseptember colliers report said time midtown lost 30 tenants dozen plaza including five moved new construction colliers said manhattan without borders report dropoff leasing demand particularly apparent plaza district increase available space surged almost 4 percentage points third quarter 129 percent yearago according recent savills studley report strong base people still want plaza district included montana said lot younger people thats aspire demand less plaza district building stock change taste reporting herbert lash additional reporting lawrence delevingne editing bill rigby | 566 |
<p />
<p>With some small exceptions over the past couple of years, marijuana's expansion has been practically unstoppable. In the November elections, eight of the nine states voting on cannabis initiatives and amendments favored legalizing medical or recreational pot (sorry, Arizonans), while two states, Ohio and Pennsylvania, also wound up legalizing medical cannabis entirely through the legislative process last year. By year's end, 28 states had legalized medical cannabis, while eight had legalized recreational weed.</p>
<p>Continue Reading Below</p>
<p>As weed has expanded, pardon the pun, like a weed, so has the public favorability toward the drug. A 2016 Gallup poll found 60% support for the nationwide legalization of marijuana, which compares quite favorably to just the 25% who felt the same way in 1995, the year before California became the first state to pass a Compassionate Use law for medical cannabis patients.</p>
<p>Image source: Getty Images.</p>
<p>According to cannabis research firm ArcView, North American legal pot sales grew by a staggering 34% in 2016 to $6.9 billion, with Colorado crossing the $1 billion legal sales mark just 10 months into the year. More legal sales should mean higher tax and licensing revenue for the states themselves, making it appear like a win-win for everyone.</p>
<p>However, marijuana's momentum could soon come to a grinding halt.</p>
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<p>A little more than one week ago, White House Press Secretary Sean Spicer offered rather disturbing commentary on what the federal government's role in marijuana enforcement might entail going forward. The following is what Spicer told reporters, <a href="http://www.vox.com/policy-and-politics/2017/2/23/14717638/sean-spicer-trump-marijuana-legalization" type="external">courtesy of Vox.com Opens a New Window.</a>:</p>
<p>Long story short, the key takeaway from Spicer's commentary is that we would likely see a step-up in the federal enforcement of recreational marijuana laws at the state level.</p>
<p>Image source: U.S. Department of Homeland Security, Flickr.</p>
<p>Mind you, there was nothing specific discussed as to what a step-up in enforcement actually means. The Obama administration kept a very safe distance on marijuana, allowing the states to completely regulate and control their industries. Spicer's comments suggest that the Trump administration could simply step up enforcement to keep pot out of the hands of minors, or that it could really ramp up enforcement and conduct raids in states that voted to legalize recreational weed. Another possibility is the Trump administration could put the kibosh on newly approved recreational weed states (California, Massachusetts, Maine, and Nevada) before they have a chance to get off the ground. We just don't know.</p>
<p>What's particularly disturbing about this commentary is that it would mean President Trump is breaking his pledge on pot. During his campaign, Trump sided 100% with the idea of legalizing medical marijuana, and he announced his intent to allow state rights to prevail when it came to recreational pot. Now in the Oval Office, Trump seems content allowing state's rights to prevail when it comes to medical cannabis but not with regard to recreational weed.</p>
<p>Further complicating matters, Attorney General Jeff Sessions was arguably the most ardent opponent of marijuana in the Senate. Though Sessions has placed his support behind President Trump, suggesting he'll follow whatever actions are recommended by the president, Sessions has also said that, "I won't commit to never enforcing federal law."</p>
<p>While it's uplifting to see that the federal government has no intention of disrupting the medical marijuana market and blocking access of cannabis-based products to select patients, the possibility of more stringent federal enforcement on recreational pot could be irreparably damaging to most marijuana stocks, especially those involved in the retail side of the equation.</p>
<p>Image source; Getty Images.</p>
<p>To be clear, marijuana stocks are already facing a veritable uphill battle that seemingly has no end. For instance, they have little or no access to basic banking services, such as a checking account or line of credit, because financial institutions in the U.S. answer to the federal government. Any signs of aiding a marijuana company could be viewed as money laundering, which has coerced most banks and credit unions to keep their distance. Being forced to deal solely in cash is a growth impediment for pot businesses and a serious safety concern.</p>
<p>Marijuana businesses are also unable to take normal tax deductions since they're selling a federal illegal substance. With it seeming increasingly unlikely that Congress will alter marijuana's scheduling during Trump's tenure as president, this tax disadvantage will remain firmly in place.</p>
<p>What can now be added to the woes is a possible crackdown on recreational pot by the federal government, which would take away the fastest growth channel for marijuana and investors. Don't get me wrong: There are billions of legal sales to be made to qualifying patients. However, the real growth is on the recreational side of the equation. Without this growth, marijuana stocks would almost certainly be worth avoiding.</p>
<p>The one exception to the rule might be cannabinoid-based drug developers, which fall firmly on the medical side the equation that the Trump administration appears willing to leave be. However, it's worth pointing out that just because medical pot stocks would be free to thrive doesn't mean they'll necessarily be profitable and/or sustainable anytime soon.</p>
<p>Image source: GW Pharmaceuticals.</p>
<p>GW Pharmaceuticals (NASDAQ: GWPH) is the biggest of the bunch with a valuation already north of $3 billion. This lofty price comes after its success in pivotal phase 3 trials with experimental drug Epidiolex in treating two rare types of childhood-onset epilepsy. With approval of Epidiolex probably looking better than 50-50 after its phase 3 results, GW Pharmaceuticals has an outside chance at generating recurring profits by the end of the decade.</p>
<p>Another company that could be worth monitoring is Corbus Pharmaceuticals (NASDAQ: CRBP). The allure and danger of Corbus' pipeline is that it's entirely made up of one experimental anti-inflammatory drug, Resunab, which works with the natural cannabinoid receptors found in our bodies to strengthen the immune system while fighting inflammation typically associated with infection or injury. The company has four ongoing clinical-stage trials, a few of which could lead to instant profitability if Resunab is successful.</p>
<p>Nonetheless, Spicer's comments suggest that the Trump administration's dealings with marijuana will be a departure from Obama's hands-off approach. Even though we don't know all of the details yet, signs don't point to good news for the pot industry or marijuana stocks in general.</p>
<p>10 stocks we like better than GW PharmaceuticalsWhen 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=7b22d095-919a-42c0-9bfe-9c409a3590f2&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 GW Pharmaceuticals 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 February 6, 2017</p>
<p><a href="http://my.fool.com/profile/TMFUltraLong/info.aspx" type="external">Sean Williams 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 | small exceptions past couple years marijuanas expansion practically unstoppable november elections eight nine states voting cannabis initiatives amendments favored legalizing medical recreational pot sorry arizonans two states ohio pennsylvania also wound legalizing medical cannabis entirely legislative process last year years end 28 states legalized medical cannabis eight legalized recreational weed continue reading weed expanded pardon pun like weed public favorability toward drug 2016 gallup poll found 60 support nationwide legalization marijuana compares quite favorably 25 felt way 1995 year california became first state pass compassionate use law medical cannabis patients image source getty images according cannabis research firm arcview north american legal pot sales grew staggering 34 2016 69 billion colorado crossing 1 billion legal sales mark 10 months year legal sales mean higher tax licensing revenue states making appear like winwin everyone however marijuanas momentum could soon come grinding halt advertisement little one week ago white house press secretary sean spicer offered rather disturbing commentary federal governments role marijuana enforcement might entail going forward following spicer told reporters courtesy voxcom opens new window long story short key takeaway spicers commentary would likely see stepup federal enforcement recreational marijuana laws state level image source us department homeland security flickr mind nothing specific discussed stepup enforcement actually means obama administration kept safe distance marijuana allowing states completely regulate control industries spicers comments suggest trump administration could simply step enforcement keep pot hands minors could really ramp enforcement conduct raids states voted legalize recreational weed another possibility trump administration could put kibosh newly approved recreational weed states california massachusetts maine nevada chance get ground dont know whats particularly disturbing commentary would mean president trump breaking pledge pot campaign trump sided 100 idea legalizing medical marijuana announced intent allow state rights prevail came recreational pot oval office trump seems content allowing states rights prevail comes medical cannabis regard recreational weed complicating matters attorney general jeff sessions arguably ardent opponent marijuana senate though sessions placed support behind president trump suggesting hell follow whatever actions recommended president sessions also said wont commit never enforcing federal law uplifting see federal government intention disrupting medical marijuana market blocking access cannabisbased products select patients possibility stringent federal enforcement recreational pot could irreparably damaging marijuana stocks especially involved retail side equation image source getty images clear marijuana stocks already facing veritable uphill battle seemingly end instance little access basic banking services checking account line credit financial institutions us answer federal government signs aiding marijuana company could viewed money laundering coerced banks credit unions keep distance forced deal solely cash growth impediment pot businesses serious safety concern marijuana businesses also unable take normal tax deductions since theyre selling federal illegal substance seeming increasingly unlikely congress alter marijuanas scheduling trumps tenure president tax disadvantage remain firmly place added woes possible crackdown recreational pot federal government would take away fastest growth channel marijuana investors dont get wrong billions legal sales made qualifying patients however real growth recreational side equation without growth marijuana stocks would almost certainly worth avoiding one exception rule might cannabinoidbased drug developers fall firmly medical side equation trump administration appears willing leave however worth pointing medical pot stocks would free thrive doesnt mean theyll necessarily profitable andor sustainable anytime soon image source gw pharmaceuticals gw pharmaceuticals nasdaq gwph biggest bunch valuation already north 3 billion lofty price comes success pivotal phase 3 trials experimental drug epidiolex treating two rare types childhoodonset epilepsy approval epidiolex probably looking better 5050 phase 3 results gw pharmaceuticals outside chance generating recurring profits end decade another company could worth monitoring corbus pharmaceuticals nasdaq crbp allure danger corbus pipeline entirely made one experimental antiinflammatory drug resunab works natural cannabinoid receptors found bodies strengthen immune system fighting inflammation typically associated infection injury company four ongoing clinicalstage trials could lead instant profitability resunab successful nonetheless spicers comments suggest trump administrations dealings marijuana departure obamas handsoff approach even though dont know details yet signs dont point good news pot industry marijuana stocks general 10 stocks like better gw pharmaceuticalswhen 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 gw pharmaceuticals 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 position stocks mentioned motley fool position stocks mentioned motley fool disclosure policy opens new window | 736 |
<p>Stock splits tend to come after a company produces strong returns in terms of share price appreciation, and chemical giant PPG Industries (NYSE: PPG) has an impressive history of splitting its stock on multiple occasions while also producing solid dividend income. Yet even with double-digit percentage returns that go back for decades, PPG investors had to wait a long time before seeing its recent stock split. Shareholders want to know whether another split might be in the works, or if they'll face a similar wait in the future.</p>
<p>Let's take a look at PPG Industries' stock split history to see whether shareholders should anticipate another event in the near future.</p>
<p>Continue Reading Below</p>
<p>The history of PPG Industries' stock splits is a long one, going back half a century:</p>
<p>Data source: PPG Industries investor relations.</p>
<p>As you can see, PPG hasn't hesitated to split its shares when the time has been right. With the exception of its most recent stock split, PPG tended to look at a stock split when its share price started to approach the $75 to $100 range. Like many stocks during the late 20th century, PPG seemed uncomfortable with the idea of having a triple-digit share price. Yet PPG was in some ways even more willing to make split announcements, as unlike many of its peers, PPG didn't necessarily wait until its stock had actually eclipsed the $100 per share mark before pulling the trigger on a stock split.</p>
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<p>More recently, though, PPG has adopted a more conservative approach toward stock splits. When the shares reached the $80 mark in 2007, PPG chose not to push for a split, perhaps anticipating the damage the ensuing financial crisis and market meltdown would do. Following the economic recovery, PPG saw its shares soar into the triple digits, yet it once again chose not to take action for several years.</p>
<p>Only last year did PPG decide to pull the trigger on a stock split. With its stock climbing well above $200 per share, PPG took action to reduce its share price back toward the low triple digits. In its announcement, the chemical manufacturer said the split "reflects the PPG Board of Directors' continued confidence in the long-term growth and financial performance of the company." It also cited the belief that a split would "make the company's stock easier to trade, more affordable, and potentially more attractive to new investors, and is therefore expected to expand the company's shareholder base."</p>
<p>In order to generate another stock split, PPG shares will have to rise in value significantly from current levels. But there are a couple of catalysts that could lead to such a result.</p>
<p>First, PPG's work toward bolstering its overall business has helped it successfully weather tough industry conditions since its last split. The company produces coatings for many different customer industries, including products to fight corrosion in automobiles and marine vessels, food container technology, and protective coverings for eyewear. The construction industry is the most important user of PPG products, and weakness in construction across the globe has slowed PPG's potential growth. Yet the company has worked hard to position itself for an eventual rebound in the global macroeconomic climate, with its late 2014 acquisition of Mexico's Comex being just one way in which PPG is fighting to get a bigger share of the world market.</p>
<p>Also, merger and acquisition activity in the coatings sector could raise interest in PPG. Earlier this year, rivals Sherwin-Williams (NYSE: SHW) and Valspar (NYSE: VAL) announced plans to merge, creating a colossus in the residential paint and coatings market, but also potentially making the post-merger entity more competitive against PPG in its industrial coatings business as well. If Akzo Nobel chooses to look toward PPG as a way to answer back against Sherwin-Williams' buy, then a merger between the two could help lift shares of both companies.</p>
<p>Having just split its shares a year ago, PPG investors can't count on another split anytime soon. However, the prospects for the coatings specialist look strong, and a recovery in the global economy could give the stock the lift it needs to get on track toward another stock split at some point in the future.</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=2691&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/TMFGalagan/info.aspx" type="external">Dan Caplinger Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool recommends Sherwin-Williams. 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 | stock splits tend come company produces strong returns terms share price appreciation chemical giant ppg industries nyse ppg impressive history splitting stock multiple occasions also producing solid dividend income yet even doubledigit percentage returns go back decades ppg investors wait long time seeing recent stock split shareholders want know whether another split might works theyll face similar wait future lets take look ppg industries stock split history see whether shareholders anticipate another event near future continue reading history ppg industries stock splits long one going back half century data source ppg industries investor relations see ppg hasnt hesitated split shares time right exception recent stock split ppg tended look stock split share price started approach 75 100 range like many stocks late 20th century ppg seemed uncomfortable idea tripledigit share price yet ppg ways even willing make split announcements unlike many peers ppg didnt necessarily wait stock actually eclipsed 100 per share mark pulling trigger stock split advertisement recently though ppg adopted conservative approach toward stock splits shares reached 80 mark 2007 ppg chose push split perhaps anticipating damage ensuing financial crisis market meltdown would following economic recovery ppg saw shares soar triple digits yet chose take action several years last year ppg decide pull trigger stock split stock climbing well 200 per share ppg took action reduce share price back toward low triple digits announcement chemical manufacturer said split reflects ppg board directors continued confidence longterm growth financial performance company also cited belief split would make companys stock easier trade affordable potentially attractive new investors therefore expected expand companys shareholder base order generate another stock split ppg shares rise value significantly current levels couple catalysts could lead result first ppgs work toward bolstering overall business helped successfully weather tough industry conditions since last split company produces coatings many different customer industries including products fight corrosion automobiles marine vessels food container technology protective coverings eyewear construction industry important user ppg products weakness construction across globe slowed ppgs potential growth yet company worked hard position eventual rebound global macroeconomic climate late 2014 acquisition mexicos comex one way ppg fighting get bigger share world market also merger acquisition activity coatings sector could raise interest ppg earlier year rivals sherwinwilliams nyse shw valspar nyse val announced plans merge creating colossus residential paint coatings market also potentially making postmerger entity competitive ppg industrial coatings business well akzo nobel chooses look toward ppg way answer back sherwinwilliams buy merger two could help lift shares companies split shares year ago ppg investors cant count another split anytime soon however prospects coatings specialist look strong recovery global economy could give stock lift needs get track toward another stock split point future 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 dan caplinger opens new window position stocks mentioned motley fool recommends 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 | 532 |
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<p>Retail stocks have been under intense pressure. As measured by the S&amp;P Retail ETF, shares of retail companies are down 12% so far this month. In certain cases, the market seems to have gotten ahead of itself. Here are three retail stocks worth buying right now.</p>
<p>Continue Reading Below</p>
<p>Shares of Target are down 20% and sported a nearly 10% decline in a day after earnings on May 18. The general-merchandise juggernaut has had its fair share of scandal in recent years. The company is still in the midst of recovery from the customer credit card information theft a couple years ago and now is dealing with outrage among some shoppers against its new bathroom policy. The company downgraded profit guidance for the second quarter of 2016, and revenue was down year over year by 5%, sending many investors to the exit.</p>
<p>Image source: Target.</p>
<p>While news headlines may suggest bathroom policies are the blame for the drop in revenue, the sale of its underperforming pharmacy business last year is more likely the cause. Although revenue missed, profit came in above expectations for the quarter.</p>
<p>Overlooked is that the big-box store has been making great strides in modernizing its business. While Internet sales accounted for only 3% of revenue last quarter, those sales have been increasing by over 20% for almost two years now. This reflects the company's heavy investment to bring its model up to speed in the digital age, combining its physical footprint with its website to offer in-store pickup and drive traffic to the online store.</p>
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<p>In spite of a downbeat forecast for the second quarter, management reiterated its guidance of full-year profit growth of 11% over 2015. After the sell-off, Target now trades at a discount to its closest peers. For example, its forward and trailing price to earnings sits 20% lower than that of Wal-Mart. Target also pays a dividend yielding about 3%. I think the company is currently priced at a bargain.</p>
<p>Department stores were hit especially hard this earnings season, and Kohl's was no exception. The stock is down well over 20% in a month. The reason? Sales came in much lower than anticipated, profit was squeezed by heavy discounting to reduce inventory, and expenses rose because of an uptick in wages.</p>
<p>Image source: Kohl's.</p>
<p>While some department stores have dipped into unprofitability and are closing locations, Kohl's remains a stable business and is opening new store concepts. Sales growth has been flat over the past few years, but online sales have been increasing in the mid-teens.</p>
<p>Kohl's has been experimenting with its new small-footprint store concept, as well as the opening of "off-aisle" stores, a discount concept that sells items that customers have returned. The outlet-mall model will also be tested with 12 new Fila stores, which will tote the exclusive product line Kohl's has in the athletic clothing space. Management sees the investments in new store concepts and its online presence taking a few years to pay off, and profit will continue to be squeezed as a result.</p>
<p>Despite this period of transition, management has stuck to its plan of paying a competitive dividend and sees a possible 10% increase to that dividend this year. After the steep drop in share prices, Kohl's current dividend yield is at 5.5%. For those looking for a nice dividend payout, Kohl's looks very attractive at these levels.</p>
<p>While the last month hasn't seen assteep ofdrops for specialty shoe retailer Foot Locker , the company is trading near its 52-week low and 35% off its all-time high, even though 2015 was its sixth consecutive year posting double digit-profit growth and 2016 is getting off to a strong start.</p>
<p>Image source: Foot Locker.</p>
<p>The specialty store concept has seen a general increase in popularity, and Foot Locker has been able to capitalize on that trend. Once a struggling shopping-mall chain, the company has given itself a facelift over the past few years with trendy store remodels and multiple exclusive product lines from Nike, Under Armour, and others. The concept caught on with athletes and has helped power the company's growth higher in the past decade.</p>
<p>Foot Locker saw double-digit growth in online and international sales last year. Management expects the international business, especially in Europe, to lead the way higher in years to come. Other areas the company is building on are its Kids Foot Locker stores and a push into selling apparel. So far in 2016, revenue is up again in the lowsingle digits year over year, and profits are up about 8% year over year as the growth strategy continues to yield returns.</p>
<p>The company increased its dividend another 10% earlier in the year and has nearly doubled the payout over the past seven years to its current yield of just under 2%.The performance-shoe chain also has over $600 million left to go on its $1 billion share-repurchase program approved over a year ago. With shares down sharply against a backdrop of steady expansion in the top and bottom line and stronggrowth momentum going forward, Foot Locker presents an intriguing possibility.</p>
<p>Periods of large declines in the market, especially over a short time period as we've seen for many retail stocks this month, present a wonderful opportunity for investors to go shopping. Consumers continue to spend and have continued to increase their discretionary budget over the past few years, but spending habits are in transition. The short-term pain as businesses adjust to these changing habits spell long-term profit for those willing to see through the fog.</p>
<p>The article <a href="http://www.fool.com/investing/general/2016/05/26/three-stocks-worth-buying-after-retails-flop.aspx" type="external">Three Stocks Worth Buying After Retail's Flop Opens a New Window.</a> originally appeared on Fool.com.</p>
<p><a href="http://my.fool.com/profile/nrossolillo/info.aspx?source=eptfxblnk0000004" type="external">Nicholas Rossolillo Opens a New Window.</a> owns shares of Target. The Motley Fool owns shares of and recommends Nike and Under Armour (A Shares). 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 | retail stocks intense pressure measured sampp retail etf shares retail companies 12 far month certain cases market seems gotten ahead three retail stocks worth buying right continue reading shares target 20 sported nearly 10 decline day earnings may 18 generalmerchandise juggernaut fair share scandal recent years company still midst recovery customer credit card information theft couple years ago dealing outrage among shoppers new bathroom policy company downgraded profit guidance second quarter 2016 revenue year year 5 sending many investors exit image source target news headlines may suggest bathroom policies blame drop revenue sale underperforming pharmacy business last year likely cause although revenue missed profit came expectations quarter overlooked bigbox store making great strides modernizing business internet sales accounted 3 revenue last quarter sales increasing 20 almost two years reflects companys heavy investment bring model speed digital age combining physical footprint website offer instore pickup drive traffic online store advertisement spite downbeat forecast second quarter management reiterated guidance fullyear profit growth 11 2015 selloff target trades discount closest peers example forward trailing price earnings sits 20 lower walmart target also pays dividend yielding 3 think company currently priced bargain department stores hit especially hard earnings season kohls exception stock well 20 month reason sales came much lower anticipated profit squeezed heavy discounting reduce inventory expenses rose uptick wages image source kohls department stores dipped unprofitability closing locations kohls remains stable business opening new store concepts sales growth flat past years online sales increasing midteens kohls experimenting new smallfootprint store concept well opening offaisle stores discount concept sells items customers returned outletmall model also tested 12 new fila stores tote exclusive product line kohls athletic clothing space management sees investments new store concepts online presence taking years pay profit continue squeezed result despite period transition management stuck plan paying competitive dividend sees possible 10 increase dividend year steep drop share prices kohls current dividend yield 55 looking nice dividend payout kohls looks attractive levels last month hasnt seen assteep ofdrops specialty shoe retailer foot locker company trading near 52week low 35 alltime high even though 2015 sixth consecutive year posting double digitprofit growth 2016 getting strong start image source foot locker specialty store concept seen general increase popularity foot locker able capitalize trend struggling shoppingmall chain company given facelift past years trendy store remodels multiple exclusive product lines nike armour others concept caught athletes helped power companys growth higher past decade foot locker saw doubledigit growth online international sales last year management expects international business especially europe lead way higher years come areas company building kids foot locker stores push selling apparel far 2016 revenue lowsingle digits year year profits 8 year year growth strategy continues yield returns company increased dividend another 10 earlier year nearly doubled payout past seven years current yield 2the performanceshoe chain also 600 million left go 1 billion sharerepurchase program approved year ago shares sharply backdrop steady expansion top bottom line stronggrowth momentum going forward foot locker presents intriguing possibility periods large declines market especially short time period weve seen many retail stocks month present wonderful opportunity investors go shopping consumers continue spend continued increase discretionary budget past years spending habits transition shortterm pain businesses adjust changing habits spell longterm profit willing see fog article three stocks worth buying retails flop opens new window originally appeared foolcom nicholas rossolillo opens new window owns shares target motley fool owns shares recommends nike armour shares 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 | 614 |
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<p>Women took to the streets in unexpectedly large numbers in major U.S. cities on Saturday in mass protests against U.S. President Donald Trump, in an early indication of the strong opposition the Republican may face in office.</p>
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<p>Hundreds of thousands of women - many wearing pink knit hats to evoke comments by Trump that were triggered outrage among many women - filled long stretches of downtown Washington around the White House and National Mall. Hundreds of thousands more women thronged New York, Los Angeles, Chicago and Boston to rebuke Trump on his first full day in office.</p>
<p>Trump has angered many liberal Americans with comments seen as demeaning to women, Mexicans and Muslims, and worried some abroad with his inaugural vow on Friday to put "America First" in his decision-making.</p>
<p>The Women's March on Washington appeared to be larger than the crowds that turned a day earlier to witness Trump's inauguration on the steps of the U.S. Capitol. No official estimates of the crowd size were available, but the demonstrators appeared to easily exceed the 200,000 organizers had expected.</p>
<p>In Los Angeles the Sister March estimated it drew 750,000 demonstrators, and a planned march in Chicago grew so large that organizers did not attempt to parade through the streets but instead staged a rally. Police said more than 125,000 people attended.</p>
<p>The protests illustrated the depth of the division in the country, which is still reeling from the bitterly fought 2016 election campaign. Trump stunned the world by defeating Democrat Hillary Clinton, the first woman nominated for president by a major U.S. party.</p>
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<p>Pam Foyster, a resident of Ridgway, Colorado, said Saturday's atmosphere in Washington reminded her of the protests of the 1960s against the Vietnam War.</p>
<p>"I'm 58 years old and I can't believe we are having to do this again," Foyster said. She said that after the Vietnam War the push for women's rights and civil rights made her "believe anything was possible. But here we are again."</p>
<p>Although Republicans now control the White House and both houses of Congress, Trump faces entrenched opposition from segments of the public as he starts his term, in contrast to the honeymoon period that a new president typically experiences at the outset.</p>
<p>A recent ABC News/Washington Post poll found Trump had the lowest favorability rating of any incoming U.S. president since the 1970s.</p>
<p>Tens of thousands of protesters filled streets of midtown Manhattan, while around the world thousands of women took to the streets of Sydney, London, Tokyo and other cities in Europe and Asia in "sister marches" against Trump.</p>
<p>Trump, in a Twitter post on Saturday, wrote, "I am honored to serve you, the great American People, as your 45th President of the United States!" He made no mention of the protests. Trump attended an interfaith service at Washington National Cathedral and then visited the Central Intelligence Agency headquarters.</p>
<p>SUBWAY OVERWHELMED</p>
<p>The Washington march stressed the city's Metro subway system, with riders reporting enormous crowds and some end-of-line stations temporarily turning people away when parking lots filled and platforms became overcrowded.</p>
<p>The Metro reported 275,000 rides as of 11 a.m. (1600 GMT) Saturday, 82,000 more than the 193,000 reported at the same time on Friday, the day of Trump's inauguration, and eight times normal Saturday volume.</p>
<p>No official crowd estimates were available from the National Park Service or Washington police.</p>
<p>Trump on Saturday angrily attacked media reports, including photos, that showed crowds at Friday's inaugural had been smaller than those seen in 2009 and 2013 when Barack Obama was inaugurated for his first and second terms as president. Overhead photos of the area showed significantly smaller crowds on Friday compared with Obama's first inauguration eight years ago.</p>
<p>"I made a speech, I looked out, the field was, it looked like a million, million and a half people," Trump said at his visit to the CIA. "They showed a field where there were practically nobody standing there."</p>
<p>Saturday's march was peaceful, a sharp contrast to the day before when black-clad anti-establishment activists, among the hundreds of demonstrators protesting against Trump, smashed windows, set vehicles on fire and fought with riot police, who responded with stun grenades.</p>
<p>Washington prosecutors on Saturday said about $100,000 in damage had been done on Friday and 230 adults and five minors had been arrested.</p>
<p>Many protesters on Saturday wore knitted pink cat-eared "pussy hats," in reference to Trump's claim in the 2005 video that was made public weeks before the election that he grabbed women by the genitals.</p>
<p>The Washington march featured speakers, celebrity appearances and a protest walk along the National Mall.</p>
<p>Crowds filled more than 10 city blocks of Independence Avenue, and people spilled onto side streets and the adjoining National Mall.</p>
<p>Among the well-known figures who attended were Madonna, who swore while discussing Trump before singing her 1989 hit "Express Yourself," singer Cher and former U.S. Secretary of State John Kerry, who waved to supporters as his walked his yellow Labrador, Ben.</p>
<p>WOMEN'S VOTES</p>
<p>Clinton won the popular vote in the Nov. 8 presidential election by around 2.9 million votes and had an advantage among women of more than 10 percentage points. Trump, however, easily won the state-by-state Electoral College vote that actually determines the winner.</p>
<p>Trump offered few if any olive branches to his opponents in his Friday inauguration speech in which he promised to put "America First."</p>
<p>"He has never seemed particularly concerned about people who oppose him, he almost fights against them instinctively," said Neil Levesque, executive director of the New Hampshire Institute of Politics at Saint Anselm College.</p>
<p>But the lawmakers whom Trump will rely on to achieve his policy goals, including building a wall on the Mexican border and replacing the 2010 healthcare reform law known as "Obamacare," may be more susceptible to the negative public opinion the march illustrates, Levesque said.</p>
<p>"Members of Congress are very sensitive to the public mood and many of them are down here this week to see him," Levesque said.</p>
<p>At the New York march, 42-year-old Megan Schulz, who works in communications, said she worried that Trump was changing the standards of public discourse.</p>
<p>"The scary thing about Donald Trump is that now all the Republicans are acquiescing to him and things are starting to become normalized," Schulz said. "We can't have our president talking about women the way he does."</p>
<p>(By Scott Malone and Ginger Gibso; Additional reporting by Lisa Lambert, Mike Stone, Jonathan Landay, Ian Simpson and Ginger Gibson in Washington, Alexander Besant and Jonathan Allen in New York and Timothy McLaughlin in Chicago; Editing by Alistair Bell and Leslie Adler)</p> | true | 0 | women took streets unexpectedly large numbers major us cities saturday mass protests us president donald trump early indication strong opposition republican may face office continue reading hundreds thousands women many wearing pink knit hats evoke comments trump triggered outrage among many women filled long stretches downtown washington around white house national mall hundreds thousands women thronged new york los angeles chicago boston rebuke trump first full day office trump angered many liberal americans comments seen demeaning women mexicans muslims worried abroad inaugural vow friday put america first decisionmaking womens march washington appeared larger crowds turned day earlier witness trumps inauguration steps us capitol official estimates crowd size available demonstrators appeared easily exceed 200000 organizers expected los angeles sister march estimated drew 750000 demonstrators planned march chicago grew large organizers attempt parade streets instead staged rally police said 125000 people attended protests illustrated depth division country still reeling bitterly fought 2016 election campaign trump stunned world defeating democrat hillary clinton first woman nominated president major us party advertisement pam foyster resident ridgway colorado said saturdays atmosphere washington reminded protests 1960s vietnam war im 58 years old cant believe foyster said said vietnam war push womens rights civil rights made believe anything possible although republicans control white house houses congress trump faces entrenched opposition segments public starts term contrast honeymoon period new president typically experiences outset recent abc newswashington post poll found trump lowest favorability rating incoming us president since 1970s tens thousands protesters filled streets midtown manhattan around world thousands women took streets sydney london tokyo cities europe asia sister marches trump trump twitter post saturday wrote honored serve great american people 45th president united states made mention protests trump attended interfaith service washington national cathedral visited central intelligence agency headquarters subway overwhelmed washington march stressed citys metro subway system riders reporting enormous crowds endofline stations temporarily turning people away parking lots filled platforms became overcrowded metro reported 275000 rides 11 1600 gmt saturday 82000 193000 reported time friday day trumps inauguration eight times normal saturday volume official crowd estimates available national park service washington police trump saturday angrily attacked media reports including photos showed crowds fridays inaugural smaller seen 2009 2013 barack obama inaugurated first second terms president overhead photos area showed significantly smaller crowds friday compared obamas first inauguration eight years ago made speech looked field looked like million million half people trump said visit cia showed field practically nobody standing saturdays march peaceful sharp contrast day blackclad antiestablishment activists among hundreds demonstrators protesting trump smashed windows set vehicles fire fought riot police responded stun grenades washington prosecutors saturday said 100000 damage done friday 230 adults five minors arrested many protesters saturday wore knitted pink cateared pussy hats reference trumps claim 2005 video made public weeks election grabbed women genitals washington march featured speakers celebrity appearances protest walk along national mall crowds filled 10 city blocks independence avenue people spilled onto side streets adjoining national mall among wellknown figures attended madonna swore discussing trump singing 1989 hit express singer cher former us secretary state john kerry waved supporters walked yellow labrador ben womens votes clinton popular vote nov 8 presidential election around 29 million votes advantage among women 10 percentage points trump however easily statebystate electoral college vote actually determines winner trump offered olive branches opponents friday inauguration speech promised put america first never seemed particularly concerned people oppose almost fights instinctively said neil levesque executive director new hampshire institute politics saint anselm college lawmakers trump rely achieve policy goals including building wall mexican border replacing 2010 healthcare reform law known obamacare may susceptible negative public opinion march illustrates levesque said members congress sensitive public mood many week see levesque said new york march 42yearold megan schulz works communications said worried trump changing standards public discourse scary thing donald trump republicans acquiescing things starting become normalized schulz said cant president talking women way scott malone ginger gibso additional reporting lisa lambert mike stone jonathan landay ian simpson ginger gibson washington alexander besant jonathan allen new york timothy mclaughlin chicago editing alistair bell leslie adler | 675 |
<p>The auto industry continued to do well in 2017, and both Ford Motor (NYSE: F) and General Motors (NYSE: GM) were able to continue their runs of strong sales years. Unfortunately, shareholders haven't entirely benefited from the favorable business conditions that Ford and GM have seen, and recent <a href="https://www.fool.com/investing/2018/03/05/auto-stocks-plunge-on-tariff-fears-no-big-deal.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=bfb3792c-b82d-4db7-85f9-14af53dfa7ae&amp;utm_source=foxbusiness" type="external">geopolitical tensions Opens a New Window.</a> have raised concerns about their ability to keep doing business effectively around the world.</p>
<p>Value investors have looked at Ford and General Motors for a long time to see if they're smart value picks at current prices. So far, the stocks haven't lived up to their potential, but those who like the industry's prospects still want to know which of the two auto giants is a smarter pick right now. Let's take a closer look at Ford and General Motors to see what some key metrics have to say about which one looks more promising.</p>
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<p>Ford Motor and General Motors haven't done much for their investors lately. GM is the winner of the two, with gains of 3% since March 2017. By contrast, Ford stock has lost 7% of its value over the same period.</p>
<p>Even though GM has done better than Ford, the larger company still holds a valuation advantage when you compare it to the Blue Oval on traditional measures. Tax reform has made it difficult to compare backward-looking trailing earnings multiples, but when you incorporate forward-looking projections in the near future, GM's advantage becomes clear. The stock trades at less than six times forward earnings estimates, compared to a forward multiple of more than seven for Ford. That might not seem like a big deal, but GM's combination of share price momentum and slightly cheaper valuation gives it the edge here.</p>
<p>Ford and GM both have high dividend yields, but here, <a href="https://www.fool.com/investing/2017/12/27/how-safe-is-fords-dividend.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=bfb3792c-b82d-4db7-85f9-14af53dfa7ae&amp;utm_source=foxbusiness" type="external">Ford is the winner Opens a New Window.</a>. Its yield exceeds 5.5%, compared to <a href="https://www.fool.com/investing/2017/12/21/how-safe-is-general-motors-dividend.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=bfb3792c-b82d-4db7-85f9-14af53dfa7ae&amp;utm_source=foxbusiness" type="external">General Motors Opens a New Window.</a> and its roughly 4.1% dividend yield currently. Moreover, Ford's yield doesn't even include a special dividend that it made at the beginning of the year, adding even further to its total effective yield.</p>
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<p>From a dividend growth perspective, Ford stands out as well. Having survived without going through a bankruptcy filing in the aftermath of the recession of 2008, Ford suspended its payout briefly but was able to restore it more quickly than its peers, and dividend growth has come more quickly. GM has made a middling effort to catch up, but it still lags behind its rival. One offsetting characteristic is that General Motors has been friendlier about doing stock buybacks, while Ford has been reluctant to follow suit. Nevertheless, for income investors, there's no substitute for dividends, and Ford gets the nod on the income front.</p>
<p>Both Ford and General Motors face many of the same industrywide threats, with innovations like ridesharing and autonomous vehicles requiring new ways of thinking as competition approaches from a new corner. Yet Ford is going through some challenges of its own that have required additional handling. Earlier this year, <a href="https://www.fool.com/investing/2018/01/25/why-ford-expects-lower-profits-in-2018.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=bfb3792c-b82d-4db7-85f9-14af53dfa7ae&amp;utm_source=foxbusiness" type="external">Ford said it expects lower profits in 2018 Opens a New Window.</a>, listing pressures like higher commodity costs, rising interest rates, and the need for spending on initiatives like autonomous vehicles and mobility alternatives. Yet the automaker knows that it needs to work harder on its own efforts to rein in unnecessary costs even as it strives to catch up in key areas. The fact that Ford hasn't been able to improve its bottom line even when sales picked up the pace in recent years is problematic for investors in the auto giant.</p>
<p>General Motors has aimed to take advantage of some of Ford's issues. In China, <a href="https://www.fool.com/investing/2018/03/15/how-general-motors-is-beating-ford-in-china.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=bfb3792c-b82d-4db7-85f9-14af53dfa7ae&amp;utm_source=foxbusiness" type="external">GM has emerged victorious Opens a New Window.</a>, with huge sales gains in early 2018 compared to massive declines in sales volume for Ford. The automaker hasn't shied away from doing things specifically for the Chinese market, including branding that's directed solely at China and reinventing models that had largely run their course in other parts of the world. Worldwide, <a href="https://www.fool.com/investing/2018/03/25/general-motors-stock-is-too-cheap-to-pass-up.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=bfb3792c-b82d-4db7-85f9-14af53dfa7ae&amp;utm_source=foxbusiness" type="external">General Motors is in a good place Opens a New Window.</a> as it aims to launch upgrades in the key truck and SUV segments over the next couple of years to preserve its market share gains over Ford and other competitors. Even the return of strong performance from the GM Financial unit bodes well for the automaker's prospects ahead.</p>
<p>General Motors has been able to hang on to its performance advantage over Ford. With the Blue Oval still working to shore up key issues that GM seems already to have figured out, investors can feel more confident about General Motors' prospects looking ahead through 2018 and beyond.</p>
<p>10 stocks we like better than FordWhen 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=eab05902-29a1-4f7a-af5c-c96e407d34d3&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=bfb3792c-b82d-4db7-85f9-14af53dfa7ae&amp;utm_source=foxbusiness" type="external">10 best stocks Opens a New Window.</a> for investors to buy right now... and Ford 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 March 5, 2018</p>
<p><a href="http://my.fool.com/profile/TMFGalagan/info.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=bfb3792c-b82d-4db7-85f9-14af53dfa7ae&amp;utm_source=foxbusiness" type="external">Dan Caplinger Opens a New Window.</a> owns shares of Ford. The Motley Fool recommends Ford. 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;referring_guid=bfb3792c-b82d-4db7-85f9-14af53dfa7ae&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | auto industry continued well 2017 ford motor nyse f general motors nyse gm able continue runs strong sales years unfortunately shareholders havent entirely benefited favorable business conditions ford gm seen recent geopolitical tensions opens new window raised concerns ability keep business effectively around world value investors looked ford general motors long time see theyre smart value picks current prices far stocks havent lived potential like industrys prospects still want know two auto giants smarter pick right lets take closer look ford general motors see key metrics say one looks promising continue reading ford motor general motors havent done much investors lately gm winner two gains 3 since march 2017 contrast ford stock lost 7 value period even though gm done better ford larger company still holds valuation advantage compare blue oval traditional measures tax reform made difficult compare backwardlooking trailing earnings multiples incorporate forwardlooking projections near future gms advantage becomes clear stock trades less six times forward earnings estimates compared forward multiple seven ford might seem like big deal gms combination share price momentum slightly cheaper valuation gives edge ford gm high dividend yields ford winner opens new window yield exceeds 55 compared general motors opens new window roughly 41 dividend yield currently moreover fords yield doesnt even include special dividend made beginning year adding even total effective yield advertisement dividend growth perspective ford stands well survived without going bankruptcy filing aftermath recession 2008 ford suspended payout briefly able restore quickly peers dividend growth come quickly gm made middling effort catch still lags behind rival one offsetting characteristic general motors friendlier stock buybacks ford reluctant follow suit nevertheless income investors theres substitute dividends ford gets nod income front ford general motors face many industrywide threats innovations like ridesharing autonomous vehicles requiring new ways thinking competition approaches new corner yet ford going challenges required additional handling earlier year ford said expects lower profits 2018 opens new window listing pressures like higher commodity costs rising interest rates need spending initiatives like autonomous vehicles mobility alternatives yet automaker knows needs work harder efforts rein unnecessary costs even strives catch key areas fact ford hasnt able improve bottom line even sales picked pace recent years problematic investors auto giant general motors aimed take advantage fords issues china gm emerged victorious opens new window huge sales gains early 2018 compared massive declines sales volume ford automaker hasnt shied away things specifically chinese market including branding thats directed solely china reinventing models largely run course parts world worldwide general motors good place opens new window aims launch upgrades key truck suv segments next couple years preserve market share gains ford competitors even return strong performance gm financial unit bodes well automakers prospects ahead general motors able hang performance advantage ford blue oval still working shore key issues gm seems already figured investors feel confident general motors prospects looking ahead 2018 beyond 10 stocks like better fordwhen 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 ford wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns march 5 2018 dan caplinger opens new window owns shares ford motley fool recommends ford motley fool disclosure policy opens new window | 553 |
<p />
<p>Image source: Intel.</p>
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<p>In a Sept. 5 <a href="http://www.fool.com/investing/2016/09/05/intel-corporation-may-have-canceled-a-significant.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">column Opens a New Window.</a>, I argued that microprocessor giant Intel (NASDAQ: INTC)may have been planning to stop building processors incorporating its high-performance Iris Pro graphics.</p>
<p>The argument was based on two key pieces of information. The first was the fact that in Intel's own public messaging around its seventh-generation Core processor family, the company explicitly mentioned that products with its lower-performance Iris graphics were coming but made no mention of Iris Pro. The second was a leak from NotebookCheck.net illustrating that Intel had no plans to release a seventh-generation Core processor with Iris Pro graphics.</p>
<p>Although the lack of a seventh-generation Core processor with Iris Pro may have been a good indication that the chip giant was no longer investing to build such products, a recent leak about Intel's eighth-generation Core processors for high-performance notebooks and desktops, code-named Coffee Lake, seems to show that Iris Pro will be absent for yet another generation.</p>
<p>When a technology that's been around for several product generations appears to be going away for two subsequent product generations, it's reasonable to expect that it won't be coming back.</p>
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<p>Recently, a slide illustrating Intel's laptop processor plans through the second quarter of 2018 began circulating on the internet:</p>
<p>Image source: AnandTech Forums.</p>
<p>For high-performance notebooks, Intel offers its "H Processor" family. Notice that with the Skylake processor family, Intel offered two tiers of quad-core chips. The lower tier included "just" GT2 graphics, but the higher tier included much higher-performance GT4e graphics, branded Iris Pro.</p>
<p>From a product performance perspective, the Skylake processors with GT4e graphics offered significantly better performance in 3D applications -- think video games. From an economic perspective, the GT4e chips featured much larger die sizes, meaning they were significantly more expensive to produce, and also included an Intel-designed cache memory embedded alongside to the main processor on the same package, which adds even more cost.</p>
<p>However, beginning with Kaby Lake and continuing with Coffee Lake, it would appear that only GT2 graphics, which Intel brands "Intel HD Graphics," will be an option.</p>
<p>Although Intel appears to be done with Iris Pro graphics, the road map still indicates that the chipmaker's Iris graphics (non-Pro) will still come to market. In particular, for notebooks that use chips rated at either 15 or 28 watts, Intel is still apparently planning products with GT3e graphics.</p>
<p>GT3e indicates a lower graphics core count than a hypothetical GT4e would have, but it should still offer significantly more graphical horsepower than a GT2 chip does. The "e" in GT3e also indicates that these chips will use the Intel-designed on-package memory, which is useful in trying to keep the graphics processor fed with data.</p>
<p>At the end of the day, Intel seems to view higher tiers of graphics performance as a way to try to drive upsell. In very power- and space-limited systems -- the kinds of systems that are likely to use 15- and 28-watt processors -- it can often be impractical to include a standalone graphics processor.</p>
<p>For the vast majority of personal-computer buyers, standard Intel HD graphics are likely to be enough. However, system vendors are likely to want to advertise a more "premium" graphics solution for their higher-end systems, particularly ones with extremely high-display resolutions.</p>
<p>With Iris Pro, the value proposition becomes less clear. Iris Pro should enable better graphics performance, but given that the types of systems that can support 45-watt processors are also likely able to support standalone graphics processors, system vendors may believe that simply going with standalone graphics processors in this case is an option that delivers a better experience and, frankly, allows them to charge more, since standalone graphics processors are often perceived to be superior to any form of integrated solution.</p>
<p>Indeed, my guess is that Intel saw very low interest from the key personal-computer manufacturers for future processors with Iris Pro graphics. I still can't find any laptops with Iris Pro based on the company's Skylake architecture, for example. And the lack of interest probably drove the company to halt development efforts on such chips going forward.</p>
<p>After all, it simply doesn't make sense to build products for which there is little to no demand.</p>
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<p><a href="http://my.fool.com/profile/aeassa/info.aspx" type="external">Ashraf Eassa Opens a New Window.</a> owns shares of Intel. The Motley Fool recommends 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 | image source intel continue reading sept 5 column opens new window argued microprocessor giant intel nasdaq intcmay planning stop building processors incorporating highperformance iris pro graphics argument based two key pieces information first fact intels public messaging around seventhgeneration core processor family company explicitly mentioned products lowerperformance iris graphics coming made mention iris pro second leak notebookchecknet illustrating intel plans release seventhgeneration core processor iris pro graphics although lack seventhgeneration core processor iris pro may good indication chip giant longer investing build products recent leak intels eighthgeneration core processors highperformance notebooks desktops codenamed coffee lake seems show iris pro absent yet another generation technology thats around several product generations appears going away two subsequent product generations reasonable expect wont coming back advertisement recently slide illustrating intels laptop processor plans second quarter 2018 began circulating internet image source anandtech forums highperformance notebooks intel offers h processor family notice skylake processor family intel offered two tiers quadcore chips lower tier included gt2 graphics higher tier included much higherperformance gt4e graphics branded iris pro product performance perspective skylake processors gt4e graphics offered significantly better performance 3d applications think video games economic perspective gt4e chips featured much larger die sizes meaning significantly expensive produce also included inteldesigned cache memory embedded alongside main processor package adds even cost however beginning kaby lake continuing coffee lake would appear gt2 graphics intel brands intel hd graphics option although intel appears done iris pro graphics road map still indicates chipmakers iris graphics nonpro still come market particular notebooks use chips rated either 15 28 watts intel still apparently planning products gt3e graphics gt3e indicates lower graphics core count hypothetical gt4e would still offer significantly graphical horsepower gt2 chip e gt3e also indicates chips use inteldesigned onpackage memory useful trying keep graphics processor fed data end day intel seems view higher tiers graphics performance way try drive upsell power spacelimited systems kinds systems likely use 15 28watt processors often impractical include standalone graphics processor vast majority personalcomputer buyers standard intel hd graphics likely enough however system vendors likely want advertise premium graphics solution higherend systems particularly ones extremely highdisplay resolutions iris pro value proposition becomes less clear iris pro enable better graphics performance given types systems support 45watt processors also likely able support standalone graphics processors system vendors may believe simply going standalone graphics processors case option delivers better experience frankly allows charge since standalone graphics processors often perceived superior form integrated solution indeed guess intel saw low interest key personalcomputer manufacturers future processors iris pro graphics still cant find laptops iris pro based companys skylake architecture example lack interest probably drove company halt development efforts chips going forward simply doesnt make sense build products little demand 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 ashraf eassa opens new window owns shares intel motley fool recommends 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 | 536 |
<p>Harry Hay, who “inspired” Obama-appointed Education Department official Kevin Jennings to lead a life of homosexual activism, was not only a supporter of the North American Man-Boy Love Association (NAMBLA) but a prominent member of the Communist Party USA&#160; and “Radical Faerie” who believed in the power of the occult.</p>
<p>Hay’s influence is relevant not only because Jennings is a top Education Department official, but because Hay is considered by homosexuals to be the founder of their movement. A Stalinist and Marxist until the day he died, Hay defended NAMBLA’s participation in “gay rights” marches and its membership in the International Lesbian and Gay Association.</p>
<p>But the controversy over Jennings, which had been growing since his appointment in May, has been skillfully deflected by some journalists and commentators who have been attacking the government of Uganda for considering a law that would toughen laws against homosexual behavior that threatens public health and children. “Uganda wants to execute people for being gay,” lesbian commentator Rachel Maddow asserted on her MSNBC program on December 2. She called it the “kill-the-gays bill” and demanded that Christians in the U.S. denounce it.</p>
<p>Jumping on the story, the New York Times has claimed the bill would “impose a death sentence for homosexual behavior.”</p>
<p>These claims are flat-out disinformation.&#160;</p>
<p>Dr. Scott Lively, who visited Uganda in March of 2009 to encourage efforts to protect traditional family values, says the proposed death penalty in the bill, just one of many provisions, is for “aggravated homosexuality,” which is actually pederasty, pedophilia, homosexual parent/child incest, homosexual abuse of a disabled ward, and knowingly spreading AIDS. Dr. Lively is the author of The Pink Swastika and the president of <a href="http://www.defendthefamily.com/" type="external">Abiding Truth Ministries</a>.</p>
<p />
<p>“I do not support the proposed anti-homosexuality law as written,” <a href="http://www.defendthefamily.com/pfrc/newsarchives.php?id=4480922" type="external">Lively says</a>. “It does not emphasize rehabilitation over punishment and the punishment that it calls for is unacceptably harsh. However, if the offending sections were sufficiently modified, the proposed law would represent an encouraging step in the right direction. As one of the first laws of this century to recognize that the destructiveness of the ‘gay’ agenda warrants opposition by government, it would deserve support from Christian believers and other advocates of marriage-based culture around the world.”</p>
<p>Lively says that the legislation is a response to the history of the country, where Christians were persecuted and even killed for resisting the homosexuality of King Mwanga, a violent pedophile, and to the modern-day problem, which involves “homosexual political activists from Europe and the United States [who] are working aggressively to re-homosexualize their nation.”</p>
<p>June 3, a public holiday called <a href="http://www.catholic.org/saints/saint.php?saint_id=35" type="external">Martyrs’ Day</a>, is set aside in the nation to remember the Christians killed by the pedophile King in 1886.</p>
<p>In terms of the present threat, Lively explains, “Ugandan citizens report a growing number of foreign homosexual men coming to their country to turn desperately poor young men from the slums into their personal houseboys, and that some girls in public schools have been paid to recruit others into lesbianism.”</p>
<p>It would appear that the purpose of the orchestrated controversy over the proposed law in Uganda is to divert attention from the real scandal involving Obama Education Department official Kevin Jennings and his praise for the founder of the modern gay rights movement, Harry Hay, a supporter of adult-child sex.</p>
<p>This is the real scandal-the degree to which the homosexual movement tolerates pedophiles in its midst and regards a champion of pedophilia as a hero.</p>
<p>As <a href="http://americansfortruth.com/news/kevin-jennings-1997-transcript-promoting-homosexuality-in-schools-glsen-good-for-kids.html" type="external">disclosed</a> by Peter LaBarbera’s Americans for Truth organization, Jennings said in 1997 that Hay should serve as an inspiration. “One of the people that’s always inspired me is Harry Hay, who started the first ongoing gay rights group in America,” he said.</p>
<p>Jennings didn’t mention that Hay actively campaigned for the “rights” of pedophiles and publicly supported NAMBLA. But Jennings had to be aware of this fact. Two popular books about Hay-Radically Gay, edited by Will Roscoe and published in 1996, and The Trouble With Harry Hay, written by Stuart Timmons and published in 1990-documented Hay’s support for NAMBLA. These books were issued by pro-homosexual or left-wing book publishers and popular among “gay” activists like Jennings.</p>
<p>The Timmons book shows Hay wearing a “NAMBLA walks with me” sign at a “gay rights” demonstration. Although Hay apparently never formally joined the organization, he spoke about his support for NAMBLA on many different occasions, including at NAMBLA conferences.</p>
<p>Jennings was announced as the Assistant Deputy Secretary, Office of Safe &amp; Drug Free Schools, in the Department of Education on May 19. His official <a href="http://www.ed.gov/news/staff/bios/jennings.html" type="external">biography</a> mentions his role in creating an organization, the Gay, Lesbian, Straight Education Network (GLSEN), which is supposed to provide factual information about the history of the “gay rights” movement to teachers and students. But the references to Hay in GLSEN literature fail to include anything about his CPUSA, pro-NAMBLA or Radical Faerie activities.</p>
<p>For example, a GLSEN “Education Department Resource” <a href="http://www.glsen.org/binary-data/GLSEN_ATTACHMENTS/file/100-1.pdf" type="external">pamphlet</a> from the year 2000 identifies the Timmons book as “a readable biography of the founder of the first ongoing American gay rights group.” That means that somebody at GLSEN read the book, including its discussion of Hay’s pro-NAMBLA activities. But nothing is said about Hay’s objectionable record.</p>
<p>It is certainly interesting that the GLSEN description of the Hay book sounds like what Jennings had himself said about Hay.</p>
<p>More to the point, GLSEN recommends a book Jennings himself edited entitled, Becoming Visible: A Reader in Gay and Lesbian History for High School and College Students, which includes a favorable profile of Harry Hay by Timmons. Indeed, the material is from the Timmons book.</p>
<p>So the idea that Jennings was unfamiliar with Hay’s pro-NAMBLA record is simply impossible to believe. It is the case that Hay supported the criminal sexual exploitation of children and the evidence indicates that Jennings knew about this but that his organization concealed the information from those who had a right to know about it.</p>
<p>Hay’s support for NAMBLA grew out of his own sexual relationships as a child with adult predators. In his own twisted and bizarre world, Hay says he ultimately found the sexual abuse to be beneficial. By his own admission, he had a terrible relationship with his father, who beat him.&#160;</p>
<p>In the article, “Our Beloved Gay/Lesbian Movement at a Crossroads,” Hay maintained that real child molestation involved the “sexual coercion of Gay and Lesbian youth into heterosexual identities and behaviors.” Hay believed that homosexuals “should unite to sue the whole guilty hetero community for compensation” for practicing this “heterosexual coercion” on “Gay kids.”</p>
<p>The praise of Hay by Jennings has led to questions about Jennings’s relationship with NAMBLA itself. “We don’t know if Mr. Jennings supports us or not,” is all that a NAMBLA spokesman <a href="http://www.nambla.org/jennings.htm" type="external">says</a>. NAMBLA has a <a href="http://www.nambla.org/hay2002.htm" type="external">whole section</a> of its website devoted to Hay.</p>
<p>LaBarbera contends that “It would seem fairly easy for Jennings to clarify his position on NAMBLA-all he has to do is issue a clear statement of his opposition to this evil ‘man-boy love’ organization.”</p>
<p>But even if he were to condemn NAMBLA in strong terms, there is still the matter of why his organization, which targets young people, promotes a favorable book about a communist pervert.</p>
<p>Tomorrow: what a former FBI agent says about Kevin Jennings.</p>
<p>&#160;</p> | true | 0 | harry hay inspired obamaappointed education department official kevin jennings lead life homosexual activism supporter north american manboy love association nambla prominent member communist party usa160 radical faerie believed power occult hays influence relevant jennings top education department official hay considered homosexuals founder movement stalinist marxist day died hay defended namblas participation gay rights marches membership international lesbian gay association controversy jennings growing since appointment may skillfully deflected journalists commentators attacking government uganda considering law would toughen laws homosexual behavior threatens public health children uganda wants execute people gay lesbian commentator rachel maddow asserted msnbc program december 2 called killthegays bill demanded christians us denounce jumping story new york times claimed bill would impose death sentence homosexual behavior claims flatout disinformation160 dr scott lively visited uganda march 2009 encourage efforts protect traditional family values says proposed death penalty bill one many provisions aggravated homosexuality actually pederasty pedophilia homosexual parentchild incest homosexual abuse disabled ward knowingly spreading aids dr lively author pink swastika president abiding truth ministries support proposed antihomosexuality law written lively says emphasize rehabilitation punishment punishment calls unacceptably harsh however offending sections sufficiently modified proposed law would represent encouraging step right direction one first laws century recognize destructiveness gay agenda warrants opposition government would deserve support christian believers advocates marriagebased culture around world lively says legislation response history country christians persecuted even killed resisting homosexuality king mwanga violent pedophile modernday problem involves homosexual political activists europe united states working aggressively rehomosexualize nation june 3 public holiday called martyrs day set aside nation remember christians killed pedophile king 1886 terms present threat lively explains ugandan citizens report growing number foreign homosexual men coming country turn desperately poor young men slums personal houseboys girls public schools paid recruit others lesbianism would appear purpose orchestrated controversy proposed law uganda divert attention real scandal involving obama education department official kevin jennings praise founder modern gay rights movement harry hay supporter adultchild sex real scandalthe degree homosexual movement tolerates pedophiles midst regards champion pedophilia hero disclosed peter labarberas americans truth organization jennings said 1997 hay serve inspiration one people thats always inspired harry hay started first ongoing gay rights group america said jennings didnt mention hay actively campaigned rights pedophiles publicly supported nambla jennings aware fact two popular books hayradically gay edited roscoe published 1996 trouble harry hay written stuart timmons published 1990documented hays support nambla books issued prohomosexual leftwing book publishers popular among gay activists like jennings timmons book shows hay wearing nambla walks sign gay rights demonstration although hay apparently never formally joined organization spoke support nambla many different occasions including nambla conferences jennings announced assistant deputy secretary office safe amp drug free schools department education may 19 official biography mentions role creating organization gay lesbian straight education network glsen supposed provide factual information history gay rights movement teachers students references hay glsen literature fail include anything cpusa pronambla radical faerie activities example glsen education department resource pamphlet year 2000 identifies timmons book readable biography founder first ongoing american gay rights group means somebody glsen read book including discussion hays pronambla activities nothing said hays objectionable record certainly interesting glsen description hay book sounds like jennings said hay point glsen recommends book jennings edited entitled becoming visible reader gay lesbian history high school college students includes favorable profile harry hay timmons indeed material timmons book idea jennings unfamiliar hays pronambla record simply impossible believe case hay supported criminal sexual exploitation children evidence indicates jennings knew organization concealed information right know hays support nambla grew sexual relationships child adult predators twisted bizarre world hay says ultimately found sexual abuse beneficial admission terrible relationship father beat him160 article beloved gaylesbian movement crossroads hay maintained real child molestation involved sexual coercion gay lesbian youth heterosexual identities behaviors hay believed homosexuals unite sue whole guilty hetero community compensation practicing heterosexual coercion gay kids praise hay jennings led questions jenningss relationship nambla dont know mr jennings supports us nambla spokesman says nambla whole section website devoted hay labarbera contends would seem fairly easy jennings clarify position namblaall issue clear statement opposition evil manboy love organization even condemn nambla strong terms still matter organization targets young people promotes favorable book communist pervert tomorrow former fbi agent says kevin jennings 160 | 701 |
<p>Unwilling to concede defeat on a bedrock GOP promise, President Donald Trump on Saturday tried to sway two Republican holdouts on the party's last-ditch health care hope while clawing at his nemesis who again has brought the "Obamacare" repeal-and-replace effort to the brink of failure.</p>
<p>Trump appealed to Sen. Lisa Murkowski, a possible "no" vote, to swing around for the sake of Alaskans up in arms over high insurance costs, and suggested that Kentucky Sen. Rand Paul might reverse his stated opposition "for the good of the Party!"</p>
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<p>Arizona Sen. John McCain, whose announcement Friday that he would not vote for the proposal seemingly scuttled efforts to revive the repeal, came under renewed criticism from the White House. It was the second time in three months that McCain, at 81 in the twilight of a remarkable career and battling brain cancer, had emerged as the destroyer of his party's signature and yearslong pledge to voters on health care.</p>
<p>"He campaigned on Repeal &amp; Replace. Let Arizona down!" Trump tweeted. He jabbed at the senator with another tweet later in the day: "Democrats are laughingly saying that McCain had a "moment of courage." Tell that to the people of Arizona who were deceived. 116% increase!"</p>
<p>The effort to rally support for the bill took another hit Saturday when the nation's doctors, hospitals and health insurance plans unified in opposition to it. In a joint statement, major groups such as the American Medical Association, the American Hospital Association, America's Health Insurance Plans and the BlueCross BlueShield Association called on the Senate to reject the bill and said, "Health care is too important to get wrong."</p>
<p>With Senate Democrats unanimously opposed, two is the exact number of GOP votes that Majority Leader Mitch McConnell, R-Ky., can afford to lose. McCain and Paul are in the "no" column, Sen. Susan Collins, R-Maine, is leaning against the bill and Murkowksi is also a possible "no."</p>
<p>But Trump isn't letting go, as seen by his series of tweets while he spends the weekend at his New Jersey golf club.</p>
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<p>Aiming at Murkowski, Trump cited increases in premiums and other costs in Alaska under the Affordable Care Act. "Deductibles high, people angry! Lisa M comes through," he wrote.</p>
<p>Trump, without offering support for his assertion about former presidential rival Paul, said: "I know Rand Paul and I think he may find a way to get there for the good of the Party!"</p>
<p>But there was no doubt where Trump stood on McCain.</p>
<p>"John McCain never had any intention of voting for this Bill," Trump said. The measure was co-written by South Carolina Sen. Lindsey Graham, McCain's closest Senate ally, and Sen. Bill Cassidy, R-La.</p>
<p>"McCain let his best friend L.G. down!" Trump said, adding that the health bill was "great for Arizona."</p>
<p>McCain, in explaining that he could not "in good conscience" vote for the legislation, said both parties "could do better working together" but hadn't "really tried." He also he could not support the measure "without knowing how much it will cost, how it will affect insurance premiums, and how many people will be helped or hurt by it."</p>
<p>His opposition all but ensured a major setback for Trump and McConnell, and appeared likely to deepen rifts between congressional Republicans and a president who has begun making deals with Democrats out of frustration with his own party's failure to turn proposals into laws.</p>
<p>During the election campaign Trump had pledged to quickly kill the Affordable Care Act — "It will be easy," he contended — and he has publicly chided McConnell for not winning passage before now.</p>
<p>Up until McCain's announcement, McConnell allies were optimistic McCain's relationship with Graham might make the difference. GOP leaders hoped to bring the legislation to the full Senate this coming week. They face a Sept. 30 deadline, at which point special rules that prevent a Democratic filibuster will expire.</p>
<p>Democrats hailed McCain's announcement and pledged to commit to the bipartisan process he sought. GOP Sen. Lamar Alexander of Tennessee and Democratic Sen. Patty Murray of Washington have been working on a package of limited legislative fixes to the health law's marketplaces.</p>
<p>"John McCain shows the same courage in Congress that he showed when he was a naval aviator," said Senate Minority Leader Chuck Schumer, D-N.Y. "I have assured Sen. McCain that as soon as repeal is off the table, we Democrats are intent on resuming the bipartisan process."</p>
<p>Trump charged that Schumer "sold John McCain a bill of goods. Sad."</p>
<p>The Graham-Cassidy bill would repeal major pillars of the health law and replace them with block grants to states to design their own programs.</p>
<p>"Large Block Grants to States is a good thing to do. Better control &amp; management," Trump tweeted.</p>
<p>But major medical groups said millions of people would lose insurance coverage and protections. A bipartisan group of governors announced their opposition.</p>
<p>The House passed its own repeal bill back in May, prompting Trump to convene a Rose Garden celebration, which soon began to look premature.</p>
<p>After the Senate failed in several attempts in July, the legislation looked dead. But Cassidy kept at it with his state-focused approach, and the effort caught new life in recent weeks as the deadline neared. Trump pushed hard, hungry for a win.</p>
<p>The bill would get rid of unpopular mandates for people to carry insurance or face penalties. It would repeal the financing for Obama's health insurance expansion and create a big pot of money states could tap to set up their own programs, with less federal oversight. It would limit spending for Medicaid, the federal-state program that now covers more than 70 million low-income people. Insurance rules that protect people with pre-existing conditions could be loosened through state waivers.</p>
<p>Over time, the legislation would significantly reduce federal health care dollars now flowing to the states. But McConnell had little margin for error in a Senate split 52-48 between Republicans and Democrats, and could lose only two votes, counting on Pence to break the tie.</p>
<p>___</p>
<p>Associated Press writers Erica Werner, Alan Fram and Ricardo Alonso-Zaldivar in Washington contributed to this report.</p> | true | 0 | unwilling concede defeat bedrock gop promise president donald trump saturday tried sway two republican holdouts partys lastditch health care hope clawing nemesis brought obamacare repealandreplace effort brink failure trump appealed sen lisa murkowski possible vote swing around sake alaskans arms high insurance costs suggested kentucky sen rand paul might reverse stated opposition good party continue reading arizona sen john mccain whose announcement friday would vote proposal seemingly scuttled efforts revive repeal came renewed criticism white house second time three months mccain 81 twilight remarkable career battling brain cancer emerged destroyer partys signature yearslong pledge voters health care campaigned repeal amp replace let arizona trump tweeted jabbed senator another tweet later day democrats laughingly saying mccain moment courage tell people arizona deceived 116 increase effort rally support bill took another hit saturday nations doctors hospitals health insurance plans unified opposition joint statement major groups american medical association american hospital association americas health insurance plans bluecross blueshield association called senate reject bill said health care important get wrong senate democrats unanimously opposed two exact number gop votes majority leader mitch mcconnell rky afford lose mccain paul column sen susan collins rmaine leaning bill murkowksi also possible trump isnt letting go seen series tweets spends weekend new jersey golf club advertisement aiming murkowski trump cited increases premiums costs alaska affordable care act deductibles high people angry lisa comes wrote trump without offering support assertion former presidential rival paul said know rand paul think may find way get good party doubt trump stood mccain john mccain never intention voting bill trump said measure cowritten south carolina sen lindsey graham mccains closest senate ally sen bill cassidy rla mccain let best friend lg trump said adding health bill great arizona mccain explaining could good conscience vote legislation said parties could better working together hadnt really tried also could support measure without knowing much cost affect insurance premiums many people helped hurt opposition ensured major setback trump mcconnell appeared likely deepen rifts congressional republicans president begun making deals democrats frustration partys failure turn proposals laws election campaign trump pledged quickly kill affordable care act easy contended publicly chided mcconnell winning passage mccains announcement mcconnell allies optimistic mccains relationship graham might make difference gop leaders hoped bring legislation full senate coming week face sept 30 deadline point special rules prevent democratic filibuster expire democrats hailed mccains announcement pledged commit bipartisan process sought gop sen lamar alexander tennessee democratic sen patty murray washington working package limited legislative fixes health laws marketplaces john mccain shows courage congress showed naval aviator said senate minority leader chuck schumer dny assured sen mccain soon repeal table democrats intent resuming bipartisan process trump charged schumer sold john mccain bill goods sad grahamcassidy bill would repeal major pillars health law replace block grants states design programs large block grants states good thing better control amp management trump tweeted major medical groups said millions people would lose insurance coverage protections bipartisan group governors announced opposition house passed repeal bill back may prompting trump convene rose garden celebration soon began look premature senate failed several attempts july legislation looked dead cassidy kept statefocused approach effort caught new life recent weeks deadline neared trump pushed hard hungry win bill would get rid unpopular mandates people carry insurance face penalties would repeal financing obamas health insurance expansion create big pot money states could tap set programs less federal oversight would limit spending medicaid federalstate program covers 70 million lowincome people insurance rules protect people preexisting conditions could loosened state waivers time legislation would significantly reduce federal health care dollars flowing states mcconnell little margin error senate split 5248 republicans democrats could lose two votes counting pence break tie ___ associated press writers erica werner alan fram ricardo alonsozaldivar washington contributed report | 623 |
<p />
<p>Over the last 15 years, the real estate market for first-time homebuyers has been fairly strong. Before the financial crisis, lending standards were such that first-time buyers had little problem obtaining the financing they needed to move into a home of their own. After the crisis, the Obama first-time homebuyer tax credit plus dramatically lower prices put first-time buyers in an enviable position in the market.</p>
<p>Continue Reading Below</p>
<p>Today's market is a different story. The current generation of first-time homebuyers is ill prepared for the financial reality of buying a home, faces serious affordability problems because of rapidly appreciating home prices, and is struggling to obtain financing because of tight lending standards at banks.</p>
<p>First, today's first-time homebuyers have underestimated what it takes financially to buy a home. A survey of 12,000 individuals between ages 18 and 34 by ApartmentList.com illustrates the problem.</p>
<p>Survey respondents reported having savings of $3,450 earmarked for their down payments, with a budgeted savings of $250 per month going to their down-payment funds. Apartment List projects that these individuals must continue saving for 6.7 years before they'll have enough for a down payment.</p>
<p>Saving $250 per month for 6.7 years will generate about $20,000 in savings, excluding any interest or investment returns. That is a nice chunk of change, but it would only afford that first-time buyer a home of $100,000 to qualify for a conventional mortgage with a 20% down payment. It's no surprise then that according to data from the National Association of Realtors, just 18% of first-time homebuyers last year were able to put down the full 20% when buying their first home. Buying a home with lower down payments increases monthly expenses, including higher interest payments and (potentially) private mortgage insurance.</p>
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<p>Affordability was cited by77% of the survey respondents as the reason they haven't yet purchased a home. Part of that is likely due to the higher costs of unconventional mortgage loans, as well as the next challenge facing buyers today: skyrocketing home prices.</p>
<p>Since 2012, home prices nationwide have taken off like a rocket, with prices rising at a pace similarto what was seen during the real estate bubble 10 years ago. The price appreciation has been faster in major cities, areas where many young, first-time homebuyers currently rent and would like to buy, if only they could afford to.</p>
<p><a href="http://ycharts.com/indicators/case_shiller_home_price_index_national_" type="external">Case-Shiller Home Price Index: National</a> data by <a href="http://ycharts.com" type="external">YCharts Opens a New Window.</a>.</p>
<p>Nationwide, the Case-Shiller Home Price Index is just 3% off its all-time high and shows no signs of slowing down. That's great news for existing homeowners, but for first-time homebuyers it means bigger down-payment requirements, higher monthly payments, and a tougher overall time affording that first home.</p>
<p>At a glance, the mortgage market may seem ripe for first-time homebuyers. The 30-year fixed-mortgage rate remains just above 3.5%, a level unheard of in a generation prior to the financial crisis. However, accessing today's low rates remains a challenge. To see why, let's start with the current supply-and-demand dynamic in the mortgage market.</p>
<p>Data source: Federal Reserve. Data through Q4 2014 reported as "Prime" mortgages. Q1 2015 to the present reported as "GSE eligible."</p>
<p>The chart shows two dynamics. First, the orange line shows the net percentage of banks reporting an increase in demand for mortgage loans. Mortgage demand is seasonal, as we can see by the peaks and valleys since the market returned to a somewhat normal balance in 2013 and 2014. Over the past two years or so, the spikes in demand are considerably higher than the troughs in the down seasons. This means that by and large, demand for mortgages is rising.</p>
<p>The blue line shows the net percentage of banks reporting tightening credit standards for their mortgage loans. A negative number indicates easing standards, or more supply. The extremely high numbers reported around 2008 show just how severe the credit crunch was: a time when obtaining a mortgage was next to impossible. Looking at the past few years, though, we can see that banks are easing their credit standards and increasing supply, but they're only doing so marginally. In the most recent data, the net percentage of banks easing standards was just 11%. That's hardly a change compared to the 25.8% increase in demand.</p>
<p>What's clear is that while demand is spiking, supply is staying mostly stable. More people want loans, but only the most credit-worthy are able to get them. That's not an encouraging fact forfirst-time homebuyers, who we've already established are likely to be unprepared to make a large down payment for a house in any market, much less one appreciating so rapidly.</p>
<p>Despite the challenges, first-time homebuyers do have options, and over the long term I'm confident that this generation will eventually find success transitioning from renting to owning.</p>
<p>Government programs are available that require lower down payments, sometimes as low as just 3.5%. Low interest rates also make monthly payments more affordable for higher-dollar mortgages, helping to offset the affordability issues from rising home prices and lower down payments. And in the bigger picture, it's a good thing that banks are underwriting their loans with prudence and maintaining conservative credit standards. If the financial crisis taught us anything, it's that sometimes it's better to wait until you can truly afford a home, rather than overextending yourself with a mortgage you can't afford.</p>
<p>The article <a href="http://www.fool.com/investing/general/2016/05/15/its-the-worst-time-in-15-years-to-be-a-first-time.aspx" type="external">Its the Worst Time in 15 Years to Be a First-Time Homebuyer Opens a New Window.</a> originally appeared on Fool.com.</p>
<p>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 | last 15 years real estate market firsttime homebuyers fairly strong financial crisis lending standards firsttime buyers little problem obtaining financing needed move home crisis obama firsttime homebuyer tax credit plus dramatically lower prices put firsttime buyers enviable position market continue reading todays market different story current generation firsttime homebuyers ill prepared financial reality buying home faces serious affordability problems rapidly appreciating home prices struggling obtain financing tight lending standards banks first todays firsttime homebuyers underestimated takes financially buy home survey 12000 individuals ages 18 34 apartmentlistcom illustrates problem survey respondents reported savings 3450 earmarked payments budgeted savings 250 per month going downpayment funds apartment list projects individuals must continue saving 67 years theyll enough payment saving 250 per month 67 years generate 20000 savings excluding interest investment returns nice chunk change would afford firsttime buyer home 100000 qualify conventional mortgage 20 payment surprise according data national association realtors 18 firsttime homebuyers last year able put full 20 buying first home buying home lower payments increases monthly expenses including higher interest payments potentially private mortgage insurance advertisement affordability cited by77 survey respondents reason havent yet purchased home part likely due higher costs unconventional mortgage loans well next challenge facing buyers today skyrocketing home prices since 2012 home prices nationwide taken like rocket prices rising pace similarto seen real estate bubble 10 years ago price appreciation faster major cities areas many young firsttime homebuyers currently rent would like buy could afford caseshiller home price index national data ycharts opens new window nationwide caseshiller home price index 3 alltime high shows signs slowing thats great news existing homeowners firsttime homebuyers means bigger downpayment requirements higher monthly payments tougher overall time affording first home glance mortgage market may seem ripe firsttime homebuyers 30year fixedmortgage rate remains 35 level unheard generation prior financial crisis however accessing todays low rates remains challenge see lets start current supplyanddemand dynamic mortgage market data source federal reserve data q4 2014 reported prime mortgages q1 2015 present reported gse eligible chart shows two dynamics first orange line shows net percentage banks reporting increase demand mortgage loans mortgage demand seasonal see peaks valleys since market returned somewhat normal balance 2013 2014 past two years spikes demand considerably higher troughs seasons means large demand mortgages rising blue line shows net percentage banks reporting tightening credit standards mortgage loans negative number indicates easing standards supply extremely high numbers reported around 2008 show severe credit crunch time obtaining mortgage next impossible looking past years though see banks easing credit standards increasing supply theyre marginally recent data net percentage banks easing standards 11 thats hardly change compared 258 increase demand whats clear demand spiking supply staying mostly stable people want loans creditworthy able get thats encouraging fact forfirsttime homebuyers weve already established likely unprepared make large payment house market much less one appreciating rapidly despite challenges firsttime homebuyers options long term im confident generation eventually find success transitioning renting owning government programs available require lower payments sometimes low 35 low interest rates also make monthly payments affordable higherdollar mortgages helping offset affordability issues rising home prices lower payments bigger picture good thing banks underwriting loans prudence maintaining conservative credit standards financial crisis taught us anything sometimes better wait truly afford home rather overextending mortgage cant afford article worst time 15 years firsttime homebuyer opens new window originally appeared foolcom 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 | 602 |
<p>Sometimes, you can tell the big story of the day by what CNN is not covering — or by how the heavily biased network covers what they think is the big story.</p>
<p>"Trump's Russia defense in disarray," blared the CNN website headline on Tuesday morning.</p>
<p>So, clearly, the real story is just the opposite. Here's the real headline of the day: "Mueller Credibility Plunges, Trump Probe Imploding." Subhead: "Should he step down?"</p>
<p>Special prosecutor Robert Mueller was sold to America as an above-the-fray, non-partisan elder with the gravitas to handle investigating the President of the United States. As it turns out, Mueller has put together a pack of partisan lawyers, many of whom contributed campaign cash to Hillary Clinton and other Democrats; stonewalled demands from House lawmakers for information; and, most recently, secretly demoted a heavily biased FBI agent who's a hater of President Trump.</p>
<p>The special prosecutor's probe, which has already cost taxpayers some $5 million, hit a massive speed bump last week — the kind that snaps the axles and blows out the transmission. Reports emerged in both The Washington Post and The New York Times that a lead FBI investigator sent anti-Trump texts to a mistress. Weirdly, the investigator, Peter Strzok, wasn't fired, just quietly demoted to the Bureau's human resources department.</p>
<p>Then the shoes kept dropping — like Imelda Marcos having a yard sale. It turns out Strzok was one of former FBI Director James Comey's top lieutenants. From that perch, he played a key role in the early probe of alleged collusion between the Trump campaign and Russia.</p>
<p>But then it was revealed that before that, Strzok led the investigation into Clinton’s email scandal and sat in on her "interview" with the Bureau (during which she was not under oath and for which no transcript or tape has ever been produced). And Strzok also led interviews with all of Clinton's top aides: Cheryl Mills, Huma Abedin, Jake Sullivan and Heather Samuelson.</p>
<p>More.</p>
<p>"Electronic records show Peter Strzok, who led the investigation of Hillary Clinton's private email server as the No. 2 official in the counterintelligence division, changed Comey's earlier draft language describing Clinton's actions as 'grossly negligent' to 'extremely careless,' the sources said," CNN reported. (Good job, Clinton News Network!)</p>
<p>But wait, there's more. Much more.</p>
<p>Strzok was a "key figure in the chain of events when the bureau, in 2016, received the infamous anti-Trump 'dossier' and launched a counterintelligence investigation into Russian meddling in the election that ultimately came to encompass FISA surveillance of a Trump campaign associate," Fox News reported.</p>
<p>The dossier was a compilation of rumors and lies about Trump put together by an opposition research team contracted by Democrats called Fusion GPS. Fusion's records, obtained by House investigators, show the dossier was funded by the Clinton campaign and the Democratic National Committee.</p>
<p>And more.</p>
<p>Strzok interviewed former National Security Advisor Michael Flynn, who last week pleaded guilty to lying to the FBI. On January 24, Strzok and another agent interviewed Flynn, according to an intelligence official.</p>
<p>So Strzok just happened to be everywhere, his fingerprints on everything — Trump, Hillary, the dossier, Flynn. Quite a coincidence.</p>
<p>Back to Mueller. The special prosecutor didn't announce the termination of Strzok, nor his reassignment. Instead, word just leaked out. Both Mueller and the Justice Department kept the information of Strzok's biased texts from House investigators, who had been demanding more information for weeks — had even issued subpoenas.</p>
<p>"Oh, and the woman with whom he supposedly exchanged anti-Trump texts, FBI lawyer Lisa Page, worked for both Mr. Mueller and deputy FBI director Andrew McCabe, who was accused of a conflict of interest in the Clinton probe when it came out that Clinton allies had donated to the political campaign of Mr. McCabe’s wife," The Wall Street Journal reported. "The texts haven’t been publicly released, but it’s fair to assume their anti-Trump bias must be clear for Mr. Mueller to reassign such a senior agent."</p>
<p>While some praise Mueller for acting to remove a biased agent from his team, others see an attempt to bury the whole matter. The very underpinnings of the Trump-Russia collusion probe were predicated on the infamous dossier, which may also have led to the government wiretapping Trump officials (again, the House has demanded information about the surveillance, but both the FBI and Justice are stonewalling).</p>
<p>"Deputy Attorney General Rod Rosenstein, who appointed Mr. Mueller, is also playing an increasingly questionable role in resisting congressional oversight. Justice has floated multiple reasons for ignoring House subpoenas, none of them persuasive," the Journal said.</p>
<p>"First it claimed cooperation would hurt the Mueller probe, but his prosecutions are proceeding apace. Then Justice claimed that providing House investigators with classified material could hurt security or sources. But House Intelligence Chairman Devin Nunes has as broad a security clearance as nearly anyone in government. Recently Justice said it can’t interfere with a probe by the Justice Department Inspector General—as if an IG trumps congressional oversight."</p>
<p>So, despite CNN's take — "Trump's Russia defense in disarray" — it's really Mueller that has the huge problem. The avuncular, 73 year old who led the FBI for a dozen years is now so utterly compromised that there's no way he can continue to lead the probe into Trump and Russia.</p>
<p>But "Mueller must step down" is not a headline you're likely to read on the CNN website any time soon.</p> | true | 0 | sometimes tell big story day cnn covering heavily biased network covers think big story trumps russia defense disarray blared cnn website headline tuesday morning clearly real story opposite heres real headline day mueller credibility plunges trump probe imploding subhead step special prosecutor robert mueller sold america abovethefray nonpartisan elder gravitas handle investigating president united states turns mueller put together pack partisan lawyers many contributed campaign cash hillary clinton democrats stonewalled demands house lawmakers information recently secretly demoted heavily biased fbi agent whos hater president trump special prosecutors probe already cost taxpayers 5 million hit massive speed bump last week kind snaps axles blows transmission reports emerged washington post new york times lead fbi investigator sent antitrump texts mistress weirdly investigator peter strzok wasnt fired quietly demoted bureaus human resources department shoes kept dropping like imelda marcos yard sale turns strzok one former fbi director james comeys top lieutenants perch played key role early probe alleged collusion trump campaign russia revealed strzok led investigation clintons email scandal sat interview bureau oath transcript tape ever produced strzok also led interviews clintons top aides cheryl mills huma abedin jake sullivan heather samuelson electronic records show peter strzok led investigation hillary clintons private email server 2 official counterintelligence division changed comeys earlier draft language describing clintons actions grossly negligent extremely careless sources said cnn reported good job clinton news network wait theres much strzok key figure chain events bureau 2016 received infamous antitrump dossier launched counterintelligence investigation russian meddling election ultimately came encompass fisa surveillance trump campaign associate fox news reported dossier compilation rumors lies trump put together opposition research team contracted democrats called fusion gps fusions records obtained house investigators show dossier funded clinton campaign democratic national committee strzok interviewed former national security advisor michael flynn last week pleaded guilty lying fbi january 24 strzok another agent interviewed flynn according intelligence official strzok happened everywhere fingerprints everything trump hillary dossier flynn quite coincidence back mueller special prosecutor didnt announce termination strzok reassignment instead word leaked mueller justice department kept information strzoks biased texts house investigators demanding information weeks even issued subpoenas oh woman supposedly exchanged antitrump texts fbi lawyer lisa page worked mr mueller deputy fbi director andrew mccabe accused conflict interest clinton probe came clinton allies donated political campaign mr mccabes wife wall street journal reported texts havent publicly released fair assume antitrump bias must clear mr mueller reassign senior agent praise mueller acting remove biased agent team others see attempt bury whole matter underpinnings trumprussia collusion probe predicated infamous dossier may also led government wiretapping trump officials house demanded information surveillance fbi justice stonewalling deputy attorney general rod rosenstein appointed mr mueller also playing increasingly questionable role resisting congressional oversight justice floated multiple reasons ignoring house subpoenas none persuasive journal said first claimed cooperation would hurt mueller probe prosecutions proceeding apace justice claimed providing house investigators classified material could hurt security sources house intelligence chairman devin nunes broad security clearance nearly anyone government recently justice said cant interfere probe justice department inspector generalas ig trumps congressional oversight despite cnns take trumps russia defense disarray really mueller huge problem avuncular 73 year old led fbi dozen years utterly compromised theres way continue lead probe trump russia mueller must step headline youre likely read cnn website time soon | 545 |
<p>Ready or not, here comes tax reform.</p>
<p>After being rebuffed at seemingly every turn by members within his own party with regard to healthcare reform, President Trump and lawmakers in Washington have finally turned their undivided attention to reforming the U.S. tax code for individuals and corporations. In September, President Trump laid out a skeleton outline of some of the changes that could be coming. This includes a very important drop in the peak corporate income-tax rate to 20% from 35%, which is expected to put more money in the pockets of businesses to hire and boost wages, as well as a simplification of the individual tax code.</p>
<p>Continue Reading Below</p>
<p>The current tax schedule for individual taxpayers consists of seven progressive brackets ranging from a low of 10% to a peak of 39.6%. Under Trump's plan, we'd see a decrease in the number of tax brackets, an expected decline in the effective tax rate for most American workers, and a major reduction in the number of available credits and deductions. In return, the average American would see his or her standard deduction roughly double.</p>
<p>While this tax reform plan is designed to stimulate economic growth to a sustainable 3% annual level, it comes with a price. Reducing the corporate income-tax rate could reduce federal revenue by $1.5 trillion over the next decade, which is often described as the "long-term" in most projections.&#160;That money has to be made up somewhere, and cost-cutting simply won't bridge the entirety of the shortfall. In order to counter this lost revenue, the GOP has been tossing around a <a href="https://www.fool.com/taxes/2017/09/10/republicans-just-threatened-your-401k-and-mortgage.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=75348a0c-bc3d-11e7-908f-0050569d32b9&amp;utm_source=foxbusiness" type="external">number of unpopular ideas Opens a New Window.</a>.</p>
<p>For instance, the Los Angeles Times reported in August that Republicans had considered narrowing down who qualifies for the highly coveted mortgage interest deduction. Currently, homeowners are allowed to deduct the interest they pay on their mortgages, up to $1 million in mortgage debt. The GOP had considered lowering this threshold to $500,000. The Tax Policy Center believes such a move would result in 0.8% of tax filers paying an average of $3,100 more a year in federal income tax.</p>
<p>Employer-sponsored 401(k)s have been another commonly touted revenue shortfall solution. One such plan suggested "Roth-ifying" the 401(k). The way a 401(k) works right now is that before-tax money is contributed and allowed to grow on a tax-deferred basis. When you reach the eligible age to begin making withdrawals, only then do you pay ordinary income tax on what you withdraw. With a Roth IRA, you contribute after-tax money and, assuming you stick to the withdrawal eligibility rules, never owe federal tax again, regardless of how much or little you withdraw. With the federal government needing money, Politico has reported that the GOP has considered making the 401(k) an after-tax-funded investment vehicle, which would allow it to collect tax revenue up front.</p>
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<p>A more recent GOP plan which has gained a lot of negative buzz suggests that some party members have considered slashing the annual contribution limit to 401(k)s. The Internal Revenue Service recently announced a $500 increase in the annual contribution limits for workers under the age of 50 to $18,500 in 2018.&#160;However, rumblings on Capitol Hill imply that this annual limit could be cut to just $2,400. Such a move would ensure that more earned income is exposed to federal taxation each year, providing the federal government with much needed capital.&#160;Of course, it could also significantly discourage saving, and remove one of the dangling carrots employers used to help retain talent.</p>
<p>As of March 2017, roughly 55 million working Americans have in excess of $5 trillion invested in 401(k)s. Could the GOP really be coming for America's most important retirement tool? Not if President Trump has anything to say about it.</p>
<p>On Oct. 23, 2017, Trump sent out the following tweet:</p>
<p>There's no sugarcoating the language or message here. Trump wants retirement plan changes left off the table for tax reform, which is a message he reiterated on numerous occasions throughout his campaign. In speaking with reporters last week, Trump said, "401(ks)s are very important," and suggested that while House Ways and Means Committee Chairman Kevin Brady (R-Tx.) was doing a fantastic job in working out the details of tax reform, he'd be unwise to pursue changes to the tax treatment of retirement plans.</p>
<p>While this might seem like a pretty clear line in the sand that the president has drawn, we have to remember that he's <a href="https://www.fool.com/retirement/2017/05/26/president-trump-just-broke-his-campaign-promise-by.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;referring_guid=75348a0c-bc3d-11e7-908f-0050569d32b9&amp;utm_source=foxbusiness" type="external">already broken a promise made to retirees Opens a New Window.</a> less than a year after taking office. Despite repeated pledges not to touch so-called entitlement programs like Social Security and Medicare, Trump's initial budget proposal, released earlier this year, called for a $72 billion cut to Social Security's Disability Insurance (DI) Trust over the next decade. This worked out to a 4% overall decline in payouts for the DI Trust over a 10-year period.</p>
<p>Trump's budget director Mick Mulvaney did his best to take heat off of the president's proposal by pointing out the smaller role disability insurance payments have next to say retired worker benefits. Nevertheless, it doesn't mask the fact that this proposal broke Trump's previous promise not to alter retirement plans like Social Security.</p>
<p>Trump will be further challenged by rifts between members of the Republican Party, as well as disagreements that he's had with members of his own party. Senate Finance Committee Chairman Orrin Hatch (R-Ut.) is opposed to Trump's view of protecting 401(k)s. Hatch, who's been highly influential in the creation of tax legislation throughout the years, opined that he doesn't feel any pressure from the White House when formulating a tax plan, but that he remains "open-minded about it."</p>
<p>So, what does this mean for the 55 million Americans currently taking advantage of a 401(k)? For now, staying the course is the most prudent form of action. Nothing changes until tax reform is signed into law, and thus far this Congress hasn't been able to pass any major legislation. Even if this Congress is able to pass tax reforms, there's no guarantee that adjustments to 401(k)s or other retirement plans will be included in the bill. You'll simply have to watch and wait to see what unfolds while sticking firmly to your investment game plan in the meantime.</p>
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<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;referring_guid=75348a0c-bc3d-11e7-908f-0050569d32b9&amp;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | ready comes tax reform rebuffed seemingly every turn members within party regard healthcare reform president trump lawmakers washington finally turned undivided attention reforming us tax code individuals corporations september president trump laid skeleton outline changes could coming includes important drop peak corporate incometax rate 20 35 expected put money pockets businesses hire boost wages well simplification individual tax code continue reading current tax schedule individual taxpayers consists seven progressive brackets ranging low 10 peak 396 trumps plan wed see decrease number tax brackets expected decline effective tax rate american workers major reduction number available credits deductions return average american would see standard deduction roughly double tax reform plan designed stimulate economic growth sustainable 3 annual level comes price reducing corporate incometax rate could reduce federal revenue 15 trillion next decade often described longterm projections160that money made somewhere costcutting simply wont bridge entirety shortfall order counter lost revenue gop tossing around number unpopular ideas opens new window instance los angeles times reported august republicans considered narrowing qualifies highly coveted mortgage interest deduction currently homeowners allowed deduct interest pay mortgages 1 million mortgage debt gop considered lowering threshold 500000 tax policy center believes move would result 08 tax filers paying average 3100 year federal income tax employersponsored 401ks another commonly touted revenue shortfall solution one plan suggested rothifying 401k way 401k works right beforetax money contributed allowed grow taxdeferred basis reach eligible age begin making withdrawals pay ordinary income tax withdraw roth ira contribute aftertax money assuming stick withdrawal eligibility rules never owe federal tax regardless much little withdraw federal government needing money politico reported gop considered making 401k aftertaxfunded investment vehicle would allow collect tax revenue front advertisement recent gop plan gained lot negative buzz suggests party members considered slashing annual contribution limit 401ks internal revenue service recently announced 500 increase annual contribution limits workers age 50 18500 2018160however rumblings capitol hill imply annual limit could cut 2400 move would ensure earned income exposed federal taxation year providing federal government much needed capital160of course could also significantly discourage saving remove one dangling carrots employers used help retain talent march 2017 roughly 55 million working americans excess 5 trillion invested 401ks could gop really coming americas important retirement tool president trump anything say oct 23 2017 trump sent following tweet theres sugarcoating language message trump wants retirement plan changes left table tax reform message reiterated numerous occasions throughout campaign speaking reporters last week trump said 401kss important suggested house ways means committee chairman kevin brady rtx fantastic job working details tax reform hed unwise pursue changes tax treatment retirement plans might seem like pretty clear line sand president drawn remember hes already broken promise made retirees opens new window less year taking office despite repeated pledges touch socalled entitlement programs like social security medicare trumps initial budget proposal released earlier year called 72 billion cut social securitys disability insurance di trust next decade worked 4 overall decline payouts di trust 10year period trumps budget director mick mulvaney best take heat presidents proposal pointing smaller role disability insurance payments next say retired worker benefits nevertheless doesnt mask fact proposal broke trumps previous promise alter retirement plans like social security trump challenged rifts members republican party well disagreements hes members party senate finance committee chairman orrin hatch rut opposed trumps view protecting 401ks hatch whos highly influential creation tax legislation throughout years opined doesnt feel pressure white house formulating tax plan remains openminded mean 55 million americans currently taking advantage 401k staying course prudent form action nothing changes tax reform signed law thus far congress hasnt able pass major legislation even congress able pass tax reforms theres guarantee adjustments 401ks retirement plans included bill youll simply watch wait see unfolds sticking firmly investment game plan meantime 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 | 684 |
<p>Crude oil prices take a sharp slide; Shares of Apple and Boeing weigh on blue chips</p>
<p>U.S. stock benchmarks came off their intraday lows late-morning Tuesday, with Wall Street trading skittishly in the face of uncertainty around efforts to reform tax policy and a downturn in crude-oil futures.</p>
<p>Continue Reading Below</p>
<p>Read: Fed's Yellen: It's confusing with so many voices on the FOMC (http://www.marketwatch.com/story/feds-yellen-its-confusing-with-so-many-voices-on-the-fomc-2017-11-14)</p>
<p>What are the main benchmarks doing?</p>
<p>The Dow Jones Industrial Average traded off 60 points, or 0.2%, to 23,383, but the blue-chip gauge had been down by as much as about 170 points. Declines in shares of Goldman Sachs Group Inc., Apple Inc. (AAPL), Walt Disney Co.(DIS), and DowDuPont Inc. (DWDP) were dragging the average lower.</p>
<p>The S&amp;P 500 index fell 7 points, or 0.3%, at 2,577, with only the utilities and consumer-staples sector, considered defensive plays, trading higher. The sectors most tied to the crude market, energy and materials led losses, each down at least 1% as the International Energy Agency said the oil-price rally may be ephemeral (http://www.marketwatch.com/story/oil-prices-drift-south-as-iea-cuts-global-demand-forecast-2017-11-14).</p>
<p>Meanwhile, the Nasdaq Composite Index dipped 20 points, 3%, to 6,735.</p>
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<p>Need to know: The S&amp;P 500 has been in the black all year--here's what typically happens next (http://www.marketwatch.com/story/the-sp-500-has-been-in-the-black-all-year-heres-what-typically-happens-next-2017-11-14)</p>
<p>What is driving markets?</p>
<p>Concerns about delays in much-anticipated corporate tax cuts out of Washington have been acting as a drag on stocks.</p>
<p>Treasury Secretary Steven Mnuchin late Monday ruled out any increase in the corporate tax rate to above 20% (https://www.wsj.com/articles/steven-mnuchin-says-trump-wont-bend-on-corporate-tax-rate-of-20-1510625153), via an interview at The Wall Street Journal CEO Council gathering on Monday. "It's not going up," Mnuchin said. "I can tell you this is one of the things the president feels very strongly about."</p>
<p>Yellen, European Central Bank President Mario Draghi, Bank of Japan Gov. Haruhiko Kuroda and Bank of England Gov. Mark Carney took part in a moderated discussion on communication and markets, which began at 5 a.m. Eastern.</p>
<p>In comments at that meeting, Yellen stressed that all forward guidance from the Fed should be conditional on the outlook for the economy, meaning forward looking statements won't always be a certainty. "Market participants seek more than central banks are prepared to offer," she said.</p>
<p>Meanwhile, the Wall Street Journal reported that Mohamed El-Erian (http://www.marketwatch.com/story/white-house-considering-mohamed-el-erian-for-fed-vice-chair-post-report-2017-11-14), chief economic adviser at Allianz, is being considered for the No. 2 role at the Federal Reserve. President Donald Trump nominated Fed. Gov. Jerome Powell replace Chairwoman Janet Yellen when her term as Fed boss ends in February.</p>
<p>What are strategists saying?</p>
<p>"'Buy the dip'" mentality has been in play throughout the year, especially because many investors don't want to miss the opportunity of a potential rally when the U.S. lowers the corporate tax rate, however, the sharp differences between the House and the Senate suggest there are still many barriers to overcome," Hussein Sayed, chief market strategist at FXTM, in a note to clients.</p>
<p>"Overstretched valuations, tighter monetary policies, geopolitical risks, a slowdown and high debt levels in China and low inflation, are some of the factors that could potentially trigger a market correction. However, all of these warnings are being ignored, and stocks continue to score new highs," said Sayed.</p>
<p>"This is just a two-steps forward, one-step back kind of dance, and I just think that we are seeing that one step back," said Crista Huff, chief analyst at Cabot Undervalued Stocks Advisor. "It's perfectly natural" to have the markets pull back, she said. Huff said the trend, however, has been "incredibly bullish."</p>
<p>J.J. Kinahan, chief strategist at TD Ameritrade, said Wall Street is more sensitive absent other major catalysts as third-quarterly earnings has nearly concluded. "The tax bill becomes a point to make people unsettled especially at a time where we are not having a ton of news outside of that," he said.</p>
<p>Which stocks look like key movers?</p>
<p>Buffalo Wild Wings Inc.(BWLD) shares shot up 23% as The Wall Street Journal reported that a private-equity firm had bid more than $2.3 billion for the restaurant chain. (http://www.marketwatch.com/story/buffalo-wild-wings-stock-soars-after-report-of-acquisition-bid-2017-11-13)</p>
<p>(http://www.marketwatch.com/story/buffalo-wild-wings-stock-soars-after-report-of-acquisition-bid-2017-11-13)Advance Auto Parts Inc.(AAP) shares shot up 19% after reporting a profit beat that offset a sales miss.</p>
<p>Dick's Sporting Goods Inc. (DKS) fell 5.9% after results that included a weak 2018 outlook (http://www.marketwatch.com/story/dicks-sporting-goods-shares-sink-on-weak-2018-outlook-2017-11-14).</p>
<p>General Electric Co. (GE) extended Monday's downturn amid its restructuring under new CEO John Flannery. The Dow component led the Dow lower, in percentage terms, for a second straight session. Shares were down 6.1%.</p>
<p>Home Depot Inc. (HD) shares gained 0.3%. The home-improvement giant reported third-quarter earnings (http://www.marketwatch.com/story/home-depot-beats-estimates-raises-guidance-2017-11-14) that beat analysts' estimates and increased its guidance for the year partly because of hurricane-related business.</p>
<p>TJX Cos., (TJX) fell 4% after the off-price retailer reported third-quarter revenue and same-store sales that fell below consensus (http://www.marketwatch.com/story/tjx-shares-sink-after-revenue-same-store-sales-miss-2017-11-14).</p>
<p>What economic data releases are due?</p>
<p>On the data front, the National Federation of Independent Business said its optimism index rose to 103.8 in October (http://www.marketwatch.com/story/small-business-confidence-ticks-up-as-lower-taxes-take-shape-2017-11-14) from 103.</p>
<p>A reading for producer prices in October showed a rise of 0.4%, topping expectations of an increase of 0.1% from economists polled by MarketWatch.</p>
<p>Check out: MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)</p>
<p>What are other assets doing?</p>
<p>European stocks faced a sixth day of losses (http://www.marketwatch.com/story/european-stocks-face-6th-day-of-losses-as-euro-marches-higher-2017-11-14), as the euro climbed. Asian markets were mostly lower, led by a sharp decline in Australian stocks and not helped by news China industrial production fell (http://www.marketwatch.com/story/china-industrial-output-slows-in-oct-as-expected-2017-11-13) in October.</p>
<p>Gold futures traded little changed, up less than 0.1% at $1,280.30 an ounce, while U.S. traded oil futures tumbled $1.48, or 2.5%, to $55.36 a barrel.</p>
<p>The ICE U.S. Dollar Index was down (http://www.marketwatch.com/story/dollar-struggles-as-euro-captures-3-week-high-2017-11-14) 0.5% at 94.135. The British pound fell against the dollar on news of weaker-than-expected U.K. inflation.</p>
<p>(END) Dow Jones Newswires</p>
<p>November 14, 2017 11:34 ET (16:34 GMT)</p> | true | 0 | crude oil prices take sharp slide shares apple boeing weigh blue chips us stock benchmarks came intraday lows latemorning tuesday wall street trading skittishly face uncertainty around efforts reform tax policy downturn crudeoil futures continue reading read feds yellen confusing many voices fomc httpwwwmarketwatchcomstoryfedsyellenitsconfusingwithsomanyvoicesonthefomc20171114 main benchmarks dow jones industrial average traded 60 points 02 23383 bluechip gauge much 170 points declines shares goldman sachs group inc apple inc aapl walt disney codis dowdupont inc dwdp dragging average lower sampp 500 index fell 7 points 03 2577 utilities consumerstaples sector considered defensive plays trading higher sectors tied crude market energy materials led losses least 1 international energy agency said oilprice rally may ephemeral httpwwwmarketwatchcomstoryoilpricesdriftsouthasieacutsglobaldemandforecast20171114 meanwhile nasdaq composite index dipped 20 points 3 6735 advertisement need know sampp 500 black yearheres typically happens next httpwwwmarketwatchcomstorythesp500hasbeenintheblackallyearhereswhattypicallyhappensnext20171114 driving markets concerns delays muchanticipated corporate tax cuts washington acting drag stocks treasury secretary steven mnuchin late monday ruled increase corporate tax rate 20 httpswwwwsjcomarticlesstevenmnuchinsaystrumpwontbendoncorporatetaxrateof201510625153 via interview wall street journal ceo council gathering monday going mnuchin said tell one things president feels strongly yellen european central bank president mario draghi bank japan gov haruhiko kuroda bank england gov mark carney took part moderated discussion communication markets began 5 eastern comments meeting yellen stressed forward guidance fed conditional outlook economy meaning forward looking statements wont always certainty market participants seek central banks prepared offer said meanwhile wall street journal reported mohamed elerian httpwwwmarketwatchcomstorywhitehouseconsideringmohamedelerianforfedvicechairpostreport20171114 chief economic adviser allianz considered 2 role federal reserve president donald trump nominated fed gov jerome powell replace chairwoman janet yellen term fed boss ends february strategists saying buy dip mentality play throughout year especially many investors dont want miss opportunity potential rally us lowers corporate tax rate however sharp differences house senate suggest still many barriers overcome hussein sayed chief market strategist fxtm note clients overstretched valuations tighter monetary policies geopolitical risks slowdown high debt levels china low inflation factors could potentially trigger market correction however warnings ignored stocks continue score new highs said sayed twosteps forward onestep back kind dance think seeing one step back said crista huff chief analyst cabot undervalued stocks advisor perfectly natural markets pull back said huff said trend however incredibly bullish jj kinahan chief strategist td ameritrade said wall street sensitive absent major catalysts thirdquarterly earnings nearly concluded tax bill becomes point make people unsettled especially time ton news outside said stocks look like key movers buffalo wild wings incbwld shares shot 23 wall street journal reported privateequity firm bid 23 billion restaurant chain httpwwwmarketwatchcomstorybuffalowildwingsstocksoarsafterreportofacquisitionbid20171113 httpwwwmarketwatchcomstorybuffalowildwingsstocksoarsafterreportofacquisitionbid20171113advance auto parts incaap shares shot 19 reporting profit beat offset sales miss dicks sporting goods inc dks fell 59 results included weak 2018 outlook httpwwwmarketwatchcomstorydickssportinggoodssharessinkonweak2018outlook20171114 general electric co ge extended mondays downturn amid restructuring new ceo john flannery dow component led dow lower percentage terms second straight session shares 61 home depot inc hd shares gained 03 homeimprovement giant reported thirdquarter earnings httpwwwmarketwatchcomstoryhomedepotbeatsestimatesraisesguidance20171114 beat analysts estimates increased guidance year partly hurricanerelated business tjx cos tjx fell 4 offprice retailer reported thirdquarter revenue samestore sales fell consensus httpwwwmarketwatchcomstorytjxsharessinkafterrevenuesamestoresalesmiss20171114 economic data releases due data front national federation independent business said optimism index rose 1038 october httpwwwmarketwatchcomstorysmallbusinessconfidenceticksupaslowertaxestakeshape20171114 103 reading producer prices october showed rise 04 topping expectations increase 01 economists polled marketwatch check marketwatchs economic calendar httpwwwmarketwatchcomeconomypoliticscalendarseconomic assets european stocks faced sixth day losses httpwwwmarketwatchcomstoryeuropeanstocksface6thdayoflossesaseuromarcheshigher20171114 euro climbed asian markets mostly lower led sharp decline australian stocks helped news china industrial production fell httpwwwmarketwatchcomstorychinaindustrialoutputslowsinoctasexpected20171113 october gold futures traded little changed less 01 128030 ounce us traded oil futures tumbled 148 25 5536 barrel ice us dollar index httpwwwmarketwatchcomstorydollarstrugglesaseurocaptures3weekhigh20171114 05 94135 british pound fell dollar news weakerthanexpected uk inflation end dow jones newswires november 14 2017 1134 et 1634 gmt | 613 |
<p />
<p>The stock market began the week in mixed territory on Monday as investors considered the affects of potential legislative roadblocks on the Trump administration's promise for pro-growth tax reform and infrastructure spending. Late last week, Republicans failed to gather enough support to push their healthcare reform bill through a key House vote.</p>
<p>Continue Reading Below</p>
<p>When all was said and done today, theDow Jones Industrial Averagepared an early triple-digit decline to close down around 0.2%. Other broader market indexes saw similar early negative moves, though theNasdaqultimately closed up 0.2% while theS&amp;P 500fell 0.1%.But several individual stocks left investors dealing with more painful drops today, includingG-III Apparel Group(NASDAQ: GIII),Sierra Wireless (NASDAQ: SWIR), and Netgear (NASDAQ: NTGR). Read on to learn what happened.</p>
<p>Image source: Dockers/G-III Apparel Group.</p>
<p>Shares of G-III Apparel Group declined 14.1% after the company announced weaker-than-expected fiscal fourth-quarter 2017 results. Best known as the parent company of brands like GUESS, DKNY, Calvin Klein, Tommy Hilfiger, Levi's, and Dockers, G-III saw revenue in its most recent quarter climb 14.4% year over year, to $603 million, as strength in its non-outerwear wholesale business and its acquisition of Donna Karan International (DKI) last year more than offset weakness in its retail business. On the bottom line, that translated to an adjusted net loss of $0.16 per share. Analysts, on average, were anticipating a narrower adjusted net loss of $0.10 per share on higher revenue of $622.8 million.</p>
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<p>What's more, G-III told investors to expect revenue in the current 2018 fiscal year to be roughly $2.73 billion, which should result in adjusted net income between $49 million and $54 million, or $0.99 to $1.09 on a per-share basis. Here again, Wall Street was looking for higher fiscal 2018 earnings of $1.41 per share on revenue of $2.88 billion.</p>
<p>G-III CEO Morris Goldfarb noted that his company's outlook includes the dilutive impact of its DKI acquisition, and expressed excitement for the midyear relaunch of both DKNY and Donna Karan.</p>
<p>"We are confident that we have one of the most desirable portfolios of brands in the industry and that DKNY and Donna Karan will quickly take their place alongside Calvin Klein, Tommy Hilfiger, and Karl Lagerfeld as the cornerstone brands for the growth of our business," added Goldfarb.</p>
<p>Sierra Wireless stock fell 6.7% today after Raymond James analyst Steven Li downgraded shares of the Internet of Things pure play to market perform from outperform. Curiously, Li also increased his per-share price target on Sierra Wireless to $30 from $23.50.</p>
<p>Of course, shares of Sierra Wireless have also climbed nearly 80% so far in 2017 (even after today's drop), most recently including a <a href="https://www.fool.com/investing/2017/02/10/why-sierra-wireless-inc-stock-skyrocketed-today.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">29% single-day pop Opens a New Window.</a> last month after the company detailed strong design win momentum, normalizing demand from existing customers, and expense-management efforts for its impressive fourth-quarter 2016 results.</p>
<p>To help justify his tempered enthusiasm today, Li noted that Sierra Wireless' recent high-volume contract wins may come at the expense of margins, even though those contracts won't ramp completely for another two years. Even so, given Sierra Wireless' meteoric rise in recent months, it's hardly surprising to see some on Wall Street taking a step back today.</p>
<p>Finally, shares of Netgear declined 3.5% today after analyst firm Off Wall Street assigned a "strong sell" rating and $36 price target to shares of the network hardware specialist. That's a hefty discount to Netgear stock's closing price today of $49.65 per share.Off Wall Street argues that Netgear's fast-growing Arlo security camera line, which represented 12% of total revenue last year, faces the threat of increasing competition, and believes its high-margin Wi-Fi routers are being replaced by up-and-coming whole-home mesh Wi-Fi solutions.</p>
<p>Shares of Netgear are still up around 25% over the past year on the strength of its thriving retail business, which has more than offset declines of the company's restructured service provider business. Last month, however, shares <a href="https://www.fool.com/investing/2017/02/08/why-netgear-inc-stock-plunged-today.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">dropped 10% in a single day Opens a New Window.</a> after Netgear delivered strong fourth-quarter 2016 results but followed with lighter-than-expected revenue guidance to start 2017. At the time, management noted that seasonality for its Arlo IP cameras was more pronounced than that of its flagship Wi-Fi routers as it transitioned out of the key holiday quarter.</p>
<p>Offer from The Motley Fool: The 10 best stocks to buy nowMotley 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 S&amp;P 500!*</p>
<p>Tom and David just revealed their ten top stock picks for investors to buy right now.</p>
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<p>*Stock Advisor returns as of 3/24/2017.</p>
<p><a href="http://my.fool.com/profile/TMFSymington/info.aspx" type="external">Steve Symington Opens a New Window.</a> has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Sierra Wireless. The Motley Fool recommends Netgear. 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 | stock market began week mixed territory monday investors considered affects potential legislative roadblocks trump administrations promise progrowth tax reform infrastructure spending late last week republicans failed gather enough support push healthcare reform bill key house vote continue reading said done today thedow jones industrial averagepared early tripledigit decline close around 02 broader market indexes saw similar early negative moves though thenasdaqultimately closed 02 thesampp 500fell 01but several individual stocks left investors dealing painful drops today includinggiii apparel groupnasdaq giiisierra wireless nasdaq swir netgear nasdaq ntgr read learn happened image source dockersgiii apparel group shares giii apparel group declined 141 company announced weakerthanexpected fiscal fourthquarter 2017 results best known parent company brands like guess dkny calvin klein tommy hilfiger levis dockers giii saw revenue recent quarter climb 144 year year 603 million strength nonouterwear wholesale business acquisition donna karan international dki last year offset weakness retail business bottom line translated adjusted net loss 016 per share analysts average anticipating narrower adjusted net loss 010 per share higher revenue 6228 million advertisement whats giii told investors expect revenue current 2018 fiscal year roughly 273 billion result adjusted net income 49 million 54 million 099 109 pershare basis wall street looking higher fiscal 2018 earnings 141 per share revenue 288 billion giii ceo morris goldfarb noted companys outlook includes dilutive impact dki acquisition expressed excitement midyear relaunch dkny donna karan confident one desirable portfolios brands industry dkny donna karan quickly take place alongside calvin klein tommy hilfiger karl lagerfeld cornerstone brands growth business added goldfarb sierra wireless stock fell 67 today raymond james analyst steven li downgraded shares internet things pure play market perform outperform curiously li also increased pershare price target sierra wireless 30 2350 course shares sierra wireless also climbed nearly 80 far 2017 even todays drop recently including 29 singleday pop opens new window last month company detailed strong design win momentum normalizing demand existing customers expensemanagement efforts impressive fourthquarter 2016 results help justify tempered enthusiasm today li noted sierra wireless recent highvolume contract wins may come expense margins even though contracts wont ramp completely another two years even given sierra wireless meteoric rise recent months hardly surprising see wall street taking step back today finally shares netgear declined 35 today analyst firm wall street assigned strong sell rating 36 price target shares network hardware specialist thats hefty discount netgear stocks closing price today 4965 per shareoff wall street argues netgears fastgrowing arlo security camera line represented 12 total revenue last year faces threat increasing competition believes highmargin wifi routers replaced upandcoming wholehome mesh wifi solutions shares netgear still around 25 past year strength thriving retail business offset declines companys restructured service provider business last month however shares dropped 10 single day opens new window netgear delivered strong fourthquarter 2016 results followed lighterthanexpected revenue guidance start 2017 time management noted seasonality arlo ip cameras pronounced flagship wifi routers transitioned key holiday quarter offer motley fool 10 best stocks buy nowmotley fool cofounders tom david gardner spent decade beating market fact newsletter run motley fool stock advisor tripled sampp 500 tom david revealed ten top stock picks investors buy right click get access full list opens new window stock advisor returns 3242017 steve symington opens new window position stocks mentioned motley fool owns shares recommends sierra wireless motley fool recommends netgear motley fool disclosure policy opens new window | 557 |
<p />
<p>Calumet Specialty Products Partners LP (NASDAQ: CLMT) may not be a household name, but that doesn't mean you're not familiar with its products. An industry leader in producing high-quality, specialty hydrocarbon products, Calumet serves a wide variety of industries. Finding out you may be using its products on a daily basis is one thing, but there's plenty left to learn. And since the best investors are well-informed investors, let's look at some things that help to provide a more complete view of the company.</p>
<p>Continue Reading Below</p>
<p>Consider your exposure to Calumet's products on a drive to the store: From the asphalt on the road, to the tires rolling over it, to the motor oil in the engine, to the athletic shoes on the gas pedal, Calumet's products may appear in some form. And if you're wearing lip balm while you're in the car, and you just had something to eat, and you have a can of paint in your trunk, you may have even more exposure to Calumet's products. And this is far -- quite far -- from an exhaustive list. According to the company's recent 10-K, it has a range of approximately 4,500 specialty products. It's a lengthy list of companies -- from a diverse range of industries -- that rely on Calumet's specialty products.</p>
<p>Image source: Getty Images</p>
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<p>Although it currently provides goods to a range of industries, the company had much simpler beginnings. Founded in 1919, Calumet Refining Company was formed in Burnham, Ill., and manufactured only two products: medicinal white oils and package lubrication products.</p>
<p>Throughout its history, the company has sought and completed acquisitions to diversify its portfolio of products. In 1995, for example, the company acquiredthe Louisiana-based Kerr-McGee Corporation refinery, which is the only domestic refinery that focuses exclusively onthe development and production of specialty aliphatic solvents. More recently, the company acquired a refinery from NuStar Energy, L.P. that produces jet fuel, diesel, and other fuel products.</p>
<p>Despite the company's name, Calumet's operating activities transcend the production of specialty products.Calumet's business is also divided into two other operating segments: fuel products and oilfield services. Surprisingly, specialty products doesn't even account for the greatest source of the company's revenue. That distinction goes to the fuel-products segment, which reported $2.3 billion in sales for fiscal 2016; specialty products and oilfield services provided $1.3 billion and $125.1 million in sales, respectively.</p>
<p>Although it plays second fiddle in terms of revenue, it more than proves its worth in terms of profitability -- it's the only segment to report positive adjusted EBITDA in each of the past three years.</p>
<p>In addition to tank trucks and a common carrier pipeline system, Calumet relies on approximately 2,700 leased railcars to receive crude oil -- as well as for distribution of its products through the U.S. and Canada. By using railcars, Calumet is, among other things, keeping things safe. According to the Association of American Railroads, 99.99%of all tank cars containing crude oil arrive at their destination safely.</p>
<p>Calumet maintains operations throughout the U.S: four blending and packaging facilities, six distribution and terminal facilities, and 10 refinery/production facilities. According to the company, its extensive network of facilities is a competitive advantage. In its most recent 10-K, it suggests that it's the only specialty-products company that "produces all four of naphthenic lubricating oils, paraffinic lubricating oils, waxes, and solvents." Furthermore, it states, "A contributing factor in our ability to produce numerous specialty products is our ability to ship products between our facilities for product upgrading in order to meet customer specifications."</p>
<p>One of the reasons investors are attracted to investing in limited partnerships -- like Calumet -- is that the companies are required to distribute a majority of their net income to shareholders. Because they aren't required to pay corporate income tax, these companies are able to distribute more cash to shareholders than they would if they were paying dividends.</p>
<p>Facing numerous challenges last year, Calumet decided to suspend its quarterly distributions after the first quarter of 2016. And there's no clarity into when the distributions will resume. Inproviding a strategic update last April, Tim Go, the company's CEO,said distributions will begin again after "taking into account a number of factors, including our liquidity requirements, the relative health of cash flows from operations, balance sheet leverage, broader market conditions, and the overall performance of our business."</p>
<p>Presenting its initial public offering in 2006, Calumet -- whose common unit was priced at $32.94 -- raised $141 million. In April 2007, the stock reached an all-time high of $55.26, but those glory days are long in the rearview mirror. After the company announced -- on a Friday at the market close -- that it was suspending its distributions, the bottom fell out of the stock, closing 48% lower the following Monday. Currently, things haven't gotten any better. As of this writing, the stock is priced at $3.55 per share.</p>
<p>10 stocks we like better than Calumet Specialty Products 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=8f1d44ad-2258-4283-bb66-00c2c4501e34&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 Calumet Specialty Products Partners 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 April 3, 2017</p>
<p><a href="http://my.fool.com/profile/scott81236/info.aspx" 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;utm_source=foxbusiness" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | calumet specialty products partners lp nasdaq clmt may household name doesnt mean youre familiar products industry leader producing highquality specialty hydrocarbon products calumet serves wide variety industries finding may using products daily basis one thing theres plenty left learn since best investors wellinformed investors lets look things help provide complete view company continue reading consider exposure calumets products drive store asphalt road tires rolling motor oil engine athletic shoes gas pedal calumets products may appear form youre wearing lip balm youre car something eat paint trunk may even exposure calumets products far quite far exhaustive list according companys recent 10k range approximately 4500 specialty products lengthy list companies diverse range industries rely calumets specialty products image source getty images advertisement although currently provides goods range industries company much simpler beginnings founded 1919 calumet refining company formed burnham ill manufactured two products medicinal white oils package lubrication products throughout history company sought completed acquisitions diversify portfolio products 1995 example company acquiredthe louisianabased kerrmcgee corporation refinery domestic refinery focuses exclusively onthe development production specialty aliphatic solvents recently company acquired refinery nustar energy lp produces jet fuel diesel fuel products despite companys name calumets operating activities transcend production specialty productscalumets business also divided two operating segments fuel products oilfield services surprisingly specialty products doesnt even account greatest source companys revenue distinction goes fuelproducts segment reported 23 billion sales fiscal 2016 specialty products oilfield services provided 13 billion 1251 million sales respectively although plays second fiddle terms revenue proves worth terms profitability segment report positive adjusted ebitda past three years addition tank trucks common carrier pipeline system calumet relies approximately 2700 leased railcars receive crude oil well distribution products us canada using railcars calumet among things keeping things safe according association american railroads 9999of tank cars containing crude oil arrive destination safely calumet maintains operations throughout us four blending packaging facilities six distribution terminal facilities 10 refineryproduction facilities according company extensive network facilities competitive advantage recent 10k suggests specialtyproducts company produces four naphthenic lubricating oils paraffinic lubricating oils waxes solvents furthermore states contributing factor ability produce numerous specialty products ability ship products facilities product upgrading order meet customer specifications one reasons investors attracted investing limited partnerships like calumet companies required distribute majority net income shareholders arent required pay corporate income tax companies able distribute cash shareholders would paying dividends facing numerous challenges last year calumet decided suspend quarterly distributions first quarter 2016 theres clarity distributions resume inproviding strategic update last april tim go companys ceosaid distributions begin taking account number factors including liquidity requirements relative health cash flows operations balance sheet leverage broader market conditions overall performance business presenting initial public offering 2006 calumet whose common unit priced 3294 raised 141 million april 2007 stock reached alltime high 5526 glory days long rearview mirror company announced friday market close suspending distributions bottom fell stock closing 48 lower following monday currently things havent gotten better writing stock priced 355 per share 10 stocks like better calumet specialty products 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 calumet specialty products partners wasnt one thats right think 10 stocks even better buys click opens new window learn picks stock advisor returns april 3 2017 scott levine opens new window position stocks mentioned motley fool position stocks mentioned motley fool disclosure policy opens new window | 571 |
<p>Image source: <a href="https://www.flickr.com/photos/bfs_man/6250802561/in/photolist-awmZPX-6fSPFQ-7x3azL-7wZuwt-7x3K2C-7wZo1D-6fNwMV-7wYxmg-7x3gHw-7wXHnM-7wZc7R-7x31MA-7x42M9-7x2NJJ-7wZeMF-6fSMGu-7wYs9X-7x2EnL-6uh1CA-6fNCJz-7x2YVE-7x46mf-6rHmEb-zn1APj-P47kz-zn866X-zDFMLR-zDEcqP-zDFHQV-zBoLry-zBm889-zn2XBu-zEAkmB-zn94uZ-zNq7Do-yGLSxx-zCyDL9-zBnvqJ-zDErr4-zn5AmA-7FZ9Rs-e1A5xA-4jMky1-7q3iXd-4aNwQt-e1A4DC-4DcqkW-7g2AXb-7q3k8G-6L3c1" type="external">Flickr Opens a New Window.</a>.</p>
<p>Is your stomachready for a big twist? Then you should know that the escalating battle over drug prices just got turned on its head.</p>
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<p>For the past couple of years, states and insurers have successfully blocked patient access to many game-changing drugs because of their sky-high prices. While cancer-specific biotechs are not the only drugmakers affected, no class has taken a bigger hit than those providing next-generation treatment for hepatitis C at nosebleed prices.</p>
<p>Specifically, we're talking about Gilead Sciences (NASDAQ: GILD), AbbVie Inc. (NYSE: ABBV), Merck &amp; Co., Johnson &amp; Johnson, and Bristol-Myers Squibb. These companies' drugs eliminate the virus 90% of the time, but can cost anywhere between $54,600 to $94,500 for a course of treatment.</p>
<p>Hep-C is a life-threatening disease, so blocking access to these drugs could hurt many patients. The blocks are also stinging investors, many of whom thought these drugs would blast past analysts' estimates for a long time to come. After all, even if you consider just the Medicaid portion of the hep-C market, sales were projected at $55 billion. Add in the rest of the market, both home and abroad, and how could a company like Gilead not be a huge winner for the foreseeable future?</p>
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<p>Instead, the hep-C juggernaut ran into a huge roadblock -- or, rather, a series of roadblocks. Even though Medicaid patients are prime candidates for the drugs, many states have refused to pay for them. Molina Healthcare (NYSE: MOH), for example, which administers Medicaid plans, found itself receiving no reimbursement for the expensive antivirals in 11 states. Not surprisingly, Molina reacted by providing coverage only when the disease was in its final stages, Stage 3 or 4, where the liver is "hard as a rock," as Sanjeev Arora, a New Mexico physician, describes it. Arora further described treatment at that stage as "like closing the barn door after the horse has left."</p>
<p>The erosion of the Medicaid market was devastating enough, but commercial insurers also jumped on the bandwagon. Back in 2014, UnitedHealthGroup (NYSE: UNH) limited the antivirals to patients facing liver failure. Other insurers followed suit.</p>
<p>The upshot for investors is that market leader Gilead's double-digit sales and profit growth came to a screeching halt last quarter, with its hep-C drug Harvoni badly missing expectations. AbbVie's chief competing hep-C drug, Viekira, also came up well short of consensus estimates.</p>
<p>In fact, many analysts are now projecting that the hep-C market won't just flatten; it's headed for a cliff.</p>
<p>So much for analysts' projections. The hep-C world is about to change, again. Massachusetts is the latest state to reverse its policy. A few weeks ago, after losing multiple legal battles, the state threw in the towel and conceded that any Medicaid patient with hep-C qualifies for the antiviral drugs.</p>
<p>Massachusetts is just one state, but similar actions have occurred in Florida, New York, Washington, and Delaware in the past few months. Pressured by an almost endless list of advocacy groups, insurers are also breaking down. Anthem's (NYSE: ANTM) Blue Cross and Blue Shield plans in 14 states quietly reversed course and began authorizing treatment to people "in all stages of fibrosis" (liver scarring) last December. UnitedHealth did an about-face on Jan. 1. The nation's largest insurer now provides greatly expanded coverage for these drugs.</p>
<p>And not just states and insurers are reopening the floodgates. In March, the Department of Veterans Affairs said it will treat any veteran with hep-C with the new drugs, regardless of the stage of illness -- extending therapy to nearly 130,000 veterans.</p>
<p>Even more stunning, Medicare followed their lead. In the face of a challenge by an Arizona man named Walter Blanco, who was twice denied access, the agency recently enacted a similar policy.</p>
<p>But while easier access to therapy is great news for all hep-C drugmakers, don't expect an immediate big bump in revenue for any of them.</p>
<p>For one thing, states will demand deep pricing discounts. Gilead has already been forced to discount its average hep-C drug by almost 46%, and state-negotiated discounts are likely to be greater. They could bring pricing down to $30,000 or less, according to Kevin Costello, from Harvard's Center for Health Law &amp; Policy Innovation.</p>
<p>Second, as many as 50% of hep-C patients aren't even aware they have the disease.</p>
<p>Third, one company still almost completely dominates this market, with AbbVie a distant second. Gilead owns 90% of the market, and the recently approved Epclusa, which can treat all six genotypes of hep-C, should keep it the front-runner.</p>
<p>Beyond hep-C, the recent events have implications for all biotech and specialty pharma investors. With healthcare costs soaring, pharmas developing <a href="http://www.fool.com/investing/2016/07/17/forget-the-me-too-cancer-drugs-these-breakthroughs.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">me-too drugs Opens a New Window.</a> that offer marginal benefits are in trouble. Something's gotta give, and these drugs are likely to be destined for payers' chopping blocks.</p>
<p>A better bet are companies providing drugs that are medical necessities. Restrictive policies against those drugs probably won't survive the legal challenges, according to Nicholas Bagley, a professor of law at the University of Michigan. "I think the writing is on the wall, and plaintiffs are likely to prevail in these lawsuits," he said.</p>
<p>In other words, despite their extreme prices, companies with drugs that save lives should find the wind at their backs again soon. And if you're looking for one good pick based on this trend, there's really no choice. Market leader Gilead is now trading at a <a href="http://www.fool.com/investing/2016/07/20/better-buy-gilead-sciences-inc-vs-amgen-inc-2.aspx?&amp;utm_campaign=article&amp;utm_medium=feed&amp;utm_source=foxbusiness" type="external">stupid cheap Opens a New Window.</a>forward earnings multiple of 6.95.</p>
<p>Here's the bottom line: Tens of thousands of people with hep C are about to gain access to treatments that can cure them. I'd say that's good news for everyone. And it doesn't hurt that this twistin the wind may eventually add a lot of lift to some well-chosen portfolios.</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/CherylSwanson/info.aspx" type="external">Cheryl Swanson Opens a New Window.</a> owns shares of Johnson and Johnson. The Motley Fool owns shares of and recommends Gilead Sciences and Johnson and Johnson. The Motley Fool recommends Anthem and UnitedHealth Group. Try any of our Foolish newsletter services <a href="http://www.fool.com/shop/newsletters/index.aspx?source=isiedilnk018048" 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" type="external">disclosure policy Opens a New Window.</a>.</p> | true | 0 | image source flickr opens new window stomachready big twist know escalating battle drug prices got turned head continue reading past couple years states insurers successfully blocked patient access many gamechanging drugs skyhigh prices cancerspecific biotechs drugmakers affected class taken bigger hit providing nextgeneration treatment hepatitis c nosebleed prices specifically talking gilead sciences nasdaq gild abbvie inc nyse abbv merck amp co johnson amp johnson bristolmyers squibb companies drugs eliminate virus 90 time cost anywhere 54600 94500 course treatment hepc lifethreatening disease blocking access drugs could hurt many patients blocks also stinging investors many thought drugs would blast past analysts estimates long time come even consider medicaid portion hepc market sales projected 55 billion add rest market home abroad could company like gilead huge winner foreseeable future advertisement instead hepc juggernaut ran huge roadblock rather series roadblocks even though medicaid patients prime candidates drugs many states refused pay molina healthcare nyse moh example administers medicaid plans found receiving reimbursement expensive antivirals 11 states surprisingly molina reacted providing coverage disease final stages stage 3 4 liver hard rock sanjeev arora new mexico physician describes arora described treatment stage like closing barn door horse left erosion medicaid market devastating enough commercial insurers also jumped bandwagon back 2014 unitedhealthgroup nyse unh limited antivirals patients facing liver failure insurers followed suit upshot investors market leader gileads doubledigit sales profit growth came screeching halt last quarter hepc drug harvoni badly missing expectations abbvies chief competing hepc drug viekira also came well short consensus estimates fact many analysts projecting hepc market wont flatten headed cliff much analysts projections hepc world change massachusetts latest state reverse policy weeks ago losing multiple legal battles state threw towel conceded medicaid patient hepc qualifies antiviral drugs massachusetts one state similar actions occurred florida new york washington delaware past months pressured almost endless list advocacy groups insurers also breaking anthems nyse antm blue cross blue shield plans 14 states quietly reversed course began authorizing treatment people stages fibrosis liver scarring last december unitedhealth aboutface jan 1 nations largest insurer provides greatly expanded coverage drugs states insurers reopening floodgates march department veterans affairs said treat veteran hepc new drugs regardless stage illness extending therapy nearly 130000 veterans even stunning medicare followed lead face challenge arizona man named walter blanco twice denied access agency recently enacted similar policy easier access therapy great news hepc drugmakers dont expect immediate big bump revenue one thing states demand deep pricing discounts gilead already forced discount average hepc drug almost 46 statenegotiated discounts likely greater could bring pricing 30000 less according kevin costello harvards center health law amp policy innovation second many 50 hepc patients arent even aware disease third one company still almost completely dominates market abbvie distant second gilead owns 90 market recently approved epclusa treat six genotypes hepc keep frontrunner beyond hepc recent events implications biotech specialty pharma investors healthcare costs soaring pharmas developing metoo drugs opens new window offer marginal benefits trouble somethings got ta give drugs likely destined payers chopping blocks better bet companies providing drugs medical necessities restrictive policies drugs probably wont survive legal challenges according nicholas bagley professor law university michigan think writing wall plaintiffs likely prevail lawsuits said words despite extreme prices companies drugs save lives find wind backs soon youre looking one good pick based trend theres really choice market leader gilead trading stupid cheap opens new windowforward earnings multiple 695 heres bottom line tens thousands people hep c gain access treatments cure id say thats good news everyone doesnt hurt twistin wind may eventually add lot lift wellchosen portfolios 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 cheryl swanson opens new window owns shares johnson johnson motley fool owns shares recommends gilead sciences johnson johnson motley fool recommends anthem unitedhealth group 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 | 691 |
<p>This week, President-elect Donald Trump reportedly met with Rep. Michael McCaul (R-TX) to interview him for Homeland Security Secretary. If Trump picks him for the job, what can Americans expect from McCaul?</p>
<p>Here are six things you need to know about Rep. McCaul.</p>
<p>1. McCaul has a 56 percent liberty score at <a href="https://www.conservativereview.com/members/michael-mccaul/biography/" type="external">Conservative Review</a>. McCaul's Conservative Review biography states that he has become "a moderate member of the House GOP Caucus" since 2010:</p>
<p>From supporting increases to the debt ceiling to higher federal budgets, McCaul has supported many of the GOP establishment’s priorities. These include the 2012 and 2014 reauthorization of the crony Export-Import Bank and votes in favor of bloated farm, highway, and hurricane relief bills. McCaul also voted for the omnibus spending bill in December 2014 that fully funded President Obama’s unconstitutional executive amnesty order.</p>
<p>His moderate voting record has continued into the 114th Congress when McCaul voted for a Medicare SGR “fix” that was actually a carefully crafted bill projected to add $500 billion to the federal deficit in coming decades. McCaul also supported Rep. John Boehner’s reelection bid for House Speaker and once again voted to fund President Obama’s amnesty action.</p>
<p>McCaul has been in the House for 12 years.</p>
<p>2. McCaul is the chairman of the House Homeland Security Committee. McCaul took over the committee in 2013 from Rep. Peter King (R-NY), who was term-limited out of the chairmanship. McCaul is certainly quite knowledgeable on the danger ISIS presents. Earlier this year, McCaul underscored the threat of the radical Islamist group, <a href="http://pjmedia.com/news-and-politics/2016/05/27/homeland-security-chairman-fbi-is-investigating-1000-homegrown-terror-cases/" type="external">saying</a>, "ISIS and its affiliates have expanded to 20 countries and that the terrorist group is connected to 80 percent of the 1,000 terrorist plots being investigated by the FBI."</p>
<p>3. McCaul is weak on immigration. The <a href="http://www.washingtontimes.com/news/2016/nov/29/donald-trumps-candidate-for-homeland-security-mich/" type="external">Washington Times reports</a> that McCaul is not looked upon favorably by immigration hawks, who point to a 2015 bill he co-authored "that included tough language but ignored the estimated 11 million illegal immigrants living in the U.S. and kept too much decision-making in the hands of the Obama administration." He also supported then-House Speaker John Boehner's efforts to provide "a path to citizenship and voting rights for illegal immigrants."</p>
<p>"I don’t doubt Mr. McCaul’s commitment to homeland security, but I do wonder about his commitment to controlling immigration," Jessica Vaughan of the Center for Immigration studies told the Times. "He has been quite moderate and conventional on border security issues, eschewing any bold moves to address the problems created by the Obama administration’s policies, for example."</p>
<p>The fact that McCaul has supported amnesty and wouldn't address problems like the Obama administration's catch and release policy as the Homeland Security Committee chairman doesn't bode well for border hawks should McCaul become the Homeland Security Secretary.</p>
<p>4. McCaul supported one of President Obama's politically correct agenda items to fight radical Islam. <a href="https://www.conservativereview.com/commentary/2016/11/why-this-potential-pick-for-dhs-would-be-a-huge-reversal-on-trumps-biggest-campaign-promise" type="external">Jordan Schachtel and Nate Madden</a> wrote at Conservative Review that Obama put forward his Countering Violent Extremism initiative, which actually did no such thing: (emphasis bolded)</p>
<p>Obama’s pilot program has been criticized as a “catastrophic failure,” primarily because it fails to address the roots of this brand of violence and extremism (jihadism), and engages Muslim organizations with extremist ties, instead of reformist outfits.</p>
<p>As Dr. Zuhdi Jasser, a Muslim reformist and president of the American Islamic Forum for Democracy puts it, entrusting groups like these with counter-terrorism responsibilities is akin to “treating arsonists like firefighters.”</p>
<p>What was Rep. Mike McCaul’s role in this? After criticizing President Obama’s approach during the White House CVE conference in Feb. 2015, the House Homeland Security Committee chairman sponsored a bill to create an entire CVE office inside the Department of Homeland Security.</p>
<p>In other words, McCaul bought into Obama's politically correct agenda to fight radical Islam and helped promote it by sponsoring a bill to create that office, which is odd for someone who is knowledgeable about ISIS's expanding activities. This certainly raises questions as to how McCaul would go about defending Americans from the threat of ISIS and other Islamic terror organizations.</p>
<p>5. Jeh Johnson supports McCaul for Homeland Security Secretary. "I don’t know anybody who is stronger on border security in Congress that I have dealt with," Johnson, the current Homeland Security Secretary, said at a recent forum, per the <a href="http://www.washingtontimes.com/news/2016/nov/30/jeh-johnson-gives-michael-mccaul-vote-confidence-b/" type="external">Washington Times</a>.</p>
<p>Johnson <a href="http://www.washingtontimes.com/news/2016/jun/12/jeh-johnson-met-twice-as-often-with-amnesty-backer/" type="external">reportedly</a> met often with amnesty supporters like Rep. Luis Gutierrez (D-IL) but rarely gave those with opposing views much time when he was establishing Obama's executive orders. He also spent more time writing those executive orders than working to solve the border crisis when a massive wave of illegals crossed the border in 2014.</p>
<p>Back in September, Johnson <a href="https://www.washingtonpost.com/news/post-nation/wp/2016/09/04/jeh-johnson-tells-american-muslims-your-story-is-the-quintessential-american-story/?utm_term=.a6ea8b46a5e7" type="external">told</a> the Islamic Society of North America that the Obama administration refuses to label ISIS as radical Islam because ISIS "occupies no part of your religion, a religion founded on peace." The fact that Johnson, who is clearly weak on immigration and radical Islam, has given McCaul a vote of confidence should be a major red flag to conservatives, especially those who care about the border and radical Islam.</p>
<p>6. McCaul had been considering running against Sen. Ted Cruz (R-TX) in the 2018 Senate primary. McCaul criticized Cruz in October for spending too much "running for president" while in the Senate.</p>
<p>"I think we deserve somebody in the Senate who is going to be representing the interests of the state of Texas," McCaul said per <a href="http://dailycaller.com/2016/10/25/mike-mccaul-doesnt-rule-out-challenging-ted-cruz-in-a-primary/" type="external">The Daily Caller</a>. McCaul didn't rule out a possible primary challenge to Cruz in 2018. Those plans might change if McCaul becomes the Homeland Security Secretary.</p> | true | 0 | week presidentelect donald trump reportedly met rep michael mccaul rtx interview homeland security secretary trump picks job americans expect mccaul six things need know rep mccaul 1 mccaul 56 percent liberty score conservative review mccauls conservative review biography states become moderate member house gop caucus since 2010 supporting increases debt ceiling higher federal budgets mccaul supported many gop establishments priorities include 2012 2014 reauthorization crony exportimport bank votes favor bloated farm highway hurricane relief bills mccaul also voted omnibus spending bill december 2014 fully funded president obamas unconstitutional executive amnesty order moderate voting record continued 114th congress mccaul voted medicare sgr fix actually carefully crafted bill projected add 500 billion federal deficit coming decades mccaul also supported rep john boehners reelection bid house speaker voted fund president obamas amnesty action mccaul house 12 years 2 mccaul chairman house homeland security committee mccaul took committee 2013 rep peter king rny termlimited chairmanship mccaul certainly quite knowledgeable danger isis presents earlier year mccaul underscored threat radical islamist group saying isis affiliates expanded 20 countries terrorist group connected 80 percent 1000 terrorist plots investigated fbi 3 mccaul weak immigration washington times reports mccaul looked upon favorably immigration hawks point 2015 bill coauthored included tough language ignored estimated 11 million illegal immigrants living us kept much decisionmaking hands obama administration also supported thenhouse speaker john boehners efforts provide path citizenship voting rights illegal immigrants dont doubt mr mccauls commitment homeland security wonder commitment controlling immigration jessica vaughan center immigration studies told times quite moderate conventional border security issues eschewing bold moves address problems created obama administrations policies example fact mccaul supported amnesty wouldnt address problems like obama administrations catch release policy homeland security committee chairman doesnt bode well border hawks mccaul become homeland security secretary 4 mccaul supported one president obamas politically correct agenda items fight radical islam jordan schachtel nate madden wrote conservative review obama put forward countering violent extremism initiative actually thing emphasis bolded obamas pilot program criticized catastrophic failure primarily fails address roots brand violence extremism jihadism engages muslim organizations extremist ties instead reformist outfits dr zuhdi jasser muslim reformist president american islamic forum democracy puts entrusting groups like counterterrorism responsibilities akin treating arsonists like firefighters rep mike mccauls role criticizing president obamas approach white house cve conference feb 2015 house homeland security committee chairman sponsored bill create entire cve office inside department homeland security words mccaul bought obamas politically correct agenda fight radical islam helped promote sponsoring bill create office odd someone knowledgeable isiss expanding activities certainly raises questions mccaul would go defending americans threat isis islamic terror organizations 5 jeh johnson supports mccaul homeland security secretary dont know anybody stronger border security congress dealt johnson current homeland security secretary said recent forum per washington times johnson reportedly met often amnesty supporters like rep luis gutierrez dil rarely gave opposing views much time establishing obamas executive orders also spent time writing executive orders working solve border crisis massive wave illegals crossed border 2014 back september johnson told islamic society north america obama administration refuses label isis radical islam isis occupies part religion religion founded peace fact johnson clearly weak immigration radical islam given mccaul vote confidence major red flag conservatives especially care border radical islam 6 mccaul considering running sen ted cruz rtx 2018 senate primary mccaul criticized cruz october spending much running president senate think deserve somebody senate going representing interests state texas mccaul said per daily caller mccaul didnt rule possible primary challenge cruz 2018 plans might change mccaul becomes homeland security secretary | 585 |
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<p>Image source: Merck.</p>
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<p>The goal of every investor should be to find high-quality stocks that they can hold over the long-term. Of course, with more than 7,000 stocks traded on major U.S. exchanges, finding great stocks to buy and hold isn't always an easy task.</p>
<p>When looking for great companies, we're often after business models that have staying power, offer shareholders incentives (i.e., dividends and/or share repurchases), present with competitive advantages, and remain innovative. This isn't always easy to find, but looking through the healthcare sector, drug giant Merck might fit the bill.</p>
<p>16 reasons to buy Merck and never sell If you're a retiree or even a young investor looking for a solid place to park your money over the very long-term, here are 16 reasons why you might consider buying Merck and never selling.</p>
<p>1. History: One telltale sign of a great business model is its ability to stand the test of time. Merck can trace its history back more than 300 years, with Jacob Friedrick Merck acquiring Angel Pharmacy all the way back in 1668. Things have changed in a big way since then, but today Merck remains one of the largest drug developers in the world.</p>
<p>2. Innovative pipeline: Buying Merck gives investors access to possible game-changing medicines that could improve patients' quality of life, as well as an opportunity to reap the rewards of these innovative medicines. Currently, Merck's pipeline boasts 11 midstage programs, including cancer and diabetes drugs, 25 late-stage development programs, including HIV, multiple myeloma, and roughly a half-dozen cancer types, and five drugs under review by regulatory agencies.</p>
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<p>Image source: Merck.</p>
<p>3. Therapeutic diversity: On top of a robust pipeline, Merck investors are privy to a product portfolio with six therapeutic areas of focus: cardiovascular diseases, diabetes, neuroscience, oncology, respiratory and immunology, and infectious diseases. All six areas of focus offer numerous paths to treating unmet diseases.</p>
<p>4. Licensing opportunities: Being an industry giant with deep pockets, Merck is also active with licensing and collaboration opportunities. For example, Merck and NewLink Geneticshave advanced rVSV-ZEBOV, an Ebola vaccine, into late-stage studies, and appeabe the first drug developers to submit an Ebola vaccine for approval.</p>
<p>5. Product inelasticity: Having products that sell well regardless of how well or poorly the U.S. or global economy is performing is always a positive. Since consumers have no control over when they get sick, or what type of illness they'll contract, Merck's products are likely to remain in constant demand. This helps secure the company's drug pricing power.</p>
<p>6. Cash flow: Because of the vastness of its product portfolio and its aforementioned product inelasticity, Merck is capable of generating cash flow at an incredible pace. Since 2010, Merck has generated $8 billion in free cash flow in all but one year (2014), and in 2015 it delivered a record $11.1 billion in free cash flow.</p>
<p>7. Dividend yield: Dividends are the foundation upon which great retirement portfolios are often built, and Merck's 3.3% dividend yield can go a long way to boosting your long-term gains. Its yield is about one full percentage point above the average yield of the S&amp;P 500.</p>
<p>8. Payout ratio: Merck's dividend works out to $1.84 per share per year, yet it's slated to generate a full-year 2016 profit of $3.72 per share according to Wall Street estimates. This works out to an estimated payout ratio of just below 50%. This reasonable payout ratio demonstrates Merck's commitment to rewarding its investors while also signifying that additional dividend growth seems justified.</p>
<p>9. Operating margin: Despite devoting billions of dollars to research and development, Merck's diverse product portfolio of brand-name drugs with solid pricing power allow it to deliver juicy operating margins. Over the trailing 12-month period, Merck's operating margin is nearly 21%. Higher margins imply a more efficient business model.</p>
<p>10. Cost-cutting ability: One way Merck's improved its operating margin is by cutting out some of its overhead. Since 2010, Merck has cut 36,450 jobs, according to FiercePharma this past August. Further, the company estimated it had another 3,800 job cuts still to come. The fact that Merck is delivering operating sales growth while cutting nearly half of its workforce in a five-year span is a testament to Merck's ability to improve its efficiency in order to drive results.</p>
<p>11. Bolt-on growth: Another selling point for Merck is that it supplements its in-house research with inorganic growth. In 2015, Merck closed its $9.5 billion deal to buy acute hospital care company Cubist Pharmaceuticals, and in 2014 Merck gobbled up clinical-stage drug developer Idenix Pharmaceuticals for $3.85 billion to complement its own hepatitis C pipeline. Acquisitions provide a quick way for Merck to expand its therapeutic reach.</p>
<p>12. Keytruda: If there's a single drug to be excited about in Merck's product portfolio, it's cancer immunotherapy Keytruda. Keytruda has already been approved to treat metastatic melanoma and second-line metastatic non-small cell lung cancer in patients with high PD-L1 expression. What's more amazing is that Merck is conducting more than 200 clinical studies and 80 combination studies across 30 tumor types for its thus far wildly successful cancer immunotherapy.</p>
<p>Image source: Merck.</p>
<p>13. Zepatier: Also exciting is the fact that Merck's hepatitis C double therapy known as Zepatier was recently approved by the Food and Drug Administration. Even if it fails to unseat Harvoni as the primary HCV treatment, there are some 180 million people worldwide suffering from HCV according to the World Health Organization, giving Zepatier a long-tail opportunity to make a difference.</p>
<p>14. Biosimilars: Merck also has a growing portfolio of <a href="http://www.fool.com/investing/general/2016/03/28/9-things-you-need-to-know-about-biosimilar-drugs.aspx?source=eptfxblnk0000004" type="external">biosimilars Opens a New Window.</a>, or biologic drugs designed to be copycats of innovative therapies. While presenting at the Cowen Healthcare Conference in early March, Merck highlighted five biosimilars that are slated for regulatory submission between 2016 and 2017. These biosimilars would be going after products with more than $30 billion in combined annual sales.</p>
<p>15. Animal health: It might be Merck's forgotten program, but its animal health segment appears poised to benefit from two major trends. First, medicines to keep livestock healthy should see increasing demand over time as food demand grows in step with the global population. Secondly, we continue to see companion animals viewed more and more as members of the family, and people are willing to pay hefty amounts to ensure the health and comfort of their pets.</p>
<p>16. Valuation: Last, but not least, Merck offers investors an attractive valuation relative to the broad-based S&amp;P 500. Merck's forward P/E is currently just below 15 compared to the forward P/E of the S&amp;P 500, which is about 17.4.</p>
<p>What factor stands out to you as Merck's most attractive selling point?</p>
<p>The article <a href="http://www.fool.com/investing/general/2016/04/19/16-reasons-to-buy-merck-and-never-sell.aspx" type="external">16 Reasons to Buy Merck and Never Sell 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 merck continue reading goal every investor find highquality stocks hold longterm course 7000 stocks traded major us exchanges finding great stocks buy hold isnt always easy task looking great companies often business models staying power offer shareholders incentives ie dividends andor share repurchases present competitive advantages remain innovative isnt always easy find looking healthcare sector drug giant merck might fit bill 16 reasons buy merck never sell youre retiree even young investor looking solid place park money longterm 16 reasons might consider buying merck never selling 1 history one telltale sign great business model ability stand test time merck trace history back 300 years jacob friedrick merck acquiring angel pharmacy way back 1668 things changed big way since today merck remains one largest drug developers world 2 innovative pipeline buying merck gives investors access possible gamechanging medicines could improve patients quality life well opportunity reap rewards innovative medicines currently mercks pipeline boasts 11 midstage programs including cancer diabetes drugs 25 latestage development programs including hiv multiple myeloma roughly halfdozen cancer types five drugs review regulatory agencies advertisement image source merck 3 therapeutic diversity top robust pipeline merck investors privy product portfolio six therapeutic areas focus cardiovascular diseases diabetes neuroscience oncology respiratory immunology infectious diseases six areas focus offer numerous paths treating unmet diseases 4 licensing opportunities industry giant deep pockets merck also active licensing collaboration opportunities example merck newlink geneticshave advanced rvsvzebov ebola vaccine latestage studies appeabe first drug developers submit ebola vaccine approval 5 product inelasticity products sell well regardless well poorly us global economy performing always positive since consumers control get sick type illness theyll contract mercks products likely remain constant demand helps secure companys drug pricing power 6 cash flow vastness product portfolio aforementioned product inelasticity merck capable generating cash flow incredible pace since 2010 merck generated 8 billion free cash flow one year 2014 2015 delivered record 111 billion free cash flow 7 dividend yield dividends foundation upon great retirement portfolios often built mercks 33 dividend yield go long way boosting longterm gains yield one full percentage point average yield sampp 500 8 payout ratio mercks dividend works 184 per share per year yet slated generate fullyear 2016 profit 372 per share according wall street estimates works estimated payout ratio 50 reasonable payout ratio demonstrates mercks commitment rewarding investors also signifying additional dividend growth seems justified 9 operating margin despite devoting billions dollars research development mercks diverse product portfolio brandname drugs solid pricing power allow deliver juicy operating margins trailing 12month period mercks operating margin nearly 21 higher margins imply efficient business model 10 costcutting ability one way mercks improved operating margin cutting overhead since 2010 merck cut 36450 jobs according fiercepharma past august company estimated another 3800 job cuts still come fact merck delivering operating sales growth cutting nearly half workforce fiveyear span testament mercks ability improve efficiency order drive results 11 bolton growth another selling point merck supplements inhouse research inorganic growth 2015 merck closed 95 billion deal buy acute hospital care company cubist pharmaceuticals 2014 merck gobbled clinicalstage drug developer idenix pharmaceuticals 385 billion complement hepatitis c pipeline acquisitions provide quick way merck expand therapeutic reach 12 keytruda theres single drug excited mercks product portfolio cancer immunotherapy keytruda keytruda already approved treat metastatic melanoma secondline metastatic nonsmall cell lung cancer patients high pdl1 expression whats amazing merck conducting 200 clinical studies 80 combination studies across 30 tumor types thus far wildly successful cancer immunotherapy image source merck 13 zepatier also exciting fact mercks hepatitis c double therapy known zepatier recently approved food drug administration even fails unseat harvoni primary hcv treatment 180 million people worldwide suffering hcv according world health organization giving zepatier longtail opportunity make difference 14 biosimilars merck also growing portfolio biosimilars opens new window biologic drugs designed copycats innovative therapies presenting cowen healthcare conference early march merck highlighted five biosimilars slated regulatory submission 2016 2017 biosimilars would going products 30 billion combined annual sales 15 animal health might mercks forgotten program animal health segment appears poised benefit two major trends first medicines keep livestock healthy see increasing demand time food demand grows step global population secondly continue see companion animals viewed members family people willing pay hefty amounts ensure health comfort pets 16 valuation last least merck offers investors attractive valuation relative broadbased sampp 500 mercks forward pe currently 15 compared forward pe sampp 500 174 factor stands mercks attractive selling point article 16 reasons buy merck never sell 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 | 835 |
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<p>Feedback is an invaluable tool for businesses. That's not a groundbreaking statement by any stretch but the ways in which organizations gather digital feedback are in continual flux. This feedback may mean internal employee feedback or external feedback from your customer base, social audience, or the online demographics your business is targeting. In all of these cases, the more information you have and the faster you can gather it, the more effectively you can analyze and act upon it.</p>
<p>Continue Reading Below</p>
<p><a href="https://www.hundredxinc.com/" type="external">HundredX Opens a New Window.</a>, a San Diego-based, enterprise-facing "listening" and customer feedback startup, has distilled that feedback-gathering mechanism into a quick, simple user experience (UX) based on a universal language everyone on the internet understands: emojis. The company of a dozen employees and growing launched in 2012 as Goodsnitch, with the mission of creating a positive alternative to Yelp. Since then, HundredX has largely pivoted to providing custom enterprise feedback solutions that are embedded directly within a brand's UX. That said, the company still offers a free, consumer-facing feedback application available called <a href="https://www.expresit.com/" type="external">Expreseit Opens a New Window.</a>.</p>
<p>The way HundredX defines "listening" is different from the kind of data gathering and insights you'll find in <a href="http://www.pcmag.com/roundup/342728/the-best-social-listening-and-influencer-identification-tool" type="external">social listening platforms Opens a New Window.</a>. Rather than mining and monitoring the social web for brand keywords and larger customer and industry trends, HundredX treats listening as a complementary internal customer and experience metric, a 1:1 feedback loop that serves as the flipside to outward social listening.</p>
<p>"There are some great social listening companies using third-party platforms, essentially mining social media for data analysis," said Rob Pace, CEO of HundredX. "What we do is take your existing channels—from email, text, app, website, you name it—and plug this listening engine into it. It's not an either-or [thing, as] you need both kinds of listening.</p>
<p>"What's different about us is three things: one, direct listening gives you a more representative cross-section. Most of your customers probably aren't tweeting but we can still crowdsource their feedback. Two, you get more context. After you purchase something, I send you something in the moment and know who you are, what you purchased, your location; anything I already know can be organized. That brings us to the third thing, which is internal distribution and scale."</p>
<p>Advertisement</p>
<p>If HundredX sounds more like an <a href="http://www.pcmag.com/article2/0,2817,2494737,00.asp" type="external">online survey tool</a> than a listening platform, that's because it is. HundredX has the Expreseit app leftover from its Goodsnitch days for gathering consumer feedback but its enterprise customer base is now expansive. Its client list includes Mary Kay, NBC, the University of Notre Dame, event venues, restaurant chains, and major sports teams such as the Dallas Cowboys and Nashville Predators.</p>
<p>"The difference between how we define 'listening' and the traditional kind of survey is that listening starts with one question: 'What should we know?" said Pace. "There's this massive gap between the freemium survey tool and the heavy way a large enterprise gathers feedback. It shouldn't be crazy expensive to listen and training for a product should take 10 minutes."</p>
<p><a href="javascript:OpenImageWindow('http://www.pcmag.com/image_popup/0,1740,iid=507841,00.asp',%20'299',%20'393')" type="external">Opens a New Window.</a>The emoji mechanism itself is pretty simple: at the bottom of a website or an app UX, there's a pop-up window with clickable happy/sad emojis for feedback on a product, service, or brand. Depending on what you click, you get a broader emoji selection for deeper context. So, if you tapped that a website is good, the next screen is "Why is our website good?" with clickable emoji options such as "content," "design," and "intuitive." A third screen might have a box for additional comment and a last emoji selection of "Would you recommend this website or product?"</p>
<p>The experience is customizable by client and embeddable in any UX experience. In terms of actually transforming that feedback data, the startup offers a reporting dashboard with <a href="http://www.pcmag.com/article2/0,2817,2492697,00.asp" type="external">website monitoring</a> capabilities as well as an email incident management and notification system, and will also export data for customers.</p>
<p>Using emojis as a shorthand for sentiment is something plenty of social listening and website monitoring tools do. As Pace explained, how HundredX applies the technology is more important since a universal feedback mechanism can be far more effective and less invasive for users (particularly in mobile-optimized experiences) than filling out a <a href="http://www.pcmag.com/article2/0,2817,2494734,00.asp" type="external">SurveyMonkey Opens a New Window.</a> <a type="external" href="" /> survey.</p>
<p>Pace was a longtime partner at Goldman Sachs, joining the firm in 1986. One of his first clients was Microsoft, which went public with the help of Goldman that year. Pace spent most of his 20-plus year career with Goldman Sachs, running west coast operations, working with not just tech companies but also major retailers including GAP and Nordstrom. He has also served as Chairman of the National Advisory Board of the Salvation Army.</p>
<p>"I got to work with hundreds of clients on mergers, acquisitions, IPOs, etc., and work with them over time," said Pace. "Coming from that kind of financial background, one of our missions is to take this squishy concept of listening and drive it into a hard ROI [return on investment]. And there are three big return buckets for our clients: retention, both of existing customers and existing employees; crowdsourced wisdom [where] digital allows you to have this kind of 'mystery shopper' everywhere constantly feeding you data; and...the content and analytics you drive from that data."</p>
<p>HundredX's Top 7 Business AppsHundredX's embeddable emoji feedback is a powerful tool for businesses in its own right, but Pace also revealed the apps and series his startup uses to communicate, collaborate, and keep track of projects, tasks, and sales goals.</p>
<p>1. SlackAlong with countless other organizations, HundredX handles internal communication entirely by using <a href="http://www.pcmag.com/article2/0,2817,2477507,00.asp" type="external">Slack Opens a New Window.</a> <a type="external" href="" /> as the company's team <a href="http://www.pcmag.com/article2/0,2817,2489110,00.asp" type="external">collaboration Opens a New Window.</a> tool.</p>
<p>2. SalesforceNext up is <a href="http://www.pcmag.com/article2/0,2817,2364726,00.asp" type="external">Salesforce Opens a New Window.</a> <a type="external" href="" />. "Salesforce we use in two places," said Pace. "We use it for ourselves for [ <a href="http://www.pcmag.com/article2/0,2817,2367263,00.asp" type="external">customer relationship management Opens a New Window.</a>] (CRM) but a lot of our clients want us to export data into the Salesforce system. So it's also kind of a feedback [application programming interface] (API) to connect with their existing platforms."</p>
<p>3. Asana <a href="http://www.pcmag.com/article2/0,2817,2408011,00.asp" type="external">Asana Opens a New Window.</a> <a type="external" href="" />, one of PCMag's Editors' Choices for collaboration and <a href="http://www.pcmag.com/article2/0,2817,2380448,00.asp" type="external">project management Opens a New Window.</a>, is the platform on which HundredX relies to keep track of tasks and workflow progress.</p>
<p>4. Atlassian JiraWhen it comes to their software development pipeline, <a href="https://www.atlassian.com/software/jira" type="external">Atlassian Jira Opens a New Window.</a> is what the HundredX dev and engineering teams rely on for task and project management.</p>
<p>5. Google DriveWhile Slack and Asana take care of internal collaboration and project management, Pace said the startup, like many other organizations, heavily relies on <a href="http://www.pcmag.com/article2/0,2817,2494010,00.asp" type="external">Google Drive Opens a New Window.</a> <a type="external" href="" /> for centralized storage and team collaboration when it comes to <a href="http://www.pcmag.com/article2/0,2817,2490969,00.asp" type="external">document management Opens a New Window.</a>.</p>
<p>6. UberConferencePace said HundredX often uses <a href="https://www.uberconference.com/" type="external">UberConference Opens a New Window.</a> to quickly communicate, particularly since the video chat tool is integrated within Slack channels using a quick /uberconference slash command.</p>
<p>7. Citrix GoToMeetingCitrix <a href="http://www.pcmag.com/article2/0,2817,2387935,00.asp" type="external">GoToMeeting Opens a New Window.</a> <a type="external" href="" /> is interesting to Pace. "I came up in an era where selling was all person-to-person," he explained. "But now, I'd say 80 percent of our customers start out with a GoToMeeting demo to give them 30 minutes to say, this makes sense or it doesn't. That's a change in the model of how the actual sales process happens."</p>
<p>This article <a href="http://www.pcmag.com/article/348614/business-power-tools-where-emojis-meet-customer-feedback" 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 | feedback invaluable tool businesses thats groundbreaking statement stretch ways organizations gather digital feedback continual flux feedback may mean internal employee feedback external feedback customer base social audience online demographics business targeting cases information faster gather effectively analyze act upon continue reading hundredx opens new window san diegobased enterprisefacing listening customer feedback startup distilled feedbackgathering mechanism quick simple user experience ux based universal language everyone internet understands emojis company dozen employees growing launched 2012 goodsnitch mission creating positive alternative yelp since hundredx largely pivoted providing custom enterprise feedback solutions embedded directly within brands ux said company still offers free consumerfacing feedback application available called expreseit opens new window way hundredx defines listening different kind data gathering insights youll find social listening platforms opens new window rather mining monitoring social web brand keywords larger customer industry trends hundredx treats listening complementary internal customer experience metric 11 feedback loop serves flipside outward social listening great social listening companies using thirdparty platforms essentially mining social media data analysis said rob pace ceo hundredx take existing channelsfrom email text app website name itand plug listening engine eitheror thing need kinds listening whats different us three things one direct listening gives representative crosssection customers probably arent tweeting still crowdsource feedback two get context purchase something send something moment know purchased location anything already know organized brings us third thing internal distribution scale advertisement hundredx sounds like online survey tool listening platform thats hundredx expreseit app leftover goodsnitch days gathering consumer feedback enterprise customer base expansive client list includes mary kay nbc university notre dame event venues restaurant chains major sports teams dallas cowboys nashville predators difference define listening traditional kind survey listening starts one question know said pace theres massive gap freemium survey tool heavy way large enterprise gathers feedback shouldnt crazy expensive listen training product take 10 minutes opens new windowthe emoji mechanism pretty simple bottom website app ux theres popup window clickable happysad emojis feedback product service brand depending click get broader emoji selection deeper context tapped website good next screen website good clickable emoji options content design intuitive third screen might box additional comment last emoji selection would recommend website product experience customizable client embeddable ux experience terms actually transforming feedback data startup offers reporting dashboard website monitoring capabilities well email incident management notification system also export data customers using emojis shorthand sentiment something plenty social listening website monitoring tools pace explained hundredx applies technology important since universal feedback mechanism far effective less invasive users particularly mobileoptimized experiences filling surveymonkey opens new window survey pace longtime partner goldman sachs joining firm 1986 one first clients microsoft went public help goldman year pace spent 20plus year career goldman sachs running west coast operations working tech companies also major retailers including gap nordstrom also served chairman national advisory board salvation army got work hundreds clients mergers acquisitions ipos etc work time said pace coming kind financial background one missions take squishy concept listening drive hard roi return investment three big return buckets clients retention existing customers existing employees crowdsourced wisdom digital allows kind mystery shopper everywhere constantly feeding data andthe content analytics drive data hundredxs top 7 business appshundredxs embeddable emoji feedback powerful tool businesses right pace also revealed apps series startup uses communicate collaborate keep track projects tasks sales goals 1 slackalong countless organizations hundredx handles internal communication entirely using slack opens new window companys team collaboration opens new window tool 2 salesforcenext salesforce opens new window salesforce use two places said pace use customer relationship management opens new window crm lot clients want us export data salesforce system also kind feedback application programming interface api connect existing platforms 3 asana asana opens new window one pcmags editors choices collaboration project management opens new window platform hundredx relies keep track tasks workflow progress 4 atlassian jirawhen comes software development pipeline atlassian jira opens new window hundredx dev engineering teams rely task project management 5 google drivewhile slack asana take care internal collaboration project management pace said startup like many organizations heavily relies google drive opens new window centralized storage team collaboration comes document management opens new window 6 uberconferencepace said hundredx often uses uberconference opens new window quickly communicate particularly since video chat tool integrated within slack channels using quick uberconference slash command 7 citrix gotomeetingcitrix gotomeeting opens new window interesting pace came era selling persontoperson explained id say 80 percent customers start gotomeeting demo give 30 minutes say makes sense doesnt thats change model actual sales process happens article originally appeared opens new window pcmagcom opens new window | 755 |
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<p>RUSH: President Trump is wrong in his Facebook post from last night. This is not a “witch hunt” that’s going on here, and Democrats know exactly what they’re doing. They know exactly what they’ve got. The Obama administration left all this stuff in place for ’em to use. It’s not a witch hunt. There is the execution of an attempt at a peaceful coup. A peaceful coup to oust Donald Trump is what we are witnessing. It’s been orchestrated by Obama and the Democrat Party. It’s that simple.</p>
<p>It is not a witch hunt. They’re not blindly hoping they find things as they open doors. They know what’s behind the doors. They put the stuff there! Now, look, while all of this is going on, there are other things happening that are not even showing up on the back page. Speaking euphemistically. There aren’t any back pages on websites and TV broadcasts. But it’s being shelved back to the back. That’s what’s being done to the Obamacare repeal. Rand Paul is trying to bring people’s attention to it and it’s tough to crack through.</p>
<p>I just wanted to mention this to get it out there and I hope to circle back to it, but a bunch of Republicans, senators who really now… It’s a House bill, so senators literally are not entitled to see it. So Rand Paul’s not being denied anything here, but he does have a vested interest in Obamacare being completely repealed and replaced. And there is a repeal-replacement bill somewhere. It’s behind locked doors, it’s under lock and key, and the Republican leadership isn’t letting anybody see it.</p>
<p>Nobody knows why, but the informed speculation is that it doesn’t do much, that it is being called “Obamacare light” and really isn’t going to make much of a difference at all. And that is why the Republican leadership doesn’t want anybody seeing it right now. There’s even a couple allusions to the fact that there might be a couple entitlements in it as part of the replacement. So, things that also matter are out there and are happening, and they’re taking place while everybody is looking at this other stuff.</p>
<p>Now, this is not a diversionary tactic. This stuff is real here. This coup, this silent coup that is taking place is real. I’m not suggesting that the Obamacare repeal people are using all this as a diversion; it’s just what’s happening. <a href="" type="internal">Jeff Sessions should not have recused himself.</a> He’s got nothing to be defensive about. He didn’t do anything wrong. He certainly should not resign, which is now what the Democrats are asking, which was predicted.</p>
<p><a href="" type="internal" />Everything — virtually everything — that has led to Jeff Sessions recusing himself from whatever investigations there are into the Russians hacking the election is fake news. The questions that Al Franken was asking Senator Sessions during his confirmation hearings were based on a fake news story, that now famous dossier made up of totally fraudulent, phony allegations about Trump — such as hiring prostitutes to urinate on the bed in the Moscow hotel that Obama and Michelle had slept on. Totally false, fake.</p>
<p>Questions are being asked of Sessions about that, and it all just descends from there. Fox News reported moments ago that, you know, Sessions met with the Russian ambassador twice, and “ <a href="http://theresurgent.com/obama-administration-officials-set-up-jeff-sessions-meeting-with-th" type="external">Obama Administration Officials Set Up Jeff Sessions’ Meeting With the Russian Ambassador…</a>‘” It happened in 2016. “It turns out [Senator Sessions] spoke to the Russian ambassador on the invitation of the Obama administration.'” You can read this at TheResurgent.com. Fox News, here: “The first came at a conference on ‘Global Partners in Diplomacy,’ where Sessions was the keynote speaker.</p>
<p>“Sponsored by the U.S. State Department, The Heritage Foundation, and several other organizations, it was held in Cleveland during the Republican National Convention. The conference was an educational program for ambassadors invited by the Obama State Department to observe the convention. The Obama State Department handled all of the coordination with ambassadors and their staff…” This ambassador, this Russian ambassador has been to the White House countless times, as ambassadors do.</p>
<p>He’s <a href="http://dailycaller.com/2017/03/02/russian-ambassador-sergey-kislyak-appeared-as-obama-white-house-visitor-at-least-22-times/" type="external">met with Obama over 20 times</a>. Do you know that the Russian ambassador, with whom all of these Trump people are talking about rigging the election…? Do you know that this ambassador was at Trump’s speech to the joint session of Congress on Tuesday night, and he was seated with the Democrats? Do you know that he’s one of the best friends of Chuck Schumer? Folks, I’m gonna tell you something. The real Russian link to be investigated, if you really want to get to the bottom of what’s happening…</p>
<p>I’m gonna tell you the first lie. The first lie is that Donald Trump loves Vladimir Putin. The second lie is that Vladimir Putin loves Donald Trump. The third lie is that Putin and Trump have had numerous dealings together because of this mutual bromance that they have, and Trump and Putin are cooking up all kinds of things to benefit Trump personally. Lie number four: Because they want all of this, Trump and Putin worked together to hack the election to deny her rightful victory to Hillary Clinton.</p>
<p>Those are the lies that establish everything else that follows. The truth of the matter is if you want to get to the real Russian link — if you want to discover what the real Russian link to be investigated is — it is the Russian link to Obama. We’re in the midst of an out-of-control insanity. We’re in the midst of a news cycle, the details of which I don’t think even most of the Drive-Bys even are clued in about. They’re just reporting it by rote as it is leaked to them, as it is handed to them.</p>
<p>But if there’s any sabotage going on here, it starts with Barack Obama and the Russians.</p>
<p>Now, the first lie… How many of you are under the belief because of what you’ve heard in the news that Trump and Putin love each other? Putin loves Trump, Trump loves Putin, and they’ve had dealings, and they’ve got private affairs going on back there. They’ve been making money with each other, deals, whatever it is. You’ve heard that Trump did not criticize Putin, and you’ve heard that Trump responded very unfavorably when he thought Putin complimented him and praised him.</p>
<p>And so it got started — a narrative — that Trump and Putin are buddies! I don’t know if there’s any evidence for that. I think it’s another lie. I think it’s another false narrative that’s out there that sets up all the rest of this. Who was it in 2012, shortly before the campaign, the presidential election…? Obama was meeting with Putin’s number two, Dmitry Medvedev. There’s an open mic and Obama was overheard — and this was reported — “You tell Vladimir that I’ll have a lot more flexibility after the election.”</p>
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<p>What he meant was, “Look, after I win the election, I can’t run again. I’m not gonna have to worry about ever running again so I can do all kinds of stuff; I’ll be much in more flexible.” The conversation was about reducing United States nuclear weapons. Not reducing Russia’s nuclear weapons. It was about reducing the United States’ stockpile, and Obama told Medvedev, “You tell Vlad I’ll be a lot more flexible after the election.” The Russian ambassador, if you must know, is a lobbyist.</p>
<p>All ambassadors are lobbyists. That’s how you have to look at them. They show up and they lobby for their countries in every which way you can imagine. Policy understanding, policy cooperation, trade deals, money, you name it, they’re everywhere. The idea that the Russian ambassador talking to and Democrats is some kind of a crime is absurd. But when the Russian ambassador is talking to Republicans it is a crime today. You know why? Because of what started all of this.</p>
<p>And that is the Russians worked with Trump to hack the election, to interfere and to deny Hillary what was her rightful election to the presidency. And so since… And there’s no evidence for this. They haven’t still found any evidence because there isn’t any because it couldn’t have happened. But since everything in this story is fake news, everything about it is fake news, there never will be any evidence to this — and it’s very difficult to prove a negative.</p>
<p>But they’re never gonna be able to find the evidence to prove that there was this kind of cooperation between Trump and his campaign and the Russians to screw Hillary. It just doesn’t exist. They’re never even gonna be able to prove that the Russians succeeded in altering what was to have been a Hillary win. They will never be able to prove that because it didn’t happen. But that’s the foundation under which or on top of which all of this is being built.</p>
<p>So when Republicans are meeting with the Russian ambassador, “Weeeeell, we ought to be suspicious of that because look what the Russians did with the Trump campaign to screw Hillary!” You see? So this is… This is… It’s surreal to watch this, because every bit of this is fake news. In fact to the extent that the Democrats are making allegations, it’s they who are guilty. I don’t know how many times I have mentioned this story; I’ll mention it again. In fact, <a href="https://pjmedia.com/jchristianadams/2017/03/02/us-senator-colludes-with-russians-to-influence-presidential-election/" type="external">J. Christian Adams has written about it today, PJ Media.</a></p>
<p><a href="" type="internal" />Ted Kennedy back in 1983… We know this because o when the Soviet Union imploded, a bunch of KGB files ended up being released. And we learned that Ted Kennedy, Senator Ted Kennedy, prominent Democrat, in 1983 was sending letters and having meetings, phone calls to prime ministers and presidents of the Soviet Union, like Yuri Andropov. And they were hatching a mutual strategy to get rid of Reagan in 1984.</p>
<p><a href="" type="internal">Ted Kennedy was doing everything he could to sabotage Reagan’s reelectio</a>n, and he was asking the Soviets to be patient in their dealings with the U.S. because it wouldn’t be long and they’d be able to get rid of Reagan and then things would return to normal. In fact, there has been collusion between the Soviets (i.e. the Russians) and Americans in trying to rig an election, except it happened in the eighties: Ted Kennedy and the Democrats trying to sabotage Reagan.</p>
<p>There is no evidence that what is being alleged today has even happened because it didn’t. Now there’s news that, “You know what? Trump’s son-in-law met with the Russian ambassador!” (Gasp!) “No! Really? Wow, what an accusation!” So the Drive-Bys are just panting over this. The (panting) tongues are on the floor with anticipation, and they think they’re getting closer and closer to forcing Trump to resign without even having to go through with impeachment! So, my friends, make no mistake.</p>
<p>I’m not taking anything away from what I said yesterday. I’m adding to it. We’re watching a silent coup that was put in place by Obama and the Democrats during the transition and before, for after the election. Do you know that now that Sessions recused himself, do you know who the top lawyer in the Justice Department is who will oversee whatever investigations there are? An Obama appointee! Yeah, Trump doesn’t have his guy in yet. The Democrats haven’t confirmed him. Now, the confirmation vote for the Trump guy, deputy number two DOJ, is Tuesday. I don’t think what’s…</p>
<p>I think even I, ladies and gentlemen, didn’t quite see the full scope of what is going on here. I don’t think that this is about just delaying Trump’s cabinet and causing him some irritation, this kind of thing. I think what is happening here is a full-fledged effort here to deny Trump the actual control of governing, of the government, by leaving so many Obama career people appointed, by going so slowly on confirming Trump’s cabinet appointees and other lesser bureaucratic positions that remain open and haven’t been filled.</p>
<p>And that’s why it appears the Democrats are still running the show. That’s why it appears even though the Republicans and Trump won the election, if you pay attention to Drive-By news, it looks like the Democrats are running everything. They’re still determining the daily news narratives. They’re still pushing those. They lost. The Democrat Party is a party that’s just flailing. The Democrat Party as an electoral force has been decimated. But inside the Beltway they are the power, and they’re doing everything they can to delay and forestall Trump actually assuming control over his administration and over the government.</p>
<p>In other words, they’re trying to deny the presidency, the full force and the full capacity of the presidency is what’s being denied to Donald Trump. And while that’s happening, here come all of these allegations and all of these attempts to force everybody close to Trump to resign or recuse or hide or whatever in total embarrassment. Now, the Sessions specifics, we went through them yesterday. I’m gonna go through them again today just to illustrate, back up the point that everything involving Sessions is fake news.</p>
<p>We now know that it was the Obama administration that invited the Russian ambassador to the first meeting that Sessions had with the guy, and the Russian ambassador was meeting with all kinds of people. It was at the Republican convention. We mentioned it yesterday as a Heritage Foundation-sponsored event. The Russian ambassador is all over the Democrat Party, he’s all over the White House. I’m telling you, if you want to find out who’s really working together to sabotage the United States, you find the link between Barack Obama, Vladimir Putin, and the Russian government. That’s the story. That’s the need.</p>
<p>BREAK TRANSCRIPT</p>
<p>RUSH: And here we go from The Daily Caller: “ <a href="http://dailycaller.com/2017/03/02/russian-ambassador-sergey-kislyak-appeared-as-obama-white-house-visitor-at-least-22-times/" type="external">Russian Ambassador Sergey Kislyak Appeared as Obama White House Visitor at Least 22 Times</a>.” If there is any collusion that’s gone on here, folks, it’s between the Russians and Obama — and to whatever extent the Democrat Party — in order to run a silent coup on Donald Trump. You want some more evidence? It’s from the New York Times. “Each new revelation that someone connected to the Trump campaign met with the Russian ambassador is being treated as significant news. Eventually, the Times does explain why this is supposed to matter.”</p>
<p>The Times says: “It is common and not improper for transition officials to meet with foreign officials. But all meetings between Trump associates and Russians are now significant as the FBI investigates Russian interference in the American election and whether anyone close to Mr. Trump’s campaign was involved.” So, you see, if they hadn’t successfully established that foundation none of the rest of this — none of this stuff on Sessions, none of this!</p>
<p>Do you realize every bit of this originates from fake news? The fake news is that the Russians determined the outcome of the American election, everything. The Times even admits it’s common. Democrats, Republicans, Martians, everybody meets with the Russians. But because the FBI’s investigating the connection between the Trump campaign and the Russians, well, we are duty-bound to pay very special attention to every one of these contacts.</p>
<p>It’s the biggest bunch of crap that we have seen yet, and it is only going to get bigger and bigger until somebody deals with this and exposes to the American people what’s going on. Our country is so divided that everything I’ve just told you that you have been told in one form or another for the past weeks or months, do you realize…? I would venture to say that 95% of Democrats don’t know one thing what I’m talking about. They haven’t heard one thing of this because of the media they watch.</p>
<p>BREAK TRANSCRIPT</p>
<p>RUSH: I want to reiterate. We are witnessing — right in front of our eyes — a silent coup to unseat and render effectively immaterial Donald Trump as president of the United States. The real Russian scandal is the collusion between Barack Obama and his administration and the Russians. Obama’s team used the pretext of Russian interference in the election to justify wiretaps and illegal leaks of the Trump team, including a U.S. senator and now attorney general. What has really gone on here — and I just want to repeat what I said in the opening of the hour, ’cause it wasn’t happenstance, and I mean it.</p>
<p>The real collusion between our government and the Russians happened with Barack Obama and Vladimir Putin and the Russians. And just to reiterate, I want you to remember some things. Just ask yourself: How far back do you have to go into the campaign before you remember hearing that Trump and Putin were buddies? Remember when Trump is getting all excited about the fact that Putin was praising him and then Trump wouldn’t release tax returns? So there became a new narrative and that is that Trump and Putin are good buddies, and this could be very bad for the United States.</p>
<p>The way it manifests itself is Trump is such an idiot, he’s such a neophyte, he’s such an outsider, he doesn’t know things. He doesn’t understand, and he wants to sidle up to Putin just ’cause he likes Putin ’cause Putin likes him. You know, Trump’s such a sophomore. So Trump really poses a great danger because Putin doesn’t like him and Putin doesn’t like us and Putin is playing Trump for a fool and all that. So that gets the ball rolling that there’s a tie, that there’s a connection — a bromance, if you will — between Putin and Trump. And there isn’t.</p>
<p>The real bromance is Barack Obama and the Russians. That makes more sense ideologically, it makes more sense politically, and it makes more sense historically. We know that Obama has worked with Putin on the disarming of the United States nuclear arsenal. We got Obama on tape telling Putin’s number two guy, “Be patient with me. Be patient. I’ll have more flexibility after the election.” But Obama has turned this around, the Democrats have turned this around, and they’re now saying that it is the potential danger of Trump working with the Russians.</p>
<p>They used this “potential danger” to justify wiretaps of Trump’s team during the campaign and the transition, and this is what’s justifying this so-called illegal leaking. If the fake news were not so instantaneously and irrevocably left wing, the effort by an outgoing president to undermine his predecessor using intelligence agencies would be a bigger scandal than Watergate, because that’s what’s going on here. That’s what’s unprecedented. I mean, Truman and Eisenhower hated each other. But when Eisenhower assumed office, Truman went back to the haberdashery in Independence, and that was that.</p>
<p>Obama hasn’t gone anywhere. He stayed in Washington, and he is running the resistance — and that, my friends, is a bigger story than Watergate could have ever been. But nobody is gonna know about it because the Drive-Bys are never gonna report it and the people that watch the Drive-Bys probably don’t even know that Loretta Lynch and Bill Clinton once met on an airplane. I don’t think they even know 90% of the stuff that you know about Obama and Hillary and the Democrat Party, ’cause the media they watch never reports it.</p>
<p>Do a little experiment. Do you have any liberal friends that you still have peaceful relations with? Next time you get together with them… Don’t be confrontational. Just ask them. Start talking about things like Clinton meeting with Loretta Lynch a week before the election. When they start going about Sessions and how he ought to quit and Trump ought to quit, say, “Yeah, it kind of reminds me of when Loretta Lynch and Bill Clinton met one week before the FBI was gonna render a decision on the investigation of Hillary’s email.</p>
<p>“Remember Clinton got on her plane out in Phoenix?” And they won’t know. I guarantee you they will never have heard the story. They won’t know a thing you’re talking about, odds are. Some of them might, but very few. It wasn’t reported. And to the extent that it was, remember it took a local news person to even bring that story to anywhere. A local Phoenix TV person was responsible for getting that story. You want to talk about violations of ethics and morals? Obama and the Democrats are the story and their ongoing effort to sabotage and undermine –as an outgoing president — the incoming president.</p> | true | 0 | rush president trump wrong facebook post last night witch hunt thats going democrats know exactly theyre know exactly theyve got obama administration left stuff place em use witch hunt execution attempt peaceful coup peaceful coup oust donald trump witnessing orchestrated obama democrat party simple witch hunt theyre blindly hoping find things open doors know whats behind doors put stuff look going things happening even showing back page speaking euphemistically arent back pages websites tv broadcasts shelved back back thats whats done obamacare repeal rand paul trying bring peoples attention tough crack wanted mention get hope circle back bunch republicans senators really house bill senators literally entitled see rand pauls denied anything vested interest obamacare completely repealed replaced repealreplacement bill somewhere behind locked doors lock key republican leadership isnt letting anybody see nobody knows informed speculation doesnt much called obamacare light really isnt going make much difference republican leadership doesnt want anybody seeing right theres even couple allusions fact might couple entitlements part replacement things also matter happening theyre taking place everybody looking stuff diversionary tactic stuff real coup silent coup taking place real im suggesting obamacare repeal people using diversion whats happening jeff sessions recused hes got nothing defensive didnt anything wrong certainly resign democrats asking predicted everything virtually everything led jeff sessions recusing whatever investigations russians hacking election fake news questions al franken asking senator sessions confirmation hearings based fake news story famous dossier made totally fraudulent phony allegations trump hiring prostitutes urinate bed moscow hotel obama michelle slept totally false fake questions asked sessions descends fox news reported moments ago know sessions met russian ambassador twice obama administration officials set jeff sessions meeting russian ambassador happened 2016 turns senator sessions spoke russian ambassador invitation obama administration read theresurgentcom fox news first came conference global partners diplomacy sessions keynote speaker sponsored us state department heritage foundation several organizations held cleveland republican national convention conference educational program ambassadors invited obama state department observe convention obama state department handled coordination ambassadors staff ambassador russian ambassador white house countless times ambassadors hes met obama 20 times know russian ambassador trump people talking rigging election know ambassador trumps speech joint session congress tuesday night seated democrats know hes one best friends chuck schumer folks im gon na tell something real russian link investigated really want get bottom whats happening im gon na tell first lie first lie donald trump loves vladimir putin second lie vladimir putin loves donald trump third lie putin trump numerous dealings together mutual bromance trump putin cooking kinds things benefit trump personally lie number four want trump putin worked together hack election deny rightful victory hillary clinton lies establish everything else follows truth matter want get real russian link want discover real russian link investigated russian link obama midst outofcontrol insanity midst news cycle details dont think even drivebys even clued theyre reporting rote leaked handed theres sabotage going starts barack obama russians first lie many belief youve heard news trump putin love putin loves trump trump loves putin theyve dealings theyve got private affairs going back theyve making money deals whatever youve heard trump criticize putin youve heard trump responded unfavorably thought putin complimented praised got started narrative trump putin buddies dont know theres evidence think another lie think another false narrative thats sets rest 2012 shortly campaign presidential election obama meeting putins number two dmitry medvedev theres open mic obama overheard reported tell vladimir ill lot flexibility election meant look win election cant run im gon na worry ever running kinds stuff ill much flexible conversation reducing united states nuclear weapons reducing russias nuclear weapons reducing united states stockpile obama told medvedev tell vlad ill lot flexible election russian ambassador must know lobbyist ambassadors lobbyists thats look show lobby countries every way imagine policy understanding policy cooperation trade deals money name theyre everywhere idea russian ambassador talking democrats kind crime absurd russian ambassador talking republicans crime today know started russians worked trump hack election interfere deny hillary rightful election presidency since theres evidence havent still found evidence isnt couldnt happened since everything story fake news everything fake news never evidence difficult prove negative theyre never gon na able find evidence prove kind cooperation trump campaign russians screw hillary doesnt exist theyre never even gon na able prove russians succeeded altering hillary win never able prove didnt happen thats foundation top built republicans meeting russian ambassador weeeeell ought suspicious look russians trump campaign screw hillary see surreal watch every bit fake news fact extent democrats making allegations guilty dont know many times mentioned story ill mention fact j christian adams written today pj media ted kennedy back 1983 know soviet union imploded bunch kgb files ended released learned ted kennedy senator ted kennedy prominent democrat 1983 sending letters meetings phone calls prime ministers presidents soviet union like yuri andropov hatching mutual strategy get rid reagan 1984 ted kennedy everything could sabotage reagans reelection asking soviets patient dealings us wouldnt long theyd able get rid reagan things would return normal fact collusion soviets ie russians americans trying rig election except happened eighties ted kennedy democrats trying sabotage reagan evidence alleged today even happened didnt theres news know trumps soninlaw met russian ambassador gasp really wow accusation drivebys panting panting tongues floor anticipation think theyre getting closer closer forcing trump resign without even go impeachment friends make mistake im taking anything away said yesterday im adding watching silent coup put place obama democrats transition election know sessions recused know top lawyer justice department oversee whatever investigations obama appointee yeah trump doesnt guy yet democrats havent confirmed confirmation vote trump guy deputy number two doj tuesday dont think whats think even ladies gentlemen didnt quite see full scope going dont think delaying trumps cabinet causing irritation kind thing think happening fullfledged effort deny trump actual control governing government leaving many obama career people appointed going slowly confirming trumps cabinet appointees lesser bureaucratic positions remain open havent filled thats appears democrats still running show thats appears even though republicans trump election pay attention driveby news looks like democrats running everything theyre still determining daily news narratives theyre still pushing lost democrat party party thats flailing democrat party electoral force decimated inside beltway power theyre everything delay forestall trump actually assuming control administration government words theyre trying deny presidency full force full capacity presidency whats denied donald trump thats happening come allegations attempts force everybody close trump resign recuse hide whatever total embarrassment sessions specifics went yesterday im gon na go today illustrate back point everything involving sessions fake news know obama administration invited russian ambassador first meeting sessions guy russian ambassador meeting kinds people republican convention mentioned yesterday heritage foundationsponsored event russian ambassador democrat party hes white house im telling want find whos really working together sabotage united states find link barack obama vladimir putin russian government thats story thats need break transcript rush go daily caller russian ambassador sergey kislyak appeared obama white house visitor least 22 times collusion thats gone folks russians obama whatever extent democrat party order run silent coup donald trump want evidence new york times new revelation someone connected trump campaign met russian ambassador treated significant news eventually times explain supposed matter times says common improper transition officials meet foreign officials meetings trump associates russians significant fbi investigates russian interference american election whether anyone close mr trumps campaign involved see hadnt successfully established foundation none rest none stuff sessions none realize every bit originates fake news fake news russians determined outcome american election everything times even admits common democrats republicans martians everybody meets russians fbis investigating connection trump campaign russians well dutybound pay special attention every one contacts biggest bunch crap seen yet going get bigger bigger somebody deals exposes american people whats going country divided everything ive told told one form another past weeks months realize would venture say 95 democrats dont know one thing im talking havent heard one thing media watch break transcript rush want reiterate witnessing right front eyes silent coup unseat render effectively immaterial donald trump president united states real russian scandal collusion barack obama administration russians obamas team used pretext russian interference election justify wiretaps illegal leaks trump team including us senator attorney general really gone want repeat said opening hour cause wasnt happenstance mean real collusion government russians happened barack obama vladimir putin russians reiterate want remember things ask far back go campaign remember hearing trump putin buddies remember trump getting excited fact putin praising trump wouldnt release tax returns became new narrative trump putin good buddies could bad united states way manifests trump idiot hes neophyte hes outsider doesnt know things doesnt understand wants sidle putin cause likes putin cause putin likes know trumps sophomore trump really poses great danger putin doesnt like putin doesnt like us putin playing trump fool gets ball rolling theres tie theres connection bromance putin trump isnt real bromance barack obama russians makes sense ideologically makes sense politically makes sense historically know obama worked putin disarming united states nuclear arsenal got obama tape telling putins number two guy patient patient ill flexibility election obama turned around democrats turned around theyre saying potential danger trump working russians used potential danger justify wiretaps trumps team campaign transition whats justifying socalled illegal leaking fake news instantaneously irrevocably left wing effort outgoing president undermine predecessor using intelligence agencies would bigger scandal watergate thats whats going thats whats unprecedented mean truman eisenhower hated eisenhower assumed office truman went back haberdashery independence obama hasnt gone anywhere stayed washington running resistance friends bigger story watergate could ever nobody gon na know drivebys never gon na report people watch drivebys probably dont even know loretta lynch bill clinton met airplane dont think even know 90 stuff know obama hillary democrat party cause media watch never reports little experiment liberal friends still peaceful relations next time get together dont confrontational ask start talking things like clinton meeting loretta lynch week election start going sessions ought quit trump ought quit say yeah kind reminds loretta lynch bill clinton met one week fbi gon na render decision investigation hillarys email remember clinton got plane phoenix wont know guarantee never heard story wont know thing youre talking odds might wasnt reported extent remember took local news person even bring story anywhere local phoenix tv person responsible getting story want talk violations ethics morals obama democrats story ongoing effort sabotage undermine outgoing president incoming president | 1,728 |
<p>Jerred Kiloh's eyes narrowed as he checked his mirror again. The black Chevy SUV with tinted windows was still behind him.</p>
<p>It had been hanging off Kiloh's bumper ever since he nosed out of the parking lot behind his medical-marijuana dispensary with $40,131.88 in cash in the trunk of his hatchback.</p>
<p>Continue Reading Below</p>
<p>Kiloh was unarmed, on his way to City Hall to make a monthly tax payment, and managing only stop-and-start progress in the midday traffic. He was afraid of one thing above all else: getting robbed.</p>
<p>That fear is a constant part of doing business in California's flourishing medical cannabis industry, in which transactions are conducted mostly in cash, sometimes in stunningly large amounts.</p>
<p>"The thing I need the least right now is to have to go through any sort of money disappearing," Kiloh said.</p>
<p>On Jan. 1, recreational pot will become legal in California, creating what could be the world's largest legitimate marijuana economy. It comes more than two decades after the state gave its blessing to medical cannabis.</p>
<p>But the emerging marketplace with a projected $7 billion value has a potentially crippling flaw: Many people who work in it can't use a bank. Banks don't want the risks of doing business with companies whose product remains illegal under federal law.</p>
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<p>So while the sneaker shop next door to Kiloh's storefront on Ventura Boulevard can send a check to City Hall to cover its taxes, or wire the money from a laptop, Kiloh has to make a stress-filled, 15-mile (24-kilometer) freeway drive each month to downtown Los Angeles.</p>
<p>California is to marijuana what Iowa is to corn, and what Kentucky is to bourbon — the nation's bud basket, its heartland for production. The transformation of such a vast illegal economy into a legal one hasn't been witnessed since the end of Prohibition in 1933.</p>
<p>The state expects to collect $1 billion in new tax revenue annually from pot within a few years. In L.A. — which is already estimated to have anywhere from 1,000 to 1,700 medical marijuana dispensaries, only about 200 of which paid city taxes in 2016 — the take is projected at $50 million next year alone.</p>
<p>However, governments will almost certainly miss out on money without an easy, secure way for businesses to pay. With no bank records, it will be harder to regulators to track funds and identify shady operators. And those who operate by the book will be undercut by those who don't.</p>
<p>Without banks, "everyone loses," said Nicole Howell Neubert, a marijuana industry lawyer.</p>
<p>Kiloh, a 40-year-old with a graying mohawk and a degree in economics, counts 15 years in the pot industry as a seller and cultivator and is a partner and business manager at a San Francisco dispensary and the owner of the one in Los Angeles.</p>
<p>In the absence of a bank, Kiloh has become his own.</p>
<p>Twist and turn through a warren of rooms inside his shop, go through a door with a keypad lock, and you will come to a closet-like space that contains twin steel vaults, standing head-high. The walls around them are reinforced with steel.</p>
<p>Overhead, more than 50 cameras scan his offices and hallways and keep watch outside the building as well. An armed guard stands at the door to the sales floor.</p>
<p>On a typical day, $15,000 can change hands in his dispensary, where a steady stream of customers pick from shelves stocked with 700 products, from fragrant buds and perfectly rolled joints to cannabis-infused lip balm and potent concentrates known as "shatter" that look like thin sheets of amber glass.</p>
<p>For Kiloh, the cash is a daily hassle. It needs to be counted repeatedly to safeguard against loss. State and local taxes must be set aside and stored, sometimes for a month or more. When vendors show up, they get paid in cash, too.</p>
<p>"When now everyone makes payments through their cellphone, it's tough to see that I'm left to the archaic version of counting money," he said.</p>
<p>With all the cash on hand — he grossed $4 million last year — crime is a gnawing fear. His dispensary on a bustling commercial strip has been robbed twice — once by thieves breaking in through the roof.</p>
<p>The Los Angeles Police Department did not immediately respond to a request for statistics on crimes against marijuana dispensaries, and many cases are believed to go unreported anyway, since many businesses are loath to go to the police.</p>
<p>Last year, though, a dispensary owner shot and wounded two armed men during a holdup in the Los Angeles suburbs. And a security guard at a dispensary was killed in an attempted robbery in Aurora, Colorado, another one of the nine states to legalize recreational pot.</p>
<p>To keep criminals guessing, Kiloh avoids arriving at the same time each day and staggers the times he leaves. He goes in and out different doors. He keeps an eye on cars parked around his shop.</p>
<p>Once a month, Kiloh telephones to make arrangements to drop off his tax payment at the city Finance Department, which gets 6 percent of his gross revenue. They want to know he's coming — it's dangerous for them, too. The agency has seen bags of cash from pot businesses as large as $300,000 come through the door.</p>
<p>His journey to the tax office starts at a windowless back room at his shop, where stacks of $20 bills flip through the counting machine at his desk with the whir-slap-whir-slap of a weed-whacker.</p>
<p>He and his staff then wrap the bills into neat $2,000 bundles and wedge them into a long cardboard box, which is then covered in plain paper and stuffed into a shoulder bag that goes into the trunk.</p>
<p>From the moment he pulls out of his parking lot, he is watching, assessing.</p>
<p>"I find myself looking in my rear-view mirror hundreds of more times than I usually would in just normal traffic, making sure that I'm not being followed," Kiloh said.</p>
<p>"That's what a lot of this industry has been about: Just stay under the radar, and that's your best defense. That's your best kind of safety."</p>
<p>It was on Kiloh's drive to City Hall in late June that he noticed the ominous-looking Chevy. He watched it intently, taking note of the man behind the wheel — glasses, mid-40s to 50s — as he leaned into the accelerator.</p>
<p>Eventually, the Chevy disappeared, but Kiloh wasn't home free yet.</p>
<p>Exiting the freeway, he tried to enter a parking lot near City Hall but was turned away, forcing him farther down the block.</p>
<p>Once inside a garage, he looped around until he found a spot near a stairwell. Lifting his satchel from his trunk, he scurried toward the door.</p>
<p>"I try to not stay in confined places like an elevator, so I'd rather take the standard stairs, plus the standard stairs have video cameras," he said.</p>
<p>The steps opened to a sun-soaked plaza teeming with people. With the cash over his shoulder, he made his way briskly toward City Hall, his head swiveling.</p>
<p>"It's tough when people make eye contact with you," he said. "There is always the fear of what do they know?"</p>
<p>Kiloh spotted a police officer walking across the plaza — an instant source of comfort.</p>
<p>Finally at the granite-faced tower, Kiloh darted up the steps and slipped behind a pair of glass-and-wood doors. He emerged about 20 minutes later, his tax bill paid, and drew in a slow, deep breath.</p>
<p>"You just feel the relief," he said, "to know that I don't have to look over my shoulder."</p> | true | 0 | jerred kilohs eyes narrowed checked mirror black chevy suv tinted windows still behind hanging kilohs bumper ever since nosed parking lot behind medicalmarijuana dispensary 4013188 cash trunk hatchback continue reading kiloh unarmed way city hall make monthly tax payment managing stopandstart progress midday traffic afraid one thing else getting robbed fear constant part business californias flourishing medical cannabis industry transactions conducted mostly cash sometimes stunningly large amounts thing need least right go sort money disappearing kiloh said jan 1 recreational pot become legal california creating could worlds largest legitimate marijuana economy comes two decades state gave blessing medical cannabis emerging marketplace projected 7 billion value potentially crippling flaw many people work cant use bank banks dont want risks business companies whose product remains illegal federal law advertisement sneaker shop next door kilohs storefront ventura boulevard send check city hall cover taxes wire money laptop kiloh make stressfilled 15mile 24kilometer freeway drive month downtown los angeles california marijuana iowa corn kentucky bourbon nations bud basket heartland production transformation vast illegal economy legal one hasnt witnessed since end prohibition 1933 state expects collect 1 billion new tax revenue annually pot within years la already estimated anywhere 1000 1700 medical marijuana dispensaries 200 paid city taxes 2016 take projected 50 million next year alone however governments almost certainly miss money without easy secure way businesses pay bank records harder regulators track funds identify shady operators operate book undercut dont without banks everyone loses said nicole howell neubert marijuana industry lawyer kiloh 40yearold graying mohawk degree economics counts 15 years pot industry seller cultivator partner business manager san francisco dispensary owner one los angeles absence bank kiloh become twist turn warren rooms inside shop go door keypad lock come closetlike space contains twin steel vaults standing headhigh walls around reinforced steel overhead 50 cameras scan offices hallways keep watch outside building well armed guard stands door sales floor typical day 15000 change hands dispensary steady stream customers pick shelves stocked 700 products fragrant buds perfectly rolled joints cannabisinfused lip balm potent concentrates known shatter look like thin sheets amber glass kiloh cash daily hassle needs counted repeatedly safeguard loss state local taxes must set aside stored sometimes month vendors show get paid cash everyone makes payments cellphone tough see im left archaic version counting money said cash hand grossed 4 million last year crime gnawing fear dispensary bustling commercial strip robbed twice thieves breaking roof los angeles police department immediately respond request statistics crimes marijuana dispensaries many cases believed go unreported anyway since many businesses loath go police last year though dispensary owner shot wounded two armed men holdup los angeles suburbs security guard dispensary killed attempted robbery aurora colorado another one nine states legalize recreational pot keep criminals guessing kiloh avoids arriving time day staggers times leaves goes different doors keeps eye cars parked around shop month kiloh telephones make arrangements drop tax payment city finance department gets 6 percent gross revenue want know hes coming dangerous agency seen bags cash pot businesses large 300000 come door journey tax office starts windowless back room shop stacks 20 bills flip counting machine desk whirslapwhirslap weedwhacker staff wrap bills neat 2000 bundles wedge long cardboard box covered plain paper stuffed shoulder bag goes trunk moment pulls parking lot watching assessing find looking rearview mirror hundreds times usually would normal traffic making sure im followed kiloh said thats lot industry stay radar thats best defense thats best kind safety kilohs drive city hall late june noticed ominouslooking chevy watched intently taking note man behind wheel glasses mid40s 50s leaned accelerator eventually chevy disappeared kiloh wasnt home free yet exiting freeway tried enter parking lot near city hall turned away forcing farther block inside garage looped around found spot near stairwell lifting satchel trunk scurried toward door try stay confined places like elevator id rather take standard stairs plus standard stairs video cameras said steps opened sunsoaked plaza teeming people cash shoulder made way briskly toward city hall head swiveling tough people make eye contact said always fear know kiloh spotted police officer walking across plaza instant source comfort finally granitefaced tower kiloh darted steps slipped behind pair glassandwood doors emerged 20 minutes later tax bill paid drew slow deep breath feel relief said know dont look shoulder | 711 |
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